Tuesday, 20 February 2024

Crypto News



This week Bitcoin (BTC) price saw a shallow pullback, but the intra-day rally to the $44,000 level is an indication that the bulls are not hurrying to close their positions. Data from the popular HODL Waves metric shows that investors who purchased Bitcoin between December 2020 and December 2021 have been sitting on their coins.

Investors have not been selling into strength because they anticipate higher levels in the future. Asset manager VanEck said in its crypto predictions for 2024 that Bitcoin would make a new all-time high, buoyed by the “political events and regulatory shifts following a U.S. presidential election.”

Daily cryptocurrency market performance. Source: Coin360

Bitcoin’s rally of the past few days has also attracted investors to select altcoins, such as Ether (ETH), Cardano (ADA) and Solana (SOL). Research firm Santiment remains positive on the prospects of Bitcoin. It said on Dec. 7 that if FUD increases, Bitcoin could surge to $50,000.

Will Bitcoin find buyers at lower levels and resume its charge to $48,000, or will the action shift to altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price analysis

Bitcoin turned down from $44,500 on Dec. 5, indicating profit-booking by short-term traders. Pullbacks are usually shallow in strong uptrends and do not last long because the bulls eagerly buy the dips.

BTC/USDT daily chart. Source: TradingView

If the price turns up from the current level and breaks above $44,500, it will signal the start of the next leg of the journey toward $48,000. Sellers are expected to defend this level with all their might.

If the price turns down from $44,500, the first support on the downside is at the 38.2% Fibonacci retracement level of $41,862. If this level cracks, the BTC/USDT pair may plunge to the 20-day exponential moving average ($39,868). Buyers will have to defend this level if they want to keep the bullish momentum intact.

Ether price analysis

The bears tried to pull Ether (ETH) below the breakout level of $2,200 on Dec. 6, but the bulls held their ground. This suggests that buyers are attempting to flip $2,200 into support.

ETH/USDT daily chart. Source: TradingView

The ETH/USDT pair completed a bullish ascending triangle pattern when it broke out of $2,200. This bullish setup has a target objective of $3,400. However, it is unlikely to be a straight dash higher. Sellers will try to halt the advance near $2.500 and again at $3,000.

The critical support zone for the…

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