Price analysis 2/21: BTC, ETH, BNB, XRP, ADA, SOL, AVAX, LUNA, DOGE, DOT
Bitcoin (BTC) dipped below $38,000 on Feb. 21 but the bulls are attempting to arrest the decline and start a recovery. The sustained weakness in 2022 seems to have toned down expectations of a strong rally.
Huobi crypto exchange co-founder Du Jun said that if the Bitcoin halving cycle repeats, then the current weakness could be the start of a bear market. Jun believes that the next Bitcoin bull cycle is expected to begin either at the end of 2024 or at the beginning of 2025.
In the short term, crypto markets are likely to be influenced by the geopolitical developments between Russia and Ukraine, cues from the U.S. Federal Reserve on its tightening cycle and the performance of the assets perceived as risky.
Could Bitcoin and select altcoins recover from the recent lows or will the selling pick up momentum? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
Bitcoin plunged and closed below the key support at $39,600 on Feb. 20. The selling resumed today and the bears pulled the price to $37,213.63.
The sharp selling in the past few days has pulled the relative strength index (RSI) into the negative territory and the 20-day exponential moving average ($40,986) has turned down. This indicates the path of least resistance is to the downside.
The buyers are attempting to push the price back above the breakdown level at $39,600. This is an important level to watch out for because if bears flip this level into resistance, the selling could intensify and the BTC/USDT pair could drop to the $36,250 to $35,507.01 support zone.
Conversely, if bulls push and sustain the price above $39,600 and the moving averages, it will indicate strong demand at lower levels. That could open the gates for a possible rally to $45,821.
Eth
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