Price analysis 2/9: BTC, ETH, BNB, XRP, ADA, SOL, LUNA, AVAX, DOT, DOGE
Bitcoin (BTC) has recovered close to $44,000, indicating that the downtrend could be coming to an end. However, the price may not rally to the all-time high in a straight line. This means bulls are likely to face several hurdles in-between and the price action may remain volatile.
JPMorgan analysts said in a recent investor note that Bitcoin’s boom and bust cycles are hindering further institutional adoption. The analysts estimate that with volatility four times that of gold, Bitcoin’s fair value is about $38,000. If the volatility reduces to three times that of gold, their fair value estimate for Bitcoin rises to $50,000.
Wells Fargo Investment Institute, the research division of Wells Fargo Wealth and Investment Management, in its report titled "Cryptocurrencies — Too early or too late?" said the crypto markets were still in the early days of adoption. The report added that “most of the opportunity lies before us, not behind us [...]”.
Could Bitcoin and altcoins extend their relief rally or will profit-booking pull prices lower? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin broke above the 50-day simple moving average ($42,659) on Feb. 7 and reached the overhead resistance at $45,456 on Feb. 8. This level proved to be a strong resistance and the price turned down from it.
The BTC/USDT pair formed a Doji candlestick pattern on Feb. 8, indicating indecision among the bulls and the bears. However, the upsloping 20-day exponential moving average ($40,751) and the relative strength index (RSI) in the positive zone indicate that the path of least resistance is to the upside.
If bulls thrust the price above $45,456, the pair could rise to $48,000 and thereafter to the stiff overhead resistance at
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