Crypto: Bitcoin, Ethereum Signal Key Levels

What to Know:

• Key takeaway #1 — Bitcoin bulls are struggling to sustain intraday rallies, suggesting increased selling pressure on minor price increases.
• Key takeaway #2 — U.S. spot Bitcoin ETFs have recorded significant net outflows this week, potentially hindering sustained recovery without renewed institutional interest.
• Key takeaway #3 — Traders should closely monitor key support and resistance levels for Bitcoin and major altcoins to anticipate potential breakouts or breakdowns.

Bitcoin’s struggle to maintain gains above $68,300 indicates a challenging environment for bulls. The potential for a fifth consecutive red monthly candle underscores the bearish sentiment, reminiscent of the 2018/19 period. Monitoring Bitcoin ETF flows is crucial for gauging institutional activity and potential market recovery.

Bitcoin Price Prediction

Bitcoin bulls have managed to hold the price above the $65,118 support, signaling buying interest at lower levels. To regain control, buyers need to push the Bitcoin price above the 20-day exponential moving average (EMA) at $71,247. Successfully doing so could lead to a climb toward the $74,508 breakdown level, which sellers are expected to defend vigorously.

A break above $74,508 would suggest a potential short-term bottom, possibly driving the pair toward the 50-day simple moving average (SMA) at $82,258. Conversely, if sellers manage to break below $65,118, it would indicate increasing weakness, potentially leading to a retest of the February 6 low at $60,000, a level likely to attract strong buying interest from bulls.

Will Altcoins Follow Bitcoin’s Lead?

Ether (ETH) has been consolidating between $1,750 and $2,111, reflecting market uncertainty. A minor support level exists at $1,897, but a break below this could send the ETH/USDT pair down to the $1,750 support. Buyers are expected to defend the $1,750 level fiercely, as a close below it could trigger a further decline to $1,537.

Bulls could regain control with a close above the $2,111 resistance, potentially initiating a rally towards the 50-day SMA at $2,665. Sellers might attempt to halt this recovery at the 50-day SMA, but if buyers prevail, the pair could surge to $3,045. The performance of Ether often mirrors broader market sentiment, making these levels critical for traders to watch.

XRP and BNB Technical Analysis

XRP’s (XRP) failure to break above the 20-day EMA at $1.50 indicates weak demand at higher levels. The XRP/USDT pair may slide to the support line, a crucial level to monitor. A sharp rebound from this support, followed by a break above the 20-day EMA, would suggest the pair may remain within its descending channel for a longer period. Buyers need to break the downtrend line to signal a potential short-term trend change.

Conversely, a break and close below the support line would indicate bearish control, potentially leading to a tumble towards $1.11 and subsequently to $1. BNB (BNB) has been gradually sliding towards the $587-$570 support zone, suggesting bearish momentum. A break below this zone could trigger a downtrend toward the psychological level of $500. This bearish outlook would be negated if bulls push the price above the $669 resistance, potentially surging to $730 and then to the 50-day SMA at $797.

What Are the Key Levels for Solana and Dogecoin?

Solana (SOL) bulls are struggling to maintain the price above the $76 support, indicating a weak bounce. This increases the risk of a break below $76, potentially plummeting the SOL/USDT pair to the February 6 low of $67. Buyers are expected to defend the $67 level strongly, as a close below it could sink the pair to $50.

The first sign of strength would be a break and close above the $95 breakdown level, indicating weakening bearish control. The Solana price could then rally to the 50-day SMA at $114. Dogecoin (DOGE) buyers are attempting to push the price above the 20-day EMA at $0.10, but bears have held their ground. A positive sign is that bulls have not ceded much ground, increasing the possibility of a break above the 20-day EMA, potentially rallying to $0.12. A break below $0.09 would suggest bearish control, potentially sinking the pair to the critical $0.08 support.

Institutional Sentiment and Liquidity Indicators

Bitcoin Cash (BCH) has slipped below the 20-day EMA at $548, suggesting bears are attempting to take control. If the Bitcoin Cash price sustains below the 20-day EMA, the BCH/USDT pair may plummet to the next major support at $500. Buyers are expected to defend this level vigorously, as a close below it could open the doors for a fall to the vital support at $443.

Bulls need to push and maintain the price above the 50-day SMA at $575 to signal strength. The pair may then jump to $600 and later to $631, where aggressive selling is expected between $631 and $670. Monitoring institutional sentiment and liquidity indicators is essential for anticipating potential shifts in market dynamics and overall Bitcoin price movement.

Analyzing these technical levels provides insights into potential future movements for Bitcoin and key altcoins. Traders should consider these levels alongside broader market trends and news to make informed decisions, particularly keeping an eye on ETF flows, derivatives data, and funding rates to gauge institutional sentiment and liquidity.

Related: Bitcoin Struggles: Crypto ETF Flows, Bear Signals

Source: Original article