Key Points
- Bitcoin's market capitalization surpasses $1 trillion fueled by demand from spot Bitcoin ETFs, with significant implications for the broader cryptocurrency market.
- Technical analysis suggests potential bullish momentum for Bitcoin and selected altcoins, driven by market sentiment and institutional interest.
- Traders should closely monitor price movements and key resistance levels to identify potential entry and exit points amidst ongoing market volatility.
Bitcoin’s BTC market capitalization reached $1 trillion on Feb. 14, buoyed by the strong demand from the newly launched spot Bitcoin exchange-traded funds. Data shows the ETFs recorded more than $600 million in inflows on Feb. 13 alone.
Bitcoin ETFs bought 10 times more Bitcoin than what miners produced on Feb. 12. Pomp Investments founder Anthony Pompliano said in an interview with CNBC that roughly $200 billion in Bitcoin is tradable as 80% of the total supply has been dormant. Pomp added that the Bitcoin ETFs have devoured 5% of Bitcoin’s entire tradeable supply within 30 days of their launch.
The sharp rally in Bitcoin sent the Crypto Fear and Greed Index score to 79 on Feb. 13, showing “extreme greed.” The last time the index entered the “extreme greed” zone was in mid-November 2021 when Bitcoin reached the all-time high of $69,000. During strong bull phases, the sentiment may remain in the extreme greed zone for an extended period, but the higher the price goes, the greater the risk of a correction.
Therefore, traders should keep a close watch on the technicals of Bitcoin to spot a possible reversal in the near term. Could Bitcoin extend its rally above $52,000, or will traders book profits, starting a short-term correction? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) Price Analysis
Bitcoin started the next leg of the uptrend after breaking out of the $48,970 resistance on Feb. 12. The bears tried to tug the price back below the breakout level and trap the aggressive bulls, but the long tail on the Feb. 13 candlestick shows strong buying at lower levels.
Although the upsloping 20-day exponential moving average ($45,826) indicates advantage to buyers, the overbought levels on the relative strength index (RSI) suggest the BTC/USDT pair may have run up too fast. That could start a short-term correction or consolidation in the next few days.
The $52,000 level is likely to act as a significant hurdle for the bulls. If the price turns down from the overhead resistance and breaks below $48,970, it will suggest the formation of a short-term top. The pair may then skid to the 20-day EMA. A break below this support will suggest that the bulls are losing their grip.
Contrarily, if buyers catapult the price above $52,000, the pair could climb to $60,000.
Ether (ETH) Price Analysis
Ether ETH picked up momentum after breaking above the $2,400 resistance, indicating solid buying by the bulls.
The bulls shoved the price above the $2,717 resistance on Feb. 14, signaling the resumption of the uptrend. If buyers sustain the breakout, the ETH/USDT pair could skyrocket to the psychologically important level of $3,000. This level may witness profit booking by the short-term traders.
Time is running out for the bears. They will have to yank and sustain the price below $2,600 to weaken the bulls. The pair may then fall to the 20-day EMA ($2,462).
Solana (SOL) Price Analysis
The bulls successfully defended the retest of the breakout level of $107 in Solana SOL, indicating that the sentiment has turned positive.
There is a minor resistance at $117, but that is likely to be crossed. If that happens, the SOL/USDT pair could rise to the stiff overhead resistance at $127. This level may act as a formidable hurdle, but if the bulls prevail, the rally could reach the pattern target of $135.
The first sign of weakness will be a break and close below the moving averages. That will signal selling at higher levels and may trap the aggressive bulls. The pair could then descend toward the solid support at $80.
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