Risk assets have been on a roll for several days. The S&P 500 Index has posted five consecutive weeks of gains, and Bitcoin (BTC) is also up more than 13% this week, indicating aggressive buying by bulls.
Data from BitMEX Research shows $2.7 billion in inflows into the nine Bitcoin exchange-traded funds (ETFs) on February 9, while outflows from Grayscale Bitcoin Trust (GBTC) fell to $51.8 million. Total assets under management of ETFs have soared to $10 billion.
Bitcoin's sharp rise has boosted positive sentiment, but Material Indicators CEO and co-founder Keith Alan warned in an X (formerly Twitter) post that Bitcoin is likely to face strong resistance between the current level and 50,000. Dollars.
While Bitcoin continues to get all the attention, a few select altcoins have started to make their move. Let's look at the charts of the top 5 cryptocurrencies that can outperform in the short term.
Bitcoin price analysis
Bitcoin's rally has reached the tough overhead resistance of $48,970, which is likely to witness a tough battle between the bulls and the bears.
The ascending 20-day exponential moving average ($44,164) and the relative strength index (RSI) in the overbought zone indicate that the path of least resistance is to the upside. If the bulls push the price above $48,970, the BTC/USDT pair may accelerate towards $52,000. If this level is broken, the rally could reach $60,000.
On the contrary, if the price falls sharply from the current level, it will indicate a possible consolidation between $44,700 and $48,970 for a few days. The short-term trend will weaken if it breaks below the 20-day EMA.
The strong bullish move pushed the RSI into the overbought zone on the 4-hour chart, indicating that a correction is possible in the short term. The bears will have to drag the price below the 20 EMA to signal the start of a deeper pullback towards the 50 SMA.
On the contrary, if the price rises from the current level or bounces off the 20 EMA, it will suggest aggressive buying on dips. The pair could then break out of $48,970 and rush towards the next major resistance at $52,000.
Immutable price analysis
Immutable (IMX) broke through the $2.60 resistance on February 10, indicating the resumption of the uptrend.
However, the bears are unlikely to give up easily. They will try to pose a strong challenge at the $2.85 level. If the price declines and falls below $2.60, it will indicate that the bullish momentum is weakening. The IMX/USDT pair may then fall to the 20-day EMA ($2.24). The bears will have to sink the price below the moving averages to signal a comeback.
Alternatively, if the bulls do not give ground to the bears, it will suggest that they are holding their positions in anticipation of a breakout. If the resistance of $2.85 is broken, the pair could rise to $3 and subsequently $3.50.
The price dropped from $2.85, indicating that short-term traders are taking profits near the resistance. Immediate support is at the 20-EMA. If the price bounces off the 20 EMA, it will suggest that sentiment remains bullish and traders are viewing dips as a buying opportunity.
A breakout and close above $2.85 will indicate that the bulls have asserted their supremacy. The pair can then rise to $3. This optimistic view will be invalidated in the short term if the price falls below the 20-EMA. That may start a fall towards the 50-SMA.
Caspian price analysis
The bulls successfully defended the $0.10 psychological support during the correction in Kaspa (KAS), indicating buying at lower levels.
The KAS/USDT pair gained momentum after breaking above the moving averages on February 7 and reached the stiff overhead resistance near $0.15. Sellers will try to stop the bullish movement at this level.
The first support on the downside is $0.13. If this level holds, the possibility of a break above $0.15 increases. The bulls will then try to resume the uptrend. There is minor resistance at $0.16, but if this level is scaled, the pair can reach $0.20.
On the other hand, a break and close below $0.13 may keep the pair range-bound between $0.10 and $0.15 for a while.
The 4-hour chart shows that the pair is in a strong uptrend. The 20-EMA is the crucial support to watch out for. If the price rises from the current level or bounces off the 20 EMA, it will indicate that the bulls are still buyers on pullbacks. A break and close above $0.15 will mark the beginning of the next leg of the uptrend.
If the bears want to avoid the rise, they will have to lower the price below the $0.13 support. If they do, selling may increase and the pair could fall to the 50 SMA and then $0.10.
Related: Why has the price of Ether (ETH) risen today?
Celestia Price Analysis
Celestia (TIA) has been in an uptrend for several days, but the bulls are facing strong resistance at the $20.40 level.
Rising moving averages and RSI in positive territory indicate that buyers remain in control. If the bulls do not give up much ground from the current level, prospects for a rally above $20.40 will improve. If that happens, the TIA/USDT pair could travel towards its next target of $25.
On the contrary, if the price turns down from the current level and falls below the 20-day EMA ($18.01), it will indicate that the bulls are rushing towards the exit. The short-term trend will tilt in favor of the bears in case of a break below the 50-day SMA ($16.16).
The pair's failure to hold above the overhead resistance at $20.40 may have attracted profit booking. This has taken the price below the 20 EMA, indicating the start of a pullback towards the uptrend line.
If the price bounces off the uptrend line, the bulls will again try to clear the $20.40 hurdle. If they are successful, the pair may jump to $21.14 and begin the next leg of the upward movement to $25.
Conversely, a break below the uptrend line will indicate that the bears have taken control in the short term. The pair may fall to $15.60.
Battery price analysis
Stacks (STX) has broken above the $1.78 resistance after a brief correction, indicating solid demand at lower levels.
The 20-day EMA ($1.62) began to rise and the RSI jumped near the overbought zone, indicating that the bulls are in control. The STX/USDT pair could reach the overhead resistance of $2.06, which is likely to act as a formidable obstacle. If buyers overcome it, the pair may rise to $3.
The 20-day EMA is the important support to pay attention to on the downside. The bulls are expected to vigorously defend this level, but if the bears prevail, the pair may fall to $1.45.
The bulls are buying the dips to the 20-day EMA, but are likely to face stiff resistance from the bears in the $2 to $2.06 zone. If the price turns down from the upper zone but finds support at the 20 EMA, the probability of a breakout above the resistance will increase. The pair could then resume its uptrend.
The first sign of weakness will be a break and close below the 20 EMA. It will indicate that the bulls are losing control. Then, the pair may slide towards the 50 SMA.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
