BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, SOL, DOT, SHIB

Bitcoin (BTC) is struggling to stay above $23,000 as the weekend approaches. Selling pressure increased after expenditure on personal consumption excluding food and energy rose by 0.6% in January and 4.7% during the year, above market expectations for an increase of 0.5% and 4.4% respectively.

This could trigger fears that the US central bank will have to continue its interest rate hikes to get inflation under control. Expectations of a rate hike could further strengthen the US dollar index, which is already near seven-week highs, and could put pressure on cryptocurrency markets in the short term.

A fall in the cryptocurrency markets could start a discussion that the rally in January may have been a bull trap. However, the price action in Bitcoin and several altcoins shows that a bottom formation may have begun. The next dive can form a higher low before attempting a move higher.

What are the important support levels in Bitcoin and altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Buyers successfully held the 20-day exponential moving average ($23,440) over the past two days, but the failure to sustain the rally attracted strong selling on February 24.

The negative divergence on the relative strength index (RSI) suggests that the bullish momentum is weakening. The BTC/USDT pair has reached immediate support at $22,800.

A break below this level could retest the crucial support zone between the 50-day simple moving average ($22,052) and $21,480.

Alternatively, if the price does not hold below the 20-day EMA, it would indicate that bulls are buying the dips as they anticipate a move higher. A break and close above $25,250 could start the next leg of the uptrend.

ETH/USDT

Ether (ETH) fell below the 20-day EMA ($1,624) on February 22, but the long tail of the candlestick shows solid buying at lower levels. The bulls tried to build on the advantage on February 23 and drive the price above $1,680, but the bears held their ground.

Selling intensified on February 24 and the price fell to the 50-day SMA ($1,565). This is an important support for the bulls to guard because if it cracks, the ETH/USDT pair could plunge to $1,461.

Conversely, if the price rebounds off the 50-day SMA with strength, it would indicate that bulls are buying the dips. The buyers will then attempt to kick the price above the $1,680 to $1,743 resistance zone and resume the rally.

BNB/USDT

BNB’s (BNB) tight range trade between the overhead resistance at $318 and the 50-day SMA ($304) resolved to the downside on February 24. This indicates that bears have overpowered the bulls.

Although the 20-day EMA ($310) is flat, the RSI has dipped below 46, suggesting that the momentum is shifting in favor of the bears. The BNB/USDT pair may fall to the $280 level. This is an important level to watch out for because a break below it will complete a bearish head and shoulders (H&S) pattern.

If buyers want to avoid the sharp decline, they need to quickly get the price back above $318. That could clear the way for an ascent to the neck of the bullish inverse H&S pattern.

XRP/USDT

XRP (XRP) has been trading near the resistance line of the descending channel pattern for the past few days, but the bulls could not force a breakout.

It may have attracted selling from the short-term bears that dragged the price below the moving average. The XRP/USDT pair may now fall to solid support at $0.36. If this level also fails to hold, the decline could extend to $0.33.

Contrary to this assumption, if the price pulls back from $0.36, the bulls will make one more attempt to overcome the barrier at the resistance line. If they manage to do so, the pair could rise to the overhead resistance at $0.43.

ADA/USDT

The bulls managed to hold Cardano (ADA) above the immediate support at $0.38 over the past two days, but failed to sustain the pullback above the 20-day EMA ($0.39). This suggests that bears are selling at smaller rallies.

The price fell to the 50-day SMA ($0.37) on February 24. If this support gives way, the ADA/USDT pair could slide to the strong support zone between $0.34 and $0.32. Buyers are expected to defend this zone with all their might, because if they fail to do so, selling may intensify and a fall towards $0.27 cannot be ruled out.

Conversely, if the price goes up from the current level, the bulls will again try to push the price above the 20-day EMA and retest the neckline of the inverse H&S pattern.

DOGE/USDT

After staying above the 50-day SMA ($0.08) for several days, Dogecoin (DOGE) dropped below the February 23 level. This indicates a slight advantage for the bears.

The DOGE/USDT pair may fall to the strong support near $0.08. Buyers are likely to defend this level aggressively because a break and close below it could complete a bearish H&S pattern in the short term. It could start a downward movement towards the critical support at $0.07 and then to the pattern target at $0.06.

If bulls want to take the upper hand, they need to push the price above $0.09. That could result in a retest of the $0.10 to $0.11 resistance zone.

MATIC/USDT

Polygon (MATIC) rebounded from the 20-day EMA ($1.32) on February 22 as seen from the long tail of today’s candlestick. However, the bears sold the recovery and the price fell below the 20-day EMA on February 24.

During uptrends, if the 20-day EMA breaks, short-term bulls tend to book profits. It starts a deeper correction, sometimes extending to the 50-day SMA ($1.13). Here again, if the bears sustain the price below $1.30, the MATIC/USDT pair could fall to the 50-day SMA. This level will probably again attract buyers.

If bulls want to prevent a deeper correction, they need to quickly push the price above the downtrend line. The pair could then rise to $1.50 and then to $1.57.

Related: Bitcoin price continues to fall, but derivatives data suggests a short-term rally to $25K

SOL/USDT

Solana (SOL) failed to bounce back from its 20-day EMA ($23.32) over the past two days, indicating a lack of aggressive buying from the bulls. That might have encouraged the bears which dragged the price to the 50-day SMA ($22.19).

The flattening 20-day EMA and RSI near the midpoint indicate that buying pressure is easing. If the 50-day SMA gives way, the SOL/USDT pair could fall to the next support at $18.73. This is an important level to watch because a break below it could initiate a deeper correction to $15.

This negative view will be invalidated in the short term if the price breaks out of the moving averages and rises above $28. The pair can then quickly run up to $39.

DOT/USDT

Polkadot (DOT) bounced off the 20-day EMA ($6.79) on February 22 and rose above the $7.25 resistance on February 23, but the bulls failed to sustain the rally. This indicates that the bears are attempting a comeback.

The selling continued on February 24 and the bears have pulled the price below the 20-day EMA. The immediate support is at the 50-day SMA ($6.25), but if it cracks, selling could accelerate and the DOT/USDT pair could dive to $5.50.

If bulls want to invalidate the bearish view, they need to defend the moving averages and push the price above $7.39. That would indicate strong demand at lower levels. The pair could then rise to $8 and then to $9.50.

SHIB/USDT

The long wick on the Shiba Inus (SHIB) February 23 candlestick shows that bears are selling on rally near the overhead resistance at $0.000014.

The price action in recent days has formed a symmetrical triangle pattern, indicating indecision among the bulls and bears. The advantage could tilt in favor of the bears if the price breaks and holds below the triangle. It may start a slide to 50-day SMA ($0.000012) and finally to $0.000011.

Contrary to this assumption, if the price goes up and breaks above $0.000014, it will indicate that bulls are back in the driver’s seat. The SHIB/USDT pair could then climb to $0.000016.

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