MATIC, HBAR, LDO and BIT rally as Bitcoin prices pull back

Bitcoin (BTC) price is trying to recover over the weekend, but the current rally lacks conviction. This suggests that dip buyers are nervous about loading up ahead of the February 14 release of January’s CPI data, as that could increase short-term volatility.

Although the near term is uncertain, analysts at Delphi Digital expect the US central bank to move to an accommodative policy later in the year, and that could be beneficial for risk assets.

Another bullish forecast came from Pantera Capital CEO Dan Morehead who said Bitcoin’s “seventh bull cycle” may have begun. Morehead highlighted that the decline from November 2021 to November 2022 lasted 376 days and BTC price witnessed a 77% decline, in line with the 307-day median decline and 73% median decline seen during previous bear markets.

Analysts seem to be bullish on Bitcoin in the long term, but the short term is still uncertain.

Let’s study the charts of Bitcoin and select altcoins to find the critical levels you should watch out for.

BTC/USDT

Bitcoin spun to the strong support of $21,480 on February 10. The zone between the 50-day simple moving average ($20,347) and $21,480 is likely to attract aggressive buying by the bulls.

The first hurdle to the upside is the 20-day exponential moving average ($22,347). This must be crossed to suggest that bulls are back in the driver’s seat. There is a minor hurdle at $22,800, but if scaled, the BTC/USDT pair could retest $24,255.

The bears are expected to defend the $24,255 to $25,211 zone with all their might, because if this obstacle is surpassed, the pair could signal a potential trend change.

Conversely, if the price drops below the 50-day SMA, it would indicate that bears are back in the game. The pair may then visit the vital support zone between $18,000 and $16,000.

The 4-hour chart shows that the bulls are trying to start a rebound of $21,480, but are facing selling near the 20-EMA. If the price declines from the current level and breaks below $21,480, the bears may attack the psychological $20,000 level with force.

The 20-EMA is flattening and the relative strength index (RSI) is gradually rising towards the midpoint. This indicates that short-term selling pressure may ease.

If buyers drive the price above the 20-EMA, the pair could rise to $22,800 where the bears could mount a strong defense.

MATIC/USDT

Polygon (MATIC) has witnessed only a shallow pullback in recent days, signaling that traders are not exiting their positions in a hurry and buying on minor dips.

The rising moving averages indicate that the bulls are in control. The negative divergence on the RSI is a matter of concern, but a positive sign is that the bears have not been able to move the price below the 20-day EMA ($1.17).

That improves the prospects for a break above the overhead zone between $1.30 and $1.35. If bulls are successful in their attempt, the MATIC/USDT pair could start an upward move to $1.50 and then to $1.70.

The first sign of weakness will be a break and close below the 20-day EMA. That clears the way for a potential drop to $1.05.

The 4-hour chart shows that bears are offering formidable resistance in the $1.30 to $1.35 range, but a positive sign is that buyers haven’t given much ground to the bears. This suggests that the bulls expect a move higher. If they push the price above $1.35, the pair could start the next leg of the uptrend.

If bears want to take control in the short term, they need to lower the price below $1.20. That could increase the possibility of a drop to $1.05. There is a minor support near $1.15, but it may not last.

HBAR/USDT

Most major cryptocurrencies are resuming their recent rallies, but Hedera Hashgraph (HBAR) has outperformed in the short term, breaking out of the $0.08 overhead resistance.

The 20-day EMA ($0.07) is sloping up and the RSI is in the overbought territory, indicating that bulls are in command. However, the long wick on the February 12 candlestick shows selling at higher levels.

The HBAR/USDT pair may witness a tough fight near the $0.08 breakout level. If bulls defend this level and turn it into support, the pair could start another up move towards $0.11. If this level also scales, the upside move could extend to $0.15.

Conversely, if the price plunges below the breakout level, it would indicate that bears are continuing to sell on the rally. The pair may then fall to the 20-day EMA.

The 4-hour chart suggests that traders are booking profits near the psychological resistance at $0.10. The pair may pull back towards the 20-EMA, which is close to the breakout level. Buyers are likely to buy the dip to this level. If they do, the pair could try to rise above $0.10 and resume the up move.

Conversely, if the price dips below $0.08, it could catch more aggressive bulls. That could result in prolonged liquidation and a drop to $0.07. The deep correction may delay the start of the next stage of the up movement.

Related: Bitcoin price looks back at $22K with the BTC market structure yet to be broken

LDO/USDT

LidoDAO (LDO) has been volatile in recent days, but a positive sign is that the bulls have defended the 20-day EMA ($2.32). This indicates that sentiment remains positive and traders are buying the dips.

Buyers will then try to drive the price to the solid overhead resistance at $3. This level is likely to attract aggressive selling by the bears because if they allow $3 to be pierced, the LDO/USDT pair could gain momentum and rise towards $4. The gradually rising 20-day EMA and RSI in the positive territory indicate that buyers have the advantage.

On the contrary, if the price goes down and breaks below the 20-day EMA, it will suggest that the pair may fluctuate between $3 and $1.72 for a few days.

The price broke below the 50-SMA, but the bears could not build on this momentum and sink the pair to immediate support at $2. Buyers bought the decline to $2.20 and pushed the price back above the moving averages. The pair could rise to $2.80 and then to $3.

Sellers probably have other plans. They will try to pull the price back below the moving averages and retest the support at $2.20. If this level breaks, the pair could fall to $2. Such a move would point to a possible range bound action in the near future.

BIT/USDT

While several cryptocurrencies have given back some of the recent gains, BitDAO (BIT) has managed to stay above its immediate support at the 20-day EMA (0.55). This suggests that the bulls are in no rush to book profits.

The BIT/DAO pair is not out of danger yet as the long wick on the February 11 candlestick shows bears selling on rallies near $0.60. The bears will again try to lower and maintain the price below the 20-day EMA. If they can pull it off, the pair could extend the pullback to the 50-day SMA ($0.48).

Conversely, if the price pulls back from the 20-day EMA, the bulls will again take a shot at the $0.60 resistance. A break and close above this level will signal resumption of the uptrend. The pair may then rise to $0.65 and then to $0.69.

The 4-hour chart shows the pair stuck between the support at $0.54 and the resistance at $0.60. Both moving averages flatten and the RSI is near the midpoint, indicating a balance between supply and demand.

Usually, a consolidation above crucial support is a positive sign, and it increases the likelihood of a continuation of the rally. If bulls push the price above $0.60, the rally could continue.

The bears will gain the upper hand if the price dips below $0.54. That could open the doors for a possible drop to $0.50 and then to $0.46.

The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.