Bitcoin Soars as ETFs Drive $1 Trillion Market Cap
Bitcoin’s market capitalization reached $1 trillion on February 14, fueled by robust demand from the recently launched spot Bitcoin exchange-traded funds (ETFs). Data revealed that these ETFs recorded over $600 million in inflows on February 13 alone. Bitcoin ETFs bought ten times more Bitcoin than what miners produced on February 12. Pomp Investments founder Anthony Pompliano stated in a CNBC interview that roughly $200 billion in Bitcoin is tradable, as 80% of the total supply has been dormant. Pomp added that the Bitcoin ETFs have consumed 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 February 13, indicating “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, sentiment may remain in the extreme greed zone for an extended period, but as the price increases, so does the risk of a correction. Therefore, traders should carefully monitor Bitcoin’s technical indicators to identify a potential reversal in the near term. Could Bitcoin extend its rally above $52,000, or will traders take profits, initiating a short-term correction? Let’s analyze the charts of the top 10 cryptocurrencies to discover the answers.
Bitcoin Price Analysis
Bitcoin initiated the next leg of its uptrend after breaking out of the $48,970 resistance level on February 12. The bears attempted to pull the price back below this breakout level and trap aggressive bulls, but the long tail on the February 13 candlestick demonstrated strong buying at lower levels. BTC/USDT daily chart.
Although the upsloping 20-day exponential moving average ($45,826) indicates an advantage for buyers, the overbought levels on the relative strength index (RSI) suggest the BTC/USDT pair may have risen too quickly. This could initiate a short-term correction or consolidation in the coming days. The $52,000 level is likely to act as a significant hurdle for the bulls. If the price turns down from this overhead resistance and breaks below $48,970, it will indicate the formation of a short-term top. The pair may then slide to the 20-day EMA. A break below this level will suggest that the bulls are losing their grip.
Conversely, if buyers catapult the price above $52,000, the pair could climb to $60,000.
Ether Price Analysis
Ether (ETH) picked up momentum after breaking above the $2,400 resistance, signaling strong buying by the bulls. ETH/USDT daily chart.
The bulls pushed the price above the $2,717 resistance on February 14, indicating the resumption of the uptrend. If buyers sustain this breakout, the ETH/USDT pair could skyrocket to the psychologically important level of $3,000. This level may witness profit booking by short-term traders.
Time is running out for the bears. They will have to convincingly pull and sustain the price below $2,600 to weaken the bulls. The pair may then fall to the 20-day EMA ($2,462).
Solana Price Analysis
The bulls successfully defended the retest of the breakout level of $107 in Solana (SOL), indicating that the sentiment has turned positive. SOL/USDT daily chart.
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 several aggressive buyers. The pair could then descend toward the solid support at $80.
BNB Price Analysis
The bulls purchased the dip to the 20-day EMA ($314) on February 12, indicating that lower levels are attracting buyers in BNB (BNB). BNB/USDT daily chart.
The upsloping moving averages and the RSI near the overbought zone indicate that the path of least resistance is to the upside. The BNB/USDT pair could reach the overhead resistance at $338. If this level is conquered, the pair could accelerate toward $360 and subsequently to $400.
On the contrary, if the price turns down sharply from $338, it will indicate that bears are active at higher levels. A break below the moving averages could start a deeper pullback to the essential support at $288.
XRP Price Analysis
XRP continues to witness a tough battle between the bulls and the bears near the 20-day EMA ($0.52), indicating uncertainty about the next directional move. XRP/USDT daily chart.
The flattish 20-day EMA ($0.52) and the RSI near the midpoint do not give a clear advantage either to the buyers or the sellers. Buyers will gain the upper hand if they overcome the obstacle at the downtrend line. That may open the doors for a possible rally to the $0.10 to $0.11 resistance zone.
The advantage will tilt in favor of the bears if they sink and sustain the price below the uptrend line. The XRP/USDT pair could then plummet to $0.07 and later to the critical support at $0.06.
Cardano Price Analysis
Buyers pushed Cardano (ADA) above the descending channel pattern on February 12 but have struggled to start an upward movement. ADA/USDT daily chart.
The upsloping 20-day EMA ($0.52) and the RSI in the positive territory give a slight edge to the bulls. If the price maintains this upward trend, the ADA/USDT pair could reach the $8.58.
The bears are likely to have other plans. They will try to pull the price below the 20-day EMA ($7.08), which will be the first sign of weakness. The pair may then retest the breakout level of $17.32.
Polkadot Price Analysis
After facing resistance at the 50-day SMA ($7.28) for several days, the bulls finally propelled Polkadot (DOT) above the overhead hurdle on February 13. DOT/USDT daily chart.
The rise above the 50-day SMA increases the likelihood of the failure of the H&S pattern. That may attract buyers who will try to drive the price to the $8.58. This level may witness strong selling by the bears.
If bears want to make a comeback, they will have to sink and sustain the price below the 20-day EMA ($7.08). If they do that, the DOT/USDT pair could plummet to the robust support at $6.
Dogecoin Price Analysis
Dogecoin (DOGE) has been trading near the moving averages for the past few days, indicating a balance between buyers and sellers. DOGE/USDT daily chart.
The flattish 20-day EMA ($0.08) and the RSI just above the midpoint do not give a clear advantage either to the buyers or the bears. Buyers will gain the upper hand if they overcome the obstacle at the downtrend line. That may open the doors for a possible rally to the $0.10 to $0.11 resistance zone.
The advantage will tilt in favor of the bears if they sink and sustain the price below the uptrend line. The DOGE/USDT pair could then plummet to $0.07 and later to the critical support at $0.06.
Chainlink Price Analysis
Chainlink (LINK) has pulled back in an uptrend, indicating profit booking by short-term traders near $20.85. LINK/USDT daily chart.
During strong uptrends, the pullbacks usually do not last for more than three days because the bulls jump in to buy on every minor dip. If the price turns up and breaks above the $20.85, the LINK/USDT pair could skyrocket to the pattern target of $21.79.
The bears are likely to have other plans. They will try to pull the price below the 20-day EMA ($18.09), which will be the first sign of weakness. The pair may then retest the breakout level of $17.32.
