Bitcoin’s attempts to turn the $ 42,000 level into support could lead to retailers entering instruments such as Ether, Nier, Mana and Leo.
The price of bitcoin rose above $ 40,000 on February 4 (February 4) and has successfully maintained this level over the past few days. According to CoinGecko, the move raised the total market value from $ 1.78 trillion on February 3 to $ 2 trillion yesterday.
Last week, documents from the new financial disclosure of Texas Sen. Republican Ted Cruz, a former US presidential candidate, showed that he bought between $ 15,000 and $ 50,000 in bitcoins with the help of River Brokerage. At the time, the price of bitcoin ranged from $ 36,000 to $ 37,000, and if he had not yet sold his bitcoins, his current profit would have been between $ 2,000 and $ 6,500.
Is Bitcoin able to maintain current levels and even grow further? If we accept this, will the altcoins accompany it? We will look at five currencies that are capable of an uptrend this week.
The price of bitcoin rose on February 4 (February 15) and closed above the 20-day moving average (EMA-20, blue line in the photo) to $ 39,600, a sign that cows are regaining strength in the trading market. bitcoin. The short-term fluctuation in the price of bitcoin on February 5 (February 6) shows a reluctance to sell by buyers who bought at lower levels and price below and are still trying to reach the most desirable levels.
The entry of the relative strength index (RSI) in the positive range shows the superiority of cows in the short term. However, this process may not take long for the Bitcoin / Tetra currency pair; The bears are trying to put a barrier of resistance in the simple 50-day moving average (SMA-50, red line pictured) between $ 42,860 and $ 44,500 in the bitcoin price range.
Now, if the price of bitcoin falls above costs but does not fall below $ 39,600, this indicates that this level could become a fulcrum for bitcoin. The cows are also trying to push the Bitcoin / Tetra currency pair to the top of the zone again. If they succeed, the next stop in the price of bitcoin could be the simple 200-day moving average (SMA-200) at $ 49,115.
Read also: How to use a simple moving average and exponential for trading?
The 4-hour price chart formed an upward trend with a break and closing of the price of bitcoin above the level of 39,320 dollars. The price target of this trend is to reach the level of $ 45,722, which is currently witnessing price fluctuations in the range of $ 40,843 to $ 42,168.
The break and closing of the price above this range will be a sign of the resumption of the upward trend. The pair can then climb to $ 44,500, where the rally may hit a resistance barrier. Conversely, if the price falls below this level and falls below $ 40,800, the Bitcoin / Tetra pair may fall to the support level of $ 39,320.
The price of the ether on February 4 (February 6) was above the 20-day moving average (EMA-20, blue line in the photo) at $ 2839 and reached the resistance line of the downward channel formed in the chart. This level was a strong resistance to the price of ether and bears can still seek to regain this level and protect it.
Now, if the price of ether falls below the resistance line and the ordinary 50-day moving average (SMA-50, red line in the photo) of $ 3,256, it shows that the bears are ready to sell at higher levels. Therefore, we can first see that the price of the Ether / Tetra pair falls to the 20-day moving average (EMA-20 blue line in the photo) and then to the level of $ 2,652.
Now, if the price jumps in this area, we can imagine a change in the emotional trend of traders from selling rallies to buying at lower levels. The bulls will then try to push the price above the resistance again, which is more likely to change if it succeeds.
Otherwise, with a price break below the level of $ 2,652, we have to wait for the ether to fluctuate and trade longer in the channel formed in the price chart.
The 4-hour chart shows the rise in ether prices within the ascending channel model. The 20-day moving averages and the 50-day simple moving averages have an upward trend, and the relative strength index is in the positive range, indicating the dominance of cows in the ether trade market.
Now, if cows can push the price of ether up the canal, the uptrend could accelerate and the ether / tetra pair could reach $ 3,400, a level the bears are unlikely to defend. Conversely, if the price breaks below the 20-day moving average, the pair may fall below the channel’s support line.
Nir’s price jumped from $ 10 to $ 9.50 on February 4 (February 15) and managed to cross the price barrier in the 20-day moving average (EMA-20, blue line in the photo) at $ 12.58. While bears were trying to push the price below the 20-day moving average on Feb. 5, cows still dominated the market and were not allowed to do so.
Nir’s uptrend resumed today, February 7, and cows are trying to push the price above the usual 50-day moving average at $ 14. If successful, the Nir / Tetra pair could climb to a 50% Fibonacci correction level at $ 15.05 and then to a 61.8% correction level at $ 16.36. The bears will probably have a hard time defending the area.
Conversely, if the price falls below the current level, the bears will try to pull the pair below the 20-day moving average. If they succeed, it shows that the bears will continue to sell in the rally. The pair can then fall to $ 10 again.
Read also: Introducing 10 models of technical analysis charts that every trader should know
The 4-hour chart shows the formation of a symmetrical triangle, which usually looks like a continuous pattern, but in this case acts as an inverse pattern.
At the moment, the price recovery is facing strong resistance from the ordinary 200-day moving average. If the price returns from the 20-day moving average, this indicates that cows are accumulating at low price levels. This can improve the outlook for the 200-day moving average above the regular moving average. If this happens, the uptrend could reach the target of the current model at $ 16.36.
Now, if the price falls below the 20-day moving average, this positive outlook will be canceled in the short term. In this case, the pair can reduce the level of breakthrough from the triangle and try again.
The price of mana broke above the 20-day moving average on January 31, but it didn’t take long for it to fall from the usual 50-day moving average on February 1, the next day (February 4). The Bears continued their efforts to lower the price from the 20-day moving average, but were unsuccessful, which may be the reason for the range to become a support level.
The upward trend resumed and cows raised the price above the 50-day moving average on February 5. If the cows stay above the 50-day moving average, then the Mana / Tetra pair can exceed $ 4.
Conversely, if the price falls below the 20-day moving average and the simple 50-day moving average, this indicates that bears are selling strongly at higher levels. In this case, the pair can test strong price support again in the range of the 200-day simple moving average at $ 2.03.
The 4-hour chart shows that the 20-day moving average and the 50-day simple moving average have an upward trend, and the relative strength index is in the saturation zone. This shows the dominance of cows in the manna market. In this case, any drop in the price from the current level is likely to be supported by moving averages.
In an uptrend, buyers may face resistance at $ 3.40 and later at $ 4. If the price falls below the current level and falls below the moving average, this positive outlook will be nullified. The pair could then fall to $ 2.40.
The price of Leo completed the bullish triangle model by testing and closing above the $ 3.92 level on February 1. The bears tried to lower prices below the breakout level on February 2 and 3, but the cows were not allowed to.
Shopping resumed on February 4, with Leo peaking at $ 5.44. However, the daily thin candle shows that buyers are trying to save their profits at higher levels. Also, this price return has caused the relative strength index to leave the saturation range on purchase.
Price adjustments are usually in a short-term upward trend. Kendall’s long queue today, February 7, shows an aggressive purchase at lower levels. Now the cows will try to push the Leo / Tetra pair over $ 5.44. If they succeed, the pair can move to the $ 5.81 target and then to $ 6.
On the other hand, if the bears lower the price below $ 4.50, the pair can adjust to the 20-day moving average at $ 4.06.
The 4-hour chart shows that the currency pair is adjusting in an upward trend. The cows successfully defended the 20-day moving average and are trying to push the pair above the psychological level of 5 dollars. If they do, Leo can test his all-time high of $ 5.44 again.
Contrary to this scenario, if the price falls below the current level and falls below the 20-day moving average, this shows that traders keep their profits sharply higher and if the price falls below $ 4.38, the pair will be able to be reduced to $ 4.20.
Post Influence of ether and mana on mobile averages; Five digital currencies that traders should monitor this week first appeared in Digital Currency.