Bitcoin Breaks $70K Resistance, Altcoins Follow: Are The Bulls Back?

Key points:

• Bitcoin’s strong recovery above $74,000, backed by solid inflows into the US spot Bitcoin ETFs, suggests the formation of a short-term bottom.

• Several major altcoins are attempting to take part in the recovery by rising above their overhead resistance levels.

Bitcoin (BTC) bulls made a strong comeback on Wednesday by pushing the price to $73,800. A positive sign in favor of the bulls is that the recovery attempt is backed by buying in US spot BTC exchange-traded funds, which have seen $683.3 million in inflows this week per SoSoValue data.

Some analysts believe that BTC could be bottoming out. VanEck CEO Jan van Eck said on CNBC that BTC is in the fourth year of its four-year cycle, where it rises for three years and then plunges in the fourth year. He said that his firm believes BTC is close to a bottom and is expected to gradually start rising this year. 

In a separate market update, 10x Research said that BTC did not plunge on risk-off headlines, indicating that the downside pressure might be reducing. However, the analysts said that BTC remains in a bear market, calling the bullish exposure “tactical rather than structural.”

Could BTC and select major altcoins build upon their recovery? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin price prediction

BTC’s symmetrical triangle pattern resolved to the upside with a break above the resistance line, indicating solid buying by the bulls.

The BTC/USDT pair may reach the $74,508 level, where the sellers are expected to pose a substantial challenge. If the Bitcoin price turns down from $74,508 but rebounds off the 20-day exponential moving average ($68,871), it signals a positive sentiment. That increases the possibility of a rally to $84,000.

On the contrary, if the price turns down sharply from $74,508, it suggests that the bears are attempting to flip the level into resistance. A close below the 20-day EMA will tilt the advantage back in favor of the bears. 

Ether price prediction

Ether (ETH) is attempting to break above the stiff overhead resistance of $2,111, indicating aggressive buying by the bulls.

A close above the $2,111 level clears the path for a rally to the 50-day simple moving average ($2,381). Sellers will again strive to halt the recovery at the 50-day SMA, as a break above it suggests that the corrective phase may be over.

This bullish view will be invalidated in the short term if the Ether price turns down sharply from $2,111 and nosedives below the $1,907 level. That indicates the ETH/USDT pair may extend its consolidation between $2,111 and $1,750 for a few more days.

BNB price prediction

BNB (BNB) surged above the 20-day EMA ($636) on Wednesday, indicating that the bulls have overpowered the bears.

Buyers will attempt to build upon the momentum and clear the $670 obstacle. If they can pull it off, the BNB/USDT pair may rally to $730. Sellers are expected to defend the $730 level, as a close above it suggests the pair may have bottomed out in the near term. The BNB price may then march toward $790.

Contrarily, if the price turns down sharply from $670, it signals that the rallies are being sold into. That may retain the pair inside the $570 to $670 range for some more time.

XRP price prediction

XRP (XRP) has been trading near the 20-day EMA ($1.42) for several days, indicating that the bulls have kept up the pressure.

If the price closes above the 20-day EMA, the XRP/USDT pair may ascend toward the downtrend line. Buyers will have to achieve a close above the downtrend line to signal a potential trend change.

Instead, if the XRP price turns down from the 50-day SMA ($1.60) or the downtrend line, it suggests that the bears remain sellers on rallies. That may retain the pair inside the channel for a few more days.

Solana price prediction

Solana (SOL) has been consolidating between $76 and $95 for the past several days, indicating demand at lower levels.

The flattening 20-day EMA ($86) and the RSI just above the midpoint suggest the selling pressure is reducing. Buyers will attempt to strengthen their position by pushing the Solana price above the $95 level. If they manage to do that, the SOL/USDT pair may surge toward $117.

Sellers are likely to have other plans. They will attempt to defend the $95 level and keep the price inside the range for a while longer.

Dogecoin price prediction

The failure of the bulls to push Dogecoin (DOGE) above the 20-day EMA ($0.10) suggests that the bears continue to exert pressure.

That increases the risk of a drop below the $0.09 support. If that happens, the DOGE/USDT pair may plunge to the Feb. 6 low of $0.08. This is a crucial level to watch out for, as a close below $0.08 may sink the pair to $0.06.

The first sign of strength will be a close above the 20-day EMA. The Dogecoin price may then march to the 50-day SMA ($0.11) and later to the stiff overhead resistance at $0.12.

Cardano price prediction

Cardano (ADA) turned down from the 20-day EMA ($0.27) on Tuesday, indicating that the bears continue to defend the level.

A minor positive in favor of the bulls is that they have not given up much ground to the bears. That signals buying on every minor dip, increasing the likelihood of a break above the 20-day EMA. The ADA/USDT pair may then rise to the downtrend line of the descending channel pattern.

Buyers will have to push and maintain the Cardano price above the downtrend line to signal a potential short-term trend change. The pair may then climb to $0.43.

Related: XRP price breakout targets $1.95 amid five-day ETF inflow streak

Bitcoin Cash price prediction

Sellers failed to sustain Bitcoin Cash (BCH) below the $443 level, indicating a lack of selling at lower levels.

The bulls are attempting to start a relief rally, which is likely to face selling at the 20-day EMA ($495). If the Bitcoin Cash price turns down sharply from the 20-day EMA, it increases the risk of a break below the $443 support. If that happens, the BCH/USDT pair will complete a bearish head-and-shoulders pattern, starting a downward move to $375.

Buyers will have to achieve a close above the 50-day SMA ($539) to get back into the game. The pair may then climb to $600.

Hyperliquid price prediction

Hyperliquid (HYPE) bounced off the 20-day EMA ($30.16) on Wednesday, indicating that the bulls are buying on dips.

The bulls will attempt to push the Hyperliquid price to the $36.77 resistance, where the bears are expected to mount a strong defense. If the price turns down sharply from the overhead resistance, it suggests that the HYPE/USDT pair may range between $20.82 and $36.77 for some time.

Contrary to this assumption, if the bulls pierce the $36.77 resistance, it signals the start of a new up move. The pair may then rally to $43.50 and subsequently to $50.

Chainlink price prediction

Chainlink (LINK) has been clinging to the 20-day EMA ($8.96) for the past few days, indicating a tough battle between the bulls and the bears.

The flattening 20-day EMA and the RSI near the midpoint suggest that the selling pressure is reducing. That improves the prospects of a rally to the 50-day SMA ($10.10) and then to the breakdown level of $10.94. Buyers are expected to face significant selling pressure in the $10.94 to $11.61 zone.

This positive view will be negated in the near term if the Chainlink price turns down and breaks below the $8 level. The LINK/USDT pair may then retest the Feb. 6 low of $7.15.