Bookmark Technology

  • Submit Story
  • Popular Stories
  • Recent Stories
  • Trending Stories
  • Contact Us
  • Login
Trending now

No Time for Debt Buybacks — Global Issues

Did The Bachelor Basically Tell Us Who Wins Already?

How this business is helping Canadians cure their COVID rage, one swing at a time

New data shows one way for women to achieve pay equity with men: Intern first

Pro traders avoid Bitcoin longs while cautiously watching DXY strengthen

$47k showed strongest on-chain support since BTC broke $11k

NFT-related altcoins hit new highs after Bitcoin price rallies to $53K

Tell Us What Cool Product From An Asian-Owned Business You're So Glad You Bought

Alexander Wang Statement Sexual Misconduct Allegations

Six Days in Fallujah publisher pivots, now says the game is ‘inseparable from politics’

BTC, DOT, LINK, XLM, THETA

1
Max 4 weeks ago in Altcoin 0


Bitcoin (BTC) has attracted several institutional investors in the past few months, but with the market capitalization sustaining above $700 billion, many more institutions are likely to contemplate buying Bitcoin. Similarly, Ether (ETH) with a market cap of about $180 billion also cannot be ignored by the investors. 

The institutional adoption of the top two cryptocurrencies is likely to attract numerous venture capitalists and early investors into smaller projects that have gained a decent size but have not yet reached their full potential. Although the risk is high in such investments, the returns could be equally attractive.

Crypto market data daily view. Source: Coin360

For such investors, there are multiple projects to choose from because over 50 digital assets command a market cap of over $1 billion, giving them unicorn status, a term used in legacy markets for companies with a market cap of over $1 billion.

If large players jump into these unicorns, they are likely to rally strongly, which will benefit the early retail investors who have a head start over the institutions. While these gains may take a long time, traders can benefit in the short term from the sharp up-moves in several altcoins.

Let’s study the charts of the top-5 cryptocurrencies that may resume their uptrend in the next few days.

BTC/USD

Bitcoin broke above the $38,000 overhead resistance on Feb. 5 and followed it up with another up-move on Feb. 6, but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick.

BTC/USDT daily chart. Source: TradingView

The failure of the bulls to sustain the price above $40,000 has attracted profit-booking today and the bears are attempting to pull and sustain the price below $38,000. If they succeed, the BTC/USD pair could drop to the 20-day exponential moving average ($35,386).

If the pair rebounds off the 20-day EMA, the bulls will once again try to resume the uptrend. A breakout of the $40,000 to $41,959.63 overhead resistance zone could signal the start of the next leg of the uptrend to $50,000.

On the contrary, if the bears sink the price below the 20-day EMA, the pair may dip to the 50-day simple moving average ($32,840). If this support also cracks, the pair may drop to the $28,850 support.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls had pushed the price above the $38,000 to $40,000 overhead resistance zone, but the pair turned down from $40,952.16. This shows the bears are active at higher levels.

The pair has dipped below the 20-EMA and the relative strength index (RSI) is just above the midpoint, which suggests the momentum may be weakening. The pair could now drop to the 50-SMA.

If the pair rebounds off the 50-SMA, the bulls will make one more attempt to resume the uptrend, but if the 50-SMA cracks, the correction could deepen to $32,000.