Those who have been waiting for a sign to open a position in Bitcoin or Ethereum since the beginning of the year received it this Tuesday. At the maximum, the flagship crypto managed to jump over the $39,000 mark, and even taking into account the subsequent correction and backward movement to the already familiar $36,000, it seems that everyone has already understood that the bulls have begun to restore their positions. An even more life-affirming position was taken by the altcoins, led by the Ethereum. Crypto-silver moved symmetrically to Bitcoin, but its series of lows was much higher, and the up-trend was traced in all sections of the chart. The outgoing week dispelled fears of the upcoming increase in interest rates from the US Federal Reserve, and the launch of the digital yuan at the Olympic Games had almost no effect on the price movements of the main cryptocurrencies. It looks like we are once again witnessing the regeneration of the crypto market after panicky uncertainty. But this process will not be instantaneous, and here's why.
With the onset of February, the cryptocurrency market clearly began to revive. On the last day of the trading week, Bitcoin shows a 3.6% increase and is trading at $37,931, which is not a record, but quite satisfactory for upside players. The 4-hour chart of crypto-gold shows some slowdown in price movement and quite high volatility, which may have been the result of a slight increase in the price of the coin overnight. But the most important thing is that the powerful resistances at $36,800 and $37,000 have been passed, so even after the correction, growth is worth waiting for.
But it is important to pay attention that the digital asset bounced down from $39,072 on Wednesday, and there has not yet been a second return to this zone. Market experts are talking about serious resistance at this level, above which, at the $39,300 position, there is a vast supply zone, and if the bulls can break it through, then the coin is forecasting a powerful price boost. By the way, well-known crypto strategist and trader DonAlt claims that the upside potential of BTC is 81.82%. Everything depends on the accumulation of investments, so it’s very important to boost access to the supply zone. Now the daily trading volume of Bitcoin has grown by almost 8% and stands at $21.58 billion. This means that the fear in the market is decreasing, and the hype is growing. However, according to the expert, even in the most optimistic scenario, we should not expect an initial jump above $44,000.
A couple of hours ago, Ethereum successfully crossed the $2,800 mark and is now trading at $2,829. According to market analysts, the $2,800 level was one of the biggest resistances on the way of crypto-silver to $3,000, but the latter position will also be a kind of rubicon for the crypto, as bear interests are focused on it. In fact, it’s very important for ETH to break above $3,000 in order to regain the $3,300 position, where the strong support of the asset is consolidated. But in order to understand the behavior of a coin on a daily candle, you need to analyze the data of two instruments: A/D (Accum/Dist) line and RSI indicator. In the chart below, A/D line shows a solid rise with higher highs, which signals an almost guaranteed rise in the price of ETH, which should stabilize next week.
The same is shown by the RSI on the chart below. The indicator line indicates higher highs towards the 50 mark.
And then, apparently, it's up to the bulls.
Solana (SOL) is rightfully considered one of the most promising coins of 2021. Its strong tenfold growth has given it all the rights to listing in the top ten altcoins. But the crypto winter didn’t spare anyone, so SOL fell from a high of $260 to $88 by the end of January. The coin is currently trading at $106, but according to market analysts, Solans likely to crash again to $65 before the bulls step in and push it to $140. Terra (LUNA) also grew steadily for most of 2021 until December. However, after the pre-New Year high around $101, the coin fell and is now trading at $51. However, judging by the strong growth of the 200-day MA, the value of the digital asset is likely to reach the 20-day MA at the $64 position. And if there is a consolidation of the efforts of the bulls at this mark, then the next rally can toss the coin up to $85.