The second week of the “thaw” in the crypto market gave many analysts confidence in their forecasts and motivated buyers to take more active steps. These trends can be easily traced by the growth in the capitalization of the cryptocurrency market, which has increased by about 1% per day and at the time of writing is $975.875 billion against $969.605 billion as of Thursday. Notably, according to blockchain analytics company Santiment, BTC, ETH, XRP, ADA, DOGE, MATIC, SHIB, UNI, and LINK remain undervalued. To determine the undervalued and overvalued cryptocurrencies in the market, the analysts referred to the corresponding MVRV Z-score for each cryptocurrency in the market. In particular, for BTC and ETH, the Z-score is -0.20 and -0.27, respectively. In fact, this suggests that the realized capitalization of these assets is higher than the current market capitalization. However, it should be borne in mind that this metric does not have a direct impact on the value of coins, but only reflects market realities. However, prices for the main cryptocurrencies will continue to grow and convincingly return to the uptrend after local corrections, which indicates a sufficient bullish resource and readiness to overcome resistance. How long can the current growth phase last? To answer this question, it is worth looking at the behavior of major digital coins.
By the end of the week, the market flagship started a downward correction from the $21,500 resistance zone and fell below the $21,000 support. However, the bulls were active around the $20,500 and $20,400 support levels, so the low formed around $20,395 and the price continued to move north. On Friday, the price broke the $21,000 mark twice, but never fell below the resistance zone around $20,850. In fact, the bulls managed to push the price above the 50% Fibonacci retracement level of the previous correction from the swing high at $21,639 to a low at $20,395, however at the moment, BTC is once again trading below the 100-day moving average.
On the hourly chart of the BTC/USD pair, a short-term key bullish trend line is gradually forming with support near $21,050, which has yet to be strengthened. Immediate resistance is currently formed near $21,160 near the 61.8% Fibonacci retracement level, ranging from $21,639 to $20,395. The next major resistance lies near the $21,500 zone, above which the price could get a tangible bullish momentum. If the bulls manage to dominate above this zone, growth may continue to $22,000. Otherwise, you should count on support around $20,500 and $20,000, which the bears are now looking at with appetite.
It seems that buyers are aggressively trying to control the price of crypto silver even before the weekend, as the weekly MACD is still negative, but forming a positive histogram. The weekly RSI is hovering above 50, but the asset price is still below the 50 SMMA line. As for the daily chart, the price of the asset has reached the previous resistance zones and is hovering above 50 SMMA ($1,347.62), where analysts warn of a possible correction. However, the MACD indicator remains positive and the daily RSI is hovering above 50 but appears to be coming back from the overbought zone.
It is noteworthy that literally two hours before writing, the Volume Profile indicator on the 5-hour chart identified the $1,547.45 level as a strong trading zone, which can act as resistance, where a price decline can begin. However, the bulls managed to overcome this barrier and strengthen above $1,550. Thus, in the medium term, the price of ETH continues its downtrend, as technical analysis and indicators coincide. However, in the short term, the price of the coin forms an upward movement above the previous resistance zones.
Since reaching its lowest price since the collapse of FTX and Alameda, SOL has more than doubled. Over the past three weeks, the coin has risen from $8.5 to a fantastic $24.75 last Monday and corrected to $20.65, after which a less active increase began. However, the SOL market is showing signs of bearish behavior after a strong two-week rise. One notable factor is daily trading volume, which fell over 48% on Friday to $736,053,464. In addition, Solana's price on the 4-hour timeframe is on the verge of breaking a three-week bullish trend line, potentially pushing it to the next level. consolidation around $16.
In January, SOL gained 212%. Some analysts believe that if BTC can continue to rise, bullish short-term market sentiment is likely to push the altcoin further price increases. However, given the sluggish growth in developer activity in the Solana ecosystem after this indicator dropped to almost zero at the beginning of the year, the coin cannot do without global market support at this stage.