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Crypto Spotlight: Altcoins Rally as Bitcoin Faces $52K Resistance

  • Updated

Inflows into the spot Bitcoin (BTC) exchange-traded funds (ETFs) have surged, surpassing $2.2 billion between February 12th and February 16th, signaling robust investor appetite1. Notably, BlackRock’s iShares Bitcoin Trust (IBIT) alone has attracted $5.2 billion in year-to-date inflows, accounting for 50% of BlackRock’s total net ETF flows across 417 ETFs.

While Bitcoin has maintained its upward trajectory, rising approximately 7% this week, it faces formidable resistance near the $52,000 level. However, the spotlight is now on altcoins, as select ones have broken above their respective overhead resistance levels, potentially extending their rally.

Bitcoin Price Analysis

Bitcoin’s recent price action reveals a battle between bulls and bears. The long tail on the candlestick near the $50,000 mark indicates strong buying interest on dips, suggesting that bulls anticipate the uptrend to continue. Here are the key technical points:

  1. Short-Term Outlook:
    • A shallow correction from the $52,000 resistance demonstrates that bulls are not hastily booking profits, expecting further upside. If BTC breaks and sustains above $52,000, the BTC/USDT pair could embark on a northward march toward $60,000.
    • However, the relative strength index (RSI) has remained in overbought territory for some time, hinting at potential overheating in the near term.
    • Bears would need to push the price below the 20-day exponential moving average (currently around $47,809) to signal the start of a corrective phase. In that case, the pair may slide toward the 50-day simple moving average (approximately $44,441).
  2. Short-Term 4-Hour Chart:
    • The bears briefly pulled the price below the 20-EMA on the 4-hour chart but failed to sustain lower levels. This suggests strong support from bulls defending the level.
    • To enhance the likelihood of further gains, buyers must overcome the obstacle at $52,817, opening the door for a potential rise to $55,000.
    • Conversely, if bears aim to prevent an upside breakout, they must drag the price below the moving averages. In such a scenario, the pair may retest the breakout level at $48,970.

Altcoin Spotlight

Now let’s turn our attention to altcoins that have flashed bullish signals:

  1. BNB (Binance Coin):
    • BNB has shown strength, and if it sustains above key levels, it could continue its upward trajectory.
  2. VET (VeChain):
    • VET has broken above its overhead resistance, indicating potential further gains.
  3. RNDR (Render Token):
    • RNDR’s recent performance suggests bullish momentum, with eyes on higher levels.
  4. KAS (Kasuma):
    • KAS has also exhibited bullish signs, aligning with the broader crypto market sentiment.

In summary, while Bitcoin faces resistance, these altcoins present intriguing opportunities for traders and investors. Keep a close eye on their price movements as the crypto landscape evolves.