Price analysis 2/8: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX
The United States Federal Reserve Chairman Jerome Powell said on Feb. 7 that the “disinflationary process, the process of getting inflation down,” has started but it is still in its very early stages.
He cautioned that strong data would be met with more rate hikes. Though the comments are mixed, they triggered buying in the S&P 500 and Bitcoin (BTC) on Feb. 7 as investors speculated that the Fed may soon end its rate hikes.
Bitcoin’s strong rally in January and signs of ebbing inflation seem to have turned around investor sentiment. CoinShares data on Jan. 30 shows that institutional investors pumped $117 million into digital investment products. That sent the total assets under management to $28 billion, a sharp 43% increase from its November 2022 low.
Although the sentiment seems to have turned around, bear markets rarely end without a retracement of the rise from the low. The price needs to form a higher low followed by a higher high to confirm a potential trend change.
What are the critical support levels on Bitcoin and altcoins that could arrest future declines? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin slid below $22,800 on Feb. 6 but the bulls purchased this dip. That started a rebound above $23,000 on Feb. 7 but the buyers could not sustain the higher levels.
The bulls are unlikely to have it easy because the bears will try to pose a strong challenge on every rise toward $24,000. Although the upsloping moving averages suggest advantage to buyers, the negative divergence on the relative strength index (RSI) signals that the bullish momentum is slowing down.
Sellers are trying to trap the aggressive bulls by pulling the price below the 20-day exponential moving average ($22,568). If they
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