Institutional investors continue to pour money into the crypto sector even with the current dip below $45,000. On Feb.24, business intelligence firm MicroStrategy announced that it had recently purchased over $1 billion worth of Bitcoin (BTC) at an average rate of $52,765 per coin. This takes the company’s total holding to 90,531 Bitcoin.
Another company that bought Bitcoin during the current market correction is Square. The company said it had acquired roughly “3,318 Bitcoin at an aggregate purchase price of $170 million.”
These purchases by institutional investors show they are bullish on the long-term prospects of Bitcoin and believe that it is a good buy near $50,000.
Daily cryptocurrency market performance. Source: Coin360
While the institutional purchases are a bullish sign, traders must also remember that for every buyer, there is a seller. Glassnode data suggests that Bitcoin whales, holding between 1,000 Bitcoin to 10,000 Bitcoin and “humpback whales” holding more than 10,000 Bitcoin have sold more than 140,000 Bitcoin in February.
In the past, the whales swayed the crypto markets at their will. But the entry of institutional investors has reduced their dominance. Therefore, along with the whales, traders must also keep an eye on the institutional activity.
While large investors can buy and hold for the long-term, the smaller investor would do well to buy at the right time to make the most of the limited available capital. Let’s study the charts of the top-10 cryptocurrencies to determine the trend.
Bitcoin’s pullback from the 20-day exponential moving average ($48,323) on Feb. 22 was greeted with aggressive selling on February 23. The bears dragged the price below the channel, but the long tail on the day’s candlestick shows buying at lower levels.
BTC/USDT daily chart. Source: TradingView
The buyers are currently attempting to keep the BTC/USD pair inside the channel. However, the inside day candlestick pattern today suggests indecision among the bulls and the bears. The flat 20-day EMA and the relative strength index (RSI) just above the midpoint also suggest a balance between supply and demand.
If the bulls can sustain the price above $50,000, the pair will try to rise to the resistance line of the ascending channel. The next leg of the uptrend may begin after the price breaks above the all-time high at $58,341.03.
Contrary to this assumption, if the bears again sink the price below the channel, the pair may drop to $45,000 and then to the 50-day simple moving average ($40,541). A break below this support could signal a deeper correction to $28,850.
Ether (ETH) fell below the support line of the ascending channel and the 50-day SMA ($1,487) on Feb. 23, but the bulls purchased the dip and managed to keep the price inside the channel.
ETH/USDT daily chart. Source: TradingView
The bulls are currently attempting to push the price above the 20-day EMA ($1,728). If they succeed, the ETH/USD pair may again try to rise to the resistance line of the channel.
However, the 20-day EMA has started to turn down and the RSI is near the midpoint, which suggests that the bears are trying to make a comeback.
If the price turns down from the 20-day EMA, the bears will once again try to sink and sustain the pair below the 50-day SMA. If they can manage to do that, the pair may enter a deeper correction and slump to $1,000.
Binance Coin (BNB) remains volatile within a large intraday trading range. The bears pulled the price down to the 20-day EMA ($182) on Feb. 23 but the altcoin made a smart recovery as seen from the long tail on the day’s candlestick.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for BNB on Feb. 23 prior to the recent price rise.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
Cointelegraph Markets Pro – VORTECS™ Score (green) vs. BNB price
Even as Binance Coin’s price started to correct from $273 on Feb. 23, the VORTECS™ score started to turn up from 71.
The score reached 82 just after the announcement of UFT token listing on Binance and this was followed by several other revelations related to BNB’s integration to the DeFi space. Following these announcements and the bullish outlook seen in the VORTECS™score, BNB price started to rally from $201.
That was soon followed by a sharp recovery in the price. After a brief dip, the VORTECS™ score started to strengthen from 71 and reached 80 as the price recovered to $271 on Feb. 24.
BNB/USDT daily chart. Source: TradingView
The bulls are currently attempting to push the price above the downtrend line, but the long wick on the candlestick shows selling at higher levels.
If the price again turns down from the downtrend line, the BNB/USD pair could drop to the 20-day EMA. A break below this support could intensify the selling and drag the price down to $118.
Conversely, if the bulls can push and sustain the price above the downtrend line, the BNB/USD pair may rally to $300 and then to $348.6969.
The long tail on the Feb. 22 and 23 candlesticks shows that traders are aggressively buying the dip in Polkadot (DOT).
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for Polkadot on Feb. 23, prior to the relief rally from the intraday lows.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity
Cointelegraph Markets Pro – VORTECS™ Score (green) vs. DOT price
The VORTECS™ score for DOT moved above 70 on Feb. 23 when the price was at $36.78. Even as the price continued to fall, the VORTECS™ score reached 82 when DOT’s price was below $30. This strength in the VORTECS™ score was followed by a sharp recovery in price to $36 on Feb. 24.
DOT’s recovery coincided with the rebound in most major cryptocurrencies, which followed Bitcoin’s relief rally from the $45,000 intraday low made on Feb. 23 to about $50,000 on Feb. 24.
DOT/USDT daily chart. Source: TradingView
The bulls are currently attempting to push and sustain the price back above the resistance line of the ascending channel. If they succeed, the DOT/USD pair may rally to $42.2848.
A breakout and close above the all-time high could open the gates for a rally to the psychological level at $50. The upsloping moving averages and the RSI near the overbought territory suggest advantage to the bulls.
This bullish view will invalidate if the pair turns down sharply from the current levels and plummets below the support line of the ascending channel.
The bears once again tried to sink Cardano (ADA) below the 20-day EMA ($0.867) on Feb. 23 but failed. This shows the sentiment remains positive and traders are viewing the dips as a buying opportunity.
ADA/USDT daily chart. Source: TradingView
The bulls have again pushed the price above $0.9817712. If they can sustain the price above the psychological level at $1, a retest of $1.1980811 is possible. A breakout and close above this resistance may signal the resumption of the uptrend.
Both moving averages are sloping up and the RSI is near the overbought territory. This suggests the path of least resistance is to the upside.
This bullish view will be negated if the price turns down and breaks below the 20-day EMA. Such a move could pull the ADA/USD pair down to $0.6879684.
XRP has been all over the place in the past few days. After the bulls failed to sustain the price above $0.65 on Feb. 22, the altcoin witnessed intense selling pressure and plunged to $0.365 on Feb. 23. However, the long tail on the day’s candlestick shows aggressive buying at lower levels.
XRP/USDT daily chart. Source: TradingView
Buying on dips and selling on rallies is a sign of consolidation. The XRP/USD pair could trade between $0.359 and $0.65 for a few days. The flattish 20-day EMA ($0.499) and the RSI near 50 also point to a possible range-bound action for a few days.
The next trending move could start after the bulls push and sustain the price above $0.65 or the bears sink the pair below $0.359. Until then, volatile range-bound action is likely to continue.
The failure of the bulls to build upon Litecoin’s (LTC) recovery on Feb. 22 shows a possible change in sentiment. Traders seem to be using the rallies to book profits. The altcoin turned down on Feb. 23 and this may have caught the aggressive bulls on the wrong foot, resulting in liquidation of long positions.
LTC/USDT daily chart. Source: TradingView
The LTC/USD pair broke below the 50-day SMA ($166) on Feb. 23, but the bulls defended the uptrend line. However, any relief rally is likely to face stiff resistance at the 20-day EMA ($195) that has started to turn down.
If the bulls fail to drive the price above the 20-day EMA, the pair may witness one more bout of selling that could pull the price down to the $120 support.
This negative view will invalidate if the bulls can push and sustain the price above the 20-day EMA. Above this level, a retest of $246.9679 may be on the cards.
Chainlink (LINK) plunged below the support line of the ascending channel on Feb. 23 and this could have trapped the aggressive bulls who had purchased the dip on Feb. 22. Stop losses may have triggered below $25.2312, which pulled the price down to the critical support at $20.1111.
LINK/USDT daily chart. Source: TradingView
The dip buyers purchased the fall on Feb. 23 and are currently attempting to push the price back into the ascending channel. However, the buyers are likely to face stiff resistance at the 20-day EMA ($29.58).
If the price turns down from the 20-day EMA, it will indicate that traders are selling on rallies. The bears will then try to sink the price back below the 50-day SMA and retest the $20.1111 support.
This negative view will invalidate if the bulls can push and sustain the price inside the ascending channel. Such a move could result in a rally to $34 and then to $36.9307.
Bitcoin Cash (BCH) sold off on Feb. 23 and broke below the 50-day SMA ($514). However, the bulls purchased the dip to the uptrend line and are currently attempting to push the price back above the $539 resistance.
BCH/USD daily chart. Source: TradingView
The 20-day EMA ($596) has turned down and the RSI is just below the midpoint, suggesting a marginal advantage to the bears.
The sellers are likely to defend the 20-day EMA. If the price turns down from this resistance, it will suggest that traders are selling on rallies. A break and close below the uptrend line could clear the path for a decline to $370.
Contrary to this assumption, if the bulls can push and sustain the price above the 20-day EMA, the BCH/USD pair may rise to $631.71 and then to $745.
Stellar Lumens (XLM) plunged below the $0.35 support on Feb. 23, but the long tail on the day’s candlestick suggests the bulls bought the dip. The altcoin is currently trading inside a descending channel.
XLM/USDT daily chart. Source: TradingView
If the bulls can push the price above the 20-day EMA ($0.439), the XLM/USD pair could rise to the resistance line of the channel. A breakout of the channel will indicate that the bulls are back in the game. The buyers will then try to propel the price to $0.600681.
On the contrary, if the price turns down from the 20-day EMA and plummets below $0.35, it could open the doors for a deeper correction to $0.23.
The flat 20-day EMA and the RSI near the midpoint do not indicate a clear advantage either to the bulls or the bears.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.