Crypto: Price Predictions 2/6: Btc, Eth, Bnb, Xrp, Sol, Doge, Ada, Bch,...
Bitcoin and altcoins saw strong double-digit price rebounds after this week’s brutal sell-off, but do technical charts forecast a longer-term recovery, or is today’s rally just a dead cat bounce?
Bitcoin has turned up sharply from the $60,000 level, opening the door for a retest of the breakdown level at $74,508.
Several major altcoins have started a relief rally, which is expected to face selling at the moving averages.
Bitcoin (BTC) recovered sharply above $69,000 after plunging to $60,000 on Friday, indicating solid buying at lower levels. BTC’s fall has hurt sentiment, pulling the Crypto Fear & Greed Index to a score of 9 out of 100, the lowest since June 2022.
The big question on traders’ minds is when the recovery may begin. Veteran trader Peter Brandt said in a post on X that the nature of the decline had “all the finger prints of campaign selling, not retail liquidation.” Brandt added that it was difficult to know when the pattern would end.
However, there is a positive ray of hope for the bulls. Market analyst Subu Trade said in a post on X that the relative strength index on the weekly chart has fallen below the 30 level. Such an event has happened only four times in the past and BTC has recorded a 23.34% average return after a month.
Could BTC and the major altcoins start a sustained relief rally? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC closed below the crucial $74,508 level on Wednesday and fell to the next major support at $60,000 on Friday.
The sharp fall of the past few days had pulled the relative strength index deep into the oversold territory. That suggests the selling may have been overdone in the near term, and a relief rally is possible.
On the upside, the bears will attempt to defend the $74,508 level and flip it into resistance. If they succeed, the BTC/USDT pair may again tumble toward $60,000. The first sign of strength will be a close above $74,508. The Bitcoin price may then ascend to the 20-day exponential moving average ($80,899).
Source: CoinTelegraph
