At the time of writing, the cryptocurrency market is enjoying some really nice gains, with plenty of coins rising by more than 10% for the first time in weeks.
It appears as though buyers are now in control of the market, as volume in general rose more than 7% from about $120 billion to $128 billion, setting new support levels for a lot of the top-10 cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
Currently, Bitcoin is trading above $3,700, above its 20-day EMA. Since last week, it has grown about 4%, rising from a low of $3,550.
As Bitcoin now finds support above the 20-day EMA, what I expect is the price to continue moving towards the 50-day EMA, although I seriously doubt we’ll get there this month.
Although the setup looks positive, I would expect sellers to take control towards the end of the week, as I don’t think we’ve reached the bottom just yet. Too many analyses show there’s plenty of room for the price of BTC to drop into the $2,700-$2,900 region.
For the time being, my outlook remains quite positive, and I don’t see a reason why traders and short-term investors wouldn’t want to profit from this small gain. With luck, Bitcoin can reach a top of $4,100 during the week, but for each percentage gain in an upwards direction, the probability of Bitcoin’s price continuing to rise lowers.
At the time of writing, Ethereum’s price has risen more than 10%, making really impressive gains not seen in a while. ETH price went from trading around the 20-day EMA, where it was sitting at $120, to way more positive levels close to its 50-day EMA. ETH is now trading at $137.
As I mentioned with Bitcoin, the momentum looks quite positive for the market, so I would expect ETH to hold above $135 during the rest of the week, assuming buyers remain in control.
With luck, ETH will touch its resistance level, now sitting around the 50-day EMA.
Although the momentum does not look as positive for Litecoin, I argue the fact it has been able to hold above its 50-day EMA, still making minor positive movements towards the 200-day EMA, is a sign of strength and maturity.
LTC has been trading sideways during the past week, and it has been able to make minor gains during this weekend’s market pump.
Its current support is sitting just above $40, while resistance seems to be close to its trading price of $43.
As long as the price holds above its support level, there’s a high chance LTC could make new highs into its 200-day EMA.
The price of Ark (ARK) jumped 89% on Sunday, February 17th, and climbed to a new three-month high in the process.
The sharp rise in value came days after the Core V2.1 update to the Ark mainnet, and hot on the heels of the ARK coin being added to the popular Exodus Wallet.
On Sunday, the coin moved from a value of $0.46 up to a peak of $0.869. That marked 89% growth for a brief moment, before the coin plunged down again to the $0.72 range, leaving Ark with a net gain of 52% for the day. If Ark pushes upwards towards its 200-day EMA, it could mean there’s a strong chance buyers will remain in control, and positive pressure will be applied to price.
The goal of Ark is to provide users, developers, and start-ups with innovative blockchain technologies. The team aims to create an entire ecosystem of linked chains and a virtual spiderweb of endless use cases that make ARK highly flexible, adaptable, and scalable.
Basic Attention Token
Another surprising cryptocurrency making big gains last week was Basic Attention Token (BAT). It went from being below its 20-day EMA, around $0.125, to touching and closing on its 50-day EMA, around $0.145. That represents a near 16% increase in price within the last few days.
If BAT continues to hold close to its new resistance price of $0.145, we could see the 50-day EMA becoming the new support level. It all depends on how buyers are able to hold the price for the next couple of days.
If the market maintains a positive outlook, we could see new highs being made.
However, traders and investors should beware: from past experience, after we see meaningful gains, a retracement usually follows.
Good luck out there!