Bitcoin (BTC) dropped from its consolidation pattern in the $22.5k-24k price range and hit the $21.5k support level, subsequently establishing the 50 EMA and 200 MA on the 4h chart as resistance levels. Traders are unsure if Bitcoin will continue to drop to lower support levels or bounce back to previous support areas. Bitcoin price action in the coming week could shape the outlook in the middle term.
After establishing a distribution pattern over the past month, Ethereum (ETH) dropped below the $1,500 level. The 200 daily MA is a major support level that the bulls would like to maintain should there be further downside action for the premier altcoin. However, the 200 MA on the 4h chart has acted as resistance since Ethereum fell below it on February 9, 2023, indicating a bleak short-term price outlook for the digital asset.
Litecoin (LTC) formed a bearish double top pattern, peaking at over $102 per coin, before falling to the $90 level, an 11.7% drop in price. It initially tested the 200 MA on the 4h chart as support, but it eventually broke through and is currently holding it as resistance. Currently, it appears to be forming a bigger bearish head-and-shoulders pattern, with a weekly bearish engulfing candle and the 200 weekly MA acting as resistance. However, Litecoin is supported by a significantly strong support zone in the $88-90 range. It is unclear whether Litecoin is undergoing a short-term correction or a price reversal on a larger time frame.
After forming a distribution pattern and reaching slightly above $0.43 per token on January 23, 2023, Ripple (XRP) fell below the significant $0.38-0.40 support zone, which aligned with the 200 MA on the daily chart. On the monthly time frame, Ripple appears to be accumulating in the $0.30-0.55 price range. The establishment of the $0.30 price level as a long-term support for Ripple is positive news for investors because it would mean Ripple is operating at higher lows than during the 2019-2020 bear market.
Stay tuned for weekly updates on the cryptonews and performance of major tokens and coins.
