
Bitcoin and several altcoins have seen a sharp rebound, signaling strong buying interest at lower levels. Bitcoin’s price recovered to $99,700 from the bottom of its $90,000 to $109,588 range on February 3. This indicates robust demand following a sharp sell-off influenced by former US President Donald Trump’s tariffs on several countries, which led to a weakened US dollar and decreased yields on government securities. Jeff Park of BitWise believes these dynamics will propel Bitcoin’s value upwards.
The US spot Bitcoin ETFs have played a supportive role, attracting significant inflows totaling $4.94 billion in January, with expectations for more than $50 billion throughout the year, surpassing the $35.2 billion seen in 2024.
In examining other cryptocurrencies, Bitcoin’s support above $90,000 could lead to a period of stability. Altcoins might also enter a consolidation phase. The S&P 500 Index declined from 6,128 due to resistance, signaling potential vulnerability if it breaks past the support levels. The US Dollar Index rose above the 20-day EMA but faced challenges at 110.17, suggesting possible short-term consolidation.
For Bitcoin, a reversal back above the moving averages could sustain its current range. Ether witnessed significant selling pressure but showed positive signs of recovery at lower levels. XRP broke a bearish pattern, plunging to $1.77, before attempts to recover. Solana’s price fell past key retracement levels, with bulls attempting to defend support. BNB’s price drop found buyers at $500, with resistance expected at higher Fibonacci retracement levels.
Dogecoin faced selling below a crucial support, with potential resistance at $0.30. Cardano showed a shift in sentiment towards selling, battling significant resistance at $0.80. Chainlink’s break below $19.25 suggested bearish control, although buying interest emerged at depths.
This analysis indicates potential consolidation in cryptocurrencies, with trends subject to market dynamics and investor sentiment. Exercise caution and conduct due diligence before engaging in trading activities.