The goal of Bitcoin ( BTC ) did debuted on the Toronto Stock Exchange on Feb. 18 and quickly increased trading volumes of around $ 400 million worth of shares in two days. This is quite impressive, considering that the stock market in Canada does not is only a fraction of the size of the US markets. This shows strong demand for Bitcoin and investor preference to take the ETF route to establish new positions.
Last week, Bitcoin has taken another important step inhitting the critical market cap of $ 1 trillion on Feb.19. , which makes it the sixth item in the list companies with the highest market capitalization in the world.
Institutional investor involvement and a market capitalization of over $ 1 trillion could allay manipulation and liquidity concerns raised by the United States Securities and Exchange Commission over the years. previous years by rejecting Bitcoin ETF applications.
Daily viewnne Crypto market data. Source: Coin360
In a recent interview with CNBC, Cathie Wood, CEO of Ark Invest said that "the probability of an ETF has increased. " Wood said the New SEC chairman Gary Gensler, who taught a digital currency course at the Massachusetts Institute of Technology, may be more open to crypto, increasing the likelihood of a Bitcoin ETF approved.
Although Bitcoin is fundamental the factors continue to improve, in the short term could see turbulence due to the steepening of the US Treasury curve.
Let's analyze the charts of the top 5 cryptocurrencies which indicate the possibility of a resumption of the uptrend in the short term.
BTC / USD
Bitcoin broke through the resistance line of ascending channel on February 1. 19 and the bulls managed to keep the breakout. This suggests that traders continue to buy at higher levels.
BTC daily chart / USDT. Source: TradingView
The BTC / USD pair avaiIt didn't form a Doji candlestick pattern on February 20, indicating indecision among the bulls and bears about the next directional move. That uncertainty has resolved higher today and the bulls will now try to propel the price up to $ 60,974.43.
The 20 day exponential moving average ($ 47,450) is on the rise and the Relative Strength Index (RSI) is in the overbought zone indicating that the bulls have the upper hand.
Contrary to this assumption, if the price goes into the channel, the bears will try to push the price down until the 20 day EMA. A break below the channel will indicate a possible change in trend and the pair can then correct itself to the 50 day simple moving average.
4-hour BTC / USDT chart. Source: TradingView
4 hour chart shows the pair remains in a strong bullish trend and the bulls have aggressively bought the lows towards the 20-EMA. The bears will try to block the current uptrend on the resistance line of the ascending channel.
If successful, the pair may fall again to the 20 EMA . A rebound on this support will suggest that the trend remains strong and that the bulls are not waiting for a deeper correction to buy. The momentum could accelerate if the bulls can propel and hold the price above the channel.
On the contrary, if the bears can dolower the price below 20-EMA, this will suggest a profit reservation by traders. The trend could weaken if the pair dips below the channel.
AAVE / USD
AAVE has consolidated between $ 392.50 and $ 545 in recent days. Consolidation after a strong uptrend is a positive sign as it suggests that traders are not rushing to exit because they expect higher levels in the future.
Daily chart AAVE / USDT. Source: TradingView
L 'EMA 20 daysrs ($ 427) is fixed and the RSI is just above 56 suggesting that the beach action may last a few more days.
If buyers can push the price above $ 480, the AAVE / USD pair can reach $ 545. A breakout and close above the resistance area of $ 545 at $ 581.667 could start the next stage of the uptrend which could reach $ 697.50 and then $ 814.397.
On the flip side, if the bears can sink and keep the price below $ 392.50, it will suggest that supply is exceeding demand. This could start a deeper correction from the 50 day SMA ($ 297).
AAVE / USDT 4- hourly chart. Source: TradingView
The 4 hour chart shows the price to be between $ 500 and $ 392.50. If the bears push the price down below the $ 392.50 support, the pair could drop to $ 300 and then to the 61.8% Fibonacci retracement level at $ 267,094.
Contrary to this assumption, if the bulls can push the price above the 50-SMA, a move to $ 500 is possible. A break above this resistance will improve the outlook to move to $ 545 and then to $ 581.667.
ATOM / USD
Cosmos ( ATOM ) is currently correcting in a strong uptrend. As the pullback goes back five days, the ours ha I have not yet been able to lower the price to the 38.2% Fibonacci retracement level at $ 19.007. This shows a lack of salespeople at the lower levels.
Daily chart ATOM / USDT. Source: TradingView
A superficial correction is usually a sign of strength and increases the possibility of retesting the overload resistance by $ 26.55. Rising moving averages and RSI in positive territory suggest that the bulls have the upper hand.
If the bulls can push the price tou above $ 26.55, the next stage of the uptrend may begin. The ATOM / USD parity could then rise to $ 32.173. If the bulls can conquer this level, the upward movement can extend to $ 40.
On the contrary, if the pair continues to fa ll, a drop to the 20 day EMA ($ 18.19) is possible. A strong rebound to this support could keep the uptrend intact, but a break below will suggest a deeper correction from the 61.8% retracement level to $ 14.347.
ATOM / USDT map over 4 hours. Source: TradingView
The 4 hour chart is currently correcting in a descending channel. The moving averages are on the verge of a bearish cross and the RSI is in negative territory, indicating a minor advantage for the bears.
However, if the price rises from the support line of the descending channel, it will indicate an accumulation at lower levels. Above the moving averages, a move towards the resistance line of the channel is possible.
A break and close above the channel could result in a retest of $ 26.55. A break below the channel may weaken sentiment. The pair could then drop to the 50% retracement level at $ 16.677.
NEO / USD
NEO broke and closed above the resistance of $ 47.444 on February 19.The bears attempted to simulate this escape and trap the aggressive bulls on February 19. 20 when they brought the price below $ 47,444.
NEO / USDT daily chart. Source : TradingView
However, the bulls had other plans. They aggressively bought the dip and pushed the price above the psychological resistance at $ 50 today. This can start the next stage of the uptrend which could reach $ 60.373 and then $ 64.95.
The moving averages on the rise and the RSIin overbought territory indicate that the bulls are in control.
But if the bulls fail to keep the price above $ 50, it will suggest that traders are profiting at higher levels. A break below the 20-day EMA ($ 37.80) will signal a possible trend change.
4 hour NEO / USDT chart. Source: TradingView
The 4 hour chart shows the formation of an ascending triangle, which has a pattern target at $ 58,588. Usually the price drops and reteststhe breakout level but sometimes when the trend is strong, the price consolidates only before resuming the bullish movement.
The bulls are currently defending the $ 50 support. If the price rises from the current level and breaks above $ 54,191, the uptrend may resume.
This positive view will be invalidated if the pair drops from the current level and breaks below the triangle. Such a move could cause a drop to $ 36.30.
VET / USD
After the strong rally from $ 0.026714 to $ 0.060774, VeChain ( VET ) broadly held the 38.2% support at $ 0.047763 on a close basis, which shows accumulation at lower levels. Rising moving averages and RSI in the overbought zone suggest the path of least resistance is up.
Daily chart VET / USDT. Source : TradingView
If the bulls can push the price above the overhead resistance at $ 0.060774, the VET / USD pair could start the next step up . The target level to watch on the upside is $ 0.085172 and then $ 0.10.
Contrary to this assumption, if the bulls fail to propel the price above overhead resistance, the VET / USD pair may consolidate between $ 0.060774 and $ 0.0424 for a few moredays. The trend will tilt in favor of the bears if they can go down and keep the price below $ 0.0424.
4 hour chart VET / USDT. Source: TradingView
The 4 hour chart shows that both moving averages are flat and that the RSI is just above the midpoint, indicating a balance between supply and demand.
However, the pair has formed an ascending triangle pattern that will end on a breakout and close above $ 0.060774. This bullish pattern has an obmodel cost of $ 0.079148.
On the other hand, if the price slips below the trend line of the ascending triangle, this will invalidate the pattern and open the doors to a fall to $ 0.042.
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 comes with risk, you should do your own research when making a decision.