Crypto Frontline

BTCUSD (Coinbase)

Source: TradingView

Bitcoin bullish momentum stopped on a dime after touching the $53,000 level, a key resistance we highlighted a week ago. Since then, the market traded sideways, as volatility crushed, even though there has been strong bullish momentum in the stock markets.

This shouldn’t be treated as a reason for concern, since BTC is up significantly for the year and the uptrend continues to be intact. We believe such consolidations are healthy and allow new buyers to step in at better prices.

Moving on to your main technical levels, we see Bitcoin fluctuating inside a slightly bearish channel formation. As long as the market respects that structure, short-term bullish and bearish trade setups will emerge.

A little below the channel is the key $50,000 area, where bids are expected to resume. Below that, the uptrend should be supported around $49,000. In the absence of major news, this should be another calm week as February wraps up.

On the upside, sellers should watch for price action clues around $53,000. Breaking above will be an early sign for trend continuation and our next target will shift up to $55,200.

ETHUSD (Kraken)

Source: TradingView

We see signs of outperformance in Ether when compared to BTC. The price managed to break above the key $3,000 area, despite overbought conditions on the daily RSI. It looks like traders and investors are frontrunning the launch of an ETF based on Ethereum, something that could happen during the upcoming months.

Same as with Bitcoin, the price is surging, in expectations of new flows coming from such instruments. Because ETH broke above $3k that’s now an area of support in the face of renewed selling pressure. We see how the price is trading way above the daily 20 EMA, suggesting strong bullish momentum.

Shorting this market is tricky, given we expect bulls to resume in case the price dips towards $3k or $2.9k. It will take a lot of damage in a short period of time to suggest the trend has reversed. With that being the case, we expect Ether to continue moving up and our mid-term upside target is around $3,520.

BNBUSD (Binance)

Source: TradingView

Binance Coin is one of the major altcoins that outperformed last week and when looking at the chart, we can see how bulls are chasing an impulsive move higher. The price is approaching $397, a key technical area, but as things stand right now, a break on the upside is likely to occur.

A more significant resistance level is $450, where we anticipate greater selling pressure, especially if the price moves up to that zone very fast. Keep in mind that conditions are overbought, with the daily RSI trading close to 80. It has been overbought for the last two weeks, showing how strong the bullish momentum is.

Once again, this is not a coin to short, but, buyers who want to gain longer-term exposure to BNB might want to wait until the price retraces towards $367 or $340. The daily 20 EMA is another dynamic support traders should monitor closely.