Bitcoin fell below the $85,500 support on February 26th, signaling that the bears weren’t out of the market yet. Data from Farside Investors shows that the downtrend has caused investors to withdraw over $930 million from Bitcoin spot ETFs in the past two days.
The big question in every trader/investor’s mind is whether BTC has topped out or it’s just experiencing another pullback. On Thursday, Binance boss Richard Teng Wrote on X that the number one coin by market cap was witnessing a ‘tactical retreat’ and would rise sharply soon.
While the future looks bright for Bitcoin, its current downtrend puts thousands of leveraged long positions at risk of being liquidated. According to analysts at CoinGlass, over $1.1 billion worth of such positions will be liquidated if BTC closes below $79k.
That said, can Bitcoin cross above $85,500 to limit a downside move, or will the bears continue to drag it lower? Let’s explore the charts to find out.
Bitcoin Price Analysis
After Bitcoin closed below $90k at the start of the week, a bearish setup was completed, essentially shifting the advantage to the sellers. Analysts say that setup could cause BTC to plunge to $70,000. If that happens, it would mean that the coin has lost all the gains it has accumulated since Republican Party leader Donald Trump became the President of the United States.
However, there is a massive chance that the buyers will protect the previous all-time high ($73,762) and start a recovery rally toward $90,000 and later to the 20-day Exponential Moving Average of $94,889, where selling is expected. But if $94,889 gives way, it could be a sign that the downtrend has ended.
Ethereum Price Analysis
ETH has plummeted to $2,163, five days after hitting the $2,848.73 key resistance. Sellers started exerting pressure on February 26th when the buyers failed to defend the critical support at $2,541. They are now looking to cause a breakout below $2,109 to improve their chances of pulling Ethereum to $1,900.
XRP Price Analysis
Although selling pressure has intensified over the last few days, XRP bulls have managed to keep the coin above $2, indicating they are not ready to give up yet. However, if they do and let that key support collapse, we may see XRP descending toward $1.812.
On the contrary, a solid rally toward the 20-day Exponential Moving Average of $2.535 could occur if XRP reaches $2 and the bulls successfully protect that level.
Solana Price Analysis
The bulls arrested the downtrend at $126 on February 28th, pushing Solana to $145.38 at press time. The recovery rally is likely to meet resistance at $155.94. However, if sellers show no interest in applying pressure there, SOL could rise further, reaching the 20-day Exponential Moving Average of $174.22.
From a negative point of view, a reversal from $155.94 might cause $126 to break, with Solana expected to plunge to $117, where buying is anticipated.
Dogecoin Price Analysis
DOGE has dropped below the $0.2005 key support for the first time since mid-November. The number one meme coin by market cap, which experienced a significant rally to $0.4603 in December, is now trading at $0.1956, signaling that the sellers control the market.
If the downtrend continues and the buyers fail to arrest it at $0.1508, the probability that Dogecoin will plunge to $0.1000 could increase massively. Meanwhile, the coin needs to cross and close above the 20-day Exponential Moving Average of $0.2495 to signal the end of the downtrend. As such, the journey to $0.3200 looks likely.
Cardano Price Analysis
Although the bulls have protected Cardano from plunging below the descending channel pattern’s support line, the token still trades below the 20-day Exponential Moving Average of $0.7612, meaning selling pressure exists. So, if the support line breaks, a move to $0.5008 is possible. On the other hand, ADA could hit the $0.8672 resistance if it closes above $0.7612.
