Bitcoin (BTC) performed well in the second half of 2020 and it looks like the acquisition of the digital asset MicroStrategy has caught the attention of several US-registered companies. However, a lack of clarity in regulation could prevent them from buying bitcoins at lower levels.
To address this issue, business analytics company MicroStrategy is hosting a webinar on February 3 and 4 where they will discuss “the legal considerations companies face when incorporating bitcoin into their business strategy.” Several major cryptocurrency companies will also be giving presentations to the public.
About 1,400 companies signed up for the webinar, which suggests that companies are very interested in Bitcoin. While some of these companies end up buying bitcoin, the next step could start to take off to whole new heights.
Institutional investors from the United States have shown an increased interest in Bitcoin in 2020, bringing Coinbase to the Top 1000 Sites in the World and the Top 400 in the United States.
In January this year, the popularity seems to have increased even more. Morgan Creek Digital co-founder Anthony Pomplano recently highlighted that the Coinbase app was downloaded 1.3 million times in January, more than the downloads of the E-Commerce, TD Ameritrade, Charles Schwab, Fidelity and Sofi apps combined.
With this basic positive backdrop, let’s break down the cards of 10 cryptocurrencies and define the technical design.
Bitcoin / US dollar
Bitcoin broke the downtrend on February 2 and another bullish move followed today, rejecting the short-term downturn. The Relative Strength Index (RSI) has moved into positive territory and the 20-day exponential moving average ($ 33,945) begins to rise, indicating a bullish advantage.
BTC / USD can now rise to $ 38,000. If the bulls manage to push the price above this resistance, the pair could fully test its price at $ 41,959.63. A breakout of this level could start the next phase of the bullish move, which could reach $ 50,000.
On the other hand, if the bears aggressively defend the $ 38,000 level, the price could drop and fall to the 20-day moving average. If the price bounces off this level, the bulls will try to resume the bullish trend again.
But if the bears push the price below the moving average, the pair could consolidate between $ 28,850 and $ 38,000. A break below $ 28,850 could trigger a deeper correction.
ETH / USD
On February 2, Ether rallied above the $ 1400 high resistance at $ 1,473,096, followed by another strong rally today. This indicates that bulls continue to buy at higher levels.
Price action over the past three days has eliminated negative RSI deviation. ETH / USD could now rise to $ 1,675, and if that level is also crossed, the rally could extend to $ 2,000.
Any correction is likely to find strong support at the $ 1400 breakout and below the 20-day moving average ($ 1321). A jump from both levels would mean that the bulls are still in control.
This positive outlook will become invalid if the pair reverses direction and breaks below the rising line. Such a move would mean strong profits at higher levels.
XRP / US dollar
XRP formed a doji candlestick on Feb 2, indicating swing among bulls and bears. Today the bulls are trying to resolve the uncertainty in their favor, pushing the price and keeping it above $ 0.41123.
If successful, the XRP / USD pair could rise to $ 0.50 and then to $ 0.60. The 20-day gradually bullish EMA ($ 0.33) and the RSI in positive territory indicate that the bulls are trying to get back.
But if the bulls fail to keep the price above $ 0.41123, the bears will try to pull the pair below $ 0.3555. A break below the moving average would indicate weakness and then the decline could reach $ 0.245.
DOT / USD
Polkadot (DOT) recovered from the 20-day moving average ($ 15.97) on Feb 1 and rallied above its full value today. If the common currency closes above $ 19.40, it means that the next step in the uptrend has begun.
DOT / USD could then rally to $ 24.08 and then to $ 30. Bullish moving averages and RSI near overbought territory indicate that the bulls are in control of the market.