Bitcoin (BTC) has attracted more institutional investors in recent months, but with a market value of over $ 700 billion, many institutions are likely to consider buying bitcoin. Likewise, investors cannot ignore ETH with a market value of around $ 180 billion.
The institutional adoption of the two leading cryptocurrencies is likely to attract many early venture capitalists and investors to smaller projects that have reached an adequate size but have not yet reached their full potential. Although the risks of such investments are high, income can be just as attractive.
For these investors, there are many projects to choose from, because more than 50 digital assets have a market value of over $ 1 billion, giving them unicorn status – a term used in legacy markets for companies with a market value of over $ 1 billion.
If the major players join these unicorns, they will likely grow a lot, which will benefit early retail investors who have a strong start in organizations. Although this growth may take a long time, traders can benefit from the increase in more altcoins.
Let’s examine the charts of the top 5 cryptocurrencies that may resume the trend in the next few days.
Bitcoin / USD
Bitcoin broke the upper resistance at $ 38,000 on February 5, followed by a fresh move higher on February 6, but the bulls failed to maintain the higher levels seen from the long week in the daily light.
The inability of the bulls to keep the price above $ 40K drew attention to profits today, and the bears are trying to keep the price below $ 38k. If successful, the BTC / USD pair might drop to a 20-day exponential moving average ($ 35,386).
If the pair bounces off the 20 day moving average, the bulls will try to resume the trend again. A breakout into the upper resistance zone of $ 40,000 to $ 41.959.63 could signal the start of the next phase of the uptrend to $ 50,000.
Conversely, if the bears push the price below the 20 day moving average, the pair might drop to the 50 day simple moving average ($ 32,840). If this support is also broken, the pair may fall to support $ 28,850.
The 4-hour chart shows that the bulls pushed the price above the resistance zone from $ 38,000 to $ 40,000, but the pair fell from $ 40,952.16. This indicates that bears are active at higher levels.
The pair fell below the 20-EMA and the Relative Strength Index (RSI) was just above its midpoint, indicating that the momentum might decline. The pair can now down to the 50-SMA.
If the pair returns from the 50-SMA, the bulls will make another attempt to resume the trend, but if it breaks the 50-SMA, the correction may extend to $ 32,000.
DOT / USD
Polkadot (DOT) is in a strong trend. On Feb 3, the bulls pushed the price above the $ 19.40 resistance, but failed to cement the outbreak. This indicates that the bears are trying to stop the trend.
On the positive side, the bulls did not allow the price to dip below $ 19.40. This indicates that traders are not making strong profits and buying with every drop.
If the bulls can now push the price above $ 21.7321, the next stage of the trend could start. Target for growth is $ 24.08, followed by $ 30. The moving averages and RSI rise above 61 indicate the bulls are in control.
Contrary to this assumption, if the bears pull back and keep the price below the 20 day EMA ($ 17.43), then the bullish momentum is weak. Then the DOT / USD pair could spend a little more time hovering between $ 19.40 and $ 14.7259.
4 hour chart shows symmetrical triangle formation, which usually acts as a continuation pattern. The bears have tried to push the price below the triangle, but a sharp return from the 50-SMA shows strong buying at lower levels.
If the bulls can move the price over the triangle, that will shift the advantage to the bulls. The target of the above triangle burst pattern is $ 24.1621. On the other hand, if the bears keep the price below the triangle, the pair might drop to $ 15.8379.
Link / USD
Chainlink (LINK) broke out and closed above the upper resistance at $ 25.7824 on Feb 5th, but the bulls failed to keep up with the rally the next day.