Bullish Signs for Bitcoin Holding on to Gains, Bearish Signs for Solana
Skerdian Meta • 2 min read
The 3-month decline in cryptocurrencies finally stopped towards the end of January, after the majority of cryptos had suffered major losses. Bitcoin fell from $69,000 to $33,000, losing more than half its value, while Solana lost $180, falling to $260, which means that it also lost more than half its value.
The last week of January and the first week of February were bullish, suggesting that the trend might finally be changing, but last week cryptocurrencies posted some losses again. So, the question of whether the larger bullish trend has resumed yet, is not too clear right now. However, there are some indications that provide a little guidance.
Bitcoin Daily Chart Analysis – BTC Holding Above $40,000
Bitcoin was displaying bullish pressure after reversing at $33,000, and increasing to $45,700, but last week, the crypto market began heading downhill again, and BTC slipped lower. But the losses haven’t been too heavy for Bitcoin, which has held better than most cryptocurrencies in the market, which is a bullish sign for Bitcoin. Perhaps, the news that the cryptocurrency exchange, FTX, was giving away BTC coins during the Super Bowl this weekend, helped keep the sentiment afloat.
Bitcoin Weekly Chart Analysis – BTC Bouncing Between 2 MAs
The 100 SMA held as support on the weekly chart
On the weekly chart, we see that Bitcoin has been finding solid support at moving averages. The 50 SMA (yellow) held as support during the first major pullback in May last year, while now the 100 SMA (green) turned into support. BTC/USD bounced off this moving average three weeks ago, but buyers are finding resistance at the 50 SMA now. However, the retreat wasn’t substantial last week, compared to the rest of the market, which points to a break above that level soon.
Solana Daily Chart Analysis – SOL Facing the Support at $80 Again
Solana gave back almost all of its gains last week
Solana has been displaying increasing bearish pressure, despite the announcement of the blockchain’s latest P2P payments protocol. This service will make it easier to use Solana-based digital assets as a means of payment for businesses and consumers, directly from their crypto wallets.
But, that hasn’t helped Solana much, as it remains at two-thirds of its value when the price was at the top, around $260. That resistance level turned into support in January, and we saw a bounce to $120, but last week’s reversal in the crypto market pulled SOL/USD down with it, and now, Solana has given back the gains again, facing the support at $80. Solana is a great blockchain, so I am trying to buy a considerable amount of Solana, and the $80 level is not a bad place to do so, but I will wait to see if the $80 zone holds again as support.