The price of Bitcoin (BTC) has corrected in recent days and traders are wondering if this is a slight drop or the beginning of a larger decline. The problem is that no one has a crystal ball, and analysts can only point to critical support levels that could be sustained based on historical data and evidence.

However, in bear markets the price tends to slide below key support levels as traders panic and sell out of fear, just as in bull markets the price rises above growth targets as traders buy on FOMO.

March has historically been a weak month for Bitcoin, suggesting that seasonal traders may prefer to wait and see rather than make a purchase. This lack of demand could be one of the reasons why the premium of the Grayscale Bitcoin Trust turned negative last week.

Daily review of cryptography market data. Source: room360

However, not all data is bearish. The 26th. In February, Lex Moskovsky, CEO of the investment firm Moscow Capital, noted that the positions of bitcoin miners on 26. February for the first time since the 27th. The months of December have changed for the better. CryptoQuant CEO Ki Yong Ju added that the large outflow from the currency base in recent days indicates that institutions continue to accumulate at lower levels.

These data appear inconclusive and do not provide an immediate indication of benefit to bulls or bears. Let’s take a look at the charts of the top 5 cryptocurrencies that could outperform in the coming days.

BTC/USD

Bitcoin fell below its 20-day exponential moving average ($47,441), the first sign of a deeper correction. The next critical support is the 50-day simple moving average at $41,066. Class has been in session since 9:00. October does not end below this support anymore, so the level becomes more important.

Day ticketBTC/USDT. Source : TradingView

Bulls are likely to aggressively defend the 50-day ADM. If price rebounds on this support and crosses the 20 EMA, it suggests that sentiment remains bullish and traders will buy lower.

However, the flat moving averages and relative strength index (RSI) just below the midpoint suggest that the bulls are losing ground.

When the bears fall below the 50-day SMA, it means that supply is outpacing demand and traders are rushing to book profits. Such a decision could bring the price down to $38,000 on the 8th. February brings.

A break below this support would be very negative as the next support would be $32,000 and then $28,850.

BTC/USDT 4-hour card. Source : TradingView

The decline in the 20EMA and the RSI in negative territory show that the bears are under control. The price is now approaching the critical support level of $41,959.63.

If the price recovers on this support, the bulls will try to push the price above 20 EMA. If they succeed, it would mean the Bulls are aggressively collecting traps. The CTB/USD pair could then move to the 50-SMA and then to $52,000.

Conversely, if the $41,959.63 support breaks and the bears return to resistance, a deeper correction is likely.

MLRD. BARR/USD

The Binance currency (BNB) has been on the market for 20 years. February in a correction phase, showing that traders were unable to get out of their rut after a sharp rise on the 19th. The month of February showed an increase. However, since February 25, the decline has been gradual, indicating that traders are not panicking.

Daily chart of the NBB/USDT. Source : TradingView

The price has now dropped to the 20-day EMA ($194) where buyers can get in. If price rebounds on this support and breaks above the bearish trendline, the NBB/USD pair could once again attract buyers from short-term traders. This could push the price up to $280 and then $300.

The 20-day EMA has stabilized and the RSI is just above the midpoint, indicating a balance between supply and demand. However, if the bears pull down and the price supports below 20 EMAs, indicating that supply exceeds demand, the pair could correct to $167.3691 and then to $118.

4-hour card of the NBB/USDT. Source : TradingView

The 4-hour chart shows the formation of a descending triangle that will end on a breakout and a close below $189. If this is the case, we can assume that the peak has been reached and the pair could fall to $118.

Conversely, if the bulls defend support at $189, this would mean that sentiment remains positive, as bulls buy in response to declines from support levels. A breakout and close above the downtrend line would invalidate the bearish configuration, which could lead to a $280 rally.

POINT/USD

Polka dot (DOT) corrects the upward trend. The long end of the candles of the 23rd and 26th. February suggests that bulls are trying to defend the 20-day EMA ($30.49). The long fuse on the 27 rebound. However, February shows that demand is drying up at higher levels.

Daily DOT/USDT card. Source : TradingView

The 20-day EMA is flattening and the RSI is falling towards the middle, indicating a weakening of bullish momentum. However, during the recent upward movement, the DOT/USD pair received repeated support from the 20-day EMA.

If price rebounds on the 20 EMAs and the bulls push the pair above $35.6618, it could reach its all-time high of $42.2848 again. A break above this resistance could lead to a $50 rally.

This bullish view will no longer hold when the bears move below the 20-day EMA and the 61.8% Fibonacci retracement level at $25.7817. If this happens, the pair could fall to the 50-day ADM ($22.33).

4-hour DOT/USDT card. Source : TradingView

The price is currently trading in a symmetrical triangle on the 4-hour chart. If the bears can push the price below the support line of the triangle, the pair could drop to $25.7817 and then to the pattern target of $18.70.

A decline in the 20EMA and RSI in negative territory suggest a slight near-term advantage for the bears. But if the price recovers from the current level, the bulls will try to push the price above the triangle. If successful, the pair could reach $42.2848.

XEM/USD

The Bulls defended on the 26th. February’s 20-day EMA ($0.475), showing that sentiment remains positive and traders are buying on price declines. Bulls are currently trying to resume the upward trend in the NEM (XEM).

XEM/USDT Daily chart. Source : TradingView

The rising moving averages and the RSI above 63 suggest that the path of least resistance is upward. If bulls can push the price above $0.5051, the XEM/USD pair could reach $0.7637. A break of this resistance could open the door to a rise to $0.9607.

Contrary to this assumption, the pair could consolidate at the $0.5051 level for a few days before the next trend move. A breakout and close below 20 EMA indicates the start of a deeper correction.

4-hour XEM/USDT card. Source : TradingView

On the 4-hour chart, you can see that the price has been stuck between $0.439 and $0.63 for the past few days. Both moving averages are tilting up slightly and the RSI is just above the midpoint, indicating a slight advantage for the bulls.

If the bulls can push price above $0.63, the pair could climb to $0.763 and then back to $0.821. On the contrary, if the price breaks below the moving averages, the pair could fall back to the $0.439 support level. If this support also breaks, the correction could extend to $0.346 and then to $0.277.

MYOTA/USD

MIOTA is in the same position since it recorded $155.4775 on the 19th. February in a phase of adjustment. Although the decline was sharp, the positive sign is that the bulls have successfully defended the 20-day EMA ($1.09) in recent days.

Day ticketMIOTA/USDT. Source : TradingView

The 20-day EMA has stabilized and the RSI is also trading slightly above the midpoint, indicating a balance between supply and demand. Attempts by bulls and bears to assert their superiority have failed in recent days.

This balance could tilt in favor of the bulls if they can push and hold price above the upper $1.30 resistance. In this case, the MIOTA/USD pair could go up to $1.554775.

However, if the bears fall below $0.90, a decline to the 50-day SMA ($0.74) is possible.

4-hour MYOTA/USDT card. Source : TradingView

The four-hour chart shows the formation of a symmetrical triangle, which usually acts as a continuation. Both moving averages are gradually falling and the RSI is in negative territory, indicating an advantage for the bears.

The pair has broken below the support line of the triangle, but the bulls are trying to stop the decline and push the price back into the triangle. If they are successful, there will be an offer to buy at a lower level. The bulls will take the advantage if the pair is above the triangle.

However, if the price falls from current levels, this could be the start of a larger correction.

The views and opinions expressed herein are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risk, so you should do your own research before making a decision.

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