Bitcoin Recaptures $23K, LDO, EGLD, THETA, and KLAY Target New Highs
• Bitcoin price is chasing after $24,000 again, raising the possibility of LDO, EGLD, THETA and KLAY targeting new year-to-date highs.
• The cryptocurrency markets and the United States equities markets witnessed profit-booking this week as the macroeconomic data hinted toward continued rate hikes by the Federal Reserve.
• A few coins that have witnessed a shallow correction or have bounced sharply off the support have been selected in this list.
Cryptocurrency Markets Show Signs of Bullish Momentum
The crypto markets and US equities were hit with profit taking this week due to potential rate hikes from the Federal Reserve. Despite this, some coins are showing signs of bullish momentum with Bitcoin recapturing $23K. This has raised speculation that LDO, EGLD, THETA and KLAY may reach new highs for 2021.
CME FedWatch Tool Hints at Potential Rate Hikes
The CME FedWatch Tool suggests there is a 73% chance of a 25 basis points increase in rates during March’s meeting. There is also an increasing probability of a 50 basis point rate hike due to recent inflation readings higher than expected.
Analyzing Price Movements
Overall, it is important to select the right coins for trading during periods of uncertainty as some may enter deeper corrections while others perform better than expected. We can look at BTC/USDT pair to analyze price movements as it has bounced from strong support at $22K recently and bulls are attempting to push it above its 20 day exponential moving average ($23K). If successful, we could see consolidation between $25K and $22K in coming days. However if unsuccessful then there could be further drops to support around $21K
Four Hour Chart Analysis
On four hour chart analysis we can see that sellers will attempt to defend against any attempts at breaking over 20EMA resistance which would indicate further bearishness if unsuccessful and a break below 22k support level would intensify selling sentiment further leading us back towards 21k support zone
Conclusion
In conclusion we can say that despite market pullback this week due to expectations of rate hikes from Federal Reserve there are still signs of bullish momentum on certain coins such as LDO ,EGLD ,THETA & KLAY who are potentially looking for new highs for 2021 . It’s important when selecting which coin to trade to look out for those with shallow corrections or those bouncing off strong supports . We analyzed BTC/USDT pair which looks like it could consolidate between 25k & 22k but further drops below 22k could lead us back towards 21k support level .
