Bitcoin 

BTC

$23,125

 is gradually gaining ground on gold, the traditional store of value. Data shows that one ounce of gold can only buy 0.0352 Bitcoin as of Feb. 17, the lowest amount of BTC ever. This shows that Bitcoin has been rewarding its investors much more than gold.

Bitcoin has massively outperformed gold over various time frames. Even if the latest one-year data is considered, Bitcoin’s risk-adjusted return is 270%, while gold's is only 24% as of Dec. 28, 2020.

The result further skews hugely in favor of Bitcoin if longer time frames of four years or eight years are compared.

In the past few years, Bitcoin has matured as an asset class. During the previous bull run in 2017, Bitcoin’s 60-day volatility was at 32%. But in the current bull phase, Bitcoin has recorded lower volatility at 14.25%. Analysts believe that as institutional adoption increases, volatility could drop further.

And there are no signs of a slowdown in the number of institutions showing interest in Bitcoin. Elliptic co-founder Tom Robinson told The Telegraph that many United States financial institutions “are seriously considering launching some type of cryptocurrency service.”

If institutional adoption continues to grow, the sentiment is likely to remain positive. Let’s analyze the charts of the top 10 cryptocurrencies to spot the levels on the upside that may act as significant resistance.

BTC/USD

The psychological level at $50,000 saw only minor resistance to Bitcoin, which shows that the bulls are firmly in command and not hurrying to book profits, as they anticipate the bull run to continue.

A new all-time high above $51,000 is a sign of strength. The upsloping 20-day exponential moving average ($43,451) and the relative strength index (RSI) in the overbought zone suggest bulls are in control.

If the bulls can sustain the price above $50,000 for three days, the BTC/USD pair could rally to $60,974.43 where the bears may step in.

On the downside, the first support is the 20-day EMA, and if the bears can sink the price below it, the decline could extend to the 50-day simple moving average ($37,415). This is an important level to watch because a break below it will suggest a momentum shift to the bears.

ETH/USD

Ether 

ETH

$1,637

 is currently range-bound between $1,658.572 and $1,869.473. The long tail on the Feb. 15 candlestick shows the bulls are buying on every minor dip. The buyers will now try to propel the price above $1,869.473.

If they succeed, the ETH/USD pair could start the next leg of the uptrend, which has a target objective of $2,000. This is an important resistance, but if the bulls can drive the price above the channel, the momentum could accelerate. The next target objective on the upside is $2,515.

Contrary to this assumption, if the price fails to rise above $1,869.473, the pair may consolidate in the range for a few more days. A break below the 20-day EMA ($1,658) will be the first sign of weakness, and a trend change will be signaled if the bears sink the price below the support line of the channel.

DOT/USD

Polkadot's DOT rose to a new all-time high on Feb. 16 and followed it up with another new high on Wednesda, which shows that the bulls are firmly in command. However, the bears are defending the resistance line of the channel.

If the bulls can thrust the price above the ascending channel, the momentum could pick up and the DOT/USD pair could rally to $42. On the other hand, even if the price sustains in the upper half of the channel, the uptrend may gradually continue.

The first sign of weakening momentum will be a break below the midpoint of the channel. If that happens, the pair may decline to the support line of the channel. This is an important support level because a break below it could indicate a trend change.

ADA/USD

After the sharp rebound from the lows on Feb. 15, Cardano's ADA formed an inside day candlestick pattern on Feb. 16 and a Doji candlestick pattern today, which shows a balance between supply and demand.

The bulls will now try to push the price to $0.9817712. This level is likely to act as a stiff resistance, but if the bulls can drive the price above it, the ADA/USD pair could rally to $1.25 and then to $1.50.

On the other hand, if the price turns down from the current level or the overhead resistance, the pair may drop to $0.687. A bounce off this level could keep the price range-bound between $0.687 and $0.981.

XRP/USD

XRP price attempted to bounce off $0.50 on Feb. 14 and 15, as seen from the long tails on the candlestick, but the bulls could not sustain the rebound. This suggests that demand dries up at higher levels.

The failure to achieve a strong rebound off a critical level suggests the momentum has weakened. The XRP/USD pair could now consolidate between $0.50 and $0.65 for a few days. A breakout of $0.65 could push the price to $0.78068.

Contrary to this assumption, if the price dips and breaks below the 20-day EMA ($0.48), the pair may decline to the 50-day SMA ($0.35).