Price analysis 2/3: SPX, DXY, BTC, ETH, XRP, SOL, BNB, DOGE, ADA, LINK

Bitcoin (BTC) fell to the bottom of its $90,000 to $109,588 range on Feb. 3, but the recovery has been equally sharp. The price has risen to $99,700, indicating solid buying at lower levels. Several altcoins that witnessed a brutal sell-off of more than 20% within 24 hours have also staged a strong comeback.

Although the crypto markets sold off following US President Donald Trump’s tariffs on China, Canada, and Mexico, BitWise’s head of alpha strategies, Jeff Park, believes that Bitcoin will eventually go up.

Park said in a social media post that the tariffs will weaken the US dollar and lower yields on US government securities, propelling Bitcoin “violently higher.” He said it is his “highest conviction macro trade for the year.”

One of the factors supporting Bitcoin’s price has been the sustained demand from the US spot Bitcoin exchange-traded funds (ETFs). Bitwise investment chief Matt Hougan highlighted that the spot Bitcoin ETFs attracted $4.94 billion inflows in January, suggesting that the total inflows for the year could be more than $50 billion. That will be much higher than the $35.2 billion inflows seen in 2024.

Could Bitcoin hold above the $90,000 support, resulting in a range-bound action in the short term? Will altcoins also enter a period of consolidation? Let’s analyze the charts to find out.

S&P 500 Index price analysis

The S&P 500 Index (SPX) turned down from the overhead resistance of 6,128 on Jan. 31, indicating that the bears are fiercely defending the level.

The index gapped down on Feb. 3, signaling sustained selling pressure from the bears, but the lower levels are attracting buyers. If the price closes below the moving averages, the index could slide to the 5,853 support. Buyers are expected to fiercely defend the 5,853 to 5,773 zone because a break below it could start a deeper correction.

If the price turns up from the current level and rises above the moving averages, it will suggest that the index may rally toward the overhead resistance at 6,128.

US Dollar Index price analysis

The US Dollar Index (DXY) turned up from 107 on Jan. 27 and rose back above the 20-day exponential moving average (108.29) on Jan. 31.

The index accelerated on Feb. 3, but the bulls could not clear the overhead hurdle at 110.17. That may have tempted short-term buyers to book profits, resulting in the long wick on the candlestick. If the price closes below the 20-day EMA, it will signal a consolidation between 110.17 and 107 for a few days.

Buyers will be back in the driver’s seat on a close above 110.17. The index may climb to 111.75 and later to 113.15.

Bitcoin price analysis

Bitcoin broke below the 50-day simple moving average ($99,137) on Feb. 2 and reached near the bottom of the $109,588 to $90,000 range on Feb. 3.

The bulls aggressively purchased the dip near $90,000 and are trying to push the price back above the moving averages. If they manage to do that, it will signal that the BTC/USDT pair may remain inside the range for a few more days.

On the contrary, a sharp reversal from the 20-day EMA ($101,161) indicates aggressive selling on rallies. The pair may then again slump to the support zone. The pair will signal a potential trend change on a break and close below $85,000.

Ether price analysis

Ether (ETH) turned down from the downtrend line on Feb. 1 and fell below the crucial $2,850 support on Feb. 2.

The selling intensified on Feb. 3, pulling the price to $2,125. A minor positive is that the bulls aggressively bought the dip, as seen from the long tail on the candlestick. The recovery is expected to face selling at the 50% Fibonacci retracement level of $2,781 and again at the 61.8% retracement level of $2,936.

If the price turns down from the overhead resistance, the ETH/USDT pair may gradually slide toward $2,111. The bulls will signal a comeback on a break and close above the downtrend line. 

XRP price analysis

XRP (XRP) closed below the $2.91 support on Feb. 1, completing a bearish descending triangle pattern.

The selling intensified on Feb. 2, pulling the price below the 50-day SMA ($2.61). That signaled a short-term trend change, and the XRP/USDT pair collapsed to $1.77 on Feb. 3 following panic selling.

Buyers entered at lower levels and are trying to start a recovery, which is expected to face resistance at the 50-day SMA. If the price turns down from the 50-day SMA, the bears will again try to pull the pair to $1.77. 

Solana price analysis

Solana’s (SOL) selling picked up after the price fell below the 61.8% Fibonacci retracement level of $217 on Feb. 1.

The long tail on the Feb. 3 candlestick shows that the bulls are trying to defend the $168 support. The relief rally is expected to face selling at the moving averages. If the price turns down sharply from the moving averages, the risk of a break below $168 increases. The next support is at $155.

This negative view will be invalidated in the near term if the SOL/USDT pair breaks above the 20-day EMA ($224). That will indicate weakening selling pressure.

BNB price analysis

BNB’s (BNB) range resolved to the downside when the price fell and closed below the $635 support on Feb. 2.

The long tail on the candlestick shows solid buying at the psychological level of $500. The relief rally is expected to face selling at the 50% Fibonacci retracement level of $594 and then at the 61.8% retracement level of $617. If the price turns down from the overhead resistance, the bears will again attempt to sink the BNB/USDT pair to $460.

The bulls will be back in the driver’s seat if the price rises and maintains above the breakdown level of $635.

Related: Is XRP price going to crash again?

Dogecoin price analysis

Dogecoin (DOGE) turned down from the support line of the ascending channel pattern on Jan. 31, indicating that the bears have flipped the level into resistance.

The selling increased after the price slipped below the $0.30 support on Feb. 2. That pulled the price to $0.20 on Feb. 3, where buyers stepped in. The relief rally is expected to face selling at the breakdown level of $0.30. If the price turns down from the overhead resistance, the bears will try to sink the DOGE/USDT pair below $0.20.

On the other hand, a break and close above $0.30 will suggest that the bears have given up. That will signal a bottom may be in place.

Cardano price analysis

Cardano (ADA) turned down from the moving averages on Feb. 1, indicating that the sentiment turned negative from buying on dips to selling on rallies.

The bulls tried to defend the $0.80 support on Feb. 2, but the bears kept up the pressure. That sent the ADA/USDT pair tumbling to $0.50 on Feb. 3. Buyers bought this dip as seen from the long tail on the candlestick, but the relief rally is expected to face significant selling pressure at $0.80.

If the price turns down from $0.80, the pair could again fall near $0.50 and consolidate between these two levels for a few days.

Chainlink price analysis

Chainlink (LINK) fell below the $19.25 support on Feb. 3, indicating that the bears are trying to take charge.

However, the long tail on the candlestick shows solid buying at lower levels. Sellers are unlikely to give up easily as they will try to stall the recovery near the breakdown level of $19.25. If they succeed, the LINK/USDT pair could again slide toward the critical support at $15.40.

Contrarily, if the price maintains above $19.25, it will signal that the breakdown may have been a bear trap. The pair could then rally to the moving averages.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.