Bitcoin (BTC) price reached a record high as of February 8, with a value of $ 3,000 in minutes. Behind this rapid rise was the Tesla company, owned by Elon Musk, buying BTC worth $ 1.5 billion.
On the other hand, Elon Musk’s company Tesla Motors announced that it will also offer its customers the opportunity to buy with Bitcoin.
After this development, the Bitcoin price skyrocketed once again, and at the time of this article, it started trading at $ 43,744.
The sudden spike observed in the largest cryptocurrency has partially affected altcoin prices. Currencies, which are currently in an upward trend, gained extra strength. Cointelegraph analyst Rakesh Upadhyay evaluated how the prominent cryptocurrencies were affected by this critical news this week and what awaits us in the coming days.
Here is the technical analysis and price evaluation of the 4 altcoins that should be followed during the week as of February 8:
DOT / USD – Polkadot engineering analysis
Polkadot (DOT) is in a strong uptrend. The bulls pushed the price above the $ 19.40 resistance on Feb. 03, but remained flat afterwards. This indicates that the bears are trying to stop the uptrend. However, DOT, which was affected by the upward trend in the market as of February 8, approached again to $ 23.
Daily chart of DOT / USDT pair. Source: TradingView
The most positive sign in the price is that the bulls do not allow the price to drop below $ 19.40. This shows that traders are not taking profits, on the contrary, they are buying with every drop.
The bulls’ goal is to keep the price above $ 21.7321. If closing comes here, the next leg of the uptrend can begin. On the upside, the target is $ 24.08 followed by $ 30. Rising moving averages (MA) and the relative strength index (RSI) above 67 show that the bulls are in control of the market.
Contrary to this assumption, if the bears prevail and lower the price below $ 17.8704, where the 20-day exponential moving average (EMA) is calculated, the bullish momentum will show up. The DOT / USD pair could then be consolidated by swinging between $ 19.4 and $ 14.7259.
LINK / USD – Chainlink price analysis
Chainlink (LINK) price closed above the overall resistance of $ 25.7824 on Feb. 5. However, the bulls could not sustain the momentum the next day. This shows that the bears are aggressively defending the $ 25.7824 to $ 27 resistance zone.
Daily chart of the LINK / USDT pair. Source: TradingView
However, the long tail on the candlestick observed on February 7 indicates that the bulls were buying during the decline towards the 20-day exponential moving average (EMA) ($ 23,1250). The upward moving averages (MA) and the relative strength index (RSI) in the positive zone increase the likelihood of an upward move.
If the bulls can push the price above the general resistance zone, the next leg of the uptrend could begin. The next level to be followed on the upside is $ 30, and if this is exceeded, the upward move could reach $ 33.
Conversely, if the bears pull the price below the 20-EMA value, the LINK / USD pair could follow range-bound movement between $ 20.1111 and $ 25.7824 for a few more days this time.
XLM / USD – Stellar technical analysis
Stellar (XLM) price broke the squeeze move from $ 0.325 to $ 0.35 up as of February 6. This shows that the bulls dominate the bears. If the bulls can now keep the XLM price above $ 0.4, the next leg of the uptrend could begin.
Daily chart of XLM / USDT pair. Source: TradingView
The upward moving averages and the relative strength index (RSI) near the overbought zone show that the bulls are superior. If it moves above $ 0.4, the XLM / USD pair could then rise to $ 0.50, where the bears may again show strong resistance.
If the bulls fail to close the price above $ 0.4, the pair could fall back to $ 0.35. A strong recovery from this support will show that the bulls are strengthening the support and in this case it will be more likely to move above $ 0.4.
Contrary to this assumption, if the bears pull the price below the 20-day exponential moving average (EMA) ($ 0.323173), the current breakout will turn out to be a bear trap.
THETA / USD – Theta price analysis
THETA is currently in an uptrend. The past few days’ price action has formed a rising triangle pattern that will complete at a possible breakout and close above $ 2.51.
Daily chart of THETA / USDT pair. Source: TradingView
The bulls pushed the price above $ 2.51 on February 5th, but sales soon followed. This shows that the bears are trying to defend the $ 2.51 resistance. However, this resistance was broken thanks to the rise in the market on February 8. Now over-resistance closures have become important.
Another positive sign is that the bulls have not allowed the price to drop below the 20-day exponential moving average (EMA) ($ 2.15248).
Daily closes on the resistance could start the next leg of the uptrend. After breaking from the triangle, the target will be $ 3.56. The bears will work to lower the price below the triangle.
The opinions and comments expressed here are only analyst belongs. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.