Bitcoin (BTC) and most major altcoins are stuck in a narrow range, with bulls buying near support and bears selling at resistance levels. Usually, such narrow ranges are followed by an increase in volatility.
While a few analysts have not ruled out a rapid drop to $ 40,000, most traders expect Bitcoin to rebound strongly to $ 60,000.
Goldman Sachs said in a note to investors that if Bitcoin continues to increase its market share against gold as a store of value and crosses the 50% mark, then it could reach $ 100,000 over the years. next five years.
On-chain analytics provider Glassnode said in its report on Monday that the illiquid supply of Bitcoin had increased to more than 76% of the total circulating supply. According to Glassnode researchers, the drop in the liquid supply suggests that a price capitulation seems unlikely in the near future.
Could Bitcoin surprise with a sharp drop and pull major altcoins lower? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin’s price is sandwiched between the 20-day exponential moving average ($ 48,033) and critical support at $ 45,456. Although both moving averages are down, the Relative Strength Index (RSI) is trying to form a positive divergence. This indicates that the selling pressure may decrease.
If the bulls push and hold the price above the 20-day EMA, the BTC / USDT pair could hit $ 51,936.33. This level is likely to act as a stiff resistance. If the price drops, the pair could stay in a range between $ 51,936.33 and $ 45,456 for a few more days.
A breakout and close above $ 51,936.33 would suggest the start of a bullish move that could reach $ 60,000. On the contrary, if the price goes down and falls below $ 45,456, the selling could intensify and the pair could then fall into the support zone of $ 42,000 to $ 40,000.
ETH / USDT
Ether (ETH) turned down the 20-day EMA ($ 3,881), but the positive sign is that the bulls aren’t giving up much ground. This indicates buying on dips. The bulls will now attempt to push the price back above the 20 day EMA.
If they do, it will indicate that the fix might be completed. ETH / USDT could then move up to the 50-day SMA ($ 4,086), which could again serve as resistance. A breakout and close above this level would suggest the start of a rise to $ 4,488 and then to the all-time high of $ 4,888.
Contrary to this assumption, if the price drops from the 20-day EMA, a decline to the support area of $ 3,643.73 to $ 3,503.68 is possible. This is important support for the bulls to defend as a breakout and close below could open the door to a possible decline to $ 3,270 and then to $ 2,800.
BNB / USDT
Binance Coin (BNB) has declined the 20-day EMA ($ 530) and currently supports the psychological level at $ 500.
If the bears move down and hold the price below the $ 500 support zone at $ 489.20, the selling momentum could accelerate and the BNB / USDT pair could drop to $ 435.30. Descending moving averages and the RSI in negative territory indicate an advantage for the bears.
Conversely, if the price rebounds from the current level, it will suggest that the bulls continue to defend this support. They will then make another attempt to push the price above the 20 day EMA. If that happens, this pair could reach $ 575.
SOL / USDT
Solana (SOL) turned down the 20-day EMA ($ 178) on Jan. 2, saying the bears sell out at every minor rally. The bears will now try to pull the price below the strong support at $ 167.88.
If they are successful, SOL / USDT could drop to $ 148.04 which could provide strong support. If the rebound from that level does not exceed $ 167.99, it will indicate that demand is drying up at higher levels.
This could intensify the sell-off and the pair could drop to critical support at $ 120. The bulls will need to push and hold the price above the moving averages to signal that the selling pressure may ease. The pair could then rise to $ 204.75.
ADA / USDT
Cardano (ADA) traded between the 20-day EMA ($ 1.36) on the upside and $ 1.28 on the downside. This is a minor bright spot as it suggests that bulls are unwilling to give way to bears.
The 20-day EMA flattens out and the RSI is just below 46, suggesting that the selling pressure may ease. If the bulls push the price above the moving averages, the ADA / USDT pair could reach $ 1.60 and then hit the resistance line of the channel.
A breakout and close above the channel will signal that the downtrend may be over. This positive opinion will be invalidated if the price drops and falls below $ 1.18. This could pull the price towards the crucial support at $ 1.
XRP / USDT
XRP declined the 20-day EMA ($ 0.86) on January 3, suggesting sentiment remains negative and traders are selling on relief rallies.
The long tail of the January 4 candlestick shows strong buys in the $ 0.77 to $ 0.75 support area. XRP / USDT could now consolidate between $ 0.75 and the 20-day EMA for the next few days.
A breakout and close above the moving averages could set the stage for a rally to $ 1. If the bulls overcome this hurdle, the pair could begin its journey towards the strong air resistance at $ 1.41. Alternatively, if the price breaks and closes below $ 0.75, the pair could drop to $ 0.60 and then to $ 0.50.
LUNA / USDT
Terra’s LUNA token declined air resistance at $ 93.81 on January 3 and hit the 20-day EMA ($ 83). This suggests that bears are selling on rallies.
If the bears pull the price below $ 81.11, the selloff could intensify as short-term traders could rush to the exit. LUNA / USDT could first drop to $ 76.72, then extend the decline to the 50-day SMA ($ 67).
Contrary to this assumption, if the price bounces off $ 81.11, it will suggest that the bulls continue to buy on the lows. The bulls will then make another attempt to break through the air barrier at $ 93.81 and push the pair to an all-time high of $ 103.60.
Related: Bitcoin Monthly RSI lowest since September 2020 in new “oversold” signal
DOT / USDT
Polkadot (DOT) traded between the 20 day EMA ($ 28) and overhead resistance at $ 31.49 over the past few days. The stable 20 day EMA and the RSI just above the midpoint suggest a balance between supply and demand.
If the price breaks and closes above the resistance zone of $ 31.49 to $ 32.78, this will indicate that the scales have tilted in favor of the bulls. The DOT / USDT could then start its march north towards $ 40.
Conversely, if the price drops below the 20-day EMA, the pair could extend its stay in the $ 31.49 to $ 22.66 range for a few more days. The bears will need to sink and hold the price below $ 22.66 to signal the resumption of the decline.
AVAX / USDT
Avalanche (AVAX) slipped below the moving averages on January 4, indicating that the bears are aggressively defending the downtrend line. The 20-day flat EMA ($ 107) and RSI just below the midpoint suggest a steady state between bulls and bears.
If the price holds below the moving averages, the bears will try to push the AVAX / USDT pair below $ 98. If they succeed, the pair could drop to solid support at $ 75.50.
On the contrary, if the bulls push the price back above the moving average, the pair could move up to the downtrend line. A breakout and close above this level will signal a possible trend change. The pair could first hit $ 128 and then retest the all-time high at $ 147.
DOGE / USDT
Dogecoin (DOGE) has traded in a narrow range between the 20 day EMA ($ 0.17) and $ 0.16 over the past few days. This suggests that the Bulls and Bears don’t place big bets and play it safe.
Usually, tight ranges are followed by sharp moves. Descending moving averages and the RSI in the negative zone suggest that the path of least resistance is the downside.
If the price drops below $ 0.16, bears will attempt to pull DOGE / USDT below the strong support at $ 0.15. If they are successful, that could lead to a drop to $ 0.13 and then to $ 0.10.
On the flip side, if the price rises from the current level and breaks the 20-day EMA, the pair could rally to the strong overhead resistance at $ 0.19. Bulls will need to clear this hurdle to signal a possible change in trend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN. Every investment and trade move involves risk. You should do your own research before making a decision.
Market data is provided by HitBTC exchange.
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