January 4th Technical Analysis: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, AVAX, DOT, DOGE
Bitcoin (BTC) price movement has been volatile in the first few days of the new year and continues to weaken below the psychological level of $ 50,000. The Crypto Greed and Fear Index is in the fear zone with a value of 29/100.
On-chain analytics platform Ecoinometrics says episodes of extreme anxiety are rarely long-lasting, meaning that “it usually lasts up to 30 days”.
Bitcoin will continue to be supported by renowned experts. Wharton School of Finance Professor, Jeremy Siegel said in an interview with CNBC that Bitcoin has replaced gold as an inflation hedge in the minds of millennials (born between 1981 and 1996).
Savvy investors have turned to Bitcoin to hedge their portfolios against a possible decline in fiat currencies. Hungarian billionaire Thomas Peterffy donate Put 2% to 3% of your own portfolio in crypto as a hedge in the event that the fiat currency “crumbles to dust”.
Can Bitcoin give up area-bound promotions and start a trend? Let’s check out the top 10 cryptocurrency charts to find out.
BTC technical analysis
Bitcoin’s inability to break the 20-day EMA ($ 48,449) shows that bears are selling on every small rally. Both moving averages are sloping down and the relative strength index (RSI) is in negative territory, giving the bears an advantage.
BTC / USDT daily chart | Source: TradingView
Now the bears will attempt to bring the price below the strong support of $ 45,456. If they are successful, it indicates the continuation of the downtrend. First, the BTC / USDT pair may plunge to the December 4th low of $ 42,000, and if breached that level, the next stop could be at $ 40,000. The longer the price stays below the 20-day EMA, the greater the likelihood of a decline.
Conversely, if the price rises and breaks above the 20-day EMA, it indicates that the bulls are trying to return. After that, the pair can rebound to the 50-day SMA ($ 51,938), which can act as a strong hurdle. If the bulls push the price above this level, it indicates a trend reversal. After that, the pair can climb to $ 60,000.
Technical analysis of the ETH
Ether (ETH) ‘s rebound from the $ 3,643.73 to $ 3,503.68 support area has reached the 20-day EMA ($ 3,899) where the bears are challenging.
ETH / USDT daily chart | Source: TradingView
The moving averages are gradually sloping down and the RSI is in negative territory, showing that the bears have the upper hand.
If the price continues to drop, the bears will try again to pull the ETH / USDT pair below the support zone. If they do, the pair can start its way down to $ 3,270 and down to $ 2,800.
Conversely, if the bulls push the price above the moving averages, it indicates that the correction may be over. After that, the pair can climb to $ 4,488
BNB. Technical analysis
Binance Coin (BNB) bounced off the strong support area at $ 500 and hit the 20-day EMA ($ 536) where the rebound is facing resistance. Both moving averages are down and the RSI is in negative territory, giving the bears a slight advantage.
Daily BNB / USDT Chart | Source: TradingView
If the bulls push price above the 20-day EMA, the BNB / USDT pair can rise to the USD 575 resistance, which could again act as a rigid resistance. If the price drops from this level, the couple can add a few more days to their stay, in the $ 500- $ 575 range.
Conversely, if the price falls off the 20-day EMA, the bears will try again to bring the pair below $ 500, and if they succeed, sales could rise and the pair could begin a new bearish trend to $ 450.
SOL. technical analysis
Solana (SOL) has been trading between $ 167.88 and the 20-day EMA ($ 180) for the past few days, but this narrow range trade is unlikely to last long.
Daily SOL / USDT chart | Source: TradingView
Both moving averages are down and the RSI is in negative territory, showing that the bears are in control. If sellers pull the price below $ 167.88, the SOL / USDT pair can drop to $ 148.04 and then to $ 120.
Conversely, if the bulls push price above the 20-day EMA, the pair can rise to $ 204.75. This level could act as resistance again, but if the bulls break this barrier the pair may rise to the resistance line of the wedge.
Technical analysis of the ADA
Cardano (ADA) has been trading near the 20-day EMA ($ 1.37) for the past few days, showing a dead end between the bulls and the bears.
Daily ADA / USDT Chart | Source: TradingView
If the bulls push price above the 20-day EMA, the ADA / USDT pair can rise to the $ 1.59 resistance. A breakout and a close above this level could push the pair to the resistance level of the descending channel.
The bulls need to push and hold price above the channel to indicate the downtrend is over. Conversely, the bears will try again to pull the pair below $ 1.18 and retest the critical support at $ 1 if the price drops from current levels.
Technical XRP analysis
Ripple (XRP) rebounded from $ 0.80, but the bulls are struggling to push the price above the 20-day EMA ($ 0.87). This shows that sentiment remains negative and traders are selling on rallies.
XRP / USDT daily chart | Source: TradingView
If the price continues to drop, the bears will seek to pull the XRP / USDT pair towards the strong support at $ 0.75. If this level is broken, the pair can begin the next phase of the downtrend as low as $ 0.60.
Conversely, if the price rises above the moving average, the pair can rise to $ 1. This level could act as a strong resistance and if the price falls from this level the pair could remain depressed, limited to a few more days.
A breakout and a close above $ 1 could indicate that the downtrend may be over. After that, the pair can begin the march toward $ 1.41.
Technical analysis by LUNA
Terra (LUNA) is on an upward trend. Both moving averages are sloping up and the RSI is in positive territory, showing that the bulls have the upper hand.
Daily LUNA / USDT chart | Source: TradingView
The bulls are trying to push the price above the small resistance at $ 93.81. If the price holds above this level, the LUNA / USDT pair can retest the all-time high of $ 103.60. A breakout and a close above this level could signal the continuation of the uptrend.
First the pair can go up to $ 135.26 and then to $ 150. Contrary to this assumption, if the price drops from current levels and falls below the 20-day EMA ($ 83), the price could signal the start of a deeper correction, with the next target being the 50-day SMA (66th) USD).
Technical analysis by AVAX
Avalanche (AVAX) bounced off the $ 98 support and rose above the moving average on December 31st, but the bulls have yet to break the downtrend line. This shows that the bears are aggressively defending this level.
AVAX / USDT daily chart | Source: TradingView
If the bears pull the price below the moving averages, the AVAX / USDT pair may plunge to $ 98, and a break below that level could open the door for a decline to $ 75.50.
Conversely, if price rebounds from the moving averages, it shows that sentiment has turned positive and traders are buying on the downside. This should improve the prospect of a breakout above the downtrendline.
After that, the pair can rebound to $ 128, a break and close above that level can complete an inverse head and shoulders pattern that has a target of $ 177.50.
Technical DOT analysis
Polkadot (DOT) rose above the 20-day EMA ($ 28) on Jan 2nd and now the bulls will try to break the overhead resistance at $ 31.49- $ 32.78.
DOT / USDT daily chart | Source: TradingView
The 20-day EMA is flat and the RSI has jumped into positive territory, showing that buyers are looking for return. If the bulls push the price above $ 32.78, the DOT / USDT pair may rise to $ 40.
If price moves down from the overhead resistance area, it shows that the pair can still consolidate between $ 22.66 and $ 31.49 for a few more days. The bears will need to pull and hold the price below $ 22.66 to begin the next phase of the downtrend.
DOGE technical analysis
Dogecoin (DOGE) bounces off the 20-day EMA ($ 0.17) and faces strong resistance from the bears. The moving averages continue to fall and the RSI is in negative territory, showing that the bears are in control.
Daily DOGE / USDT Chart | Source: TradingView
The sellers will now try to push the price down to $ 0.15. If the price rebounds from these levels, the bulls will try again to push the DOGE / USDT pair above the 20-day EMA. If so, the pair can rebound to the overhead resistance at $ 0.19.
A breakthrough and closing price above $ 0.19 is the first sign that the bulls are back in the game. First the pair can rise to $ 0.22 and then to $ 0.24.
Alternatively, if the price falls below $ 0.15, the downtrend could resume. The pair can drop to $ 0.13 and then slide to the psychological level at $ 0.10.
You can see the coin prices here.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.