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Bitcoin (BTC) and most of the major altcoins are stuck in a tight range, with bulls buying near support and bears selling at resistance levels. Usually such narrow areas are followed by a very large swing.
While some analysts haven’t ruled out a quick drop to $ 40,000, most traders expect Bitcoin to rebound sharply to $ 60,000.
Goldman Sachs said A recent report said Bitcoin could soar to $ 100,000 in the next 5 years if Bitcoin continues to increase its market share as a store of value over gold and surpass the 50% mark.
On-chain analytics platform Glassnode said in its January 3 report that Bitcoin’s illiquid supply has exceeded 76% of total circulating supply. According to Glassnode researchers, this suggests that last month’s decline was more of a correction than the start of a downtrend.
Can Bitcoin surprise with a sharp decline and pull down important altcoins? Let’s check out the top 10 cryptocurrency charts to find out.
Bitcoin sits between the 20-day EMA ($ 48,033) and the critical support at $ 45.456. Although both moving averages are sloping down, the relative strength index (RSI) seeks to create a positive divergence. This suggests that selling pressures may ease.
BTC / USDT daily chart | Source: TradingView
If the bulls push and hold the price above the 20-day EMA, the BTC / USDT pair can rise to $ 51,936.33. This level is likely to act as a strong resistance level. If the price goes down from there, the pair could stay between $ 51,936.33 and $ 45,456 for a few more days.
A breakout and a close above $ 51,936.33 would indicate the beginning of an upward move with a target of $ 60,000. Conversely, if the price goes down and falls below $ 45,456, sales will likely increase and the pair may fall into the $ 42,000 to $ 40,000 support area.
Ether (ETH) is down from the 20-day EMA ($ 3.881) but the positive sign is that the bulls won’t be giving up much ground. This shows the buying pressure in the event of a decline. Now the bulls will try to push the price back above the 20-day EMA.
ETH / USDT Daily Chart | Source: TradingView
If so, it indicates that the customization may have ended. After that, the ETH / USDT pair may rebound to the 50-day SMA (USD 4,086) which could act as resistance again. A break and close above this level would indicate the start of a rally to $ 4,488 and above the all-time high of $ 4,888.
Contrary to this assumption, if price deviates from the 20-day EMA, a break into the $ 3,643.73 to $ 3,503.68 support area is possible. This is important support for the bulls to defend as a breakthrough and a close below it could open the door for a sharp decline to $ 3,270 and then $ 2,800.
Binance Coin (BNB) has rejected the 20-day EMA ($ 530) and is currently trading at the psychological level of $ 500.
Daily BNB / USDT Chart | Source: TradingView
If the bears turn down and hold the price below the $ 500- $ 489.20 support area, selling pressures may mount and the BNB / USDT pair may fall to $ 435.30. The moving averages are sloping down and the RSI is in the negative territory, showing that the advantage is in the hands of the bears.
Conversely, if the price rebounds from current levels, it shows that the bulls are continuing to defend that support. They will then take one more step to push the price above the 20-day EMA. If so, the pair can rebound to $ 575.
Solana (SOL) was rejected by the 20-day EMA ($ 178) on Jan 2nd, showing that the bears are selling on every small jump. Now the bears will attempt to pull the price below the strong support at $ 167.88.
Daily SOL / USDT chart | Source: TradingView
If successful, the SOL / USDT pair can fall to $ 148.04 which can serve as strong support. If the rebound from these levels does not help the price break the $ 167.99 mark, it suggests that demand will dry up at higher levels.
This could add selling pressure and the pair could fall to the critical support at $ 120. The bulls have to push and hold the price above the moving averages to signal that selling pressures may decrease further. After that, the pair can climb to $ 204.75.
Cardano (ADA) has been trading between the 20-day EMA ($ 1.36) and $ 1.28 for the past few days. This is a minor plus as it shows that the bulls are not ready to give in to the bears.
Daily ADA / USDT Chart | Source: TradingView
The 20-day EMA is flattening and the RSI is just below 46, suggesting that selling pressures may ease. If the bulls push price above the moving averages, the ADA / USDT pair can rise to $ 1.60 and then to the resistance line of the channel.
A breakout and close above the channel signals that the downtrend may be over. This positive view will be invalidated if the price goes down below $ 1.18. This can push the price down to the critical support at $ 1.
Ripple (XRP) was rejected by the 20-day EMA ($ 0.86) on Jan 3rd, suggesting sentiment remains negative and traders are selling on relief rallies.
XRP / USDT daily chart | Source: TradingView
The long tail of the January 4th candle shows strong buying in the $ 0.77 to $ 0.75 support area. The XRP / USDT pair could consolidate between $ 0.75 and the 20-day EMA over the next few days.
A break and a close above the moving average could pave the way for a rally to $ 1. If the bulls break this barrier, the pair can begin its journey towards the rigid resistance at $ 1.41. Alternatively, if the price breaks and closes below $ 0.75, the pair may drop to $ 0.60 and then to $ 0.50.
Terra (LUNA) turned down from the USD 93.81 resistance on Jan 3rd to hit the 20-day EMA (USD 83). This shows that the bears are selling in the rallies.
Daily LUNA / USDT chart | Source: TradingView
If the bears pull the price below $ 81.11, sales may pick up as short-term traders may break out. After that, the LUNA / USDT pair can drop to $ 76.72 and lower to the 50-day SMA ($ 67).
Contrary to this assumption, if price bounces off $ 81.11 it will show the bulls continue to buy down. They will then make one more attempt to break the overhead barrier at $ 93.81, propelling the pair to an all-time high of $ 103.60.
Polkadot (DOT) has been trading between the 20-day EMA (USD 28) and the USD 31.49 resistance for the past few days. The flat 20-day EMA and the RSI just above the midpoint suggest a balance between supply and demand.
DOT / USDT daily chart | Source: TradingView
When price breaks out and closes above the $ 31.49 to $ 32.78 resistance area, it indicates that the equilibrium has shifted in favor of the bulls. After that, the DOT / USDT pair could begin its march north with the initial target of $ 40.
Conversely, the pair may extend the consolidation for a few days in the $ 31.49 to $ 2.66 area if the price goes down and falls below the 20-day EMA. The bears will have to move lower and hold the price below $ 22.66 to signal the continuation of the downtrend.
Avalanche (AVAX) slid below the moving averages on Jan 4th, showing that the bears are actively defending the downtrend line. The flat 20-day EMA (107) and the RSI just below the middle suggest equilibrium between bulls and bears.
AVAX / USDT daily chart | Source: TradingView
If the price stays below the moving averages, the bears will seek to push the AVAX / USDT pair below $ 98 and if they succeed the pair may fall to the strong support at $ 75.50.
Conversely, if the bulls push price back above the moving averages, the pair can rebound to the downtrend line. A break and a close above this level signal a possible turnaround. First, the pair can soar to $ 128 and then retest the all-time high of $ 147.
Dogecoin (DOGE) has been trading in a tight range between the 20-day EMA ($ 0.17) and $ 0.16 for the past few days. This shows that neither the bulls nor the bears are betting big and playing it safe.
Daily DOGE / USDT Chart | Source: TradingView
Sharp movements usually follow narrow ranges. The falling moving averages and the RSI in negative territory suggest that the path of least resistance is on the downside.
If the price drops below $ 0.16, the bears will attempt to pull the DOGE / USDT pair below the strong support at $ 0.15. If they are successful, it can drop to $ 0.13 and then to $ 0.10.
On the flip side, if the price rallies from current levels and rises above the 20-day EMA, the pair can rise to the overhead resistance at $ 0.19. The bulls need to cross this barrier to signal a possible turnaround.
You can see the coin prices here.
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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.
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