Bitcoin (BTC) and the US stock market fell sharply on Jan. 5, reacting negatively to the minutes of the Federal Reserve’s FOMC meeting in December. show that Members expect the balance sheet cuts will likely begin after the central bank raises interest rates.
The closure of the world’s second largest Bitcoin mining hub in Kazakhstan, where the Internet was shut down after massive protests by local residents, also contributed to the negative mood. This makes up the overall hash rate of the bitcoin network decreased by about 13.4% from 205,000 petahash per second (PH / s) to 177,330 PH / s.
According to Mike Novogratz, CEO of Galaxy Digital Holdings, the current decline in volume is small and he believes the market will experience a lot of volatility in the next few days. Novogrätz recommend institutional demand remains strong and he expects bitcoin to bottom out in the $ 38,000 to $ 40,000 range.
Will bitcoin and large altcoins face further sales or will they recover from strong support? Let’s check out the top 10 cryptocurrency charts to find out.
Bitcoin’s range-bound action broke down on Jan 5th as the bears pushed the price below the strong support at $ 45.456. This shows that supply exceeds demand.
BTC / USDT daily chart | Source: TradingView
There was an attempt to defend the $ 42,500 support on January 6, but continued selling brought the price close to the closest support at $ 39,600. This drop in prices invalidated the bullish divergence that was forming on the RSI.
The downward sloping moving averages and the RSI near the oversold zone show that the bears are in control. If the bears give way and hold the price below $ 39,600, the BTC / USDT pair can drop to $ 30,000.
Conversely, if the price rebounds from $ 39,600, the bulls will attempt to push the pair above the 20-day EMA ($ 46,811). Such a move would be the first sign that the downtrend may be over.
Upside momentum could pick up on a breakout and close above the 50-day SMA ($ 50,610).
Ether (ETH) fell from the 20-day EMA ($ 3,756) on Jan 5th, breaking the December 4th low of $ 3,503.68. This shows that the bears have affirmed their supremacy.
ETH / USDT Daily Chart | Source: TradingView
The falling moving averages and the RSI in the oversold territory show that the bears are in control. If the bears keep the price below $ 3,250, the decline may extend to the support line of the channel.
The bulls will attempt to defend this level and push the price up to the resistance line of the channel. A breakout and close above the channel signal a trend reversal.
Alternatively, if the bears break below the channel, the ETH / USDT pair may fall to the strong support at USD 2,652.
Binance Coin (BNB) broke below psychological support at $ 500 on January 5. Persistent selling pushed the price to a critical support at $ 435.30.
Daily BNB / USDT Chart | Source: TradingView
If price bounces off current levels, the BNB / USDT pair may rise to $ 500 where the bears are likely to create strong resistance. The downward sloping moving averages and the RSI in the oversold territory show that the bears are in control.
If the $ 435.30 support breaks, the pair can extend the decline to $ 392.20 and then to $ 320. Such a move could open the door for a move up to $ 575.
Solana (SOL) plunged below $ 167.88 on Jan 5th and December 13th low of $ 148.04. This shows that the bears have again asserted their supremacy.
Daily SOL / USDT chart | Source: TradingView
Selling has resumed and now the bears will seek to pull the SOL / USDT pair to the strong support at $ 116. This level could attract strong buying from the bulls, but the rally is likely to face selling near the 20-day EMA ($ 170). .
Such a move would show sentiment remains negative and traders sell on rallies. This could increase the likelihood of a break below $ 116; the next stop could be the support line of the channel.
Buyers need to push and hold the pair above the channel’s resistance line to signal that the downtrend may be over.
Cardano (ADA) was denied by the 20-day EMA ($ 1.33) on Jan 5th, falling to the strong support at $ 1.18. The bulls successfully defended this level but were unable to push the price above the 20-day EMA.
Daily ADA / USDT Chart | Source: TradingView
If the bears push the price below $ 1.18, the ADA / USDT pair may fall to the critical support at $ 1. This is an important support to look out for because if it breaks the pressure to sell can build up and the pair can slide to $ 0.68.
Conversely, if the bulls push the price above the moving averages, the pair can climb to the resistance line of the channel. An interruption and closure over the channel signals a possible trend reversal. After that, the pair can climb to $ 1.87.
Ripple (XRP) broke below the USD 0.75 support on Jan 5th, but the long tail on the candle shows that the bulls are buying the dip. One small drawback, however, is that buyers were unable to build after the rally.
XRP / USDT daily chart | Source: TradingView
The XRP / USDT pair formed a doji candlestick pattern on Jan 8, and the bulls are currently trying to bring the price below $ 0.75. If so, the downtrend can resume and the pair can drop to $ 0.60.
The downward sloping moving averages and RSI in negative territory show that the bears are in control. Contrary to this assumption, the bulls will seek to push the pair above the moving averages as the price rebounds from current levels.
If they are successful, it suggests that selling pressures may ease. After that, the pair can climb to $ 1.
Terra (LUNA) plunged below the 20-day EMA ($ 81) on Jan 5th, suggesting that short-term traders may have taken profits after the bulls breached the $ 93.81 hurdle.
LUNA diagram/ USDT daily | Source: TradingView
The bears have pushed the price towards the 50-day SMA (USD 69) which can act as strong support. If price rebounds from current levels, the bulls will attempt to push the LUNA / USDT pair onto the downtrend line of the descending channel.
A breakout and close above the channel would indicate that the correction may be over. The bulls will then try to push the price down to $ 93.81. Conversely, a break and close below the 50-day SMA will add selling pressure and the pair may fall to psychological support at $ 50.
Polkadot (DOT) is area bound in a downtrend. The price has fluctuated between $ 22.66 and $ 32.78 for the past few days.
DOT / USDT daily chart | Source: TradingView
The 20-day EMA ($ 28) has started falling and the RSI has plunged into negative territory, showing that the bears have the upper hand. If sellers give way and hold the price below $ 22.66, the DOT / USDT pair may plunge to $ 16.81.
Contrary to this assumption, if the price rebounds from $ 22.66, the bulls will attempt to propel the pair to $ 32.78. A breakout and close above this level could signal a possible turnaround. First the pair can go up to $ 40 and then to $ 44.
Avalanche (AVAX) broke below the $ 98 support on Jan 5th and fell to the uptrend line of the symmetrical triangle on Jan 7th. The bulls will try to defend this level and push the price down.
AVAX / USDT daily chart | Source: TradingView
The 20-day EMA ($ 104) is down and the RSI is below 38, suggesting the bears will keep selling in the rallies. If the rebound from current levels at USD 98 or the 20-day EMA is prevented, the likelihood of a break below the triangle increases.
The AVAX / USDT pair may then fall to the USD 75.50 support where the bulls will attempt to break the downside. This negative view will be invalidated when the price rises and breaks above the triangle. After that, the pair can climb to $ 128.
Dogecoin (DOGE) fell below the USD 0.15 support on Jan 5th, but the candle’s long tail shows that the bulls are defending that level. This is followed by a doji candlestick pattern on January 6th, showing indecision between the bulls and the bears.
Daily DOGE / USDT Chart | Source: TradingView
The bears tried to resolve the downward uncertainty on Jan 7, but the bulls aren’t ready to go bearish. However, unless buyers quickly drive the DOGE / USDT pair above the 20-day EMA ($ 0.17) the risk of a break and a close below $ 0.15 increases.
In this case, the pair can slide to $ 0.13 and then to $ 0.10. Also, when the bulls push price above the 20-day EMA, it indicates that buyers are seeking a return. After that, the pair can rebound to $ 0.19 and if the bulls break this barrier the rally can extend to $ 0.22.
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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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