On January 10, Bitcoin (BTC) fell below $ 40,000 for the first time since September 2021. The crypto market is not alone, nor is the US stock market alone. witness The sale led to strong sales as traders decided to minimize risk and accumulate the 10-year Treasury, causing it to climb from 1.51% to 1.8% by the end of 2021.
On January 9th, Goldman Sachs chief economist Jan Hatzius, to say The US Federal Reserve could raise interest rates by a few percentage points in the 4 quarters of 2022.
Analyst Alex Krüeger also warned that the crypto market could be hit hard if the Fed “decides to do whatever it takes to use the deflationary knife”. He’s not alone, as former BitMEX CEOs Arthur Hayes and Pentoshi also offered a pessimistic picture.
Analyst Benjamin Cowen has show some hope for bulls as he says “extreme fear” levels on the Crypto Greed and Fear Index have occurred only four times since 2018 and subsequent bullish reversals have resulted in huge gains of 17% to 1.585% in BTC.
Can Bitcoin and key altcoins initiate a sustained recovery or will support levels decline? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
Bitcoin fell to $ 39,650 on Jan. 10 when buyers stepped in and bought heavily, as can be seen from the long tail of the candlestick. If buyers maintain the rebound, price can move towards the 20-day EMA ($ 45,369).
BTC / USDT daily chart | Source: TradingView
Both moving averages are sloping down and the relative strength index (RSI) is in the oversold territory, suggesting that the bears are in charge. If the price deviates from the 20-day EMA, the BTC / USDT pair may fall back to the strong support at USD 39,600 with a few more days between the two.
If the support at $ 39,600 gives way, sales could intensify and the pair could begin to decline to $ 30,000.
Conversely, if the bulls push price above the 20-day EMA, the pair can rise to the overhead resistance at $ 52.088. A breakout and close above this resistance could signal a trend reversal.
The bulls have held the support line of the descending channel for the past few days but have not been able to make a strong rebound from it. This suggests that demand will dry up at higher levels. Ether (ETH) attempted a rebound on Jan 9, but failed to break above the $ 3,250 mark.
ETH / USDT Daily Chart | Source: TradingView
The price fell again on Jan 10, and the bears are trying to pull the ETH / USDT pair below the descending channel. If successful, selling could intensify and the pair may fall to the next strong support at $ 2,652.
This is an important support for the bulls to defend because if it breaks the pair may plunge towards the psychological support at $ 2,000.
Conversely, if the price rebounds from current levels, the bulls will take one more step to break the overhead barrier at USD 3,250 and push the pair to the resistance line of the channel.
Binance Coin (BNB) slid below declining channel support on Jan 8, but the long tail of the intraday bar shows buying at lower levels. The bulls pushed the price back on the channel on Jan 9, but failed to hold the price above the break at $ 435.3.
BNB / USDT daily chart | Source: TradingView
The price fell again on Jan 10, and the bears are trying to keep the BNB / USDT pair below the channel. If successful, the pair can drop to $ 392.20. This is important support for the bulls to defend because if it breaks the next stop could be at $ 330.
The RSI has fallen into the oversold territory, suggesting that the short term sales may have been oversold. This could lead to a small rally or sector-specific action in the next few days. A breakout and close above the 20-day EMA ($ 492) is the first sign that sellers may be losing control.
Solana (SOL) attempted a rebound on Jan. 8, but the bulls were unable to push the price back above $ 150. This shows that the bears are selling on recovery rallies.
Daily SOL / USDT chart | Source: TradingView
If the bears keep the price below $ 133, the SOL / USDT pair may fall to the strong support at $ 116. Both moving averages are sloping down and the RSI is near the oversold zone, indicating that the bulls bear is in control.
If the $ 116 level is broken, the pair may fall to the support line of the channel. If this support is also broken, sales can rise and the pair can fall to $ 82. The first sign of strength will be a breakout and close above the 20-day EMA ($ 162).
Cardano (ADA) broke through and closed below the USD 1.18 support on Jan 9, indicating the continuation of the downtrend. The next support on the downside is the critical level at USD 1.
Daily ADA / USDT Chart | Source: TradingView
The bulls are likely to aggressively defend this level as it has not been breached in the past few months. If the price rebounds from $ 1, the pair can advance to the 50-day SMA ($ 1.39) where the bears are expected to create stiff resistance.
If the price deviates from the moving averages, the bears will make another move to pull the ADA / USDT pair below $ 1. If successful, sales could gain momentum and the pair could fall on the line.
Ripple (XRP) closed below the USD 0.75 support on Jan 8, but rebounded above it on Jan 9. This shows that the bulls are trying to trap the aggressive bears, but the recovery efforts were short-lived.
XRP / USDT daily chart | Source: TradingView
The price fell back below $ 0.75 on Jan 10, showing that the bears are selling on every small rally. The downward sloping moving averages and RSI near the oversold zone show that the bears are in charge.
If the price stays below $ 0.75, the XRP / USDT pair may plunge to the December 4th intraday low of $ 0.60. The bulls need to push and hold the price above the 50-day SMA ($ 0.87) to signal the start of a stronger rally.
Terra (LUNA) broke below a descending channel pattern on December 8th, but the long tail of the intraday bar suggests that you should buy at the lower levels. The bulls pushed the price back into the channel on December 9th and above the 50-day SMA ($ 70).
Daily LUNA / USDT chart | Source: TradingView
The relief rally hit the barrier at $ 75.67 and the price fell below the 50-day SMA on Jan 10. This shows that the bears are continuing to sell during the recovery. The 20-day EMA (USD 78) is sloping down and the RSI is near 43, indicating that the bears are in control.
If the bears pull the price below $ 62.46, sales could intensify and the LUNA / USDT pair may plunge to $ 51.84. This bearish view will be negated if price rises from the support line of the channel and breaks above the resistance line.
Polkadot (DOT) tried to bounce back from strong support at $ 22.66, but the bulls were unable to push the price down to the 20-day EMA ($ 26.95). This suggests that demand will dry up at higher levels.
DOT / USDT daily chart | Source: TradingView
The moving averages are sloping down and the RSI is in negative territory, showing that the bears have the upper hand. If the bears give way and hold the price below $ 22.66, the DOT / USDT pair may begin its way down to $ 16.81.
Also, if the price recovers from current levels, the bulls will try again to push the pair above the 20-day EMA. If they do, the pair can rally to the 50-day SMA ($ 29.66) and then to resistance at $ 32.78.
Avalanche (AVAX) slid below the uptrend line of the symmetrical triangle on Jan 8, but the bears were unable to extend that advantage. The bulls pushed the price back into the triangle on Jan 9th.
AVAX / USDT daily chart | Source: TradingView
The recovery was short-lived, however, as the bears pushed the price back below the triangle. This shows that sentiment remains negative and traders sell on every small rally.
There is strong support at $ 75.50 but if it breaks the AVAX / USDT pair can fall to $ 57.02 and then to $ 50.
On the other hand, if the price recovers from the current level or the support of $ 75.50 and holds within the triangle, it will show a consolidation at lower levels. After that, the pair can move up to $ 98 where the bears can create tough resistance.
A breakout and a close above the moving averages could open the door for a rally to the downtrend line.
Dogecoin (DOGE) has fallen below the critical support at $ 0.15, signaling the start of the next phase of the downtrend.
Daily DOGE / USDT Chart | Source: TradingView
The downward sloping moving averages and the RSI in the oversold territory suggest that the path of least resistance is on the downside. If the bears keep the price below $ 0.15, the DOGE / USDT pair may plunge to the December 4th intraday low of $ 0.13.
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 do, it will help keep the pair in the $ 0.15 to $ 0.19 range and the pair can go up to $ 0.19.
The bulls need to push and hold price above this resistance to suggest the start of a new bullish move.
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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