Bitcoin (BTC) and most of the major altcoins appear to be recovering. Glassnode data shows that non-zero Bitcoin addresses have grown to around 40 million, showing growing adoption among retailers.
Founder of Edelman Financial Engines, Ric Edelman to speak that the number of Americans owning Bitcoin could increase from 24% today to 33% by 2022. He expects this as “Bitcoin is becoming more and more popular. People hear about it everywhere – it won’t go away. “
Investors continued to pull BTC off the exchanges. CryptoQuant data shows The outflow was around 29,371 BTC on January 11, the highest payout since September 10.
BTC’s rise from the $ 39,600 support on Jan. 10 shows that the bulls are trying to defend this level with full force. The relief rally may hit the 20-day EMA ($ 45,058) which is likely to act as resistance.
BTC / USDT daily chart | Source: TradingView
The moving averages are sloping down and the relative strength index (RSI) is in negative territory, showing that the bears have the upper hand. If the price deviates from the 20-day EMA, the BTC / USDT pair can retest the strong support at $ 39,600.
If this level is broken, the pair could experience panic selling, which will mark the start of the next decline.
Alternatively, if the bulls push and hold the price above the 20-day EMA, the pair can climb as high as the 50 SMA ($ 49,031). If this level is also broken, the rebound may hit 52.088 resistance.
Ether (ETH) bounced off the descending channel support line on Jan 10, showing that the bulls are trying to aggressively defend this level. Price can hit the overhead resistance area between the 20-day EMA ($ 3,536) and the channel’s resistance line.
ETH / USDT Daily Chart | Source: TradingView
Both moving averages are sloping down and the RSI is in negative territory, showing that the bears have the upper hand. If the price is falling from the overhead zone, it shows that sentiment remains negative and traders are selling on the way to rebound. After that, the bears will attempt to pull the ETH / USDT pair to the support line of the channel.
On the flip side, if the bulls push the price above the overhead resistance area, the pair may advance to the 50-day SMA ($ 3,938). A breakout and close above this resistance would indicate a possible trend reversal.
Binance Coin (BNB) broke below descending channel support on Jan 10, but the bears were unable to close below that level, as evidenced by the long tail of the intraday candle.
BNB / USDT daily chart | Source: TradingView
This could take the bellicose bears off guard and result in a short squeeze on January 11th. Further purchases on Jan. 12 pushed the price up to the 20-day EMA ($ 489). If the bulls push the price above this barrier, the BNB / USDT pair can rebound to the 50-day SMA (USD 542).
A break and a close above this resistance indicates that the downtrend may be over. The pair can then climb to $ 617. Conversely, if the price drops from the 20-day EMA or the downtrend line, the bears will try again to pull the price onto the channel’s support line.
Solana (SOL) is trying to recover in the downtrend. The price rose from $ 130 on Jan 10 and can now hit the 20-day EMA ($ 159).
Daily SOL / USDT 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 price drops off the 20-day EMA, sellers will seek to push the SOL / USDT pair to the strong support at $ 116.
Conversely, if the bulls push price above the 20-day EMA, the pair can rally to the resistance line of the channel. A breakout and close above the channel signal a possible trend reversal.
Cardano (ADA) is up from $ 1.06 on Jan 10, showing the bulls are trying to rebound. Buyers pushed the price down to the 20-day EMA ($ 1.27) on January 12th.
Daily ADA / USDT Chart | Source: TradingView
The RSI is trying to create a bullish divergence, which suggests that the bearish momentum may be easing. If the bulls push price above the moving averages, the ADA / USDT pair can rebound to the resistance line of the descending channel.
Contrary to this assumption, this suggests that sentiment remains negative and traders sell on rallies when the price deviates from the moving averages. The bears will then make one more attempt to push the price down to the critical support at USD 1.
Ripple (XRP) fell to $ 0.69 on January 10, but the long tail of the intraday bar shows that the bulls bought a sharp drop during that decline. Buyers pushed the price back above the $ 0.75 resistance in January.
XRP / USDT daily chart | Source: TradingView
The XRP / USDT pair hit the 20-day EMA ($ 0.80) on Jan 12, but the long wick on the candle shows that the bears are continuing to defend the level. If the price drops down from current levels, the bears will try again to pull the pair below $ 0.69. If successful, the pair may fall to the December 4th low of $ 0.60.
Conversely, if the bulls push the price above the 20-day EMA, the pair may rise to the 50-day SMA ($ 0.86). A break and a close above this resistance could pave the way for a rally to USD 1.
Terra (LUNA) bounced off the channel’s support line on Jan 10, breaking above the 50-day SMA ($ 71.99) on Jan 11.
Daily LUNA / USDT chart | Source: TradingView
Now the bulls will try to push the price above the resistance line of the descending channel. A close above the channel is the first sign that the downtrend may be over. After that, the LUNA / USDT pair will attempt to rebound to $ 93.81.
Conversely, if the price breaks down from the resistance level, the pair may stay within the channel for a few more days. A break and close below the channel’s support line could indicate the beginning of a deeper correction.
Polkadot (DOT) bounced off the USD 22.66 support on Jan 10, indicating that the bulls are defending the support. The rally has hit the 20-day EMA ($ 26.85) which could act as resistance.
DOT / USDT daily chart | Source: TradingView
If the price breaks down from the 20-day EMA, the bears will try again to dip and hold the DOT / USDT pair below the USD 22.66 support. If successful, the pair can continue its downtrend. The next down watchable level is $ 16.81.
Conversely, if the bulls push price above the moving averages, the pair may rise to the resistance of the range at $ 32.78. Buyers will need to push and hold the price above this level to signal the start of a new bullish move.
Although Avalanche (AVAX) closed below the symmetrical triangle support line on January 8th and again on January 10th, the bears were unable to hold the lower levels. This shows that the bulls bought into the decline.
AVAX / USDT daily chart | Source: TradingView
The bulls pushed price back into the triangle on Jan 11th, followed by another upward move on Jan 12th.
If price deviates from this overhead resistance, the bears will take one more step to move below the triangle and hold the AVAX / USDT pair below the critical support at $ 75.50.
Conversely, if the bulls push and hold the price above the moving averages, the bulls will spot an opportunity and attempt to push the pair above the downtrend line of the triangle.
The bears attempted to pull Dogecoin (DOGE) below the December 4th low of $ 0.13, but the bulls foiled their attempt on January 10th. Buyers pushed the price back above $ 0.01.15 on Jan 11, but hit a hurdle at the 20-day EMA ($ 0.16).
Daily DOGE / USDT 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 price deviates from the 20-day EMA, the bears will try to push the price below $ 0.13.
If successful, the DOGE / USDT pair can slide all the way to psychological support at $ 0.10. This negative view will be invalidated if the bulls push and hold the price above the moving averages. That could indicate that the trend has changed. Upward momentum can start on a breakout and close above $ 0.19.
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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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