Bitcoin (BTC) and most major altcoins are facing selling on higher levels and buying on dips, suggesting a possible range build. On-chain analytics company Whalemap to speak that the “recovery from $46,500 would confirm a trend reversal” for Bitcoin as the previous accumulation phase of 90,000 BTC took place at this level.
Fidelity Digital Assets said in report every year that the accumulation of large amounts of bitcoin by bitcoin miners shows that the “bitcoin cycle is far from over”. The report goes on to add that more sovereign nations “could be buying Bitcoin by 2022 and could even see a central bank in the process.”
CEO of SEBA Bank, Guido Buehler, said in a recent interview that if large clients have the need and the necessary regulations are in place, an asset management fund at SEBA could invest in Bitcoin at the right time. Buehler painted a bullish picture for Bitcoin, saying that a rally to $75,000 is possible.
Will Bitcoin and Most Major Cryptocurrencies Be Range Bound in the Short Term? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin reversed from the 20-day EMA ($44,681) on Jan. 13, showing bears continue to sell on the upside. Now the bears will attempt to pull the price back to the strong support at $39,600.
BTC/USDT daily chart | Source: TradingView
Both the moving averages are sloping down and the Relative Strength Index (RSI) is in the negative territory, suggesting that the path of least resistance is to the downside. If sellers fall and sustain the price below $39,600, the BTC/USDT pair can extend the decline to 30,000.
However, the bulls are unlikely to give up easily at $39,600. A strong rebound from current levels or $39,600 will show accumulation at lower levels. After that, the pair could stay in the range of $39,600 to $45.456 for a few more days.
A break and close above $45.456 would be the first sign that the correction may be over. The pair could then start its march north with the next target at $52.088.
Ether (ETH)’s rebound from descending channel support on Jan. 10 failed to even reach the 20-day EMA ($3.485), suggesting that demand will dry up at higher levels.
ETH/USDT daily chart | Source: TradingView
The moving averages are sloping down and the RSI is below 40, showing that the bears are in control. The sellers will now try to pull the price towards the zone between the psychological $3,000 level and the channel support line. A break and close below $2,652 will signal the start of the next leg of the downtrend.
Conversely, if the price surges higher from the current levels, the bulls will make another move to push the ETH/USDT pair above the 20-day EMA. If successful, the pair can rally to the channel’s resistance line and then the 50-day SMA ($3,893). The bulls need to push and sustain the price above this level to signal that the downtrend may be over.
Binance Coin (BNB) is facing stiff resistance at the 20-day EMA ($487), but on a small upside, the bulls have not given up much ground yet. This shows that traders are in no hurry to exit.
Daily BNB/USDT Chart | Source: TradingView
If the price breaks above the 20-day EMA, the bulls will attempt to scale the overhead barrier at the downtrend line. If they succeed, the BNB/USDT pair will signal a possible trend reversal. After that, the pair could attempt a rally to $617.
Conversely, if the price turns down from the 20-day EMA or the downtrend line, it shows that the bears are selling on the rally and the pair may be stuck in the channel for a few more days.
Solana (SOL) reached the 20-day EMA ($157) on Jan. 13, but the bulls failed to clear this overhead barrier. This shows that the bears have not given up and are selling on the rallies.
Daily SOL/USDT chart | Source: TradingView
The bears will now attempt to continue the downtrend by dragging the price below the $130 support. If they do so, the SOL/USDT pair can drop to the next key support at $116.
The moving averages are sloping down and the RSI is in the negative territory, suggesting that the path of least resistance is down.
Contrary to this assumption, if the price breaks above the 20-day EMA, the pair can rally to the channel’s resistance line. The bulls need to push the pair above the channel to signal a potential reversal.
Cardano (ADA) was rejected by the 50-day SMA ($1.35) on Jan 13, but bulls did not allow the price to break below the $1.18 support. This shows the bulls are buying down.
Daily ADA/USDT Chart | Source: TradingView
Now the bulls will attempt to push and sustain the price above the 50-day SMA. If they succeed, the ADA/USDT pair can rally to the resistance line of the descending channel. A breakout and close above the channel may indicate that the downtrend is over.
Also, if the price turns down from the 50-day SMA, it shows that the bears are continuing to sell on the rally. The sellers will then attempt to sink the pair below $1.18 and drag the price to the critical $1 support.
Ripple (XRP) was rejected by the 20-day EMA ($0.80) on Jan 13, but a small upside is that the bulls are not allowing the price to break below the $0.75 support. This shows accumulation at lower levels.
XRP/USDT daily chart | Source: TradingView
If the bulls propel the price above the moving averages, it shows that the bears may be losing their footing. After that, the XRP/USDT pair can rally to the $1 resistance.
If the price turns down from this level, the pair could remain confined to the $1 to $0.75 range for a few more days. A break and close above $1 will signal the start of an uptrend with a target of $1.41.
Conversely, if the price turns down from the 20-day EMA, the bears will attempt to drag the pair below the $0.75 – $0.69 support area and resume the downtrend to $0.60.
Terra (LUNA) broke out and closed above the channel resistance line on Jan 12. This shows that the bulls are aggressively defending the support zone.
Daily LUNA/USDT Chart | Source: TradingView
The buyers are currently trying to push and hold the price above the channel and the $83.86 resistance level. If they succeed, the LUNA/USDT pair can rally to $93.81.
The 20-day EMA is attempting a turn up and the RSI has risen into positive territory, showing buyers are attempting a comeback.
This bullish view will be invalidated if the price turns down from current levels and breaks below the moving averages. This could pull the price down to the channel support line.
Polkadot (DOT) was rejected by the 20-day EMA ($26.81) on Jan. 13, but a positive sign is that the bulls are not giving up much ground. This shows that the bulls are viewing the decline as a buying opportunity.
DOT/USDT daily chart | Source: TradingView
The bulls are currently trying to sustain the price above the moving averages. If so, the DOT/USDT pair can rally to the $32.78 resistance. The flat 20-day EMA and the RSI near the middle are suggesting an equilibrium between supply and demand.
If the price turns down from $32.78, the pair can add a few more days to its stay in the range. The next trend move could start on a breakout and close above the $32.78 resistance or a break below the $22.66 support.
Avalanche (AVAX) was rejected by the 20-day EMA ($96) on Jan 13, showing the bears are continuing to sell on the rally. The price has fallen back to the symmetrical triangle uptrend line, which could serve as support.
AVAX/USDT daily chart | Source: TradingView
If the price recovers from the current levels, the buyers will try again to push the price above the moving averages. If successful, the AVAX/USDT pair can rally to the downtrend line of the triangle.
A breakout and close above the triangle would indicate that the correction may be over. After that, the pair can rally to $128.
Contrary to this assumption, if the price breaks below the uptrend line of the channel, the pair can retest the critical level of $75.50. If this support breaks, the pair can start a decline to $57 and then $50.
Dogecoin (DOGE) broke out and closed above the 20-day EMA ($0.16) on Jan. 13, which is the first sign that selling pressures might be easing. This was followed by another strong move on Jan. 14 that propelled the price above the overhead resistance at $0.19.
Daily DOGE/USDT chart | Source: TradingView
However, the long wick on the January 14th candlestick shows that bears continue to sell at higher levels. If the price stays below $0.19, the DOGE/USDT pair can drop to the moving averages and extend its range-bound action for a few more days.
On the other hand, if the price sustains above $0.19, the bulls will make another attempt to clear the $0.22 – $0.24 overhead resistance area. If they succeed, the pair can rally to $0.30.
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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