Bitcoin (BTC) and a select number of altcoins are showing signs of buying near support levels. Bitcoin’s seven-day average trading volume has fallen to its lowest level since July 2021, according to Arcane Research. In the previous case, there was a sharp drop in volume lower mark and led to a strong rally from August to October 2021.

Bloomberg Intelligence senior commodities strategist McGlone cautioned on one thing, however podcast Lately, risky assets could correct as the Federal Reserve hikes interest rates and scales back asset purchases.

Once the correction period ends, McGlone expects Bitcoin to move from a “risky asset to a risk-free asset” and “get better.”

In the short-term, analysts at Decentrader expect Bitcoin to remain in the “$44,000-$38,000” range before a definitive breakout.

While analysts are divided on their predictions for Bitcoin, let’s examine the charts of the top 10 cryptocurrencies to find the path of least resistance.

BTC technical analysis

The bears are attempting to pull Bitcoin towards the strong support at $39,600, but the long tail on the candlesticks for the past two days shows that the bulls are planning otherwise. Buyers are buying on the downside, but a slight downside is that they are unable to push the price above the 20-day exponential moving average (EMA) ($43,804).

BTC/USDT daily chart | Source: TradingView

Both the moving averages are sloping down and the Relative Strength Index (RSI) remains in the negative territory, showing that the bears have the upper hand. If the price turns down from the current levels or the 20-day EMA, the bears will make another attempt to sink the BTC/USDT pair to $39,600. This is an important level to watch for in the near term.

If this level breaks, downside momentum could increase as some stop-loss orders are triggered. That could lead to a drop to $30,000.

Alternatively, if the price recovers from the current levels or the $39,600 support, the buyers will attempt to propel the pair above the moving averages. If the price sustains above the 50-day SMA ($47,070), the negative view will become invalid and the pair can rally to the overhead resistance at $52.088.

Technical analysis of the ETH

Ether (ETH) has resumed its downtrend and it is close to touching the $2,928 support. The bulls may attempt to defend this level and initiate a rally.

ETH/USDT daily chart | Source: TradingView

If that happens, the ETH/USDT pair can rally to the 20-day EMA ($3.381). This is an important resistance to watch out for as a break above it could be the first sign that the bears might lose their footing.

A breakout and close above the channel will signal a possible trend reversal. The pair can then start the march to $4,200.

Conversely, if the price turns down from the current levels or the 20-day EMA, chances of a break below $2,928.83 will increase. If that happens, the pair can slide to the strong support at $2,652.

BNB Technical Analysis

Binance Coin (BNB) continues to trade within a descending channel. The 20-day EMA ($485) has started turning down and the RSI has dipped below 43, showing that the bears have the upper hand.

Daily BNB/USDT Chart | Source: TradingView

The bulls are attempting to defend the minor support at $450. If the price recovers from this level, buyers will make another move to clear the $500 overhead barrier. If they succeed, it will signal a possible trend reversal.

After that, the BNB/USDT pair might start its northward march with a target of first $572 and then $617. Alternatively, if the price breaks below $450, the bears will attempt to move. The pair has fallen to the channel’s support line .

ADA technical analysis

Cardano (ADA) surged to the resistance line of the descending channel on Jan. 18, but the bulls failed to propel the price above the channel. This shows that the bears are aggressively defending the resistance line.

Daily ADA/USDT Chart | Source: TradingView

The ADA/USDT pair has fallen to the moving averages, which could serve as strong support. The moving averages are preparing to form a bullish cross and the RSI is in positive territory, indicating an upside for the buyers.

If the price recovers from the current levels, the bulls will make another attempt to push the price above the channel and the neckline of the inverse head and shoulders pattern will develop. If that happens, the pair could start a new uptrend.

This positive view will be invalidated if the price falls below the moving averages and stays there. Such a move can drag the pair to $1.06.

SOL Technical Analysis

Solana (SOL) was close to touching the minor support at $130. The bulls defended this level on Jan. 10 and may attempt to do so again during the current decline.

Daily SOL/USDT chart | Source: TradingView

If the price bounces off the support, the bulls will make another attempt to push the SOL/USDT pair above the 20-day EMA ($151). If successful, the pair can rally to the resistance line of the descending channel.

This is an important level to watch out for as a breakout and close above it would signal the start of a fresh move higher.

Conversely, if the $130 support is broken, the pair can drop to the critical $116 support. A break below this level can pull the price down to the channel support line.

XRP Technical Analysis

Ripple (XRP) has been stuck between the 20-day EMA ($0.78) and the $0.75 support for the past few days, which moved down on Jan. 19. This shows that the bears have overwhelmed the buyers.

XRP/USDT daily chart | Source: TradingView

The sloping moving averages and the RSI in the negative territory suggest that the path of least resistance is to the downside. If the price stays below $0.75, the bears will attempt to build to their advantage and push the XRP/USDT pair to $0.69.

Contrary to this assumption, if the price turns up from the current levels and scales above the moving averages, it will show that the bulls are consolidating on the downside and potentially start a relief rally to $1.

LUNA technical analysis

Terra (LUNA) fell below the 50-day SMA ($76) on Jan. 18, but the bulls bought the pullback and pushed the price back above the 20-day EMA ($80). This is a positive sign as it shows traders are buying on a dip.

Daily LUNA/USDT Chart | Source: TradingView

If the bulls sustain the price above the 20-day EMA, the LUNA/USDT pair can rally to the downtrend line. A break and close above this level would indicate that the selling pressure is easing. The pair can then rally to the 61.8% Fib retracement level at $87.88 and above that to $93.81.

This bullish view will be invalidated if the price turns down and falls below $73.95. Such a move would indicate that supply is outstripping demand. The pair can then drop to $68.33 and as low as $62.46.

Technical DOT analysis

Polkadot (DOT) keeps falling to the strong support at $22.66 where the bulls will attempt to halt the decline. The strength of the recovery from this level could indicate if the decline is over.

DOT/USDT daily chart | Source: TradingView

If the price can scale above the moving averages, it shows accumulation at lower levels. After that, the DOT/USDT pair can rally to the $32.78 resistance level. A break and close above this level would indicate the start of a new uptrend.

Conversely, when the price turns down from the moving averages, it shows that sentiment remains negative and traders are selling on rallies. That will increase the chances of a break and close below $22.66. In that case, the pair can drop to $16.81.

AVAX technical analysis

Avalanche (AVAX) continues to slide towards the strong support at $75.50. The price action for the past few days has formed a descending triangle pattern and will complete on a break and close below $75.50.

AVAX/USDT daily chart | Source: TradingView

Both the moving averages are sloping down and the RSI is in the negative territory, which shows that the bears have the upper hand. Sellers need to lower the price and sustain it below $75.50 to signal the start of a new downtrend.

However, the bulls are unlikely to lose the $75.50 level that easily. If the price recovers from this support, the AVAX/USDT pair can reach the moving averages. If buyers push the price above the moving averages, the pair can rally to the downtrend line. The bulls need to push the price above this resistance to signal a trend reversal.

DOGE technical analysis

Dogecoin (DOGE) fell below both the moving averages on Jan. 18, bringing it to a $0.13-$0.19 trading range. The flat 20-day EMA ($0.16) and the RSI just below the middle are suggesting an equilibrium between supply and demand.

Daily DOGE/USDT chart | Source: TradingView

If the price stays below the moving averages, the DOGE/USDT pair can gradually drop to $0.15, and if this level is broken as well, the drop can extend to $0.13. A break and close below $0.13 will indicate the continuation of the downtrend.

If the price rises and breaks above the moving averages, it shows that the bulls are buying the decline. The buyers will then attempt to clear the overhead barrier at $0.19 and push the pair down to $0.22.

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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