Bitcoin (BTC) and most major altcoins are falling off overhead resistance levels, showing that sentiment remains negative and traders are selling on every small rally.
Decentrader analyst Philip Swift says on-chain spend profit ratio (SOPR), which summarizes buy and sell prices over a period of time, shows that traders sell their BTC holdings at a loss.
Another metric that worries traders is funding rate, which fell further into negative territory following US Federal Reserve decisions. Cryptocurrency research firm Delph Digital expects Bitcoin to “set a lower low after briefly testing $34,000.”
In some forecasts there is a forecast Ark Invest’s long-term uptrend. The report predicts that Bitcoin price will surpass $1 million by 2030 and Ether (ETH) will hit between $170,000 and $180,000 over the same period.
Can Bitcoin and Most Major Altcoins Bottom Near Current Levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin is facing a strong resistance area at $37,332 – $39,600. This shows that the bears are not quick to give up their advantage and sell on rallies.
BTC/USDT daily chart | Source: TradingView
The rally of the past few days has cleared the oversold levels on the Relative Strength Index (RSI). Now, the bears will attempt to continue the downtrend by dragging the BTC/USDT pair below $32.917. If they succeed, the next stop could be $30,000.
Alternatively, if the price moves up from the current levels and scales above $37,332.7, it will indicate accumulation at lower levels.
Buyers will then try to push the price above the 20-day EMA ($39,714) and challenge the 50-day SMA ($44,428). A break and close above this resistance will signal that the downtrend may be over.
Ether surged above the $2,652 resistance on Jan. 26, but the bears sold off sharply from higher levels and pulled the price back below the channel.
ETH/USDT daily chart | Source: TradingView
Since then, buyers have struggled to push the price back into the channel. Now, the bears will attempt to continue the downtrend by dragging the price below the January 24 low of $2,159. If they succeed, the ETH/USDT pair can drop to $2,000 and then $1,700.
The RSI has been stuck in the oversold territory for the past few days, suggesting that selling may have been oversold in the near term. Therefore, the bulls could attempt a renewed rally and potentially reach the 20-day EMA ($2.856).
This is a key hurdle for the bulls to clear as the previous three bounces have turned off the 20-day EMA.
Binance Coin (BNB) rallied off the $330 support and re-entered the descending channel on Jan 25, but the bulls are struggling to push the price towards the 20-day EMA ($424). This shows a lack of demand at the higher levels.
Daily BNB/USDT Chart | Source: TradingView
The bears will sense an opportunity and attempt to pull the price back into the strong $330-$320 support area. This is an important area for the bulls to defend because if it breaks down, the BNB/USDT pair could drop sharply to $250.
Contrary to this assumption, the bulls will attempt to push the pair above the 20-day EMA if the price turns up from the current levels. If successful, the pair can rally to the resistance line of the channel. A breakout and close above the channel will signal that the downtrend may be over.
Cardano (ADA) has been trading near the psychological support at $1 for the past few days. This shows that the bulls are defending the support area but are unable to push the price higher.
Daily ADA/USDT Chart | Source: TradingView
The moving averages are sloping down and the RSI is in the negative territory, suggesting that the path of least resistance is down. If the bears turn down and sustain the price below $1, the ADA/USDT pair can drop to $0.80.
This negative view will be invalidated in the short-term if the price bounces off current levels and breaks above the moving averages. The pair can then test the resistance line of the channel. The bulls need to clear this barrier to signal a potential reversal.
Solana (SOL) has been trading near the support line of the descending channel for the past few days. This shows that the bulls are defending the support line but cannot mount a strong recovery from it.
Daily SOL/USDT chart | Source: TradingView
The RSI has been trading in the oversold territory for the past few days, suggesting that the correction may have been oversold in the near term. This points to the possibility of a consolidation or minor pullback in the next few days.
If that happens, the SOL/USDT pair can rally to the 20-day EMA ($118). A breakout and close above this level could pave the way for a rally to the channel’s resistance line.
This short-term bullish view will be invalidated if the price falls below the channel. After that, the pair can drop to $66.
The bulls have been attempting to push Ripple (XRP) above the $0.65 resistance, but the long wick on the intraday candlestick shows that the bears are in no mood to let up.
XRP/USDT daily chart | Source: TradingView
Both the moving averages are sloping down and the RSI is in the oversold territory, showing that the bears are in charge. The sellers will now attempt to sink the XRP/USDT pair below $0.54 and test the psychological support at $0.50.
This negative view will be invalidated if the bulls push and sustain the price above the 20-day EMA ($0.68). Such a move would be the first sign that selling pressure might be easing. After that, the pair can rally to the $0.75 resistance level.
Terra (LUNA) slipped back to the descending channel support line. This shows traders continue to sell on rallies.
Daily LUNA/USDT Chart | Source: TradingView
The down-sloping 20-day EMA ($68.8) and the RSI near the oversold zone are showing that the bears have the upper hand. If the bears sink the price below the channel support line, selling is likely to increase and the LUNA/USDT pair can drop to $37.82.
Contrary to this assumption, if the price recovers from the current levels, the bulls will make another move to take the pair to the 20-day EMA. This level should again act as a strong resistance, but if the bulls break it, the pair could rally to the downtrend line.
Dogecoin (DOGE) turned down from the 20-day EMA ($0.15) on Jan. 26, showing the bears are selling near the overhead resistance. The price is back in a tight range of $0.15 – $0.13.
Daily DOGE/USDT chart | Source: TradingView
While the declining 20-day EMA is in favor of the sellers, the bullish divergence on the RSI suggests that the selling pressure might be easing. This state of uncertainty will probably not last long.
If the bulls push and sustain the price above the 20-day EMA, the DOGE/USDT pair can rally towards the overhead resistance at $0.19. Conversely, if the price turns down and closes below $0.13, the pair can drop to the psychological support at $0.10.
Polkadot (DOT) has been trading near the strong support at $16.81 for the past few days, but a minor downside is that the bulls have not been able to recover strongly from it. This indicates a lack of demand at higher levels.
DOT/USDT daily chart | Source: TradingView
Now the bears will try to pull and sustain the price below $16.81. If they succeed, selling could increase and the DOT/USDT pair could drop to the next major support at $10.37. The sloping moving averages and the RSI in the oversold territory suggest that the path of least resistance is to the downside.
On the other hand, if the bulls push the price above $20.16, it will indicate increased demand. The pair can then rally to the 50-day SMA ($25.44). This is an important level to watch out for as a break above it would signal a possible trend reversal.
Avalanche (AVAX) bar long wick of Jan 26 shows the bears defending the breakdown at $75.50. Now, the bears will attempt to drag the price to the strong support at $51.04.
AVAX/USDT daily chart | Source: TradingView
If the price recovers from $51.04, it will show that the bulls will buy on a dip to this level. That can sustain the AVAX/USDT pair in the $51.04 to $75.50 range for a few days.
A break and close above $75.50 would be the first sign that the correction may be over. After that, the pair can climb up to the downtrend line.
Alternatively, if the price breaks below $47.66, the next phase of the downtrend could begin. Until then, the pair is likely to remain range bound.
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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