Bitcoin (bitcoin) and most major altcoins face selling on the highs and buying on the dips, suggesting a possible range formation. On-chain analytics firm Whalemap said that for Bitcoin, “reclaiming $46,500 looks like a trend reversal.” 90,000 BTC in the previous accumulation phase is at this level.
Fidelity Digital Assets says in its annual report that there is a “massive amount” of Bitcoin The accumulation of bitcoin miners Indicates that “the Bitcoin cycle is far from over”. The report goes on to add that more sovereigns are likely to “acquire bitcoin in 2022 and may even see central bank acquisitions.”
Guido Buehler, CEO of Switzerland-based financial institution SEBA Bank, said in a recent interview that SEBA’s asset pool could invest in bitcoin at the right time if the right counterparties and the necessary regulations are in place.Biller Paints a bullish picture for Bitcoin, indicating a possible rally to $75,000.
Will Bitcoin and most major altcoins remain range-bound in the near term? Let’s study the chart of the top 10 cryptocurrencies to find out.
Bitcoin turned down from the 20-day exponential moving average ($44,681) on Jan. 13, suggesting that bears continue to sell in the rally. The bears will now try to pull the price back towards the strong support at $39,600.
Both moving averages are sloping down and the Relative Strength Index (RSI) is in negative territory, suggesting the path of least resistance is to the downside. If sellers drop and hold prices below $39,600, the BTC/USDT pair could extend losses to $30,000.
However, the bulls are unlikely to give up $39,600 easily. A strong rebound from current levels or from $39,600 would suggest accumulation at lower levels. Then, the pair is likely to remain range-bound between $39,600 and $45,456 for a few days.
A breakout and close above $45,456 would be the first sign that the correction may be over. The pair can then start a northward march towards $52,088.
etheric (Ethereum) from the support line of the descending channel on January 10 could not even reach the 20-day EMA ($3,485), which suggests that demand is drying up at higher levels.
The moving averages are sloping down and the RSI is below 40, indicating that the bears are in control. Sellers will now try to pull the price to the area between the psychological $3,000 level and the channel support line. A break and close below $2,652 would mark the start of the next downtrend.
Conversely, if the price recovers from current levels, the bulls will make another attempt to push the ETH/USDT pair above the 20-day EMA. If successful, the pair could rise to the resistance line of the channel and then the 50-day simple moving average ($3,893). The bulls will have to push and sustain the price above this level to signal that the downtrend may be over.
Binance Coin (BNB) faces strong resistance at the 20-day EMA ($487), but a lesser positive is that the bulls haven’t given up much ground. This shows that traders are in no hurry to exit.
If the price breaks above the 20-day EMA, the bulls will try to clear the hurdle above the downtrend line. If they can succeed, the BNB/USDT pair will signal a possible change in trend. The pair may then try to rally towards $617.
Conversely, if the price turns back from the 20-day EMA or downtrend line, it will indicate that the bears are selling on rallies. This could keep the couple in the channel for a few days.
Solana (Sol) hit the 20-day EMA ($157) on Jan. 13, but the bulls were unable to clear this overhead hurdle. This shows that the bears have not given up and are selling on rallies.
The bears will now try to resume the downtrend by pulling the price below the support at $130. If they do, the SOL/USDT pair could drop to the next important support at $116.
The downward sloping moving averages and the RSI in negative territory suggest that the path of least resistance is to the downside.
Contrary to this assumption, if the price rises above the 20-day EMA, the pair could rally towards the resistance line of the channel. The bulls will have to push the pair above the channel to signal a possible trend change.
Cardano (have) retreated from the 50-day EMA ($1.35) on Jan. 13, but the bulls did not allow the price to break below the $1.18 support. This shows that the bulls are buying the dips.
The bulls will now try to push the price higher and sustain above the 50-day SMA. If they manage to do so, the ADA/USDT pair could rally towards the resistance line of the descending channel. A breakout and close above the channel could signal that the downtrend is over.
Alternatively, if the price turns down from the 50-day SMA, it will indicate that the bears are continuing to sell on rallies. Sellers will then attempt to sink the pair below $1.18 and pull the price to the key support level of $1.
ripple (Ripple) retreated from the 20-day EMA ($0.80) on Jan. 13, but a small positive is that the bulls are not allowing the price to break below the $0.75 support. This indicates accumulation at lower levels.
If the bulls push the price above the moving averages, it will indicate that the bears may be losing control. Then, the XRP/USDT pair could rise to the overhead resistance at $1.
If the price turns down from this level, the pair could continue to trade between $1 and $0.75 for a few more days. A breakout and close above $1 would signal the start of a rise towards $1.41.
Conversely, if the price turns down from the 20-day EMA, the bears will try to pull the pair below the $0.75-$0.69 support area and resume the downtrend to $0.60.
Terra’s Luna The coin broke out and closed above the resistance line of the channel on January 12. The bears attempted to drag the price below the 20-day EMA ($78.61) on Jan. 13, but failed. This shows that the bulls are aggressively defending the support.
Buyers are currently attempting to push prices higher and hold above the channel and overhead resistance at $83.86. If they manage to do so, the LUNA/USDT pair could rally to $93.81.
The 20-day EMA is trying to turn back up and the RSI has moved into positive territory, suggesting that buyers are trying to make a comeback.
This positive 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 support line of the channel.
polka dot(point) has retreated from its 20-day EMA ($26.81) on Jan. 13, but the positive sign is that the bulls haven’t given up much ground. This suggests that the bulls see the dip as a buying opportunity.
The bulls are currently trying to sustain the price above the moving averages. If they do, the DOT/USDT pair could rise to overhead resistance at $32.78. The flat 20-day EMA and the RSI near the midpoint suggest a balance between supply and demand.
If the price turns down from $32.78, the pair is likely to stay in that range for a few more days. The next trend could begin with a breakout and close above overhead resistance at $32.78 or a break below support at $22.66.
AVAX / USDT
avalanche(AVAX) retreated from the 20-day EMA ($96) on Jan. 13, suggesting that bears continue to sell on rallies. The price has retreated to the ascending trendline of the symmetrical triangle, which may act as support.
If the price bounces off current levels, buyers will make another attempt to push the price above the moving average. If successful, the AVAX/USDT pair could rally to the downtrend line of the triangle.
A breakout and close above the triangle will signal a possible end to the correction. The pair could then rise to $128.
Contrary to this assumption, if the price breaks below the channel’s uptrend line, the pair could retest the key $75.50 level. If this support breaks, the pair could start a decline towards $57 and then $50.
Dogecoin (Governor) broke out and closed above the 20-day EMA ($0.16) on Jan. 13, the first sign that selling pressure may be easing. This was followed by another sharp rise today, pushing the price above the overhead resistance at $0.19.
However, the long wick on the candlestick today suggests that the bears continue to sell at higher levels. If the price sustains below $0.19, the DOGE/USDT pair could fall to the moving averages and extend its range-bound range for a few more days.
Conversely, if the price sustains above $0.19, the bulls will make another attempt to clear the overhead resistance zone of $0.22 to $0.24. If they manage to do so, the pair could rally towards $0.30.
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Market data provided by bitcoin exchange.