Bitcoin (Bitcoin) And most major altcoins are in a narrow range, with bulls buying near the support level and shorts selling at the resistance level. Usually, after such a narrow range, volatility will expand.
Although some analysts do not rule out Quickly drop to a low of $40,000, Most traders expect Bitcoin to rebound sharply and rise to $60,000.
Goldman Sachs stated in a report to investors that if Bitcoin as a store of value continues to increase its market share in gold and breaks the 50% mark, then it may Rebound to US$100,000 in the next five years.
On-chain analytics provider Glassnode stated in its report on January 3 that Bitcoin’s Increase in illiquid supply It accounts for more than 76% of the total circulating supply. According to Glassnode researchers, the decline in liquidity supply indicates that price caps are unlikely to occur in the near future.
Will Bitcoin surprise the major altcoins due to its sharp decline? Let’s study the charts of the top 10 cryptocurrencies to find out.
The price of Bitcoin is sandwiched between the 20-day exponential moving average (EMA) ($48,033) and the key support level of $45,456. Although both moving averages are sloping downward, the Relative Strength Index (RSI) is trying to form a positive divergence. This indicates that selling pressure may be easing.
If the bulls push the price higher and maintain it above the 20-day moving average, the BTC/USDT pair may rise to 51,936.33 USD. This level is likely to be a stubborn resistance. If the price falls, the currency pair may remain within a range of 51,936.33 USD to 45,456 USD within a few days.
A break and close above US$51,936.33 will indicate the beginning of a rise, possibly reaching US$60,000. Conversely, if the price falls and breaks below US$45,456, selling may intensify, and then the currency pair may fall to the support area of US$42,000 to US$40,000.
Ether (Ethereum) Retreated from the 20-day moving average ($3,881), but the positive sign is that the bulls have not given up too much. This indicates buying on dips. The bulls will now try to push the price back above the 20-day moving average.
If they do, it means that the amendment may be coming to an end. The ETH/USDT currency pair may rise to the 50-day moving average (4,086 USD), which may once again become resistance. A break and close above this level would indicate the beginning of a rise to $4,488, and then a rise to an all-time high of $4,888.
Contrary to this assumption, if the price falls from the 20-day EMA, it may fall to the support area of $3,643.73 to $3,503.68. This is an important support for the bulls’ defense, because a break and close below it may open the door to a possible drop to $3,270 and then to $2,800.
Binance Coin (Bitcoin) Has fallen from the 20-day moving average (530 US dollars) and is currently supported at the psychological level of 500 US dollars.
If the shorts fall and the price stays below the support zone of US$500 to US$489.20, the selling momentum may rebound and the BNB/USDT currency pair may fall to US$435.30. The downward sloping moving average and negative RSI indicate that bears have an advantage.
Conversely, if the price rebounds from current levels, it indicates that the bulls continue to defend this support. Then they will try again to push the price above the 20-day moving average. If this happens, the currency pair may rise to $575.
Solana (Sol) The decline from the 20-day moving average ($178) on January 2 indicates that the shorts are selling every time they rebound slightly. The bears will now try to pull the price below the strong support of $167.88.
If they succeed, the SOL/USDT currency pair may fall to US$148.04, which may be a strong support. If the rebound from this level fails to rise above $167.99, it indicates that demand has dried up at a higher level.
This may exacerbate the selling, and the currency pair may fall to the key support level of $120. The bulls will have to push the price higher and maintain it above the moving average to indicate that selling pressure may be easing. Then the currency pair may rebound to US$204.75.
Cardano (have) Has been trading between the upward 20-day moving average (1.36 US dollars) and the downward 1.28 US dollars. This is a secondary positive factor because it shows that bulls are unwilling to give way to bears.
The 20-day EMA is flattening out, and the RSI is slightly below 46, indicating that selling pressure may be decreasing. If the bulls push the price above the moving average, the ADA/USDT pair may rise to $1.60 and then to the resistance line of the channel.
A break and close above the channel will indicate that the downtrend may end. If the price falls and breaks below $1.18, this positive view will be invalidated. This may pull the price to a key support level of $1.
Ripple (Ripple) The decline from the 20-day moving average ($0.86) on January 3 indicates that market sentiment is still negative and traders are selling at the relief rally.
The long tail of the candlestick on January 4 shows strong buying within the support zone of $0.77 to $0.75. In the next few days, the XRP/USDT pair can now consolidate between $0.75 and the 20-day moving average.
Breaking and closing above the moving average may clear the way for a rebound to $1. If the bulls clear this obstacle, the pair may begin to move towards the strong overhead resistance of $1.41. Or, if the price breaks and closes below US$0.75, the currency pair may fall to US$0.60 and then to US$0.50.
Terra’s Luna The token retreated from the upper resistance level of $93.81 on January 3 and has reached the 20-day moving average ($83). This shows that the bears are selling on rallies.
If the shorts pull the price below $81.11, selling may intensify because short-term traders may leave the market in a hurry. The LUNA/USDT currency pair may first fall to 76.72 U.S. dollars, and then extend the decline to the 50-day moving average (67 U.S. dollars).
Contrary to this assumption, if the price rebounds from $81.11, it indicates that the bulls continue to buy on dips. Then the bulls will try again to clear the upper barrier of $93.81 and push the pair to the all-time high of $103.60.
DOT / USDT
polka dot(point) The past few days have been trading between the 20-day moving average (28 USD) and the upper resistance at 31.49 USD. A flat 20-day EMA and an RSI just above the midpoint indicate that supply and demand are in balance.
If the price breaks and closes above the resistance zone of $31.49 to $32.78, it indicates that the balance has tilted towards the bulls. Then, the DOT/USDT pair can start marching northward towards $40.
Conversely, if the price falls and breaks below the 20-day moving average, the currency pair may stay in the range between US$31.49 and US$22.66 for a few more days. The bears will have to sink and maintain the price below $22.66 to indicate continued decline.
AVAX / USDT
Avalanche (AVAX) Fell below the moving average on January 4, indicating that the bears are actively defending the downtrend line. The flat 20-day EMA ($107) and the RSI slightly below the midpoint indicate that there is a balance between bulls and bears.
If the price stays below the moving average, the bears will try to push the AVAX/USDT currency pair below $98. If they manage to do this, the currency pair may fall to the strong support level of $75.50.
Conversely, if the bulls push the price back above the moving average, the currency pair may rise to the downtrend line. Breaking and closing above this level will indicate a possible change in trend. The currency pair may first rise to $128 and then retest the all-time high of $147.
Dogecoin (dog) The past few days have been fluctuating within a narrow range between the 20-day moving average (0.0.17 USD) and 0.16 USD. This shows that neither the bulls nor the bears have placed big bets, but proceeded cautiously.
Usually, sharp fluctuations are followed closely. The downward sloping moving average and negative RSI indicate that the path of least resistance is to the downside.
If the price falls below $0.16, the bears will try to pull the DOGE/USDT currency pair below the strong support of $0.15. If they succeed, it may lead to a drop to $0.13 and then to $0.10.
On the other hand, if the price rebounds from the current level and rises above the 20-day moving average, the currency pair may rebound to the upper resistance level of $0.19. The bulls will have to clear this obstacle to indicate that the trend may change.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you should conduct your own research.
Market data by Bitcoin exchange.