BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOT, AVAX, DOGE

Bitcoin (BTC) and certain altcoins are showing signs of some buying near support levels. According to Arcane Research, the seven-day moving average of Bitcoin’s actual trading volume has fallen to its lowest level since July 2021. During the previous instance, the sharp drop in volume marked a bottom and led to a strong rally from August to October 2021.

However, Bloomberg Intelligence senior commodities strategist Mike McGlone warned on a recent podcast that risky assets could correct if the Federal Reserve hikes interest rates and cuts asset purchases.

Once the correction phase is over, McGlone hopes Bitcoin will go from a “risky asset to a risk-free one” and “come out better.”

Daily performance of the cryptocurrency market. Fountain: Coin360
BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOT, AVAX, DOGE
BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOT, AVAX, DOGE

In the short term, analysts at cryptocurrency market research firm Decentrader expect Bitcoin to remain in a range between “$44,000 and possibly $38,000” before an eventual 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/USDT

The bears are attempting to push bitcoin towards the strong support at $39,600, but the long tail of the candles over the past two days shows that the bulls have other plans. Buyers are buying dips, but a slight downside is that they failed to push the price above the 20-day exponential moving average ($43.804).

Daily chart of BTC/USDT pair. Source: TradingView

Both the moving averages are sloping down and the RSI remains in the negative territory, which suggests 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 a key level to watch for in the near term.

Failure to hold this level could increase bearish momentum as multiple stop losses could be activated. This could lead to a drop to $30,000.

Alternatively, if the price bounces off the current level or the $39,600 support, buyers will attempt to push 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 could rally to the tough overhead resistance at $52.088.

ETH/USDT

Ether (ETH) has continued its downward move and is near the $2,928.83 support. The bulls may attempt to defend this level and stage a recovery rally.

Daily chart of the ETH/USDT pair. Source: TradingView

In that case, the ETH/USDT pair could rally to the 20-day EMA ($3,381). This is an important resistance to watch out for as a break above it will be the first indication that the bears may be running out of steam.

A breakout and close above the channel will signal a possible trend reversal. The pair could then start its journey towards $4,200.

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

BNB/USDT

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

Daily chart of the BNB/USDT pair. Source: TradingView

The bulls are attempting to defend the minor support at $450. If the price bounces off this level, the buyers will make another attempt to clear the $500 hurdle. If successful, it will indicate a potential reversal in the trend.

The BNB/USDT pair could then start its march north towards $572 and subsequently $617. Alternatively, if the price dips below $450, the bears will attempt to sink the BNB/USDT pair below the channel support line.

ADA/USDT

Cardano (ADA) rallied to the resistance line of the descending channel on Jan. 18, but the bulls were unable to push the price above the channel. This suggests that the bears are aggressively defending the resistance line.

Daily chart of ADA/USDT pair. Source: TradingView

The ADA/USDT pair has broken down to the moving averages, which could act as strong support. The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating an advantage for buyers.

If the price bounces off the current level, the bulls will again attempt to push the price above the channel and the developing neckline of a possible inverted head and shoulders pattern. If this 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. This move could take the pair to the $1.06 level.

SOL/USDT

Solana (SOL) has approached the minor support at $130. The bulls had defended this level on Jan. 10th and might try again during the current decline.

Daily chart of SOL/USDT pair. 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 could rally to the resistance line of the descending channel.

This is an important level to watch as a breakout and close above it will signal the possible start of a new move higher.

On the contrary, if the $130 support is not respected, the pair could drop to the critical $116 support. A break below this level could bring the price to the channel support line.

XRP/USDT

Ripple (XRP) has been stuck between the 20-day EMA ($0.78) and the $0.75 support for the past few days, which resolved on the downside today. This suggests that the bears have outperformed the buyers.

Daily chart of the XRP/USDT pair. Source: TradingView

The falling 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 try to take advantage and sink the XRP/USDT pair to $0.69.

Contrary to this assumption, when the price rises from the current level and breaks above the moving averages, it suggests that the bears are accumulating on the dips. That could start a recovery rally that could reach the overhead resistance at the $1 level.

MOON/USDT

Terra LUNA token 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 dips.

Daily chart of the LUNA/USDT pair. Source: TradingView

If the bulls sustain the price above the 20-day EMA, the LUNA/USDT pair could rally to the downtrend line. A breakout and close above this level could ease selling pressure. The pair could then rally to the 61.8% Fibonacci retracement level at $87.88 and then to $93.81.

This bullish view will be invalidated if the price reverses direction and falls below $73.95. This move suggests that supply is outstripping demand. The pair could then drop to $68.33 and then $62.46.

DOT/USDT

Polkadot (DOT) continues to fall towards the strong support at $22.66 where the bulls will attempt to halt the pullback. The strength of the recovery from this level could indicate whether the downtrend is over or not.

Daily chart of the DOT/USDT pair. Source: TradingView

If the recovery breaks above the moving averages, it will indicate accumulation at lower levels. The DOT/USDT pair could then rally to the overhead resistance at $32.78. A breakout and Closing above this level indicates the start of a new trend. bullish.

Conversely, when the price turns down from the moving averages, it suggests that sentiment remains negative and traders are selling as the price rises. That will increase the chances of a breakout and close below $22.66. In that case, the pair could drop to $16.81.

AVAX/USDT

Avalanche (AVAX) continues to slide towards the strong support at $75.50. Price action for the past few days has formed a descending triangle pattern that will complete on a breakout 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 suggests that the bears have the upper hand. Sellers need to lower the price and sustain it below $75.50 to hint at the start of a new downtrend.

The bulls are unlikely to abandon the $75.50 level that easily. If the price bounces off this support, the AVAX/USDT pair could reach the moving averages. If the buyers push the price above the moving averages, the pair could rally to the downtrend line. The bulls need to push the price above this resistance to signal a reversal.

DOGE/USDT

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

DOGE/USDT daily chart. Source: TradingView

If the price stays below the moving averages, the DOGE/USDT pair could gradually drop to $0.15 and if this level is broken as well, the decline could extend to $0.13. A breakout and close below $0.13 will signal a resumption of the downtrend.

On the other hand, if the price surges and breaks above the moving averages, it will indicate that the bulls are buying the dips. The buyers will then try to clear the $0.19 hurdle and push the pair down to $0.22.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and every operation involves risks. You must do your own research when making a decision.

Market data is provided by the exchange HitBTC.

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