Bitcoin (BTC), and many other altcoins, appear to have launched a relief rally. According to Glassnode data, Bitcoin addresses that have a balance above zero have increased to 40 million. This indicates increasing adoption by retail traders.
Ric Edelman, founder of Edelman Financial Engines, stated that Bitcoin ownership could increase from 24% to one-third in 2022. This is because Bitcoin is becoming more mainstream. It is becoming more mainstream and people are hearing it all the time.
Everyday cryptocurrency market performance. Source: Coin360
If the outflows from major cryptocurrency exchanges show, it seems that Bitcoin investors are in it for the long-term. CryptoQuant data shows that outflows reached 29,371 BTC in January 11, which is the highest withdrawals since Sept. 10.
Can the recovery in Bitcoin, and other major altcoins, sustain higher levels? Let’s look at the charts for the top 10 cryptocurrency coins to see if we can find out.
Bitcoin bounced off of the $39600 support on Jan. 10, indicating that bulls want to defend the level with all their might. The 20-day exponential moving mean (EMA) of $45,058 could be reached by the relief rally, which would likely act as a resistance.
Daily chart of BTC/USDT Source: TradingView
The bears are in control of the situation thanks to the downsloping relative strength index (RSI), and the negative zone’s moving averages. The strong support of $39,600 could be retested if the price drops below the 20-day EMA.
If the level cracks, panic selling could be witnessed by the pair, which would indicate the beginning of the next leg.
Alternatively, if bulls push the price higher than the 20-day EMA, it could reach the 50-simple Moving Average (SMA) of $49,000. The $52,088 overhead resistance could be crossed if the price reaches this level.
On Jan. 10, Ether (ETH), bounced off of the support line in the descending channel, suggesting that bulls are trying to defend this level vigorously. The overhead zone could be reached between the 20-day EMA ($3,536) or the resistance line.
Daily chart of ETH/USDT Source: TradingView
Both moving averages are trending downward and the RSI has moved into the negative zone. This indicates that bears hold the upper hand. If the price drops below the overhead zone it will indicate that sentiment is negative and traders are buying rallies. The bears will attempt to pull the ETH/USDT currency pair back to the support line.
However, bulls pushing the price higher than the overhead zone could lead to a rise to the 50 day SMA ($3,938). If the price breaks and closes above this resistance, it will indicate a possible trend change.
Binance Coin (BNB), broke below the support level of the descending channel Jan. 10, but bears couldn’t get close to it, as seen from the long tail in the day’s candlestick.
Daily chart BNB/USDT TradingView
This could have caught aggressive bears off-guard, leading to a quick squeeze on Jan. 11. The price has risen to the 20-day EMA ($489) due to follow-up buying. The BNB/USDT pair may rise to the 50 day SMA (542) if bulls overcome this obstacle.
If the resistance is broken, it could signal that the downtrend has ended. The price could rise to $617. The bears will attempt to pull the price back to the channel support line if the price falls below the 20-day EMA.
Solana (SOL), is trying to pullback in a downtrend. The price rose from $130 on January 10 to the $205 EMA ($159) today.
Daily chart of SOL/USDT Source: TradingView
Bears are the ones who have the upper hand, as the RSI in negative zone and the downsloping moving Averages suggest. The sellers will try to lower the SOL/USDT pair below the $116 support level if the price drops below the 20-day EMA.
Contrarily, if bulls push price above the 20 day EMA, the pair may rise to the resistance line. If the channel closes above its break, it will indicate a possible shift in trend.
Cardano (ADA), which was $1.06 on January 10, has risen to $1.07 today, indicating that bulls are trying to rally. The price has risen to $1.07 on Jan. 12, the 20-day EMA ($1.27) by the buyers.
Daily chart ADA/USDT Source: TradingView
The RSI attempts to form a bullish divergence. This indicates that bearish momentum could be weakening. The resistance line for the descending channel could be reached if bulls push the price higher than the moving averages.
Contrary to popular belief, if the price falls below the moving averages it will indicate that sentiment is still negative and traders are selling rallies. The bears will attempt to bring the price below $1, which is the critical support.
The Ripple (XRP), dropped to $0.69 Jan. 10, but the candlestick’s long tail suggests that bulls purchased this dip aggressively. The overhead resistance of $0.75 was breached by buyers on Jan. 11.
Daily chart of XRP/USDT Source: TradingView
The XRP/USDT currency pair crossed the 20-day EMA ($0.80), but the candlestick’s long wick indicates that bears are defending this level. The bears will attempt to lower the XRP/USDT price below $0.69 if the price falls from its current level. The pair could fall to $0.60 intraday low if they succeed.
If bulls push the price higher than the 20-day EMA, it could lead to a rise to the 50 day SMA ($0.86). If the resistance is broken and closed above, it could open the way for a possible move up to $1.
Terra’s LUNA token jumped off the support line on Jan. 10, and broke above its 50-day SMA ($71.99 on Jan. 11. The price has risen to the 20-day EMA ($78.12 on Jan. 12 due to follow-up buying
Daily chart of LUNA/USDT Source: TradingView
Bulls will attempt to push the price higher than the resistance line in the descending channel. The first sign that the downtrend is over will be a close above the channel. The LUNA/USDT currency pair will attempt a rally to $93.81.
The reverse could be true. If the price moves below the resistance line, then the pair may remain within the channel for a few days. Breaking below the channel’s support line could signal a deeper correction.
Related: Bitcoin rises to $44,000 after US inflation hits 7.8%
Polkadot’s (DOT) bounced from the $22.66 support Jan. 10, which indicates that bulls are protecting the support. The 20-day EMA ($26.85) has seen a rebound, which could be a resistance.
Daily chart of DOT/USDT Source: TradingView
The bears will attempt to keep the DOT/USDT price below $22.66 support if the price falls from the 20-day EMA. The pair could resume its downward trend if they succeed. The $16.81 level is the next to be watched on the downside.
If bulls push the price above the moving Averages, the pair may rally to resistance at $32.78. To signal a new up-move, buyers will need to push the price higher than this level.
Avalanche (AVAX), although it closed below the uptrendline of the symmetrical triangular triangle on Jan. 8, and again Jan. 10, the bears couldn’t sustain lower levels. This indicates that the bulls purchased the dips.
Daily chart of AVAX/USDT Source: TradingView
On Jan. 11, the bulls drove the price back into the triangle and followed that up with another move on Jan. 12. The moving averages will likely resist the relief rally.
If the price falls below this overhead resistance, bears will attempt to sink the AVAX/USDT pairs below the triangle support and $75.50 critical support.
If bulls continue to drive the price above moving averages, bulls will see an opportunity and push the pair higher than the downtrend line.
Dogecoin (DOGE), which was trading at $0.13 on Dec. 4, was attempted by the bears to lower its price, but it was stopped by the bulls on Jan. 10. On Jan. 11, the buyers pushed the price up to $0.15, but it hit a roadblock at $0.16, the 20-day EMA.
Daily chart of DOGE/USDT Source: TradingView
Bears are the dominant force, as the RSI in negative territory and the downsloping moving Averages suggest. Bears will try to lower the price to $0.13 if the price drops below the 20-day EMA.
The DOGE/USDT pair may slide to $0.10 psychological support if they succeed. If bulls continue to drive the price higher than the moving averages, this negative view could be invalidated. This could signal a possible shift in the trend. A break above $0.19 could see bullish momentum pick up.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.