BTC (BTC) as well as most other major altcoins are seeing selling at higher levels and buying when there is a dip, which indicates the possibility of a range formation. Whalemap, an on-chain analysis company, stated that a “reclaim at $46,500” will be a trend reversal for Bitcoin. This is because the previous accumulation phase (90,000. BTC) was at this level.
Fidelity Digital Assets stated in its annual report, that “massive” Bitcoin accumulation by Bitcoin miners indicates that the “Bitcoin Cycle is not over. The report also suggested that additional sovereign nations could “acquire Bitcoin in 2020 and maybe even see a central banking acquire it.”
Everyday cryptocurrency market performance. Source: Coin360
Guido Buehler, CEO of SEBA Bank in Switzerland, stated in a recent interview: “If the regulations and counterparties are in place, then asset pools at SEBA could invest in Bitcoin at just the right time.” Buehler painted a positive picture of Bitcoin and said that a rally up to $75,000 was possible.
Bitcoin and major altcoins will remain range bound in the short-term. Let’s look at the charts for the top 10 cryptocurrency coins to see how they compare.
Bitcoin fell below the 20-day exponential moving mean (EMA) on Jan. 13, indicating that bears are still selling on rallies. The bears will attempt to bring the price back down to $39,600.
Daily chart of BTC/USDT Source: TradingView
Both moving averages are falling and the relative strength indicator (RSI), is in negative territory. This indicates that the path to the downside is the most likely. The BTC/USDT pair could drop to $30,000. If sellers fall and the price falls below $39,600,
The bulls will not give up easily at $39,000. A strong rebound from the current level, or at $39,600, will indicate accumulation at lower levels. For a few days, the pair could remain range-bound between $45,456 and $39,600 for a while.
The first sign that the correction is over will be a break and close above $45,456 The pair could then begin its northward march towards $52,088.
Ether (ETH)’s rebound from the support line of descending channel Jan. 10 couldn’t even reach the 20 day EMA ($3,485), which suggests that demand dries out at higher levels.
Daily chart of ETH/USDT Source: TradingView
The moving averages are falling and the RSI is at 40. This suggests that bears have control. Now, the sellers will try to get the price to the area between $3,000 psychological level and the support line. The next leg of the downtrend will begin when the price breaks below $2,652 and closes below that level.
The bulls will attempt to push the ETH/USDT price above the 20-day EMA if it rises from its current level. The pair could reach the resistance line in the channel, and then to the 50-day simple movement average (SMA), which is $3,893. To signal that the downtrend is over, the bulls must push the price higher than this level.
Binance Coin (BNB), is currently facing strong resistance at $207 per day EMA ($487), but a minor plus is that bulls are not giving up any ground. This indicates that traders aren’t rushing to the exit.
Daily chart BNB/USDT TradingView
The bulls will attempt to overcome the downtrend line hurdle if the price breaks below the 20-day EMA. If they are able to pull it off the BNB/USDT pairing will indicate a possible trend change. The pair could rally to $617.
If the price falls below the 20-day EMA, or the downtrendline, it could indicate that bears are selling on rallies. This could mean that the pair will remain within the channel for several more days.
Solana (SOL), reached the 20-day EMA ($157), on Jan. 13, but the bulls were unable to clear this overhead hurdle. This indicates that the bears are still selling rallies and have not given up.
Daily chart of SOL/USDT Source: TradingView
Now, the bears will attempt to reverse the downtrend by bringing the price below $130. The SOL/USDT pairing could fall to $116 if they succeed.
The RSI in negative territory and the downsloping moving Averages indicate that the path to the downside is the most difficult.
Contrary to popular belief, if the price moves above the 20-day EMA, it could cause a rally to the resistance line. To signal a change in trend, the bulls will need to push the pair higher than the channel.
Cardano (ADA), which was below the 50-day SMA ($1.35) Jan. 13, declined but the bulls didn’t allow the price to fall below the $1.18 support. This indicates that bulls are buying dips.
Daily chart ADA/USDT Source: TradingView
Bulls will attempt to push the price higher than the 50-day SMA. If they succeed, the ADA/USDT currency pair could rally to resistance at the channel’s descending channel. If the channel closes above the channel, it could signal that the downtrend is over.
Or, bears may continue selling on rallies if the price falls below the 50-day SMA. The sellers will attempt to bring the price below $1.18, and then pull it to the critical support of $1.
The Ripple (XRP), which was down from the Jan. 13 20-day EMA ($0.80), but a minor plus is that the bulls didn’t allow the price below $0.75. This is a sign of accumulation at lower levels.
Daily chart of XRP/USDT Source: TradingView
Bulls driving the price higher than the moving averages will indicate that bears are losing their grip. The overhead resistance at $1 could be reached by the XRP/USDT currency pair.
The pair could trade between $1 and $0.75 for several more days if the price falls below this level. If the price breaks and closes above $1, it will indicate an upward move towards $1.41.
If the price drops below the 20-day EMA then the bears will try to get the pair below $0.75 to $0.69 support zone to resume the downtrend to $0.60.
Terra’s LUNA token fell and closed above its resistance line on Jan. 12. The bears attempted to lower the price below the 20 day EMA ($78.61), but they failed. This shows that bulls are aggressively defending the support.
Daily chart of LUNA/USDT Source: TradingView
The buyers are trying to push the price higher than the channel and above the overhead resistance of $83.86. The LUNA/USDT pairing could rise to $93.81 if they succeed.
The 20-day EMA has been rising and the RSI is in the positive territory. This indicates that buyers are trying to make a comeback.
If the price falls below the moving averages, this positive outlook will be invalidated. This could cause the price to fall below the channel’s support line.
Related: Bitcoin drops below $42K, new forecast predicts breakout as the’most likely outcome’ for BTC prices
Polkadot, (DOT), declined from the 20-day EMA ($26.81 on Jan. 13), but this is a positive sign that bulls didn’t give up much ground. This suggests that bulls see dips as an opportunity to buy.
Daily chart of DOT/USDT Source: TradingView
Currently, the bulls are trying to keep the price above the moving mean. The DOT/USDT pairing could reach $32.78 overhead resistance if they succeed. The RSI at the midpoint and the flat 20-day EMA suggest a balance in supply and demand.
The pair could extend its stay within the range if the price drops below $32.78, if that happens, A break above or below the overhead resistance of $32.78 could be the next trending move.
The Avalanche (AVAX), which was lower than the 20-day EMA ($96), on Jan. 13 indicated that bears continue selling on rallies. The price is now back at the uptrend line in the symmetrical triangle which could serve as support.
Daily chart of AVAX/USDT Source: TradingView
The buyers will attempt to push the price higher than the moving averages if the price recovers from its current level. The AVAX/USDT pairing could rally to the downtrendline of the triangle if they succeed.
The correction may be over if there is a break or close to the triangle. The pair could then rise to $128.
Contrary to the assumption, if price falls below the channel’s uptrend line, the pair could retest the critical level of $75.50. The pair could begin to fall towards $57 or $50 if this support is broken.
Dogecoin (DOGE), which broke above the 20-day EMA ($0.16) Jan. 13, was the first sign that selling pressure might be easing. The price moved sharply on Jan. 14 and then climbed above $0.19 overhead resistance.
Daily chart of DOGE/USDT Source: TradingView
The candlestick’s Jan. 14 candlestick has a long wick, which suggests bears will continue to sell at higher levels. If the price falls below $0.19, then the DOGE/USDT currency pair could fall to the moving averages and extend the range-bound action for a few days.
If the price remains above $0.19, bulls will attempt to break the $0.22- $0.24 overhead resistance zone. The pair could rally to $0.30 if they succeed.
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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.