Bitcoin (BTC), and other altcoins, are showing signs that they may be buying at support levels. Arcane Research reports that the average seven-day real Bitcoin trading volume dropped to its lowest level since July 2021. The previous instance saw a sharp decline in volume that marked a bottom, which led to a strong rally between August and October 2021.
McGlone, a Bloomberg Intelligence senior commodity strategist, warned that risk assets could correct as the United States Federal Reserve raises rates and decreases asset purchases in a podcast.
McGlone anticipates that Bitcoin will transition from being a “risk-on asset” to one that is “risk-off,” and “come out stronger after the corrective phase has ended.”
Everyday cryptocurrency market performance. Source: Coin360
Analysts at Decentrader, an intelligence company that specializes in crypto market research, believe Bitcoin will remain range-bound between $44,000 and $38,000 for the short term before a breakout.
Analysts are split on Bitcoin’s future forecasts. Let’s look at the charts for the top 10 cryptocurrency to see which path is the most likely.
Although the bears want to push Bitcoin towards the $39,600 support, the candlesticks show that the bulls have other plans. The long tail of the candlesticks over the past two days shows that the bulls have other plans. Although buyers are buying on dips, a minor problem is that they haven’t been able push the price higher than the 20-day exponentially moving average (EMA), ($43,804).
Daily chart of BTC/USDT Source: TradingView
Both moving averages are sloping downward and the relative strength indicator (RSI) is still in the negative zone. This indicates that bears hold the upper hand. The bears will attempt to sink BTC/USDT to $39,600 if the price drops below the current level and the 20-day EMA. This is an important level to watch in the near term.
This level could crack, and bearish momentum could increase as many stop-losses could become active. This could lead to a drop of up to $30,000.
The buyers may attempt to push the pair higher than the moving averages if the price bounces off the current level, or the $39,000. Support. If the price holds above the 50-day SMA (Simple Moving Average) ($47,070), then the negative view will be invalidated and the pair may rally to the strong overhead resistance at $52,088.
Ether (ETH), has been on a downtrend and is now close to $2,928.83 support. The bulls could attempt to defend the level and launch a relief rally.
Daily chart of ETH/USDT Source: TradingView
The ETH/USDT pair could reach the 20-day EMA ($3,381) if that happens. This resistance is important to monitor because it will be the first sign that bears are losing steam.
Trend changes could be signaled by a break or close above the channel. The pair could then begin its upward march towards $4,200.
However, if the price drops below the current level or 20-day EMA it will increase the chance of a break below 2,928.83. The pair could fall to $2,652 if that happens.
Binance Coin (BNB), continues to trade within the descending channel pattern. The 20-day EMA ($485) is starting to decline and the RSI has fallen below 43. This suggests that bears have an advantage.
Daily chart BNB/USDT TradingView
The bulls are trying to defend the $450 support. If the price bounces off this level, buyers will attempt to clear $500. It will signal a possible shift in the trend if they succeed.
The BNB/USDT pairing could then begin its upward march towards $572, and eventually to $617. The bears may try to pull the BNB/USDT pairing to the support line if the price falls below $450.
Cardano (ADA), rallied to resistance at the descending channel channel on Jan. 18, but bulls couldn’t push the price higher than the channel. This indicates that the bears are aggressively defending this resistance line.
Daily chart ADA/USDT Source: TradingView
The ADA/USDT currency pair has fallen to the moving averages. This could be a support. The moving averages appear to be on the brink of a bullish crossover, and the RSI is positive, which could indicate a buyer’s advantage.
If the price recovers from its current level, bulls will attempt to push it above the channel and the neckline of an inverse head-and shoulders pattern. The pair could begin a new uptrend if that happens.
If the price falls below the moving averages, this positive view is invalid. This could bring the pair down to $1.06.
Solana (SOL), has reached $130 near the minor support. This level was defended by the bulls on Jan. 10, and they may defend it again during this current decline.
Daily chart of SOL/USDT Source: TradingView
The bulls will attempt to push SOL/USDT above the 20-day EMA ($151) if the price bounces off the support. The pair could rally to resistance at the channel’s descending channel if they succeed.
This level is important to be aware of because a break or close above it could signal the start of a new up-move.
The pair could plummet to $116 if it breaks below the $130 support. Breaking below this level could cause the price to drop to the channel’s support line.
For the past few days Ripple (XRP), had been stuck between $0.75 support ($0.78) and 20-day EMA ($0.78) for the past few trading days. This was resolved on Jan. 19. This is a sign that the bears are now stronger than the buyers.
Daily chart of XRP/USDT Source: TradingView
The RSI in negative territory and the downsloping moving Averages indicate that the downside is the path of least resistance. If the price drops below $0.75, bears will attempt to capitalize on their advantage to sink the XRP/USDT exchange to $0.69.
Contrary to popular belief, if the price rises above the moving averages and goes up from its current level, this will mean that bulls are buying dips. This could trigger a relief rally that could reach the overhead resistance of $1.
Terra’s LUNA token dropped below the 50-day SMA ($76), but the bulls bought it and pushed it back above the 20 day EMA ($80). This is a good sign that traders are buying dips.
Daily chart of LUNA/USDT Source: TradingView
The LUNA/USDT price could reach the downtrend line if the bulls keep the price above 20-day EMA. If the price breaks or closes above this level, it could indicate that selling pressure is decreasing. The pair could then move to $87.88 Fibonacci retracement at 61.8% and then to $93.81.
If the price falls below $73.95, this positive outlook will be invalidated. This would indicate that there is more supply than demand. This could lead to a decline in the pair to $68.33 or $62.46.
Related: 43% of Bitcoin trading volume during US market hours: Arcane Research
The Polkadot(DOT) continues to slide towards the $22.66 strong support where the bulls will attempt to stop the fall. This level may indicate whether the decline has ended or not.
Daily chart of DOT/USDT Source: TradingView
If the bounce is higher than the moving averages, it could indicate accumulation at lower levels. The overhead resistance of $32.78 could be reached by the DOT/USDT pairing. If the pair breaks and closes above this level, it will signal the beginning of an uptrend.
If the price falls below the moving averages it will signal that sentiment is still negative and traders are buying rallies. This will increase the chances of a break, and bring the pair below $22.66. The pair could fall to $16.81 if that happens.
Avalanche (AVAX), continues to slide towards strong support at $75.50. The price action over the last few days has created a descending triangle pattern which will end on a break below $75.50.
Daily chart of AVAX/USDT Source: TradingView
Both moving averages are sloping downward and the RSI has moved into the negative territory. This indicates that bears have the upper hand. To signal a new downtrend, sellers must sink and maintain the price below $75.50.
The $75.50 level is unlikely to be abandoned by the bulls. The AVAX/USDT price pair could reach the moving ranges if it bounces off of this support. The pair could reach the downtrend line if buyers push it above the moving averages. To indicate a change of trend, the bulls must push the price higher than this resistance.
Dogecoin (DOGE), which fell below both moving averages Jan. 18, brings the $0.19-$13 range into play. The RSI is just below the midpoint and the flattish 20-day EMA ($0.16) suggest a balance between demand and supply.
Daily chart of DOGE/USDT Source: TradingView
The DOGE/USDT currency pair could drop gradually to $0.15 if the price remains below the moving averages. If this level cracks, it could fall to $0.13. If the price breaks below $0.13, it will signal the resumption or continuation of the downtrend.
Or, bulls may be buying dips if the price rises and breaks above moving averages. The buyers will attempt to overcome the $0.19 overhead hurdle and push the pair towards $0.22.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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