Price analysis 1/21: BTC, ETH, BNB, ADA, SOL, XRP, LUNA, DOT, AVAX, DOGE

Bitcoin (BTC), and many other altcoins, continue to see a bloodbath Jan. 21. The result of the latest downturn has been a $200 Billion reduction in market capitalization.

Huobi Research and Blockchain Association Singapore have released a new report that forecasts Bitcoin entering a bear market by 2022. The U.S. Federal Reserve and other central bank around the globe have tightened liquidity and regulatory actions could be a hindrance to crypto prices.

Everyday cryptocurrency market performance. Source: Coin360

MicroStrategy CEO Michael Saylor is not fazed by calls for a bear-market. He remains determined to keep the company’s Bitcoin holdings. In a Bloomberg interview, Saylor stated that the firm’s strategy was to acquire and keep Bitcoin, not sell.

Could Bitcoin and other major altcoins begin a relief rally after their high support levels? Let’s look at the charts for the top-10 cryptocurrency to see what happens.

BTC/USDT

Bitcoin attempted to recover on Jan. 20, when bulls drove the price to the 20 day exponential moving average ($43,000. The bears, however, had other plans. They sold the rise and drove the price lower as shown by the long candlestick.

Daily chart of BTC/USDT Source: TradingView

Today’s selling was continued and the BTC/USDT pair broke below the $39,600 strong support. The $37,332.70 support is still in place. This support zone is likely to be defended by the bulls.

The relative strength index (RSI), which is at an oversold level, also suggests a consolidation or a rebound. The downtrend could be ended if the relief rally is above the 50-day simple movement average (SMA).

However, bearish momentum may pick up if the price falls below the support zone. The pair could slide to $30,000.

ETH/USDT

The Jan. 20 candlestick shows that Ether (ETH) has a long wick. This indicates that the trend is still negative and traders are buying on relief rallies to high resistance levels.

Daily chart of ETH/USDT Source: TradingView

Today’s selling continued and the bears pulled the price below its immediate support of $2,928.83. This opens the possibility of a drop to $2,652, where buyers will likely mount a strong defense.

If the price rises above $2,652, bulls will attempt to push the ETH/USDT currency pair higher than the 20-day EMA or the resistance line. This could signal a shift in trend.

If bears fall and maintain a price below $2652, selling could accelerate, and the pair could drop to $2,000.

BNB/USDT

Binance Coin (BNB), which was lower than the 20-day EMA ($474) Jan. 20, indicated that bears are aggressively defending this resistance. Now, the sellers will try to lower the price to $405.60 from the intraday low of Jan. 10.

Daily chart BNB/USDT TradingView

Bears have an advantage because of the RSI in negative territory and the downsloping moving Averages. The selling may intensify if the price drops below $405.60, and the channel descends.

However, if the price recovers from $405.60, or the support line, the bulls will attempt to push BNB/USDT above the 20-day EMA, and the resistance line, of the channel. It will indicate a possible trend change if they do so.

DA/USDT

Cardano (ADA), broke and closed below the moving medians on Jan. 20, Bears are still selling on rallies, as evidenced by the long wick of the candlestick.

Daily chart ADA/USDT Source: TradingView

The ADA/USDT pair may drop to $1 if bears continue to hold the price below the moving Averages. This support is important to keep an eye on because it hasn’t been broken on a closing basis in about ten months.

It will be a sign that traders are buying dips if the price moves up from its current level. To signal a change in trend, buyers will need to push the pair higher than the descending channel.

SOL/USDT

Solana (SOL), formed an outside-day candlestick pattern Jan. 20, Traders vented aggressively at higher levels, and the price fell below $130 as immediate support.

Daily chart of SOL/USDT Source: TradingView

SOL/USDT has fallen to $116 as the support level. The support line for the descending channel could be extended if this level fails to support the decline. The path of least resistance lies to the downside, as indicated by the RSI in oversold territory and the moving averages that are downwards sloped.

The bulls could also attempt to break the barrier at the $20-day EMA ($146) if the price rises above $116. The pair could reach the resistance line if they succeed. A break or close above the channel could indicate a shift in trend.

XRP/USDT

Ripple (XRP), which broke below the $0.75 support level on Jan. 19, closed below it. Bulls attempted to reclaim that level on Jan. 20, but the candlestick’s long wick shows that bears continue selling on rallies.

Daily chart of XRP/USDT Source: TradingView

The support level at $0.69 has been broken by the XRP/USDT pair. The pair could fall to $0.60 if bears maintain the lower levels. Sellers are in control of the RSI and moving averages that are downsloping near the oversold territory.

If the price rises above the moving averages, this negative view will be invalidated. This could indicate accumulation at lower levels. This could signal that the pair is on its way to $1.

LUNA/USDT

Terra’s LUNA token on Terra has turned down again from the downtrend line Jan. 20, indicating that bears are continuing to defend this level vigorously.

Daily chart of LUNA/USDT Source: TradingView

The 20-day ($79), although flattish, has fallen below 46 on the RSI, indicating that bears have a slight edge. The LUNA/USDT pairing could begin to fall if the price drops below $73.95.

Contrary to popular belief, the bulls will attempt to push the pair higher than the downtrend line if the price recovers from its current level. It will be a sign that the correction is over if they succeed. The pair could rise to $93.81.

Related: Three wildest theories that explain the crash of crypto markets worth $500B

DOT/USDT

Polkadot has fallen below critical support of $22.66, which is a crucial level to watch because it has not been broken on a closing basis since mid August last year.

Daily chart of DOT/USDT Source: TradingView

The bulls will attempt to overcome the overhead hurdle at moving averages if the price recovers from the current level. The first sign that selling pressure is decreasing may be a break above the 50-day SMA ($27.08). To signal a change in trend, the bulls must push and maintain the price above $32.78.

If the DOT/USDT pairing falls below $22.66, it could indicate that there is more supply than demand and traders are looking for exits. The pair could drop to $16.81 as the next support.

VAX/USDT

Avalanche’s (AVAX), which was close to the 20 day EMA ($90) Jan. 20, fell below the strong support of $75.50 today.

Daily chart of AVAX/USDT Source: TradingView

Bears are in control of the market thanks to the downsloping moving Averages and the RSI located in the negative zone. A close below $75.50 completes a descending triangle pattern and signals that there may be a top. The AVAX/USDT pairing could then begin its decline towards $50.

The bulls will not give up without fighting hard. The price could rebound to the current level and then to the 20-day EMA. Later, it may reach the downtrend line. To signal the end of the corrective phase, bulls must clear this hurdle.

DOGE/USDT

Dogecoin (DOGE), which was pushed above the Jan. 20 moving averages, was not pushed by bulls. This indicates that sentiment is still negative and bears have begun to sell near resistance levels.

Daily chart of DOGE/USDT Source: TradingView

The DOGE/USDT currency pair may now drop towards the strong support of $0.13, where buyers might intervene to stop the slide.

If the price rises above these moving averages and bounces off of this level, it will indicate that the range-bound action could continue for a few days.

On the upside, $0.19 is the critical level. $0.13 is the downside. After the price breaks through either of these levels, the next trending movement could begin. The volatile random movements within the range could continue until then.

Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.

HitBTC exchange provides market data.

https://cointelegraph.com/news/price-analysis-1-21-btc-eth-bnb-ada-sol-xrp-luna-dot-avax-doge

Lillian Call

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.