BTC (BTC), and many other altcoins, are having trouble finding a bottom. This indicates that traders are selling their positions to avoid fear. Everyone is wondering if the selling is over, or if the decline will continue.
Dylan LeClair, senior analyst at UTXO Management, stated that the network cost base, which is the average price at Bitcoin’s last movement by investors, is $24,000. In the past, the ratio between cost basis and price has remained below 1.0.
Bitcoin could fall further if history repeats itself to make it attractive to buy, according to this metric.
Everyday cryptocurrency market performance. Source: Coin360
The recent Bitcoin correction doesn’t seem to have any effect on long-term investors. Glassnode data indicates that investors will continue to withdraw their coins from cold storage.
“The Bitcoin illiquid supply keeps rising relentlessly,” stated Lex Moskovski (chief investment officer at Moskovski Capital).
Bitcoin and other major altcoins are close to strong support levels. Will investors take advantage of this opportunity to buy? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
For the past two days, Bitcoin traded below the $37,332.70 to $39,600 zone. On Jan. 23, the buyers tried to rally but couldn’t overcome the overhead resistance of $37,332.70. This suggests that there is little demand at higher levels.
Daily chart of BTC/USDT Source: TradingView
On Jan. 24, the selling recommenced and the bears dragged the BTC/USDT pairs below the Jan. 22 intraday high of $34,008. Next support is the critical zone of $30,000 to $28,805.
The relative strength index (RSI), which is currently at an oversold level, suggests that selling may have been excessive in the short-term. This could draw buyers from traders close to the support zone. The bulls will push the pair to $39,600 if the price bounces off the support zone.
The first sign that bears are losing their grip is a break above the 20-day exponentially moving average (EMA), which is $40,835. If the price rises or sustains above the 50 day simple moving average (SMA), ($45,404), a trend change could be indicated.
Ether (ETH), which fell below the channel’s descending channel on January 21, indicated an increase in selling pressure. On Jan. 23, the bulls attempted to bring the price back into the channel, but failed.
Daily chart of ETH/USDT Source: TradingView
This has increased selling pressure on Jan. 24, and the price is now below the Jan. 22 intraday high of $2,300. The psychological $2,000 level of the ETH/USDT currency pair may be reached by buyers, who could provide support.
The bulls will attempt to push the price back towards the channel if the price recovers from this level. The pair could reach the $2,652 breakdown level if they succeed. If the price falls below $2,000, the pair may slide to $1,700 as the next major support.
Binance Coin (BNB), fell below the support line for the descending channel on January 21. However, follow-up selling on January 22 brought the price towards the strong support zone of $330 to $320.
Daily chart BNB/USDT TradingView
On Jan. 23, the buyers attempted to rally but the bears refused to allow the price entry into the channel. This shows that the channel’s support line is being protected by bears. On Jan. 24, the selling resumed and bears will attempt to lower the price below the support area.
The BNB/USDT pair may slide to $254.50 if the price holds below $320. Next, it could fall to $225.40. A break and close within the channel will be the first sign of strength. The pair may then try to rally to the 20 day EMA ($443).
Cardano (ADA), broke below $1 support on Jan. 22, but the candlestick’s long tail shows that bulls bought the dip and successfully defended it.
Daily chart ADA/USDT Source: TradingView
The bounce off $1 was unable to reach the 20-day EMA ($1.24), which is a minor problem. This indicates that bears are not waiting to sell higher levels but are taking advantage of minor relief rallies.
On Jan. 24, the bears pulled the price down below $1. The selling momentum could pick-up if they keep the ADA/USDT price below $1. The pair could fall to $0.80, and then to the support line.
Solana (SOL), fell below $116 support on January 21. The price then reached the support line for the descending channel on January 22. Bulls tried to defend this level but they couldn’t push the price below $116. This shows that buying tends to dry up at higher levels.
Daily chart of SOL/USDT Source: TradingView
On Jan. 24, the bears began selling again and are trying to lower the SOL/USDT price below the support line. The selling momentum could increase if they succeed and the pair could drop to $66 or $58.
The RSI has fallen below 22 due to the incessant selling over the last few days. This suggests that the selling may have been excessive in the short-term and that a rally is possible. On the upside, $116 is the first level to monitor and then the 20 day EMA ($131) at the next level.
On Jan. 22, Ripple (XRP), fell below its intraday low of $0.60 at Dec. 4. The bulls attempted to launch a relief rally on January 23, but it failed to find any buyers at higher levels.
Daily chart of XRP/USDT Source: TradingView
On Jan. 24, the selling recommenced and the bears are trying pull the price down to $0.50. This is an important support that the bulls must defend as a crack could cause the XRP/USDT pairing to slide to $0.39.
Contrary to what is being said, if the price bounces off the $0.50 support the bulls will push the pair towards the 20-day EMA ($0.72). An upward break or close above this resistance may indicate that selling pressure is decreasing.
Terra’s LUNA token recovered from the support line for the descending channel on January 22, but the recovery stopped at $70.22 on January 23. This indicates that bears are not giving up and are selling at higher levels.
Daily chart of LUNA/USDT Source: TradingView
The moving averages have made a bearish crossover, and the RSI has moved into the negative territory. This indicates that bears hold the upper hand. Sellers will attempt to bring the price below the support line.
The possibility of a return to the downtrend line is increased if the price bounces off of this line again. If bears fall and keep the price below this channel, selling could intensify, and the pair might plummet as low as $37.82.
Related: Bitcoin ‘enters value zone’ as BTC price floor metric goes green again
Dogecoin (DOGE), fell below $0.13 support on Jan. 22, but the candlestick’s long tail shows that buyers were buying at lower levels. On Jan. 23, the buyers tried to begin a recovery, but higher levels attracted sellers.
Daily chart of DOGE/USDT Source: TradingView
The price fell on Jan. 24, and now the bears are trying to keep the DOGE/USDT pairs below $0.13. The pair could begin its slide towards the psychological level of $0.10 if they succeed.
Contrary to what is being assumed, if the price rises from its current level, bulls will attempt to push the pair towards the 20-day EMA ($0.15). The $0.13- $0.19 range could be kept in play if the price breaks and closes above the 50 day SMA ($0.16).
Polkadot, (DOT), fell below $22.66 on January 21 and reached $16.81 on January 22. Bulls did defend this level but could not extend the relief rally Jan. 23. This shows that there is not enough demand for higher levels.
Daily chart of DOT/USDT Source: TradingView
On Jan. 24, the bears started selling again and are trying to keep the USDT/DOTT pair below $16.81. The pair could continue its slide to $10.37, if they succeed.
The RSI has been in the oversold zone due to the sharp selling that took place the last few days. This indicates that selling might have been too aggressive in the short-term and that a rally may be possible.
The pair could rise to $22.66 if the price moves up from its current level and increases above $19.20.
The Avalanche (AVAX), plunged to close below the $75.50 resistance on Jan. 21. This completed a bearish descending triangle. Although the bulls held the $51.04 support Jan. 22, they were unable to push the price higher than the 200-day SMA ($65) Jan. 23.
Daily chart of AVAX/USDT Source: TradingView
This means that bears are still selling on minor rallies. As of Jan. 24, the bears have resumed selling and will attempt to lower the AVAX/USDT pairs below the strong support zone, $51.04 to $47.66. The pair could plunge to $32.23 if they succeed.
If the price bounces off the support zone, it will signify accumulation at lower levels. The bulls will attempt to push the pair towards the $75.50 breakdown level, which is a crucial level to be on the lookout for.
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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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.