Bitcoin’s (BTC), price action has been slow in the first days of the New Year. It continues to languish at below the psychological level of $50,000. The Crypto Fear and Greed Index has registered a value 29/100.
Ecoinometrics, an on-chain analytics resource, said that extreme fear stages rarely last for very long. This means that there is only a 30 day downside.
Bitcoin continues to receive support from many quarters. CNBC interviewed Jeremy Siegel, a Wharton School finance professor. He stated that Bitcoin has replaced gold in the minds of Millennials as an inflation hedge.
Everyday cryptocurrency market performance. Source: Coin360
Smart investors are turning to Bitcoin to protect themselves against the devaluation of fiat currencies. Thomas Peterffy, a billionaire from Hungary, advocated crypto as a hedge against fiat currency “go to hell”.
Could Bitcoin lose its range-bound behavior and become a trending currency? Let’s look at the charts of the top-10 cryptocurrency coins to see if we can find out.
Bitcoin’s failure at the 20-day exponential moving mean (EMA) ($48.449) indicates that bears are selling on any minor rally. Both moving averages are falling and relative strength index (RSI), is in the negative zone. This indicates that bears have an advantage.
Daily chart of BTC/USDT Source: TradingView
The bears will attempt to lower the price below $45,456 as strong support. It will signal the resumption the down-move if they succeed. BTC/USDT could drop to $42,000 on Dec. 4, and if that level fails, it could reach $40,000. There is a greater chance of a price drop if the price remains below the 20-day EMA for a longer period.
If the price rises and crosses above the 20-day EMA it will indicate that bulls are trying to make a comeback. The price could rise to the 50 day simple moving average (SMA), which could act as a strong resistance. Bulls pushing the price higher than this level will indicate a change in trend. This could lead to a move up to $60,000.
Ether (ETH) has rebounded from the $3,643.73-$3,503.68 support zone and now reaches the 20-day EMA ($3,899), where bears are mounting a strong challenge.
Daily chart of ETH/USDT Source: TradingView
The RSI in negative zone and the gradually decreasing moving averages indicate that bears are the winners.
The bears will attempt to lower the ETH/USDT price below the support zone if the price falls further. The pair could begin its downward spiral to $3,270, then $2,800 if they succeed.
However, bulls pushing the price higher than the moving averages could signal that the correction phase is over. The price could rally to $4,488
Binance Coin (BNB), bounced from the strong support at $500, and reached the 20 day EMA ($536) which is where the recovery is struggling. The RSI is in negative territory and both moving averages are declining, which suggests a slight advantage for the bears.
Daily chart BNB/USDT TradingView
Bulls pushing the price higher than the 20-day EMA could cause the BNB/USDT pairing to rise to $575 as the overhead resistance. This level could act as stiff resistance. The pair may extend its stay within the range of $500 to $575 for a few days if the price falls below this level.
If the price drops below the 20-day EMA, bears will attempt to bring the pair down below $500. If they succeed, selling could increase and the pair could begin a new downtrend of $450.
Solana (SOL), has traded between $167.88 & the 20-day EMA ($180), but this tight trading range is unlikely to last for too long.
Daily chart of SOL/USDT Source: TradingView
Both moving averages are falling and the RSI has fallen to the negative zone. This indicates that bears have control. The SOL/USDT pair may drop to $148.04 if sellers lower the price to $167.88. After that, it could fall to $120.
The pair could reach $204.75, if bulls push the price higher than the 20-day EMA. Although this level could act as resistance, bulls can overcome it to make the pair rise to the resistance line for the falling wedge pattern.
Cardano (ADA), has traded close to the 20 day EMA ($1.37) over the past few trading days. This suggests a deadlock between bulls and bears.
Daily chart ADA/USDT Source: TradingView
Bulls could propel the price higher than the 20-day EMA and the ADA/USDT pairing could reach the overhead resistance at $1.59. If the price breaks and closes above this level, the pair could reach the resistance line in the descending channel.
To signal that the downtrend may be over, the bulls must push the price higher than the channel. If the price falls below the channel, the bears will attempt to pull the pair lower and test the crucial support at $1.18.
Ripple (XRP), which bounced off $0.80, but the bulls are having trouble pushing the price higher than the 20-day EMA ($0.87). This indicates that sentiment is still negative and traders are selling rallies.
Daily chart of XRP/USDT Source: TradingView
If the price continues to fall, bears will attempt to pull the XRP/USDT pairs to the strong support of $0.75. The pair could begin the next leg downtrend at $0.60 if this level is broken.
The pair could rally to $1 if it rises above the moving Averages. This level could act as strong resistance, and if it falls from it, the pair may remain range-bound for a few days.
If the pair closes above $1, it could signal that the downtrend is over. The pair could then begin its march towards $1.41.
Terra’s LUNA token has an uptrend. Both moving averages are trending upwards and the RSI has moved into positive territory, indicating bulls have the upper hand.
Daily chart of LUNA/USDT Source: TradingView
Bulls are trying to push the price higher than the $93.81 minor resistance. The LUNA/USDT pairing could retest its all-time high of $103.60 if the price holds above this level. Breaking and closing above this level could signify the resumption or continuation of the uptrend.
The pair could rally first to $135.26, then climb up to $150. This assumption is incorrect. If the price falls below the 20-day EMA (83), it could indicate a deeper correction towards the 50-day SMA (66).
Related: Bitcoin drops below $47K after a surge in the US dollar dampens BTC’s price performance
Avalanche (AVAX), bounced off the $98 resistance and rose above the moving Averages on Dec. 31, but the bulls have not been in a position to break the downtrend line. This indicates that the bears are vigorously defending this level.
Daily chart of AVAX/USDT Source: TradingView
The AVAX/USDT pair may drop to $98 if bears push the price below the moving Averages. Breaking below this level could lead to a drop of up to $75.50
Contrarily, if the price bounces off the moving averages it will indicate that sentiment has turned to positive and traders are buying dips. This will increase the chances of the price breaking above the downtrend line.
The pair could then reach $128. An inverse head-and-shoulders pattern is possible if the pair breaks and closes above $128.50.
Polkadot rose above the 20 day EMA ($28) Jan. 2, and bulls will attempt to clear the overhead resistance zone of $31.49 to $22.78.
Daily chart of DOT/USDT Source: TradingView
The 20-day EMA remains flat, while the RSI has risen into positive territory, indicating that buyers may be trying to make a comeback. The DOT/USDT pairing could reach $40 if bulls push the price higher than $32.78,
The overhead zone will indicate that the price could fall and the pair could remain between $22.66 to $31.49 for a few days. To start the next leg in the downtrend, the bears must pull back and keep the price below $22.66.
Dogecoin (DOGE) is experiencing strong resistance from bears as it bounces to the $20-day EMA ($0.17). The moving averages continue to slide down, and the RSI remains in the negative zone. This suggests that bears are in complete control.
Daily chart of DOGE/USDT Source: TradingView
The sellers will attempt to lower the price to $0.15. If the price recovers from this level, bulls will attempt to push DOGE/USDT above the 20-day EMA. The pair could reach $0.19 overhead resistance if they succeed.
Bulls will return to the game if they can break the $0.19 mark and close at or above that level. The pair could rally first to $0.22, then to $0.24.
Alternativly, the downtrend may resume if the price falls below $0.15. The price could fall to $0.13, then drop to psychologically at $0.10.
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.