Bitcoin (BTC), and many major altcoins, are trying to rebound from their respective support levels. This indicates that buyers continue to accumulate at dips.
According to Coinglass data, 9,925 Bitcoin left Coinbase Pro on December 30, which is a sign of institutional buying. This contrasts with the strong inflows in Binance or OKEx. Many analysts believe that January could see an increase in institutional buying.
Based on fund flows, Alex Kruger, economist and trader, expects a Bitcoin rally to begin in January. He also noted that Bitcoin has seen positive results in January between 2018-2021 with gains of 7%-36%.
Everyday cryptocurrency market performance. Source: Coin360
MicroStrategy continues to accumulate Bitcoin on dips, even as investors debate the future direction of crypto markets. According to the U.S. Securities and Exchange Commission filing, MicroStrategy purchased 1,914 Bitcoin from Dec. 9 through Dec. 29. The company now has 124,391 Bitcoin.
Could Bitcoin be the catalyst for a strong recovery of crypto markets in the coming year? Let’s look at the charts of the top 10 cryptocurrencies to see.
Bitcoin has bounced back from the $45,456 support level and is now above the 200-day simple movement average (SMA), ($47,826). The bulls will likely face a formidable challenge at the 20 day exponential moving average (EMA), which is expected to be $45,456
Daily chart of BTC/USDT Source: TradingView
If the price falls below the current level or 20-day EMA it will indicate that bears are selling every minor rally. This will increase the likelihood of a break below $45,456. The BTC/USDT pair could fall to the strong support zone of $42,000 to $40,000.
The relative strength indicator (RSI), is forming a positive divergence that could indicate that selling pressure may be decreasing.
Bulls could drive the price higher than the 20-day EMA and the pair could rally up to $51,936.33. Breaking and closing above this resistance could trigger an up-move towards the 50% Fibonacci Retracement Level at $55,000, and then the 61.8% level at $58,686.
The strong support zone of $3,643.73 to 3,503.68 has seen Ether (ETH), bounce back. The bulls will attempt to push the price up to the 20-day EMA ($3,952) which is an important level to keep an eye on.
Daily chart of ETH/USDT Source: TradingView
If the price falls below the 20-day EMA it will indicate that traders are buying rallies and the sentiment is still negative. The bears will attempt to lower the price below the support area.
If the price breaks below the 200-day SMA ($3,365), it could signal a deeper correction up to $2,800. If the price holds above $4,200, this negative view can be dispelled. The price of the ETH/USDT currency pair could rise to $4.488 or later to $4.868.
Binance Coin (BNB), is trying to bounce off of the $500 strong support. Selling at the $20-day EMA ($540) is likely to stop the recovery. If the price drops below this level, it will indicate that traders are selling rallies and the sentiment is still negative.
Daily chart BNB/USDT TradingView
The bears are at the top of the market, as evidenced by the downsloping 20 day EMA and negative territory RSI. Selling could be intensified if the close falls below $500. The BNB/USDT pair may drop to the 200 day SMA ($445).
Contrary to what is being assumed, bulls will push the pair higher than $575 if the price goes above the 20-day EMA. The pair could rally to $617 if they succeed and then to the overhead resistance zone of $669.30 to $691.80.
Solana (SOL), is trying to rebound from $167.88. The 20-day EMA ($182) will likely see strong selling for the relief rally. The RSI is in negative territory and the 20-day EMA is slowly falling, indicating that bears have an advantage.
Daily chart of SOL/USDT Source: TradingView
The SOL/USDT currency pair could fall to $148.04 if the price drops below $167.88. While the bulls might try to defend the level, if support is broken, the pair could begin its downward climb towards the 200-day SMA ($128).
If bulls push the price higher than the 20-day EMA or the overhead resistance of $204.75, this negative view will be invalidated. The resistance line for the falling wedge pattern could be reached and the pair could rise. If the pair breaks and closes above this level, it could open the way for a retest at the all-time high of $259.90.
Cardano (ADA), which closed below the 20 day EMA ($1.38) Dec. 29, broke but the buyers are not giving up. They want to push the price higher than the 20-day EMA.
Daily chart ADA/USDT Source: TradingView
If they succeed, the ADA/USDT pairing could rise to resistance line in the descending channel. This level is likely to be defended aggressively by the bears. The pair could stay within the channel for several more days if the price falls below the resistance line.
An indication that there is a trend change will be a break above the channel and close below it. The pair could fall to $1.18 if it falls below the current level. This is a crucial level to monitor because it could crack and lead to a drop of $1.
Ripple (XRP), is range-bound between $0.75 and $1. The price rebounded to $0.80 Dec. 30, and the bulls will attempt to push it back above the $20-day EMA ($0.88).
Daily chart of XRP/USDT Source: TradingView
If they achieve that, the XRP/USDT exchange rate could reach the 200-day SMA ($0.94) before reaching the overhead resistance of $1. To signal a sustained recovery, the bulls must push the price higher than this resistance.
The 20-day EMA is declining and the RSI is at 45. This indicates that bears hold the upper hand. The bears will attempt to lower the pair below $0.75 if the price falls from the 20-day EMA. If the price closes below this level, it could open the way for a fall to $0.60.
Terra’s LUNA token bounced from the 20-day EMA ($81), on Dec. 30, indicating positive sentiment and traders buying dips.
Daily chart of LUNA/USDT Source: TradingView
The bulls will attempt to push the price up to $103.60, the record high. Breaking and closing above this resistance will signal that the next leg in the uptrend is underway. It could eventually reach $135.26 or $150.
However, if the price drops below $93.81 or falls below the 20-day EMA it could indicate that traders are closing down their positions on rallies. The LUNA/USDT exchange rate could fall to $71.61 Fibonacci retracement at 61.8%.
Related: Bitcoin recovers to $47.5k, as Swipe, Frax Share and Gnosis lead altcoin markets
Avalanche (AVAX), which bounced off of the minor support at $98 Dec. 30, is now trying to push the price higher than the 20-day EMA ($107).
Daily chart of AVAX/USDT Source: TradingView
If they succeed, the AVAX/USDT pairing could rise to the downtrendline where bears might mount stiff resistance. The first sign the correction is over may be a break or close above this level.
The price could rise to $128. Bulls pushing the price higher than this resistance will create a bullish inverse heads and shoulders pattern. The pair could retest $147 as the high and then rally to $177.50, the pattern target.
The reverse could be true. If the price drops below the 20-day EMA or falls below $98, the pair may drop to $75.50.
Polkadot, (DOT), broke below the 20 day EMA ($28), on Dec. 28, and the bears have successfully resisted attempts by bulls to push it back above the moving averages.
Daily chart of DOT/USDT Source: TradingView
The bears will attempt to lower the DOT/USDT currency pair below the $25-$22.66 support zone if the price falls from its current level. If this happens, selling could gain momentum and the decline could reach $16.81.
The buyers may try to push the pair higher than $31.49. If the price rises beyond the moving averages, they will also attempt to buy the pair. If they succeed, it could lead to a rally to $39.50 or later to $43.56.
Dogecoin (DOGE), which broke below the 20 day EMA ($0.17) Dec. 28, but the bears couldn’t challenge the major support of $0.15. This indicates that selling tends to dry up at lower levels.
Daily chart of DOGE/USDT Source: TradingView
Bulls are trying to push the price above the 20-day EMA. The DOGE/USDT pair may rally to $0.19 if they succeed. If the price breaks and closes above this level, it could signal a possible new up-move. This could lead to the 200-day SMA ($0.23).
The bears will try to lower the pair below $0.15 if the price falls below the 20-day EMA. This is an important level that the bulls must defend as a fall could cause the pair to plunge to $0.13, and then to psychological support at $0.10.
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.
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.