BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX
After two weeks of a massive rally, bitcoin (BTCThe price has been pretty much flat this week. This is a positive sign, as it shows that market participants are not getting nervous ahead of the series of central bank meetings that will take place next week. The US Federal Reserve, European Central Bank and Bank of England are due to announce their policy decisions next week.
The bulls’ confidence got another boost after the US core personal consumption expenditures (PCE) data for December show up The slowest annual rate of increase since October 2021. Core PCE rose 4.4% from a year ago, meeting analysts’ expectations.
According to a report by Marcus Thelin, Head of Research and Strategy at Matrixport, American institutions have not abandoned the cryptocurrency markets. The financial services firm came to this conclusion by assuming that if the gains occurred during US trading hours, it was because institutions were buying. Using this metric, the company said that 85% of the rally in January was due to institutional buying.
Could Bitcoin and Specific Altcoins Ignore Their Range-bound Action and Resume the Upside? Let’s study the charts of the top 10 cryptocurrencies to find out.
bitcoin (BTC) to $23,816 on Jan 25, but the bulls were unable to sustain the higher levels as evidenced by the long wick on today’s candle.
The repeated failure of the BTC/USDT pair to sustain above $23,000 could tempt short-term traders to take profits. The immediate support is at $22,292. If this level recedes, a pullback could reach the 20-day exponential moving average, or the exponential moving average ($21,172).
This is an important level to watch as a sharp bounce from it would suggest strong demand at lower levels. After that, the pair could try to resume its upward movement and reach the critical resistance at $25,211.
On the other hand, if the price declines and falls below the 20-day EMA, it would indicate that the bulls may rush to the exit. Bears may regain control of below $20,400.
Buyers cannot build on Ether (ETH) a strong bounce off the 20-day moving average ($1,520) on January 25, suggesting bears are selling on a rebound near the overhead resistance at $1,680.
The bears will have to drag the price below the horizontal support near $1,500 to tilt the short-term advantage in their favour. Then, the ETH/USDT pair could start falling towards the strong support at $1,352.
If the bulls want to avoid this bearish outlook in the near term, they will have to quickly push the price above the overhead resistance at $1,680. If they can do that, the pair could start its journey to $2,000, with a short stop at $1,800.
BNB (BNB) between the 20-day moving average ($293) and the overhead resistance at $318 in the past few days. This shows that the bulls are buying dips to the 20 day EMA and the bears are selling on rallies near $318.
A bullish 20-day EMA and the relative strength index (RSI) in positive territory suggest that the buyers have a slight advantage. To build on this advantage, the bulls will have to push the price and hold it above $318. If they succeed, the BNB/USDT pair could gain momentum and rise to $360.
The bears likely had other plans. They will try desperately to protect the $318 level and drag the price below the 20 day EMA. If they do, the pair could drop to $281. This level could act as a minor support, but in the event of a crack, the pair could touch the 50-day simple moving average, or SMA ($270).
XRP (XRP) jumped from the 20-day moving average ($0.39) on January 25 and rose above the general resistance at $0.42, but buyers were unable to sustain the price above it.
Repeated failure to clear the upper barrier may tempt the short-term bulls to take profits. This could pull the price below the 20-day SMA and open the door for a potential drop to the 50-day SMA ($0.37).
This negative view may be invalidated in the near term if the price rises from the 20-day moving average and climbs the $0.42 to $0.44 range. The XRP/USDT pair could then start a strong rally, which could touch $0.51.
Cardano Ada (ADA) above the general resistance at $0.38 on January 26, but the bulls were unable to hold the higher levels. However, it is pertinent to note that if resistance is breached frequently, it tends to weaken.
The bulls will again try to push the price above the general resistance. If they can pull it back, ADA/USDT could rise to $0.44. This level could again act as a massive barrier, but if the bulls don’t give up too much ground, the pair could continue its bullish trend.
A bullish 20-day EMA indicates an advantage for the buyers, but a negative divergence on the RSI warns that the bullish momentum could be weakening. The bears would have to plunge the price below the 20-day EMA to trigger a deeper correction of the 50-day SMA ($0.30).
dogecoin (dog) rebounded from the 20-day moving average ($0.08) on January 25, but the bulls were unable to continue the recovery on January 26. The price fell and slid to the 20-day moving average on January 27th.
The DOGE/USDT pair has been stuck between $0.09 and the 20-day moving average for the past few days. If the price rises above the current level and rises above $0.09, the probability of a rally to the next resistance at $0.11 increases.
Alternatively, if the price continues lower and breaks below the 20 day EMA, it would indicate that the bulls are losing their grip. The pair could then dive to the strong support at $0.07. This move could indicate a potential range-limited action between $0.07 and $0.09 for a few more days.
Matic / USDT
polygon matic (maticIt bounced off the 20-day moving average ($0.97) on January 25 and rose above the crucial $1.05 resistance on January 26. A break above this level indicates that range uncertainty has resolved in favor of the bulls.
Buyers continued to build on the momentum, and the MATIC/USDT pair crossed the minor resistance at $1.16 on January 27. This sets the stage for a potential rally to $1.30 where the bears can once again mount a strong defense. If the bulls clear this hurdle, the rally could extend to $1.50.
Conversely, if the price drops sharply and breaks below $1.05, it would indicate that the breakout may have been a bull trap. The pair could then slide to $0.91.
Related: Litecoin trading ‘phantom head’? Technical Hints for LTC Price to Collapse 65%
litecoin (LTC) has been swinging between the 20 day moving average ($85) and the overhead resistance at $92 for the past few days. This indicates uncertainty between the buyers and the bears about the next directional move.
Although the bullish moving averages indicate an advantage for the bulls, the negative divergence on the RSI indicates that the buying pressure is decreasing. The bears will gain the upper hand if they succeed in pulling the price below the 20-day moving average.
This could stop short-term traders, and the LTC/USDT pair could then drop to $81 and later to $75.
If the bulls want to assert their dominance, they will have to kick the price and keep it above $92. This may indicate the resumption of the bullish trend. The pair can then travel to $100 and later to $107.
Polkadot’s DOT (Point) near the resistance line for the past few days. Usually, a tight consolidation near strong general resistance shows that buyers are holding onto their positions as they expect a higher move.
If buyers push the price above the resistance line, the DOT/USDT pair could signal a possible change in trend. The pair could then start its journey towards $8.05, with a short stop at $7.42.
Conversely, if the price fails to stay above the resistance line, it will indicate that demand is drying up at higher levels. This can attract profit-taking by short-term traders. The pair could first drop to the 20-day moving average ($5.88), and if this level breaks down, a decline could reach $5.50.
The Bulls Tried to Drive AVAX in Avalanche (afax) above the resistance line on January 26, but the bears thwarted their attempt. The bulls have not ceded ground to the bears and are again trying to overcome the barrier on January 27th.
Bullish moving averages and the RSI near the overbought territory indicate that the path of least resistance is to the upside. If the price breaks above the resistance line, the AVAX/USDT pair could rise to $22 and later to $24.
On the downside, a break and close below the 20-day moving average ($16.31) would be the first sign that buying pressure is waning. That could open the door for a possible drop to $14.65 and thereafter to the 50-day SMA ($13.69).
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