Bitcoin (BTC), and many major altcoins, are falling below overhead resistance levels. This indicates that sentiment is still negative and that traders are selling at every opportunity.
Philip Swift, Decentrader analyst, stated that the on-chain profit output ratio (SOPR), which aggregates price of purchase and price sold over a period, suggests that traders are selling Bitcoin holdings at a loss.
A second indicator that traders are concerned about is the funding rate, which has continued to slide into negative territory after comments from the U.S. Federal Reserve. Delph Digital, a crypto research firm, expects Bitcoin “to make a lower low” after it recently tested the $34K mark.
Everyday cryptocurrency market performance. Source: Coin360
Cathy Wood’s Ark Invest made a bullish long-term projection, despite several bearish projections. According to the report, Bitcoin’s price would reach $1 million by 2030 while Ether (ETH), will rise between $170,000 and $180,000 over the same time.
Could Bitcoin and the major altcoins see a bottom near their current levels? Let’s look at the charts for the top 10 cryptocurrencies to see how they compare.
Bitcoin is experiencing stiff resistance in the overhead area between $37.332.70 and $39,600. This indicates that bears are not willing to give up on their advantage and are selling rallies.
Daily chart of BTC/USDT Source: TradingView
The relative strength index (RSI) has been in a reversal since the last few days. Now, the bears will attempt to reverse the trend by lowering the BTC/USDT price below $32,917.17. The next stop for the bears could be $30,000.
Alternativly, if the price rises above the current level, it will indicate accumulation at lower levels.
The buyers will attempt to push the price higher than the 20-day exponentially moving average (EMA), which is $39,714, and the 50-day simplemoving average (SMA), which is $44,428. If the price breaks or closes above this resistance, it could signal that the downtrend is over.
On Jan. 26, Ether rose above $2,652 overhead resistance but the bears sold aggressively and brought the price back under the channel.
Daily chart of ETH/USDT Source: TradingView
Buyers have failed to bring the price back within the channel since then. Now, the bears will attempt to reestablish the downtrend by bringing the price below $2159 intraday on Jan. 24. The ETH/USDT pairing could fall to $2,000 if they succeed.
For the past few days the RSI has been stuck in the oversold area, which suggests that selling may have been excessive in the short term. The bulls could attempt a rally to regain control, possibly reaching the 20-day EMA ($2,856).
This is a crucial hurdle for bulls to overcome, as the three previous relief rallies had declined from the 20-day EMA.
Binance Coin (BNB), which rebounded from the $330 support, re-entered descending channel Jan. 25, but the bulls are having difficulty pushing the price towards the 20-day EMA ($424). This indicates a lackluster demand at higher levels.
Daily chart BNB/USDT TradingView
The bears will see an opportunity and attempt to push the price back towards the strong support zone of $330 to $320. The bulls must defend this zone as it could lead to a plunge to $250 for the BNB/USDT pair.
Contrary to the assumption, if the price increases from its current level, bulls will attempt to push the pair above 20-day EMA. The pair could rally to its resistance line if they succeed. The channel’s resistance line will be broken if the pair closes above it. This could signal the end of the downtrend.
Cardano (ADA), has traded near $1 psychological support for the last few days. This indicates that bulls are protecting the support, but have not pushed the price higher.
Daily chart ADA/USDT Source: TradingView
The RSI in negative territory and the downsloping moving Averages suggest that the path to the downside is the most likely. The ADA/USDT exchange could fall to $0.80 if bears continue to sink below $1.
If the price moves above the moving averages or bounces from the current level, this negative view could be invalidated in the short-term. The resistance line in the channel could be tested by the pair. To signal a change in trend, the bulls must clear this barrier.
For the past few days, Solana (SOL), has traded close to the support channel’s descending channel. This indicates that bulls are trying to defend the support line, but have not been able achieve a strong rebound from it.
Daily chart of SOL/USDT Source: TradingView
Since the last few days, the RSI has been trading within the oversold territory. This indicates that the correction may be overdone in short term. This suggests a possible consolidation or minor pullback over the next few days.
The SOL/USDT pair could reach the $20-day EMA ($118) if that happens. If the channel closes above this level, a break could open the way for a rally towards the resistance line.
If the price falls below the channel, this short-term positive outlook will be invalidated. This could lead to a drop in the pair to $66.
Although the bulls tried to push Ripple, (XRP), above $0.65 overhead resistance, the candlestick’s long wick suggests that bears are not in a hurry to give up.
Daily chart of XRP/USDT Source: TradingView
Both moving averages are sloping downward and the RSI has entered the oversold territory. This indicates that bears have taken control. Sellers will attempt to lower the XRP/USDT pairs below $0.54, challenging the psychological support of $0.50.
If bulls push the price higher than the 20-day EMA ($0.68), this negative view will be invalidated. This will be the first indication that selling pressure is decreasing. The overhead resistance of $0.75 may be reached and the pair could rally.
Terra’s LUNA token fell to the support line for the descending channel once again. This indicates that traders are continuing to sell rallies.
Daily chart of LUNA/USDT Source: TradingView
The bears are in control of the market, as the 20-day EMA ($68.8) is falling and the RSI close to the oversold territory. The selling could intensify if bears lower the price below the channel’s support line. If that happens, the LUNA/USDT exchange rate may fall to $37.82.
Contrary to what is being said, if the price bounces off its current level, bulls will attempt to push it to the 20-day EMA. The resistance at this level will likely be stiff, but the bulls can overcome it and the pair could rally to the downtrend.
Related: This automated strategy has risen 15% against the bear market so far in 2022
Dogecoin (DOGE), which was below the 20-day EMA ($0.15) Jan. 26, indicated that bears were selling near this overhead resistance. The price is now within the narrow range of $0.15 to $0.13.
Daily chart of DOGE/USDT Source: TradingView
The downsloping 20 day EMA is a benefit to bears. However, the bullish divergence of the RSI indicates that selling pressure may be reducing. This state of uncertainty will not last for very long.
The DOGE/USDT price could reach $0.19 if bulls continue to push the price higher than the 20-day EMA. If the price falls below $0.13, it could fall to $0.10.
For the past few days, Polkadot (DOT), has traded near $16.81 support. However, a minor problem is that bulls have not been in a position to make a strong rebound from it. This suggests a lackluster demand at higher levels.
Daily chart of DOT/USDT Source: TradingView
Now, the bears will try to pull back and keep the price below $16.81. If they succeed, selling could increase and the DOT/USDT pairing may fall towards the $10.37 support. The RSI in oversold suggests that the downside is the path of least resistance, as evidenced by the downsloping moving Averages.
If bulls push the price higher than $20.16, it could indicate a rise in demand. The price may rise to the 50 day SMA ($25.44). This level is important to monitor as a break above will indicate a change in trend.
The candlestick of Avalanche (AVAX), Jan. 26, has a long wick that shows bears are trying to defend the $75.50 breakdown level. The bears will attempt to push the price towards the $51.04 support.
Daily chart of AVAX/USDT Source: TradingView
If the price recovers from $51.04, this will indicate that bulls are buying dips below this level. This could mean that the AVAX/USDT pairing will remain between $75.50 to $51.04 for a few more days.
The first sign that the correction is over will be a break and close above $75.50. The pair could then move towards the downtrend line.
Alternativly, if the price falls below $47.66 the next leg in the downtrend may begin. The pair could be volatile within the range until then.
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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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.