Bitcoin (BTC), which experienced a rollercoaster ride in 2021, has now corrected sharply from $69,000. However, the digital asset is up by 60% year to date. Gold has fallen more than 5% during the same time.
Bitcoin’s performance over gold suggests that Bitcoin may be considered a better investment than gold, with inflation rising in the United States and other countries.
The total crypto market capitalization grew to around $3 trillion in the past year. However, Bitcoin’s dominance dropped from 70% to 40% at the beginning of the year. This shows that many altcoins outperformed Bitcoin in a significant way.
Daily view of crypto market data. Source:Coin360
Multiple altcoins will be more popular as cryptocurrencies become more widely accepted. Over the next year, these altcoins could provide investors with strong returns.
To arrive at the list of large-cap cryptocurrency that can be in focus in 2022, technical analysis was used. This will allow for a crypto bull market.
Let’s look at the charts for the top five cryptocurrency coins to determine their potential target goals and support levels in 2022.
Bitcoin (BTC), which broke above the overhead resistance of $64,854 in November, but the candlestick’s long wick shows profit-booking at higher levels. The selling continued the next week, and the price fell below $64,854.
Weekly chart of BTC/USDT Source: TradingView
The bulls tried to defend the 20 week exponential moving average (EMA), which was $51,999, but they were unable to sustain the rebound. This increased the selling and pushed the price below its 50-week simple moving mean (SMA) of $47,681.
Bulls bought the dip, but they failed to extend the recovery beyond the 20-week EMA. This suggests a change in sentiment, from selling on rallies to buying on dips. Once again, the bears are trying to maintain the price below 50-week SMA.
The BTC/USDT pair may drop to $39,600 if they succeed. The 20-week EMA is beginning to decline and the relative strength indicator (RSI) has fallen below 50. This indicates that bears hold the upper hand.
Breaking below $39,600 could lead to a deeper correction of $28,805. This sharp fall could delay the beginning of the next leg in the uptrend.
If bulls are able to defend the 100-week SMA successfully, the pair will attempt another rise above the 20 week EMA. The pair will attempt to rally to the overhead zone, $64,854 to $69,000, if that happens.
A break or close to this zone could signal the start of the next leg in the uptrend, which could push the pair towards the psychologically crucial level of $100,000.
Ether (ETH), is in an uptrend and is currently correcting. Both moving averages are trending upward and the RSI has moved into positive territory, indicating bulls have the upper hand.
Weekly chart of ETH/USDT Source: TradingView
Although bears tried to push the price below the $20-week EMA ($3,745) for the last few weeks, the long tail of candlesticks over the past few week shows that bulls are buying aggressively lower levels.
Bulls will attempt to overcome the psychologically crucial level of $5,000. If they succeed, the ETH/USDT pairing could begin the next leg with the first target at the 100% Fibonacci extension at $5,719.68.
If momentum drives the price higher than this level, then next targets to be on the radar are the 138.2% Fibonacci extension at $6,566.19, and then the 161.8% extension at $7,089.17.
Contrary to popular belief, if the price falls below the overhead resistance or the current level and then breaks below the 20 week EMA, it could signal that traders are selling rallies. This could lead to a drop to $2,652, which is a strong support level.
This is a crucial level to monitor because a break below could bring the pair down to $1,700.
Binance Coin (BNB), which was $669.30 down, indicates that bears are aggressively protecting the all-time high of $691.80. A minor plus is that bulls are buying dips to the 200-week EMA (500).
Weekly chart BNB/USDT Source: TradingView
Buyers have the upper hand because of the upwardly moving averages and positive RSI.
The BNB/USDT pair could reach the overhead zone of $669.30 to 691.80 if the price recovers from its current level. To signal the resumption or uptrend, the bulls must clear this barrier.
If this happens, the pair could begin the next leg at $848.30, and then attempt a rally up to $1,171.90.
Another possibility is for the price to bounce off the 20-week EMA, but then reverse from the overhead resistance. The pair could remain range bound for a few more weeks in such cases.
Consolidation near the all time high is a good sign because it indicates that traders aren’t rushing to exit. This increases the chances of the up-move continuing.
If bears fall and the price remains below the 20-week EMA it will be a sign that there is more supply than demand. This could lead to a fall to the 50-week SMA (379). The bullish assumption could be invalidated if the market closes below this level.
Related: Nexo cofounder targets Bitcoin at $100K mid-2022
The RSI was close to 85 after Avalanche’s sharp rally to $147, which indicated that the up-move in the short-term was too extended. This could have led to short-term traders profit-booking.
Weekly chart of AVAX/USDT Source: TradingView
Three consecutive weeks of bearish selling brought the price down to $81, but the level was not sustained by the bears. This can be seen in the long tail on candlesticks. This means that bulls have turned the $81 resistance into support.
The strong rebound from the 20-EMA ($73), indicates that sentiment is bullish and traders continue to buy on dips. The bulls are now attempting to push the price up to $147, the record high.
The next leg of the uptrend could begin if the resistance is broken and the resistance is closed above. If momentum continues, the rally could extend to $213.17.
If the price falls below $75.50, this bullish view will be invalidated. This will signal that sentiment is negative and traders are selling rallies.
The pair could drop to $50 support. This type of fall could delay the next leg in the up-move.
The MATIC of Polygon has been in an upward trend. The bulls tried to push the price higher than the $2.70 all-time high, but failed. This indicates that the overhead resistance is being defended aggressively by bears.
Weekly chart MATIC/USDT Source: TradingView
Positive news is that bulls are buying dips below the 20-week EMA ($1.62). This suggests that traders are still accumulating on dips and sentiment is bullish.
Rising moving averages and a RSI close to the overbought area indicate that the path to the upside is the easiest. Bulls will attempt to push MATIC/USDT above $2.70.
If they can do so, the pair could begin the next leg in the uptrend that could reach $3.28. If they break above this level, the rally could reach $4.77 and then to $4.77.
This assumption is incorrect. If the price falls below the overhead resistance or current level, it will indicate that there is more supply than demand.
If the price falls below the 20-week EMA the selling momentum could increase and the pair could fall to the 50 week SMA ($1.04).
You should research all aspects of trading and investment before making any decision.
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.