Bitcoin (BTC), which is still below the psychological level of $50,000 for the first few days in the New Year, continues to stagnate. This indicates that traders are not buying aggressively. Bobby Lee, former CEO of BTCC, said that the exodus from Chinese traders who had to leave Chinese exchanges by Dec. 31 may have kept prices lower through the year-end.
President Nayib Bukel of El Salvador, which was the first country to accept Bitcoin as legal currency, thinks that Bitcoin could rise to $100,000 this year. In addition, President Bukele stated that in 2022, two additional countries will accept Bitcoin legal tender.
Daily view of crypto market data. Source:Coin360
Another long-term positive is the increased adoption of crypto by institutional investors in 2021. CoinShares reported that net inflows to crypto funds were greater than $9.3 million in 2021. Over two-thirds (63%) of crypto inflows went into Bitcoin.
Could Bitcoin be a catalyst for a new up-move that will push select altcoins higher in January? Let’s look at the charts of top-5 cryptocurrencies which may be positive in the near term.
Bitcoin traded between the 20-day exponentially moving average ($48,000.00) and strong support at $45,456 over the past few days. This indicates that buying dries out at higher levels.
Daily chart of BTC/USDT Source: TradingView
Both moving averages are falling and the relative strength indicator (RSI), is in the negative zone. This indicates that the bears have the upper hand. The bears will attempt to lower the price below $45,456 if the price falls from the 20-day EMA. If they succeed, then the next leg of downtrend could start at $42,000 and then at $40,000
Contrary to what you might think, if the price breaches the 20-day EMA, then the BTC/USDT exchange rate could reach the 50-day simple moving mean ($52,332). Breaking above the level and closing above it could indicate a new up-move, which could lead to the $58,686 Fibonacci Retracement Level at 61.8%.
BTC/USDT 4-hour chart. TradingView
The 4-hour chart shows the pair as range-bound between $45,456 to $51,936.33. The price rebounded from $45,456; if bulls push it above the 50 SMA, it will indicate accumulation at lower levels. This could push the price to $51,936.33.
If the price falls below the 50-SMA, bears will attempt to bring the pair down to $45,456. The pair could resume its downtrend if they succeed with the next objective at $38,975.67
Terra’s LUNA token, Terra, is trying to re-establish its uptrend. But the bears have other plans. They plan to draw a line at $93.81.
Daily chart of LUNA/USDT Source: TradingView
Buyers have a slight advantage due to the RSI in positive territory and the moving averages that are upwardly moving. It will be a sign that bulls are continuing to accumulate on dips if the price bounces off the $20-day EMA ($82).
The LUNA/USDT pairing will attempt to break above $93.81 in order to challenge the record $103.60. The next leg of the upward trend could begin with a break above the resistance.
If the price falls below the 20-day EMA and turns down, it could signal a shift in the short-term trend. This could lead to a drop in the pair to $65.15.
LUNA/USDT 4-hour chart. Source: TradingView
The bounce from $81.11 will be selling in the area between the 50% Fibonacci Retracement at $92.35, and the 61.8% level at $95.01. The bears will attempt to lower the price below the 20 EMA and the uptrend lines.
The pair could fall to $84 or $81.11. If they break below this support, it could indicate that bears are back in play.
If the price bounces off the current level, or the uptrendline, buyers will attempt to drive the pair higher than $95.01 and test the overhead resistance at $103.60.
Fantom (FTM), which is below the overhead resistance of $2.67, suggests that bears are fighting for this level with energy.
Daily chart FTM/USDT Source: TradingView
FTM/USDT could fall to the 20-day EMA, which could be a strong support. This support could be retested sharply to indicate that buyers are buying dips.
Rising 20-day EMA ($2.03), and RSI over 68 indicate that the path to the upside is the most direct.
Bulls will be back in the game if they break and close at $2.67. The pair could then begin its northward march towards $3.17, and then $3.48. To invalidate bullish sentiment, the bears must pull back and maintain the price below $2.
FTM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows a rounded bottom formation. This will be completed on a break above the overhead resistance of $2.67. The bulls will attempt to break the $2.67 barrier if the price bounces off the 20-EMA. The up-move may begin if that happens.
However, a price break below the 20-EMA could indicate that short-term bullish momentum is weakening. The price could drop to the 50 SMA, then to $2. Strong support is at $2.
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Cosmos (ATOM), broke above the overhead resistance of $34 on January 1. Bulls are gaining the upper hand as the moving averages completed a bullish crossover.
Daily chart ATOM/USDT Source: TradingView
The bullish momentum may pick up further if the price remains above $34. If that happens, the ATOM/USDT pairing could reach $38 and then to $43.28. Bulls are in control as the moving averages completed a bullish crossover. The RSI is also in the positive zone.
Contrary to popular belief, if the price closes below $34, then it could indicate that bulls are trying to trap bears. The price could drop to the 20 day EMA ($28).
If the price recovers from this level, the bulls make another attempt to clear the overhead hurdle. However, if the pair falls below the moving averages it could lead to a decline of up to $25.
ATOM/USDT 4-hour chart. Source: TradingView
Both moving averages are moving up, and the RSI remains in positive territory. This suggests that bulls hold the upper hand. If the price bounces off the 20-EMA it will indicate that sentiment is positive and traders are buying dips.
If the price closes above $37, then the up-move may resume. If bears push the price below 20-EMA, it could lead to profit booking by short-term traders. This could bring the price down to 50-SMA.
Harmony (ONE), has crossed the downtrend line, where bears will likely mount a strong resistance. The altcoin may drop to the $20-day EMA ($0.24) if the price drops from its current level.
Daily chart of ONE/USDT Source: TradingView
If the price bounces off the 20-day EMA it will indicate that traders are accumulating on dips and the sentiment is bullish. The bulls will attempt to push it above the downtrend line again.
They will succeed and it will signal the beginning of a new up-move. The $0.34 target is the first upside target. A break above this could lead to a retest at $0.38. If the price falls below $0.21, this positive view will be invalidated.
ONE/USDT 4-hour chart. Source: TradingView
This 4-hour chart shows how a cup-and handle pattern forms. It will close at $0.29 and complete on a break. The pattern target for this reversal setup is $0.38. Because bears will likely mount strong resistance at $0.34, it is unlikely that the target objective will be reached in a straight line.
If the price falls below the current level, it may drop to the moving averages. The ONE/USDT currency pair could fall to $0.21 if this support breaks. For a while, a bounce from this support could see the pair remain range-bound between $0.21 to $0.27.
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.