Bitcoin (BTC), along with other altcoins, has stopped its slide and is now trying to recover. Many traders were worried about a Bitcoin sell-off. However, Capriole CEO Charles Edwards stated that Bitcoin’s most recent crashes were caused by miner capitulation (December 2018, and March 2020), when BTC was below production costs. However, the current production cost for Bitcoin is $34,000 which is still a significant discount to the current price.
Cathie Wood’s Ark Invest purchased 6.93 million shares in the special purchase acquisition company. This will allow Circle to merge with Circle, which is the main operator of USD Coin (USDC), and the second-largest stablecoin by market capitalization.
Daily view of crypto market data. Source:Coin360
Nonfungible tokens (NFTs), another sign that crypto markets are maturing, have not responded negatively in any way to crypto prices falling. DappRadar recently reported that NFT trading generated $11.90 Billion in the first ten calendar days of 2022, compared to $10.7 Billion in Q3 2021.
Can Bitcoin pull selected altcoins higher and continue its recovery? Let’s look at the top five cryptocurrencies charts to find out.
Although the bulls have struggled to push Bitcoin above the 20-day exponentially moving average ($44.415) over the past few days, a minor plus is that buyers have not lost much ground. This indicates that bulls are buying at every minor dip.
Daily chart of BTC/USDT Source: TradingView
A possible trend change will occur if buyers push the price higher than the 20-day EMA. The BTC/USDT currency pair could rally to the 50 day simple moving average ($47.987), where bears might again mount stiff resistance. Breaking and closing above this resistance could open the way for a rally up to $52,088.
Contrary to the assumption, if prices do not rise above the 20 day EMA, it will indicate that sentiment is negative and traders are buying rallies. The bears will attempt to lower the price below $39,600 as a critical support. The pair may extend its downward trend if they succeed.
BTC/USDT 4-hour chart. TradingView
The moving averages have converged and the relative strength indicator (RSI), is just above the 4 hour chart’s midpoint. This suggests that the short-term is likely to be range bound. The pair could be stuck between $39 600 and $45,456.
Breaking above $45,456 and closing above that level could signal the beginning of a rally to $52,088. A break and close below $39,000.00 could signal the resumption or continuation of the downtrend.
NEAR Protocol’s NEAR token has been in an uptrend. The price reached $17.95, a new all-time high on Jan. 11, signaling a resumption in the up-move. On Jan. 12, the bears brought the price down to $17.95, but the bulls bought the dip and reclaimed it on Jan. 13.
Daily chart NEAR/USDT Source: TradingView
Both moving averages are moving up, and the RSI has moved into the positive territory. This indicates that the path of least resistance lies to the upside. The NEAR/USDT pair could rise to $25.44 if bulls don’t allow the price to fall below $17.95 at the breakout level.
Alternatively, if bears push the price below $17.95 the pair could fall to the 20-day EMA ($16.42). This level can be bounced off, but traders who break or close below it could indicate that they are looking to exit. The pair could fall to $13.
NEAR/USDT 4-hour chart. Source: TradingView
The 4-hour chart clearly shows that the price is taking support at the 20 EMA. The buyers are favored by the upsloping moving Averages and the positive RSI indicate that the short term trend favors them.
The uptrend may begin if bulls push the price higher than $20.59. This could lead to a rise in the pair to $22 or later to $25.
Contrary to popular belief, a price drop below the 20-EMA will signal that short-term traders could be making profits. The 50-SMA could be reached. If the pair breaks below this support, it will signal a deeper correction.
Cosmos (ATOM), which is trying to form an inverted head and shoulders pattern will break and close above the overhead resistance of $44.80.
Daily chart ATOM/USDT Source: TradingView
Rising moving averages and the RSI at the overbought territory suggest that the upside is the path of least resistance. A close above $44.80 could lead to a rally towards the psychological level at $50, and then toward the pattern target of $69.42.
Alternativly, if the price falls from the overhead resistance the ATOM/USDT pairing could fall to the 20-day EMA (36). This is an important level that the bulls must defend. If the price bounces off this level, bulls will attempt to drive the pair higher than the overhead resistance and resume their uptrend.
If the close falls below the 20-day EMA, it will be a sign that the up-move is slowing down. The pair could drop to $32.90.
ATOM/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the price breaking out of the symmetrical triangular pattern. This indicates that uncertainty is now in the favor of buyers. Although the bears might attempt to defend the overhead resistance of $44.80, if they fail the pair could rally towards the pattern target at $51.19.
Alternatively, if bears are able to defend the resistance at $44.80 the pair could fall to the 20-EMA. The bulls will attempt to overcome the overhead hurdle if the price bounces off of this support. If the price breaks below the 50 SMA, this positive outlook will be null.
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Fantom (FTM), is currently in an uptrend. The price action over the last few days has created an inverse (IH&S), which will be completed on a break and close at $3.17.
Daily chart FTM/USDT Source: TradingView
Although the bears might try to stop the rally at $3.48, if the bulls push the price higher than this level, then the next leg in the uptrend could start. The first step in the up-move may be to reach $4, and then continue on its path towards the pattern target of $5.11.
Contrary to what is being assumed, if the price falls below the overhead resistance, bears will try to pull the FTM/USDT pairs to the 20-day EMA ($2.62). If the price rises above this level, it will indicate that traders are buying dips and the sentiment is still positive.
A break below this support would signal a deeper correction to SMA ($2.07).
FTM/USDT 4-hour chart. Source: TradingView
The bulls were able to stop the upward movement at $3.17, but the bears failed. They bought the dip below the 20-EMA and have pushed it above the overhead barrier. The resumption or continuation of the uptrend will be signaled if bulls can hold the price above the breakout point.
The pair could fall to the 20-EMA if bears pull down the price below $3.17. This level is important to monitor because a break or close below it could signal that the current breakout was a bull trap. The pair could drop to $2.80, and then to the 50 SMA.
FTX Token, (FTT), has been in a strong correction phase for several weeks. The price moved above the downtrend line Jan. 14 by the bulls, signaling a possible shift in trend.
Daily chart of FTT/USDT Source: TradingView
After forming a positive divergence, the moving averages seem to be on the brink of a bullish crossover. The RSI has also risen above 64. This indicates that bulls may be trying to make a comeback. The FTT/USDT pair may rise to $53.50 if the price remains above the downtrend.
Contrary to the assumption, if price falls below current levels and breaks below moving averages it will indicate that the breakout was a bear trap. This could bring the price down to $33.76. If the support is broken and closed below it, this could lead to a drop of up to $24.
FTT/USDT 4-hour chart. Source: TradingView
A 4-hour chart clearly shows a falling wedge pattern. The buyers have pushed the price higher than this pattern and also cleared the horizontal resistance of $45.07.
Both moving averages are moving up, and the RSI has moved into the overbought area. This indicates that bulls have the upper hand. The pair could begin its march towards the psychological resistance of $50 if bulls keep the price above $45.07.
If the price falls and re-enters wedge, this positive view will be invalidated. This will signal that the demand is drying up at higher levels.
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.