Price Analysis: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, DOT, AVAX, DOGE
Bitcoin (BTC) and the US stock market sharply declined on January 5. This negative reaction came minutes after the meeting of the Federal Reserve’s FOMC in December. The motive behind the meeting was to show that the Members expect the balance sheet cuts will likely begin after the central bank raises interest rates.
In addition, news of the closure of the Bitcoin mining hub in Kazakhstan also contributed to the negative sentiment as it is the second-largest bitcoin hub in the world. This happened due to the shutting down of the Internet after the massive protests by residents. As a result, it dropped the overall hash rate of the bitcoin to 13.4%, from 205,000 petahash per second (PH / s) to 177,330 PH / s.
CEO of Galaxy Digital Holdings, Mike Novogratz, said that the current decline in volume is low. However, he believes that the market will experience a lot of volatility in the next few days. He further recommends that institutional demand remains strong and the bitcoin bottoms out in the $ 38,000 to $ 40,000 range.
Will bitcoin and large altcoins face further sales? Let’s check out the top 10 cryptocurrency charts to find out.
Bitcoin’s range-bound action broke down on January 5 when bears pushed the price below the strong support at $ 45.456. This showed that the supply exceeded the demand.
They attempted to defend the $ 42,500 support on January 6, but continuous selling brought the price close to the next support at $ 39,600. This price drop invalidated the positive divergence forming on the RSI, i.e. the relative strength index.
The descending moving averages and the RSI near the oversold zone show that the bears are in control. If the bears sink and hold the price below $ 39,600, the BTC / USDT pair can drop to $ 30,000.
In contrast, if the price bounces from $ 39,600, the bulls will attempt to push the pair above the 20-day EMA ($ 46,811).EMA here stands for the exponential moving average. Such a move is the first sign that the downtrend may be over.
Bullish momentum can pick up on a breakout and close above the 50-day SMA ($ 50,610).
Ether (ETH) fell against the 20-day EMA ($ 3,756) on January 5, breaking the December 4 low of $ 3,503.68. This shows that the bears are supreme.
The bearish moving averages and the RSI in the oversold territory show that the bears are in control. If the bears keep the price below $ 3,250, the decline could be extended to the channel’s support line.
The bulls will try to defend this and push the price up to the channel’s resistance line.
In contrast, if the bears push their level below the channel, the ETH / USDT pair may fall to the solid support at USD 2,652.
Binance Coin (BNB) fell below psychological support at $ 500 on January 5. Continuous selling pushed the price to the critical support at $ 435.30.
If the price bounces off from the current levels, the BNB / USDT may rise to $500, where the bears are likely to create strong resistance. The bearish moving averages and the RSI in the oversold territory show that the bears are in control.
If the $ 435.30 support breaks, the pair can extend the decline to $ 392.20 and then to $ 320. Such a move could open the door for a move up to $ 575.
Solana (SOL) fell to $ 167.88 on January 5 and December 13 low of $ 148.04. This indicates that the bears have again asserted their supremacy.
Selling has resumed, and now the bears will try to pull the SOL / USDT to the strong support at $ 116. This level can attract the bulls, leading to strong buying from them. Though the
rally is likely to face selling near the 20-day EMA ($ 170).
Such a move shows that the sentiment remains negative, and traders sell on the
rallies. This could increase the likelihood of a break below $ 116.
Buyers need to push and hold the pair above the channel’s resistance line to signal that the downtrend may be over.
ADA was denied by the 20-day EMA ($ 1.33) on January 5 and fell to the strong support at $ 1.18. The bulls successfully defended this level but failed to push the price above the 20-day EMA.
If the bears push the price below $ 1.18, the pair may fall to the critical support of $ 1. This is primarily important to watch out for because if it cracks, the pressure to sell can accelerate, and the pair can slide to $ 0.68.
In contrast, the pair could move up to the channel’s resistance line if the bulls push the price above the moving averages. A breakout and closure over the channel signal a possible trend change, after which the pair can climb up to $ 1.87.
Ripple (XRP) broke below the USD 0.75 support on January 5, but studies found that the long tail on the candlestick shows that the bulls bought this lower. However, one minor drawback is that buyers were unable to take advantage after the rally.
The XRP / USDT formed a Doji candlestick on January 8, and the bulls are currently trying to push the price below $ 0.75. If this happens, the downtrend can resume, leading the pair to drop to $ 0.60.
The descending slope and RSI in negative territory shows that the bears are in control.
In contrast, if the price rebounds from the current level, the bulls will try to push the pair above the moving averages.
If they succeed, it suggests that selling pressures may decrease. After that, the pair can climb to $ 1.
Terra (LUNA) fell below the 20-day EMA ($ 81) on January 5, suggesting that short-term traders may have made profits after the bulls failed to break through the $ 93.81 hurdle.
The bears have pushed the price towards the 50-day SMA (USD 69), which can act as strong support. However, if the price rebounds from current levels, the bulls will attempt to push the LUNA / USDT pair onto the downtrend line of the descending channel.
A breakout and close above the channel would indicate that the correction may be over. The bulls will then try to push the price down to $ 93.81.
In contrast, a break and close below the 50-day SMA will add selling pressure, and the pair may fall to psychological support at $ 50.
Polkadot (DOT) is the area bound in a downtrend. The price has fluctuated between $ 22.66 and $ 32.78 for the past few days.
The 20-day EMA ($ 28) has started falling, and the RSI has plunged into negative territory, showing that the bears have the upper hand. If sellers give way and hold the price below $ 22.66, the DOT / USDT pair may plunge to $ 16.81.
In contrast, if the price rebounds from $ 22.66, the bulls will attempt to propel the pair to $ 32.78. A breakout and close above this level could signal a possible turnaround. However, the pair can go up to $ 40 and then to $ 44.
Avalanche (AVAX) broke below the $ 98 support on January 5 and fell to the uptrend line of the symmetrical triangle on January 7. The bulls will try to defend this level and push the price down.
The 20-day EMA ($ 104) is down, and the RSI is below 38, suggesting the bears will keep selling in the rallies. If rebound from current levels at USD 98 or 20-day EMA is prevented, the likelihood of a break below the triangle increases.
The AVAX / USDT pair may fall to the USD 75.50 support, where the bulls attempt to break the downside. However, this negative view will be invalidated when the price rises and breaks above the triangle. After that, the pair can climb to $ 128.
Dogecoin (DOGE) fell below the $0.15 support on January 5, but the candle’s long tail shows that the bulls have defended that level. This was followed by a Doji candlestick pattern on January 6, indicating the indecision between the bulls and the bears.
The bears tried to resolve the uncertainty on January 7, but the bulls aren’t ready to give in unless buyers quickly drive in DOGE / USDT pair above the 20-day EMA ($ 0.17), the risk of breaking and closing below $ 0.15 increases.
Considering this, the pair can slide to $ 0.13 and then to $ 0.10. Alternatively, when the bulls push the price above the 20-day EMA, buyers are seeking a comeback. After that, The pair could then reach $ 0.19, and if the bulls breakthrough that hurdle, the rally could expand to $ 0.22.