Bitcoin (BTC) and most main altcoins proceed to witness a massacre on Jan. 21 and the results of the latest downturn has been a $200 billion discount in market capitalization.
A brand new report by Huobi Analysis, in collaboration with Blockchain Affiliation Singapore, forecastBitcoin to enter a bear market in 2022. The liquidity tightening measures undertaken by the U.S. Federal Reserve and different central banks internationally and the regulatory motion by authorities might play spoilsport and maintain crypto costs beneath test.
The requires a bear market haven’t shaken up the resolve of MicroStrategy CEO Michael Saylor who is decided to carry on to the corporate’s Bitcoin holdings. Saylor stated in a current interview with Bloomberg that the agency’s technique is to amass and maintain Bitcoin and never promote.
May Bitcoin and most main altcoins begin a reduction rally from their robust assist ranges? Let’s research the charts of the highest 10 cryptocurrencies to search out out.
BTC/USDT
Bitcoin tried a restoration on Jan. 20 when bulls pushed the worth to the 20-day exponential shifting common (EMA) ($43,041). Nevertheless, the bears had different plans as they offered this rise and pushed the worth decrease as seen by the lengthy wick on the day’s candlestick.
The promoting continued on Jan. 21 and the BTC/USDT pair has damaged beneath the robust assist at $39,600. There may be minor assist at $37,332.70. The bulls are prone to defend this assist zone with all their may.
The oversold degree on the relative power index (RSI) additionally factors to a doable consolidation or a rebound. If the following reduction rally rises above the 50-day easy shifting common (SMA), it is going to point out that the downtrend could also be over.
Conversely, if the worth plummets beneath the assist zone, the bearish momentum might choose up and the pair might slide to $30,000.
ETH/USDT
Ether’s (ETH) lengthy wick on the Jan. 20 candlestick signifies that the pattern stays destructive and merchants are promoting on reduction rallies to robust resistance ranges.
The promoting has continued on Jan. 21 and bears have pulled the worth beneath the quick assist at $2,928.83. This opens up the doorways for a doable drop to $2,652 the place consumers are anticipated to mount a robust protection.
If the worth bounces off $2,652, the bulls will once more attempt to push the ETH/USDT pair above the 20-day EMA and the resistance line of the channel. If that occurs, the pair might sign a change in pattern.
Conversely, if bears sink and maintain the worth beneath $2,652, the promoting might speed up and the pair might drop to $2,000.
BNB/USDT
Binance Coin (BNB) turned down from the 20-day EMA ($474) on Jan. 20, indicating that bears are defending this resistance aggressively. The sellers will now attempt to pull the worth beneath the Jan. 10 intraday low at $405.60.
The downsloping shifting averages and the RSI within the destructive territory point out benefit to bears. If the worth sustains beneath $405.60 and the descending channel, the promoting might intensify and the pair might drop to $325.
Conversely, if the worth rebounds off $405.60 or the assist line of the channel, the bulls will once more try and push the BNB/USDT pair above the 20-day EMA and the resistance line of the channel. In the event that they do this, it is going to sign a doable change in pattern.
ADA/USDT
Cardano (ADA) broke and closed beneath the shifting averages on Jan. 20. The lengthy wick on the day’s candlestick confirmed that bears proceed to promote on rallies.
If bears maintain the worth beneath the shifting averages, the ADA/USDT pair might drop to the crucial assist at $1. This is a crucial assist to be careful for as a result of it has not been breached on a closing foundation for about ten months.
If the worth turns up from the present degree and breaks above the shifting averages, it is going to point out that merchants are accumulating on dips. The consumers must push and maintain the pair above the descending channel to sign a doable change in pattern.
SOL/USDT
Solana (SOL) shaped an out of doors day candlestick sample on Jan. 20. Merchants offered aggressively at greater ranges and pulled the worth beneath the quick assist at $130.
The SOL/USDT pair has dropped to the robust assist at $116. If this degree additionally fails to supply assist, the decline might lengthen to the assist line of the descending channel. The downsloping shifting averages and the RSI within the oversold zone, recommend the trail of least resistance is to the draw back.
Alternatively, if the worth turns up from $116, the bulls will once more attempt to overcome the barrier on the 20-day EMA ($146). In the event that they handle to try this, the pair might rise to the resistance line. A break and shut above the channel might sign a change in pattern.
XRP/USDT
Ripple (XRP) broke and closed beneath the $0.75 assist on Jan. 19. The bulls tried to reclaim the extent on Jan. 20 however the lengthy wick on the candlestick exhibits that bears proceed to promote on rallies.
The XRP/USDT pair has damaged beneath the assist at $0.69. If bears maintain the decrease ranges, the pair might lengthen its decline to $0.60. The downsloping shifting averages and the RSI close to the oversold territory point out that sellers are in management.
This destructive view will invalidate if the worth turns up from the present degree and breaks above the shifting averages. Such a transfer might recommend accumulation at decrease ranges. The pair might then begin its up-move towards $1.
LUNA/USDT
Terra’s LUNA token as soon as once more turned down from the downtrend line on Jan. 20, indicating that bears proceed to defend this degree with vigor.
Though the 20-day ($79) is flattish, the RSI has slipped beneath 46, indicating that bears have a slight benefit. If the worth sustains beneath $73.95, the LUNA/USDT pair might begin its decline towards the crucial assist at $62.46.
Opposite to this assumption, if the worth rebounds off the present degree, the bulls will once more attempt to push the pair above the downtrend line. In the event that they succeed, it is going to point out that the correction could also be over. The pair might rally to $93.81.
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DOT/USDT
Polkadot (DOT) has dipped beneath the crucial assist at $22.66, which is a crucial degree to keep watch over as a result of it has not been breached on a closing foundation since mid-August of final yr.
If the worth rebounds off the present degree, the bulls will once more try and clear the overhead hurdle on the shifting averages. A break and shut above the 50-day SMA ($27.08) would be the first indication that the promoting stress could also be lowering. The bulls must push and maintain the worth above $32.78 to sign a doable change in pattern.
Conversely, if the DOT/USDT pair sustains beneath $22.66, it is going to recommend that offer exceeds demand and merchants are dashing to the exit. The pair might then drop to the subsequent assist at $16.81.
AVAX/USDT
Avalanche (AVAX) turned down from near the 20-day EMA ($90) on Jan. 20 and broke beneath the robust assist at $75.50 on Jan. 21.
The downsloping shifting averages and the RSI within the destructive zone point out that bears are in command. An in depth beneath $75.50 will full a descending triangle sample, signaling {that a} prime could also be in place. The AVAX/USDT pair might then begin its decline towards $50.
Nevertheless, the bulls are unlikely to give up with out placing up a robust battle. If the worth rebounds off the present degree, the pair might get well to the 20-day EMA and later to the downtrend line. The bulls must clear this hurdle to sign a doable finish to the corrective section.
DOGE/USDT
The bulls tried to push Dogecoin (DOGE) again above the shifting averages on Jan. 20 however failed. This implies that sentiment stays destructive and bears are promoting close to resistance ranges.
The DOGE/USDT pair might now step by step drop towards the robust assist at $0.13 the place the consumers might step in to arrest the decline.
If the worth rebounds off this degree and rises above the shifting averages, it is going to recommend that the range-bound motion might proceed for a couple of extra days.
The crucial degree to observe on the upside is $0.19 and $0.13 on the draw back. The subsequent trending transfer might begin after the worth breaks out of both degree. Till then, risky random strikes contained in the vary might proceed.
The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer includes threat. You need to conduct your personal analysis when making a choice.
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