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Bitcoin (Bitcoin) And the U.S. stock market fell sharply on January 5, reacting negatively to the minutes of the Fed’s December FOMC meeting, which indicated that Members expect the balance sheet to decrease It started after the Fed started raising interest rates in early 2022.
Exacerbating the negative sentiment is the closure of the world’s second largest Bitcoin mining center in Kazakhstan. After mass protests by citizens, the Internet has been shut down.This resulted in approximately 13.4% of the overall hash rate of the Bitcoin network From 205,000 petahash (PH/s) to 177,330 PH/s per second.
Mike Novogratz, CEO of Galaxy Digital Holdings, said that the current decline is due to low trading volume and he believes that the market will fluctuate in the next few days. Novogratz stated that a large amount of “institutional demand” is on the sidelines, and he expects Bitcoin Bottom in the USD 38,000 to USD 40,000 area.
Will Bitcoin and major altcoins continue to face selling or will they rebound from strong support? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin/USD
On January 5, when the bears pulled the price below the strong support level of $45,456, Bitcoin’s range-bound fluctuations finally turned to the downside. This shows that supply exceeds demand.
On January 6, an attempt was made to defend the $42,500 support level, but continued selling has brought the price closer to the next support level of $39,600. This leg invalidates the positive divergence formed by the Relative Strength Index (RSI).
The downward sloping moving average and the RSI near the oversold zone indicate that the bears are in control. If the shorts fall and the price stays below 39,600 USD, then the BTC/USDT pair may plummet to 30,000 USD.
Conversely, if the price rebounds from $39,600, the bulls will try again to push the currency pair above the 20-day exponential moving average (EMA) ($46,811). Such a move will be the first sign that the downtrend may end.
The bullish momentum may rebound after the breakout and close above the 50-day simple moving average (SMA) ($50,610).
Ethereum/USDT
Ether (Ethereum) Fell back from the 20-day moving average ($3,756) on January 5 and fell below the intraday low of $3,503.68 on December 4. This shows that the bears have reaffirmed their dominance.
The downward sloping moving average and the RSI in the oversold zone indicate that bears are in a dominant position. If the bears maintain the price below $3,250, the decline may extend to the support line of the channel.
The bulls will try to defend this level and push the price to the resistance line of the channel. A break and close above the channel will indicate a change in trend.
Or, if the bears push the price down below the channel, the ETH/USDT currency pair may fall to a strong support level of 2,652 USD.
BNB/USDT
Binance Coin (Bitcoin) Fell below the strong psychological support of $500 on January 5. Subsequent selling pulled the price to the next support level of $435.30.
If the price rebounds from the current level, the BNB/USDT currency pair may rebound to $500, and the shorts may form strong resistance here. The downward sloping moving average and the RSI in the oversold zone indicate that the bears are in control.
If the $435.30 support level gives way, the currency pair may extend its decline to $392.20 and then to $320. If the price breaks and stays above the channel, this negative view will be denied. Such a move may open the door to a possible rise to $575.
Sol/USDT
Solana (Sol) Fell below the intraday low of $167.88 on December 13 and $148.04 on January 5th. This shows that the bears have re-established their dominance.
The selling continues and the bears will now try to pull the SOL/USDT currency pair to the strong support level of 116 USD. This level may attract strong buying from the bulls, but the easing rebound may face a sell-off near the 20-day moving average ($170).
Such a move would indicate that market sentiment is still negative and traders are selling on rallies. This may increase the possibility of a break below $116. The next stop may be the support line of the channel.
Buyers must push the currency pair higher and maintain it above the channel resistance line to indicate that the downtrend may end.
ADA/USDT
Cardano (have) Fell back from the 20-day moving average ($1.33) on January 5 and fell to a strong support of $1.18. The bulls successfully defended this level but failed to push the price above the 20-day moving average.
If the bears pull the price below $1.18, the ADA/USDT pair may fall to the key support level of $1. This is an important support that deserves attention, because if it breaks, the selling momentum may pick up and the currency pair may fall to 0.68 US dollars.
Conversely, if the bulls push the price above the moving average, the currency pair may rise to the resistance line of the channel. A break and close above the channel will indicate a possible change in trend. Then the currency pair may rebound to $1.87.
Ripple/USDT
Ripple (Ripple) Fell below the $0.75 support level on January 5, but the long tail on the candlestick indicates that the bulls have bought this decline. However, a small negative impact is that buyers have failed to build on the rebound.
The XRP/USDT pair formed a doji candlestick pattern on January 8, and the bulls are currently trying to push the price below $0.75. If this happens, the downward trend may resume and the currency pair may fall to 0.60 USD.
The downward sloping moving average and negative RSI indicate that bears are in a dominant position. Contrary to this assumption, if the price rebounds from current levels, the bulls will try to push the currency pair above the moving average.
If they succeed, it indicates that selling pressure may be easing. Then the currency pair may rise to 1 USD.
Moon/USDT
Terra’s Luna On January 5, the token fell below the 20-day moving average ($81), indicating that short-term traders may have profited after the bulls failed to break the barrier of $93.81.
The bears have pulled the price to the 50-day moving average ($69), which may be a strong support. If the price rebounds from the current level, the bulls will try to push the LUNA/USDT pair to the downtrend line of the descending channel.
A break and close above the channel will indicate that the correction may be over. The bulls will then try to push the price up to $93.81. Conversely, breaking and closing below the 50-day moving average may intensify selling, and the currency pair may fall to the psychological support level of $50.
related: Bitcoin and Ethereum will reach $100,000 and $5,000 in 2022: Bloomberg Intelligence
DOT / USDT
polka dot(point) It is range-bound in a downtrend. In the past few days, the price has been fluctuating between US$22.66 and US$32.78.
The 20-day moving average ($28) began to fall, and the RSI fell to the negative zone, indicating that bears have the upper hand. If the seller falls and maintains the price below 22.66 US dollars, the DOT/USDT currency pair may fall to 16.81 US dollars.
Contrary to this assumption, if the price rebounds from $22.66, the bulls will try to push the currency pair to $32.78. A break and close above this level may indicate a possible change in trend. The currency pair may first rise to $40 and then to $44.
AVAX / USDT
Avalanche (AVAX) Fell below the $98 support level on January 5 and fell to the ascending trend line of a symmetrical triangle on January 7. The bulls will try to defend this level and push the price back to the downtrend line.
The 20-day moving average ($104) turned down and the RSI was below 38, indicating that it may sell on rallies. If it rebounds from the current level from $98 or falls from the 20-day moving average, the possibility of breaking the triangle increases.
The AVAX/USDT currency pair may fall to the $75.50 support level, and the bulls will try to stop the decline. If the price rises and breaks the triangle, this negative view will be invalid. Then the currency pair may rise to $128.
Dogecoin/USDT
Dogecoin (dog) Fell below the $0.15 support level on January 5, but the long tail on the candlestick shows that the bulls are defending this level. This is followed by the Doji candlestick pattern on January 6, which shows the indecision between bulls and bears.
The bears tried to resolve the downside uncertainty on January 7, but the bulls were unwilling to relax. However, unless buyers quickly push the DOGE/USDT currency pair above the 20-day moving average (USD 0.17), the risk of breaking through and closing below USD 0.15 will increase.
If this happens, the currency pair may fall to US$0.13 and then to US$0.10. Or, if the bulls push the price above the 20-day moving average, it indicates that buyers are trying to make a comeback. The currency pair may then rise to US$0.19, and if the bulls clear this barrier, the rebound may extend to US$0.22.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and transaction involves risks. When making a decision, you should conduct your own research.
Market data by Bitcoin exchange.
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