Bitcoin (BTC) fell below $ 40,000 on January 10, for the first time since September 2021. The crypto markets were not alone as the US stock markets also experienced strong sales as traders decided to reduce their risk and invested for 10 years in government bond yields. to 1.8% from 1.51% at the end of 2021.
On January 9, Goldman Sachs chief economist Ian Hatzius said the US Federal Reserve could raise interest rates by four percentage points per quarter in 2022.
Analyst Alex Kruger also warned that cryptocurrency markets may not be able to ignore the Fed if it “decides to do its best with oblique deflation.” He was not alone, as former BitMEX CEO Arthur Hayes and Bentoshi also predicted a bearish picture.
Daily market indicators for cryptocurrency. Source: Coin360
Quantitative analyst Benjamin Cohen reassured the bulls by saying that “extreme fear” levels in the Crypto Fear & Greed indicator have occurred only four times since 2018 and were accompanied by bullish reversals that resulted in strong returns from 17% to 1585%. and bitcoins.
Can Bitcoin and major cryptocurrencies begin a sustainable recovery, or will support levels fall? Let’s take a look at the lists of the 10 best cryptocurrencies to find out.
Bitcoin / US dollars
Bitcoin fell to $ 39,650 on January 10, when buyers stepped in and began buying aggressively, as evidenced by the long tail of light. If buyers continue to bounce, the price may try to move toward the 20-day exponential moving average (EMA) ($ 45,369).
BTC / USDT daily chart. Source: TradingView
Both moving averages are sloping down, and the Relative Strength Index (RSI) is in the oversold zone, indicating that the bears have control over the market. If the price falls from the 20-day EMA, the BTC / USDT pair may return to the strong support of $ 39,600 and remain in the range between these two levels for several days.
If the $ 39,600 support disappears, sales could intensify and the pair could start moving towards $ 30k.
Conversely, if the bulls push the price above the 20-day moving average, the pair could rise to the sharp upper resistance level of $ 52,088. An eruption and closure over this resistance may indicate a possible trend change.
Ether / US dollars
The bulls have defended the bearish channel’s guideline in recent days, but have not been able to recover strongly from it. This indicates that demand is drying up at higher levels. Ether (ETH) tried to recover on January 9, but failed to rise above the $ 3,250 breakout level.
ETH / USDT daily chart. Source: TradingView
On January 10, the price fell again, and the bears try to pull the ETH / USDT pair under the downtrend channel. If they succeed, sales could intensify and the pair could fall to the next strong support of $ 2,652.
This is an important support to protect the bulls, because if it breaks, the couple can fall to psychological support at the $ 2000 level.
Conversely, if the price falls from the current level, the bulls will make another attempt to overcome the upper barrier of $ 3,250 and push the pair against the channel resistance line.
BNB / US Dollar
Binance Coin (BNB) fell below the support line of the downtrend channel on January 8, but today’s candlestick showed purchases at lower levels. The bulls pushed the price back into the channel on January 9, but failed to keep the price above the $ 435.30 breakout level.
BNB / USDT daily chart. Source: TradingView
The price fell again on January 10 and the bears try to keep the BNB / USDT pair under the channel. If they succeed, the pair could drop to $ 392.20. This is an important support to protect the bulls, because if it breaks, the next stop can be $ 330.
The RSI dipped to the oversold zone, indicating that short-term trading may be oversold. This may result in little recovery or limited action over the next few days. A break and close above the 20-day moving average ($ 492) would be the first sign that sellers may lose control.
Sun / US dollars
Solana (SOL) tried to recover on January 8, but the bulls failed to raise the price above $ 150. This indicates that the bears are selling on the way up.
SOL / USDT daily chart. Source: TradingView
If speculators keep the price below $ 133, the SOL / USDT may fall to a strong support level of $ 116. Both moving averages fall and the RSI is close to the oversold zone, indicating the dominance of bears.