In recent days, the volatility of Bitcoin (BTC) has declined. The standard deviation for Bitcoin’s daily return over the last 30 and 60 days, calculated using the Bitcoin Volatility Index, is 2.63%, which is the lowest volatility since November 2020.
Narrow intervals are usually followed by a sharp price increase. In 2020, a period of low volatility in November was followed by a sharp rise in mid-December, leading to a breakout cycle that took the price to $ 64,854 on April 14, 2021.
Daily indicators for the cryptocurrency market. Source: Coin360
However, there is no guarantee that the expansion of volatility will only take place upwards. The price can break in all directions. Commentator Vince Prince has warned that Bitcoin’s high leverage ratio could lead to a large share of stop losses if $ 40,000 support collapses.
Can Bitcoin start a new bull run, or will the bears pull the price below support levels, causing altcoins to sell out? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
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Bitcoin / US dollar
Bitcoin has been trading close to the 20-day exponential moving average ($ 44,181) in recent days. Although the bulls did not manage to push the price over this resistance, it is simple positive that they did not give up many positions.
BTC / USDT daily chart. Source: Trading View
If the price rises above the current level or $ 41,725.95, the bulls will make another attempt to remove the general resistance at the 20-day moving average and the horizontal resistance at $ 45,456.
If this happens, the pair could rise to the 50-day SMA ($ 47,680), where the bulls could again face strong bear resistance. A break and closure over this resistance could lift the pair to $ 52,088.
Conversely, if the price falls below $ 41,725.95, BTC / USDT may fall to a strong support level of $ 39,600. This is an important level for bulls to protect, because if it breaks, sales can increase and the pair can drop to $ 30,000.
Ether / US dollars
Ether (ETH) has returned from a declining channel support line near the 20-day MA ($ 3,439), indicating that sentiment remains negative and traders are selling upside.
Daily ETH / USDT chart. Source: Trading View
Now the Bears will try to push the price below $ 3188. If they do, the ETH / USDT could fall to $ 2928.83. This is an important support to keep an eye on, because if it breaks, it could extend the decline to $ 2652.
Contrary to this assumption, if the price rises from today’s level and breaks the 20-day moving average, the bulls will try to push the pair across the channel resistance line. If this happens, the pair could rise to $ 4200.
BNB / US Dollar
Binance Coin (BNB) failed to break the line of resistance to the declining channel pattern on 16 January. This could trigger a sale of short-term traders, sending the price below the 20-day moving average ($ 488).
BNB / USDT daily chart. Source: Trading View
If the Bears push the price below $ 466.50, the BNB / USDT could fall to the channel support line. Flat moving averages and the RSI just below the midpoint point to a balance between bulls and bears.
If the price drops from $ 466.50, the bulls will again try to push the price across the channel and the 50-day SMA ($ 530). If they succeed, it will indicate a possible change of direction. The pair can then rise to $ 572.
ADS / USDT
Cardano (ADA) broke to close over the 50-day SMA ($ 1.34) on January 16, indicating that the bulls are trying to return. Now the price can reach the resistance line of the descending channel.
Daily ADA / USDT chart. Source: Trading View
The moving averages are on the verge of a bullish crossover and the RSI has jumped into positive territory, indicating that the bulls have the upper hand in the short term. If buyers push the price across the channel and hold it, this will indicate a trend change.
The ADA / USDT pair may rise to $ 1.87 first, and if this level is broken, the next move may be $ 2.47. On the other hand, if the price falls from the resistance line, the pair may return to the moving averages.
Sol / US dollar
Solana (SOL) continues to trade within the declining channel pattern. The bulls tried to push the price above the 20-day moving average ($ 154) on January 13, but failed. This indicates that the bears are selling every little advance.