Bitcoin (BTC) and certain altcoins show signs of some buying close to support levels. According to Arcane Research, the seven-day average real trading volume for bitcoin has fallen to its lowest level since July 2021. In the previous case, a sharp drop in volume marked a bottom and led to a sharp rise from August to October 2021.
However, McGlone, chief strategic officer at Bloomberg Intelligence, warned in a recent podcast that risky assets could be corrected as the US Federal Reserve raises interest rates and reduces asset purchases.
McGlone expects that after the correction phase is over, Bitcoin will move from “risk assets to risk-free assets” and “improve.”
Daily indicators for the cryptocurrency market. Source: Coin360
In the short term, analysts at Decentrader, a market research firm for cryptocurrencies, expect bitcoin to remain in the range of “$ 44,000 and possibly $ 38,000 before a possible outbreak.”
While analysts are divided in their expectations of Bitcoin, let’s examine the charts of the top 10 cryptocurrencies to find the way to least resistance.
Bitcoin / US dollar
The bears are trying to pull Bitcoin against the strong support of $ 39,600, but the long candle tail from the last two days shows that the bulls have other plans. Buyers are buying on the downside, but the small downside is that they have not been able to push the price above the 20-day exponential moving average (EMA) of $ 43,804.
BTC / USDT daily chart. Source: Trading View
Both moving averages fall and the relative strength index (RSI) remains in negative territory, indicating that the bears are taking the lead. If the price falls from the current level or the 20-day moving average, the bears will again try to push the BTC / USDT pair down to $ 39,600. This is the main level to look at in the short term.
If this level breaks, the bearish momentum may increase as many stop loss orders can be triggered. This can take it down to $ 30,000.
Alternatively, if the price jumps from the current level or support of $ 39,600, buyers will try to push the pair above the moving averages. If the price stays above the 50-day Simple Moving Average (SMA) of $ 47,070, the negative outlook will be invalid and the pair may rise to strong resistance at $ 52,088.
Ether / US dollars
Ether (ETH) still has its bearish move and is close to the support level of $ 2928.83. The bulls can try to defend this level and start a rally.
Daily ETH / USDT chart. Source: Trading View
If that happens, the ETH / USDT may rise to the 20-day moving average ($ 3,381). This is serious resistance to watch out for, as a break above this level would be the first sign that the bears could lose steam.
A pause and closing over the channel will indicate a possible trend change. The couple can then start their bull run for $ 4200.
Conversely, if the price falls below the current level or the 20-day moving average, it will increase the probability of a break below $ 2928.83. If this happens, the pair could fall to a strong support level of $ 2652.
BNB / US Dollar
Binance Coin (BNB) continues to trade in a downward channel pattern. The 20-day EMA ($ 485) has begun to decline and the RSI has fallen below 43, indicating that the bears are in a better position.
BNB / USDT daily chart. Source: Trading View
The bulls are trying to protect the smaller support to $ 450. If the price falls back from this level, buyers will make another attempt to remove the $ 500 upper barrier. If they succeed, it will indicate a possible change of direction.
The BNB / USDT pair can then start their rally north to $ 572 and then to $ 617. Alternatively, if the price falls below $ 450, the Bears will try to pull the BNB / USDT pair towards the channel support line.
ADS / USDT
Cardano (ADA) hurried to the line of resistance of the sinking canal on January 18, but the bulls failed to push the price across the canal. This indicates that the bears are aggressively defending the line of resistance.
Daily ADA / USDT chart. Source: Trading View
The ADA / USDT fell against the moving averages, which may serve as strong support. The moving averages are crossing with the bullish ones, and the RSI is in positive territory, indicating the benefit to buyers.
If the price bounces from the current level, the bulls will again try to push the price across the channel and develop the neck into a possible inverted head and shoulder pattern. If this happens, the couple can start a new trend.