Bitcoin (BTC) and most major digital currencies continue to experience a bloodbath on January 21, with the recent pullback leading to a $200 billion drop in market capitalization.
A new report from Huobi Research, produced in collaboration with the Blockchain Association in Singapore, predicts that Bitcoin will enter a bear market in 2022. Hold the cryptocurrency without playing chess.
Daily indicators in the cryptocurrency market. Source: Coin360
The calls for a bear market have not affected MicroStrategy’s CEO, Michael Saylor, who is determined to hold the company’s bitcoin holdings. Sailor said in a recent interview with Bloomberg that the company’s strategy is to buy and hold Bitcoin, not sell it.
Could Bitcoin and Most Major Cryptocurrencies Start From Strong Support Levels? Let’s check out the charts of the top 10 cryptocurrencies to find out.
Bitcoin / US Dollar
Bitcoin attempted to improve on January 20 when the bulls pushed the price towards the 20-day exponential moving average ($43,041). However, the bears had other plans when they sold off this advance and pushed the price to the lower set of the long wick in today’s candle.
BTC/USDT daily chart. Source: Trading View
The selling continued today with BTC/USDT breaking the strong support at $39,600. This is a minor support of $37332.70. Bulls are likely to defend this support area with all their might.
The oversold level of the Relative Strength Index (RSI) also indicates a possible consolidation or recovery. If the subsequent rally rises above the 50-day simple moving average (SMA), this indicates that the downtrend may be over.
Conversely, if the price breaks below the support area, the bearish momentum may increase and the pair may drop to $30K.
Ether / US Dollar
ETH (ETH) long week on January 20th candle indicates that the trend is still negative and traders are selling on relief rallies to strong resistance levels.
ETH/USDT daily chart. Source: Trading View
The selling continued today, and the bears cut the price below the nearest support at $2,928.83. This opens the way for a potential drop to $2,652 as buyers are expected to gather strong protection.
If the price bounces from $2,652, the bulls will once again attempt to push the ETH/USDT pair beyond the 20-day moving average and the channel resistance line. If this happens, the pair may signal a change in trend.
Conversely, if the bear declines and keeps the price below $2,652, the selling could go up and the pair could drop to $2000.
BNB / US Dollar
Binance coin (BNB) deviated from the 20-day moving average ($474) on January 20, indicating that the bears are aggressively defending this resistance. Sellers will now attempt to push the price below the January 10th low at $405.60.
BNB/USDT daily chart. Source: Trading View
Moving averages and RSI falling into negative territory indicates the advantage of the bears. If the price remains below $405.60 and the descending channel, the selling may increase and the pair may drop to $325.
Conversely, if the price drops to $405.60 or the channel support line, the bulls will once again attempt to push the BNB/USDT pair past the 20-day moving average and the channel resistance line. If they do, it will indicate the possibility of a change in trend.
ADS / USDT
Cardano (ADA) broke and closed below its moving average on January 20th. The long week on today’s candle showed the bears continuing to sell on the rise.
ADA/USDT daily chart. Source: Trading View
If the bears keep the price below the moving average, the ADA/USDT may fall to the crucial $1 support level. This is an important support to look for as it hasn’t been broken on close for nearly ten months.
If the price rises from the current level and breaks through the moving averages, this means that the traders are building on the decline. Buyers should push the pair and hold it in the descending channel to indicate a possible change in trend.
Sol / US dollar
Solana (SOL) formed an external candlestick pattern on January 20th. Traders sold aggressively at higher levels and pulled the price below the $130 immediate support.
SOL/USDT daily chart. Source: Trading View
SOL/USDT fell to the strong support level at $116. If this level does not provide support, the decline may spread to the bearish link of the bearish link. The bearish moving averages and the oversold RSI indicate that the path of least resistance is to the bottom.
