Bitcoin (BTC) and most of the major cryptocurrencies have recovered from strong support levels, but can the rally continue to a point where traders are confident that the bottom has been reached?
The price of bitcoin is “about 30% below the 20-week moving average” in about the same position, said Mike McGlone, chief strategy officer at Bloomberg Intelligence, which led to the bottom in March 2020 and July 2021.
Despite the sharp correction of bitcoins in January, the currency balance fell from 2.428 million bitcoins on December 28 to 2.366 million bitcoins on January 24, according to data from CryptoQuant. This suggests that investors can safely hide their recent purchases.
Daily indicators for the cryptocurrency market. Source: Coin360
However, this may not be a V-shaped recovery for Bitcoin, as volatility is likely to remain high. Traders will follow the US Federal Reserve’s decision with interest after the end of the two-day monetary policy meeting on 26 January.
Can Bitcoin and most major cryptocurrencies prolong the rise in comfort? Let’s take a look at the charts of the top 10 cryptocurrencies to find out.
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Bitcoin / US dollar
January 24 bitcoin candle long tail shows strong purchases at lower levels. Continued beef buying has pushed the price above the immediate resistance of $ 37332.70.
BTC / USDT daily chart. Source: Trading View
The BTC / USDT pair can now hit the 20-day exponential moving average ($ 40,438) which served as strong resistance during the relief rally. If the price falls from this resistance, the Bears will try to take the pair below $ 32,917.17. If successful, the pair could drop to a strong support level of $ 30k.
Conversely, if the price breaks above the 20-day moving average, the pair may rise to the 50-day simple moving average ($ 44,935). A break and closure of this resistor would be the first sign that the corrective phase could be completed. The pair can then challenge the 200-day SMA ($ 48,750).
Ether / US dollars
Ether (ETH) recovered sharply from $ 2,159 on January 24, as evidenced by the long tail of today’s candle. This indicates that the bulls are buying aggressively at lower levels.
Daily ETH / USDT chart. Source: Trading View
Continuous purchases pushed the price into the channel today. These are the first signs of strength. Buyers will now try to push the price and hold it above the upper resistance of $ 2652.
If they manage to do so, the ETH / USDT may rise to the 20-day moving average ($ 2,966). Bjørner will probably make a strong defense at this level.
If the price breaks below the 20-day moving average, this indicates that sentiment is still negative and that traders are selling at the rally. The Bears will once again try to resume the downward trend, pushing the pair below $ 2,159.
BNB / US Dollar
The Binance (BNB) coin fell sharply from the $ 330 support on January 24, as evidenced by the long tail light today. This indicates that buyers accumulate around $ 330.
BNB / USDT daily chart. Source: Trading View
The bulls pushed the price back into the channel on January 25 and will now try to push the BNB / USDT pair towards the 20-day moving average ($ 435). If this obstacle is overcome, the pair can rise to the channel resistance line.
Conversely, if the price falls below today’s level or the 20-day moving average, this will mean that traders will continue to sell at the rally. The Bears will again try to push the pair under the strong support range for $ 330- $ 320.
ADS / USDT
Cardano (ADA) is trying to jump off the strong support of $ 1, which indicates that the bulls buy when they fall to this level. The comfortable rally can now hit the 50-day SMA ($ 1.28).
Daily ADA / USDT chart. Source: Trading View
If the bulls push the price above the 50-day SMA, the ADA / USDT could rise to the declining channel resistance line. A pause and closing over the channel will indicate a possible trend change.
Conversely, if the price falls outside the moving averages, this will indicate that the bears continue to sell at the rally to strong resistance levels. The bears will again try to drown and keep the price below $ 1. If they succeed, the pair could drop to $ 0.80.
Sol / US dollar
The bulls once again defended the guideline of the sinking canal on January 24, as the long tail of daylight shows. If the bulls push the price above $ 104.82, Solana (SOL) can reach the 20-day moving average ($ 125).