Bitcoin (BTC) started 2022 in a losing streak, dropping about 20% to its worst performance in January since 2018, when the price fell 26.61%, according to network analysis resource Coinglass.
Now all eyes are on February, which bulls have historically favored. The only two negative shutdowns in February were in 2020 and 2014.
A positive sign of the recent drop in prices is that long-term assholes haven’t panicked. Glassnode data shows that the number of coins that were last moved between five and seven years has risen to a new all-time high.
Daily indicators for the cryptocurrency market. Source: Coin360
El Salvador President Neb Bukele has predicted a “massive price increase” for Bitcoin. Bukele’s prediction is based on the fact that if more than 50 million millionaires in the world want to buy just one bitcoin, the supply of them will not be enough to meet that demand.
Could Bitcoin and the Big Cryptocurrency End the Month on a Strong Note? Let’s take a look at the top 10 cryptocurrency charts to find out.
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Bitcoin / US Dollar
Bitcoin is back in a strong downtrend. In a moving market, the mood is to sell on ups and downs rather than buy on dips, as traders make more money on dips.
BTC/USDT daily chart. Source: Trading View
The first sign of a change in sentiment will be a breakout and a close above the 20-day exponential moving average (US$39,318). This move may indicate that demand is exceeding supply near the resistance of the 20-day moving average. The BTC/USDT pair can then move towards the 50-day simple moving average ($43,791).
Conversely, if the price reverses down from the current level or the 20-day moving average, this will indicate that the bears are aggressively defending this level. After that, the pair may decline to $35507.01. If this support is broken, sales may resume and the price may test the January 24 low at $32917.17.
This is an important level for the bulls to protect because if it is broken, the pair could drop to the strong $30K support level.
ETH / USDT
Ether (ETH) is facing resistance near the breakout level at $2,652, but on the positive side, the bulls have not given up much ground. This indicates that traders are buying on dips, as seen by the long tail of today’s candles.
ETH/USDT daily chart. Source: Trading View
The bulls will now once again attempt to push the price above $2,652 and the critical resistance at the 20-day moving average ($2802). If they do a good job, it means that sales pressure can ease. Bulls will then see the opening and try to push the pair against the channel’s resistance line.
Contrary to this assumption, if the price deviates from the current level or the 20-day moving average, the bears will attempt to pull the ETH/USDT pair towards the $2,300 to $2,159 support area. The price is below this area to make way for a further decline to $1,700.
BNB / USDT
Binance Coin (BNB) entered the channel again on January 25, but the recovery stalled at around $400. This indicates that the bears have not yet given up and are selling on the rise.
BNB/USDT daily chart. Source: Trading View
If the bears drop and keep the price below the channel, the BNB/USDT pair could test the critical support area from $330 to $320 again. The bearish moving averages and the RSI are in negative territory, indicating that the sellers are holding the edge.
The pair could drop to $250 if it hits the $320 support, as some traders are likely to panic and rush out. These negative expectations will be worthless in the short term on the breakout and close on the 20 day EMA. The pair can then rise to the channel resistance line.
ADA / USDT
The inability of the bulls to offer a significant discount on the psychological support of $1 indicates a lack of strong buying at this level. Bears will now try to cash in on Cardano (ADA) for less than $1.
ADA/USDT daily chart. Source: Trading View
Both moving averages are sloping and the RSI is in negative territory, indicating that the bears are in power. Stops and closes below $1 may signal the beginning of the next phase of the downtrend.
The ADA/USDT pair may drop first to $0.80 and then to the channel support line. Bulls should push the price and keep it above the channel resistance line to signal a trend change.
SOL / USDT
Solana (SOL) has consolidated in a narrow range between $80.83 and $104.82 in recent days.