Since the bitcoin price is traded sideways, traders are monitoring new purchases from institutional investors to assess whether the BTC correction is over.
MicroStrategy recently bought 314 Bitcoins at an average price of $ 31.808, but this may not be enough to stem the decline unless buyers leave and keep their purchases at a higher level.
A recent time zone analysis of QCP Capital divided the Asian and US trading sessions into a 12-hour segment and showed that the US bitcoin price has risen in the hours since March 2020 due to continued purchases from institutional investors. However, buying momentum in the US has shown signs of exhaustion for the first time since Bitcoin peaked about two weeks ago.
While it is a good strategy to track the flow of institutional investors, it is also important to keep an eye on what is happening in retail. The number of individual investors has increased in recent months, and this supports stock markets around the world.
It can be said that Bitcoin is struggling to regain its start, but during that time a handful of digital currencies have reached new heights. This indicates that traders are currently focusing on digital currencies.
Let us explore the maps of the 5 largest cryptocurrencies that can be developed in the next few days.
Bitcoin / US dollars
Bitcoin’s rejection of the 50-day SMA ($ 28,632) faces resistance near the 20-day exponential moving average ($ 33775). Failure to rise above the 20-day moving average is a negative sign, as it shows a potential change in sentiment from buying on fall to selling on each advance.
The 20-day moving average begins to decline, and the Relative Strength Index (RSI) is trading below the 50 level, indicating that the bears are trying to return. The inner light pattern on January 23 and today shows oscillations between oxen and bears.
If uncertainty eliminates the error, the Bears will try to prove their edge and push the BTC / USD pair below the 50-day simple moving average. If they succeed, it could lead to a retracement deeper from the 50% Fibonacci retracement level of $ 25897.42 and then to the 61.8% retracement level of $ 22106.73.
Conversely, if the bulls push the price above the 20-day moving average, the pair may move lower, as it is likely to face strong resistance again. If the price falls from this level and falls below the 20-day moving average, this means that the bears are selling on the way up, but if the bulls push the price over the falling line, this means that the correction is over.
The closing over the closing increases the chance to test a new full-time high of $ 41,959.63. A breach of this resistance could result in a $ 50,000 meeting.
The bearish moving average and RSI in negative territory on the 4-hour chart show that the bears have an advantage. The price action shows a descending triangular formation, which will be completed in case of rupture and approach below $ 30,450. The target price for this setup is $ 18,940.37.
Contrary to this assumption, the pair may rise lower if the bulls are able to push the price above the moving average. This is a critical resistance to be aware of, as breaking it will override the lower setting. If this happens, it could hit the bears on the wrong side, which could trigger a short clip that could push the price to a full-time high.
ETH / USD
Ether spiked above the upper resistance of $ 1,300, and the bulls try to resume movement. Bullish moving averages and RSI above 61 indicate that the bulls are in control.
If the price stays above $ 1,300, ETH / USD can test it consistently at $ 1,438,318. A breakout and approaching this resistance could start a move towards the goal of $ 1675.
On the other hand, if the price falls from the upper resistance level, the pair may fall to the 20-day moving average ($ 1166). A bounce from this support will increase the likelihood that the trend will resume.
However, if the next dip breaks below the uptrend line, this will indicate a potential change in direction. The next support is behind the 50-day simple moving average ($ 882).