Bitcoin (BTC) and most of the major cryptocurrencies remain under pressure as support yields and bears sell with each upside attempt. This negative sentiment pushed the Crypto Fear & Greed Index to 10/100 on January 8, one of the lowest ever. In comparison, 2021 started with a trend of 93/100, which indicates “extreme greed”.
This weak New Year’s opening did not bother Bloomberg Intelligence analyst Mike McGlon, who remains optimistic. In a recent analysis, he said that bitcoin may rise to $ 100,000 and ether (ETH) to $ 5,000 this year.
See daily market data for cryptocurrencies. Source: Coin360
However, some analysts argue that it may be difficult for Bitcoin to maintain an upward trend amid rising interest rates. Holger Zshepitz wondered if Bitcoin could survive without “extremely low prices and trillions of dollars in central bank money and government incentives”.
Can Bitcoin come back from strong support and attract buyers in some altcoins? Let’s examine the charts of the 5 best cryptocurrencies that may remain positive in the short term.
Bitcoin / US dollars
Bitcoin’s downward trend reached strong support at $ 39,600. On January 8, the price formed a Doji candlestick pattern, indicating the indecision of the bulls and bears.
BTC / USDT daily chart. Source: TradingView
Both moving averages slope downwards, and the relative strength index (RSI) is close to the oversold zone, indicating that the path of least resistance is in the downward direction. If the Bears fall below $ 39,600, sales could intensify and BTC / USDT could begin its journey toward the next strong support of $ 28,805.
On the other hand, if the price rises from the current level, the pair may move up to the 20-day exponential moving average ($ 45,876). If the price falls below this level, it will mean that the sentiment is still negative and that the traders are selling at the rally. This will increase the likelihood of a break below $ 39,600.
Bulls need to push the price and keep it above the moving averages to signal a possible trend change.
4-hour BTC / USDT chart. Source: TradingView
The 4-hour chart shows that the sales momentum recovered after the breakout and closed below $ 45,456.
If the price falls from 20-EMA, the Bears will try to drop the pair below $ 39,600 and continue the downtrend.
Alternatively, a break and close over 20-EMA can push the pair towards a single moving average of 50. If the bulls push the price above this resistance, it will be a signal that the bears may lose power.
link / USDT
Chainlink (LINK) has traded in a wide range of $ 15 to $ 35.33 in recent months. The bulls pushed the price above the moving averages and the RSI rose near the overbought zone, indicating that buyers have an advantage in the short term.
Daily LINK / USDT chart. Source: TradingView
Over the last few days, the bears have challenged around $ 27.61, but the bulls have prevented the price from falling below the 20-day moving average ($ 23.23). This indicates that sentiment has changed from selling in a rally to buying in the fall.
If the bulls hold above $ 27.61, LINK / USDT may increase to $ 30 and then to general resistance at $ 35.33. This bullish view will become invalid if the price falls below the current level and breaks the moving averages. The pair can then drop to $ 18.
LINK / USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price has broken the upper resistance of $ 27.61. Now the Bears will try to stop the upward movement at the $ 30 level. Unless it chooses the next correction below $ 27.61, it will increase the probability of an increase to $ 35.33.
On the contrary, if the price falls below the current level, it will mean that a break above $ 27.61 could be a bullish trap. The bears will then try to push the price below 50-SMA. If they do, the next stop could be $ 22.
ICP / USDT
The Internet computer (ICP) broke and closed over the downtrend line on January 4, which was the first sign that the downtrend may end. The Bears tried to stop the aggressive bulls and push the price below the 20-day EMA ($ 29), but failed.