Top 5 cryptocurrencies to watch this week: BTC, LUNA, ATOM, ACH*, FTM, LEO

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Bitcoin (BTC) fell to almost $ 34,000 on January 21, reflecting a 50% drop from the all-time high of $ 69,000 on November 10, 2021. The market value of the cryptocurrency has reached $ 1.6 trillion, down 46% from all-time high in November 2021 at around $ 3 trillion.

It is not just the cryptocurrency markets that are facing sales from investors. The S&P 500 is down 8% since the beginning of the year. However, gold exceeded expectations and rose by around 1.76% during the period, which strengthened its status as a safe haven.

See daily crypto market data. Source: Coin360
Several retailers who bought bitcoin near the all-time high have expressed their concerns on social media. However, Salvadoran President Najib Bukele does not seem to be worried about the recent fall when he recently announced the purchase of 410 bitcoins at an average price of around $ 36,585 per coin.

Can bitcoin and altcoins recover after the last massacre? Let’s take a look at the lists of five major cryptocurrencies that could surpass the market if relief begins to pick up.

Bitcoin / US dollar
Bitcoin fell below $ 39,600 to $ 37,332. The support area on 21 January indicates panic sales. Sales continued on January 22 and the price dropped to $ 3408.

BTC / USDT daily chart. Source: Trading View
The sharp fall in recent days has sent the Relative Strength Index (RSI) closer to the 20 level, which indicates that oversold conditions are possible in the short term. Usually, these oversold levels are followed by a momentum of consolidation or relief.

Recovery attempts are likely to encounter strong resistance at the top. If the $ 37332 area turns into resistance, it will mean that sentiment remains negative and traders sell on the rally.

The Bears will then try to resume the downtrend and reset the BTC / USDT pair to the key support level of $ 30,000. A break and close above the 20-day exponential moving average (EMA) ($ 41,427) will be the first sign that the Bears may lose control. .

4-hour BTC / USDT chart. Source: Trading View
In the 4-hour chart, you can see that the pair is trading within the formation of a descending channel. The bears pulled the price below the channel, but failed to keep at the lower levels. This indicates strong purchases from the bulls, which pushed the price back into the channel.

The pair may rise to 20-EMA as the bears could become a major problem again. If the price breaks this resistance and falls below $ 34,008, sales may increase. Conversely, a break above 20-EMA could open the door to a potential increase in the channel resistance line.

Moon / USDT
The famous LUNA Terra has been trading in a bearish channel in recent days. The price fell to the channel guide line on January 22, but the bulls bought the decline aggressively, as the long tail of today’s candle shows.

LUNA / USDT daily chart. Source: Trading View
LUNA / USDT may try to return to the moving averages and then to the declining channel trend line. If the bulls push the price across the channel, the pair could rise to $ 87.90 and then to $ 93.81.

Contrary to this assumption, if the price falls below the current level or the moving averages, this will indicate that the bears are selling every single small advance. The pair can then retest the channel’s guide. An outbreak without this support can speed up sales.

4-hour LUNA / USDT chart. Source: Trading View
On the 4-hour chart you can see that the rally has reached 20-EMA, which is an important level to see. The marginal regression of the 20-EMA and RSI just below the midpoint points to a marginal bearish lead.

If the bulls push the price above 20-EMA, the pair can try to rise towards the channel’s downtrend line. Alternatively, if the price falls below the current level, the bears will present their chances and look to bring the pair to the channel’s guideline.

ATOM / US Dollars
Cosmos (ATOM) broke the upper resistance level at $ 40 on January 17 and fell to the 200-day Simple Moving Average (SMA) at $ 27.57 on January 22.

ATOM / USDT daily chart. Source: Trading View
ATOM / USDT recovered sharply from the 200-day SMA, indicating that the bulls are aggressively defending this level. Buyers will now try to push the price towards the 20-day moving average ($ 35.91).

A pause and close above this level may indicate that a correction may be completed. The pair can then rise to critical resistance at $ 44.80.

Source: CoinTelegraph

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