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The US stock market is set to end the week in the red, but it hasn’t led to further losses for Bitcoin (BTC). The news that cryptocurrency lender Genesis has filed for Chapter 11 bankruptcy has also had no meaningful impact on the price of Bitcoin. This indicates that selling pressure may be waning.
However, trading house QCP Capital warned in the latest edition of its regular market newsletter that Bitcoin’s current rally is nothing more than a bear market bailout rally. We expect another sell-off to ensue that could see the price of (ETH) dip below its 2022 lows.QCP reached this conclusion using Elliott Wave analysis.
After a prolonged bear phase, price action always climbs the worrying wall during the first few days of a new bull market. At that point, it remains in disbelief as some analysts continue to expect prices to fall.
Are Bitcoin and some altcoins showing signs of a bottom formation? Let’s explore the charts of the top 10 cryptocurrencies to find out.
Bitcoin price has been trading in a narrow range between $20,400 and $21,650 for the past few days. A firm consolidation near a firm resistance is usually a positive sign as it indicates that traders are not in a hurry to take profits.
The uptrend moving averages and the relative strength index (RSI) of the overbought zone show that the path of least resistance is upwards. A buyer needs to keep the price above his $21,650 to signal a resumption of the rally. After that, the BTC/USDT pair may start his journey towards $25,211.
Conversely, if the bears do not allow the price to rise above $21,650, it could entice several traders who may have bought at lower levels to book profits. A break below $20,400 is likely to intensify selling.
The next support for the downside is the 20-day exponential moving average ($19,268). If the price bounces off this support, the bull will attempt to clear the $21,650 overhead hurdle again, but a correction could extend him to $18,388 if his 20-day EMA cracks.
Sellers tried to initiate a deeper correction in Ether, but the bulls bought the drop near $1,500 on Jan. 18.
The bulls will try to push the price above the overhead resistance zone between $1,610 and $1,680. If successful, the ETH/USDT pair could rally to $1,800. This level could act as a barrier again, but the pair could see him reach $2,000 if the bulls climb above it.
If the bears want to dampen the momentum, they should defend the overhead zone and pull the price below $1,500. The pair can then fall to the 20-day EMA ($1,428), which could attract buyers. there is.
BNB (BNB) bounced off the 20-day EMA ($281) on Jan. 19, but the bulls are struggling to maintain momentum.
The zone between the 20-day EMA and the 50-day SMA ($268) is a key zone to watch. If the price rises from there, the bulls will try to push the BNB/USDT pair above $318 again. The pair would then complete a bullish inverted head and shoulders pattern.
On the other hand, if the price continues to fall below the moving averages, a drop to $240 and then to $220 is possible.
XRP (XRP) found support at the moving averages on Jan 18 and moved up on Jan 19. This shows a strong buy at the 20-day EMA ($0.37).
Buyers are likely to try to sustain the tempo and push the price towards the overhead resistance of $0.42. This is an important level for the bears to defend against. Because, if it does bring up, the XRP/USDT pair could surge to $0.51 with no major obstacles in between.
The bears may have other plans as they try to pull the price below the moving averages again. Once that happens, the pair can plummet to the support line, where buying can emerge.
Cardano (ADA) rose from the support line of the flag pattern on Jan 19. This is a positive sign. Buyers will try to push the price above the flag to signal the start of the next phase of the rally.
If the flag breaks out, the bears may put up a strong defense at $0.37, but the ADA/USDT pair can rise to $0.44 if the bulls overcome this barrier. This level could be a drag on the bulls.
This positive view may be invalidated in the short term if the price turns lower and breaks below the flag. This could attract further selling from short-term traders and the pair could fall to his 50-day SMA ($0.29).
Buyers attempted to kick Dogecoin (DOGE) above $0.09 on Jan. 18, but the bears aggressively protected that level as seen from the long core of the candlestick on the day.
The bulls held the support of the 20-day EMA ($0.08) to the downside, but the weak rallies on Jan 19 and Jan 20 indicate hesitancy to buy aggressively. This could fuel the bears trying to sink the DOGE/USDT pair below the 20-day EMA.
If so, the pair can tumble to the strong support near $0.07. The flattening of the 20-day EMA and the RSI just above the midpoint point to possible range-bound action in the short term.
The $0.09 hurdle will have to be cleared if the bulls want to maintain their advantage. The pair can then move north to $0.11.
Porygon (MATIC) is trading within a wide range between $0.69 and $1.05. In general, in a well-established range, traders buy near the support and sell near the resistance.
This is what happened with the MATIC/USDT pair, which turned down from the overhead resistance of $1.05. The first line of support is the 20-day EMA ($0.90). Buyers held this level on Jan. 19, but the price will need to push the price above $1.05 to start a new rally.
Alternatively, if the price breaks below the 20-day EMA, it indicates that the pair may stay range-bound for a few more days. A break below the 50-day SMA ($0.86) could turn the short-term advantage in favor of the bears.
Related: Bitcoin Eyes $21.4K Zone As Analysts Predict BTC Price To Chase Gold
Litecoin (LTC) bounced off the 20-day EMA ($81) on Jan. 19, indicating that the bulls see the drop as a buying opportunity.
The bulls will try to push the price to $91, but may encounter strong resistance from the bears. If the bulls rise above $91, the LTC/USDT pair will accelerate and potentially reach the psychologically significant $100 and even $107.
Another possibility is that the rally subsides and does not break above $91. This could increase the likelihood of a break below the 20-day EMA. The pair can then collapse to the $75 breakout level.
The polka dot (DOT) continues its seesaw battle near the downtrend line. This shows that the low levels are attracting buyers, but the bears are rallying to sell.
Rising 20-day EMA ($5.34) and RSI in positive territory suggest that uncertainty may resolve in the bulls’ favor. Buyers should push price above $6.53. must be If they can pull it off, the DOT/USDT pair could move to $7.42 and then to $8.05.
Contrary to this assumption, if the price falls below the 20-day EMA, it indicates that the bears have overwhelmed the bulls. This could bring the price down to his 50-day SMA ($5).
Avalanche (AVAX) turned down from the resistance line on Jan 14, but the bears were unable to push the price towards the 20-day EMA ($14.72). This suggests that sellers may be losing power.
Buyers make another attempt to push the price above the resistance line. If successful, the AVAX/USDT pair could gain momentum and move up to $22 and then to $24. His 20-day EMA on the rise and the RSI near the overbought zone indicate that it is in favor of the buyers.
This positive view may be negated in the short-term if the price falls below the 20-day EMA. That could invite further selling and the pair could extend the decline to the 50-day SMA ($13.09).
The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
