Bitcoin’s (BTC) price action has been uneventful in the first few days of the new year and it continues to languish below the psychological level a
Bitcoin’s (BTC) price action has been uneventful in the first few days of the new year and it continues to languish below the psychological level at $50,000. The Crypto Fear and Greed Index is in the fear zone registering a value of 29/100.
On-chain analytics resource Ecoinometrics said stages of extreme fear rarely remain for long, which means “there is a limited downside at 30 days.”
Bitcoin continues to garner support from various quarters. Wharton School finance professor Jeremy Siegel said in an interview with CNBC that Bitcoin has replaced gold as an inflation hedge in the minds of Millennials.
Savvy investors have been turning to Bitcoin to protect their portfolios against the possible debasement of fiat currencies. Hungarian-born billionaire Thomas Peterffy advocated putting 2% to 3% of one’s portfolio in crypto to hedge in case fiat “goes to hell.”
Could Bitcoin shed its range-bound action and start a trending move? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin’s failure to rise above the 20-day exponential moving average ($48,449) suggests that bears are selling on every minor rally. Both moving averages are sloping down and the relative strength index (RSI) is in the negative zone, indicating advantage to bears.
The bears will now try to sink the price below the strong support at $45,456. If they succeed, it will suggest the resumption of the down-move. The BTC/USDT pair could first drop to the Dec. 4 intraday low at $42,000 and if this level cracks, the next stop could be $40,000. The longer the price sustains below the 20-day EMA, the greater the possibility of a move down.
Conversely, if the price turns up and breaks above the 20-day EMA, it will suggest that bulls are attempting a comeback. The pair could then rise to the 50-day simple moving average ($51,938), which may act as a strong barrier. If bulls thrust the price above this level, it will suggest a possible change in trend. The pair could then start an up-move to $60,000.
ETH/USDT
Ether’s (ETH) rebound off the $3,643.73 to $3,503.68 support zone has reached the 20-day EMA ($3,899) where the bears are mounting a stiff challenge.
The gradually downsloping moving averages and the RSI in the negative zone indicate that bears have the upper hand.
If the price continues lower, the bears will again try to pull the ETH/USDT pair below the support zone. If they manage to do that, the pair could start its downward journey to $3,270 and then to $2,800.
On the contrary, if bulls push the price above the moving averages, it will suggest that the corrective phase could be over. The pair could then rally to $4,488
BNB/USDT
Binance Coin (BNB) bounced off the strong support at $500 and reached the 20-day EMA ($536) where the recovery is facing resistance. Both moving averages are turning down and the RSI is in the negative zone, suggesting a minor advantage to the bears.
If bulls push the price above the 20-day EMA, the BNB/USDT pair could rise to the overhead resistance at $575. This level may again act as a stiff resistance. If the price turns down from this level the pair could extend its stay inside the range between $500 and $575 for a few more days.
Conversely, if the price turns down from the 20-day EMA, the bears will again attempt to sink the pair below $500. If they manage to do that, the selling could intensify and the pair could start a new downtrend to $450.
SOL/USDT
Solana (SOL) has been trading between $167.88 and the 20-day EMA ($180) for the past few days but this tight range trading is unlikely to continue for long.
Both moving averages are turning down and the RSI is in the negative zone, indicating that bears are in control. If sellers pull the price below $167.88, the SOL/USDT pair could drop to $148.04 and then to $120.
Conversely, if bulls thrust the price above the 20-day EMA, the pair could rise to $204.75. This level may again act as a resistance but if bulls overcome this hurdle, the pair could rise to the resistance line of the falling wedge pattern.
ADA/USDT
Cardano (ADA) has been trading close to the 20-day EMA ($1.37) for the past few days, which suggests a stalemate between the bulls and the bears.
If bulls propel the price above the 20-day EMA, the ADA/USDT pair could rise to the overhead resistance at $1.59. A break and close above this level could push the pair to the resistance line of the descending channel.
The bulls will have to push and sustain the price above the channel to indicate that the downtrend could be over. Conversely, if the price turns down from the current level, the bears will again try to pull the pair below $1.18 and retest the critical support at $1.
XRP/USDT
XRP bounced off $0.80 but the bulls are…
cointelegraph.com