Bitcoin (BTC) and most major altcoins appear to have started a relief rally. Glassnode data suggests that Bitcoin addresses with a non-zero balance ha
Bitcoin (BTC) and most major altcoins appear to have started a relief rally. Glassnode data suggests that Bitcoin addresses with a non-zero balance have risen to about 40 million, indicating increasing adoption by retail traders.
Edelman Financial Engines founder Ric Edelman said that the number of Americans owning Bitcoin could rise from 24% currently to one-third by 2022. He expects this to happen as “Bitcoin is becoming more and more mainstream. People are hearing about it everywhere — it isn’t going away.”
The investors buying Bitcoin seem to be in it for the long haul, if the outflows from major exchanges are any indication. CryptoQuant data shows outflows of 29,371 BTC on Jan. 11, the highest withdrawals since Sep. 10.
Could the recovery in Bitcoin and the major altcoins sustain the higher levels? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin bounced off the $39,600 support on Jan. 10 indicating that bulls are attempting to defend the level with full force. The relief rally could reach the 20-day exponential moving average ($45,058) which is likely to act as a resistance.
The downsloping moving averages and the relative strength index (RSI) in the negative zone indicate that bears have the upper hand. If the price turns down from the 20-day EMA, the BTC/USDT pair could again retest the strong support at $39,600.
If the level cracks, the pair could witness panic selling, indicating the start of the next leg of the down move.
Alternatively, if bulls push and sustain the price above the 20-day EMA, the pair could rise to the 50-simple moving average ($49,031). If this level is crossed, the recovery could reach the stiff overhead resistance at $52,088.
ETH/USDT
Ether (ETH) bounced off the support line of the descending channel on Jan. 10, suggesting that bulls are attempting to defend this level with vigor. The price could reach the overhead zone between the 20-day EMA ($3,536) and the resistance line of the channel.
Both moving averages are trending down and the RSI is in the negative zone, indicating that bears have the upper hand. If the price turns down from the overhead zone, it will suggest that sentiment remains negative and traders are selling on rallies. The bears will then attempt to pull the ETH/USDT pair to the support line of the channel.
On the other hand, if bulls push the price above the overhead zone, the pair could rise to the 50-day SMA ($3,938). A break and close above this resistance will suggest a possible change in trend.
BNB/USDT
Binance Coin (BNB) broke below the support line of the descending channel on Jan. 10, but the bears could not achieve a close below it as seen from the long tail on the day’s candlestick.
This could have caught the aggressive bears off guard, resulting in a short squeeze on Jan. 11. Follow-up buying today has pushed the price to the 20-day EMA ($489). If bulls clear this hurdle, the BNB/USDT pair could rise to the 50-day SMA ($542).
A break and close above this resistance will suggest that the downtrend could be over. The pair could then rise to $617. Conversely, if the price turns down from the 20-day EMA or the downtrend line, the bears will again try to pull the price to the support line of the channel.
SOL/USDT
Solana (SOL) is attempting a pullback in a downtrend. The price turned up from $130 on Jan. 10 and could now reach the 20-day EMA ($159).
The downsloping moving averages and the RSI in the negative zone suggest that bears have the upper hand. If the price turns down from the 20-day EMA, the sellers will attempt to sink the SOL/USDT pair to the strong support at $116.
On the contrary, if bulls push the price above the 20-day EMA, the pair could rise to the resistance line of the channel. A break and close above the channel will signal a possible change in trend.
ADA/USDT
Cardano (ADA) turned up from $1.06 on Jan. 10, indicating that bulls are attempting a relief rally. The buyers have pushed the price to the 20-day EMA ($1.27) today.
The RSI is attempting to form a bullish divergence, indicating that the bearish momentum may be weakening. If bulls thrust the price above the moving averages, the ADA/USDT pair could rise to the resistance line of the descending channel.
Contrary to this assumption, if the price turns down from the moving averages, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then make one more attempt to pull the price down to the critical support at $1.
XRP/USDT
XRP dropped to $0.69 on Jan. 10 but the long tail on the day’s candlestick suggests that bulls bought this dip aggressively. The buyers pushed the price back above the overhead resistance at $0.75 on Jan. 11.
cointelegraph.com