After two weeks of a stupendous rally, Bitcoin’s (BTC) price has largely been flat this week. This is a positive sign as it shows that market participants are not growing nervous before a slew of central bank meetings take place next week. The United States Federal Reserve, European Central Bank and Bank of England are scheduled to announce their policy decisions next week.
The confidence of the bulls received another boost after the U.S. core personal consumption expenditures (PCE) data for December showed the slowest annual rate of increase since October 2021. The core PCE rose 4.4% from a year ago, meeting analyst expectations.
According to a report by Markus Thielen, the head of research and strategy at Matrixport, U.S. institutions have not abandoned the cryptocurrency markets. The financial services firm arrived at this conclusion by assuming that if the gains happened during U.S. trading hours, it is because institutions are buying. Using this metric, the firm said that 85% of the rally in January was due to institutional buying.
Could Bitcoin and select altcoins shrug off their range-bound action and resume the uptrend? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin soared to $23,816 on Jan. 25 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick.
The repeated failure of the BTC/USDT pair to maintain above $23,000 may tempt short-term traders to book profits. The immediate support is at $22,292. If this level gives way, the pullback could reach the 20-day exponential moving average ($21,172).
This is an important level to keep an eye on because a sharp rebound off it will suggest strong demand at lower levels. The pair could then again try to resume its up-move and reach the critical overhead resistance at $25,211.
On the other hand, if the price turns down and plummets below the 20-day EMA, it will signal that bulls may be rushing to the exit. The bears may gain back control below $20,400.
ETH/USDT
Buyers could not build upon Ether’s (ETH) solid rebound off the 20-day EMA ($1,520) on Jan. 25, which suggests that bears are selling on recoveries near the overhead resistance of $1,680.
The bears will have to pull the price below the horizontal support near $1,500 to tilt the short-term advantage in their favor. The ETH/USDT pair could then start its decline toward the strong support at $1,352.
If bulls want to avoid this near-term bearish view, they will have to quickly drive the price above the overhead resistance at $1,680. If they manage to do that, the pair could start its journey to $2,000, with a brief stop-over at $1,800.
BNB/USDT
BNB (BNB) has been sandwiched between the 20-day EMA ($293) and the overhead resistance of $318 for the past few days. This shows that bulls are buying the dips to the 20-day EMA and bears are selling on rallies near $318.
The upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate buyers have a slight edge. To build upon this advantage, the bulls will have to propel and sustain the price above $318. If they succeed, the BNB/USDT pair could pick up momentum and surge to $360.
The bears are likely to have other plans. They will try to fiercely protect the $318 level and tug the price below the 20-day EMA. If they do that, the pair could drop to $281. This level may act as a minor support but if cracks, the pair could touch the 50-day simple moving average ($270).
XRP/USDT
XRP (XRP) jumped from the 20-day EMA ($0.39) on Jan. 25 and rose above the $0.42 overhead resistance but the buyers could not sustain the price above it.
The repeated failure to clear the overhead hurdle may tempt the short-term bulls to book profits. That could drag the price below the 20-day EMA and open the doors for a possible drop to the 50-day SMA ($0.37).
This negative view could invalidate in the near term if the price turns up from the 20-day EMA and ascends the $0.42 to $0.44 zone. The XRP/USDT pair could then start a strong rally that could touch $0.51.
ADA/USDT
Cardano (ADA) rose above the $0.38 overhead resistance on Jan. 26 but the bulls could not sustain the higher levels. Still, it is pertinent to note that if a resistance gets pierced frequently, it tends to weaken.
The bulls will once again try to thrust the price above the overhead resistance. If they can pull it off, the ADA/USDT pair could spurt to $0.44. This level may again act as a formidable barrier but if the bulls do not give up much ground, the pair could continue its uptrend.
The upsloping 20-day EMA indicates advantage to buyers but the negative divergence on the RSI cautions that the bullish momentum may be weakening. The bears will have to sink the…
cointelegraph.com