Bitcoin and altcoins are extending their rally and traders are hopeful that the gains will push higher after
Bitcoin and altcoins are extending their rally and traders are hopeful that the gains will push higher after this week’s consumer price index data is released.
Crypto and stock markets are usually forward-looking. Meaning, traders tend to ignore the near-term negatives and focus on the positives down the line. With Bitcoin’s (BTC) next halving in 2024, analysts are shifting their attention to this event.
Independent market analyst Rekt Capital highlighted this unique market dynamic in 2015 and 2019, a year before halving, Bitcoin rallied 234% and 316% respectively. If history repeats itself, Bitcoin’s price action may spring a surprise in 2023.
However, the near term remains uncertain and the Consumer Price Index (CPI) data on Jan. 12 may lead to a sharp uptick in volatility.
Some analysts are skeptical of the growing dominance of altcoin trading volume, which is above 50%. According to CryptoQuant contributor Maartunn, the altcoin dominance warns of “a potential risk for further downside.”
One event that is being closely tracked is the crisis brewing at the Digital Currency Group (DCG). Galaxy Digital Holdings CEO Mike Novogratz, in an interview with CNBC on Jan. 10, said that the DCG, Genesis and Gemini overhang could “play out in the next quarter” Though it is “not going to be great,” Novogratz does not believe it will trigger “a lot of selling.”
Could Bitcoin and altcoins continue their recovery or will higher levels attract strong selling? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The bears tried to stall the recovery near $17,400 on Jan. 9 but they could not sink the price below $17,061. This suggests that bulls are buying on minor dips. The price bounced on Jan. 10 and the buyers are trying to extend the relief rally.
The 20-day exponential moving average ($16,982) has turned up and the relative strength index (RSI) is above 66, indicating that bulls are in control. The BTC/USDT pair could climb to $17,850 and if this level is scaled, the next stop may be $18,388.
On the contrary, if the price turns down from the current level and breaks below the moving averages, it will suggest that the pair may continue to oscillate between $16,256 and $18,388 for a few more days.
ETH/USDT
Ether (ETH) has been trading near the overhead resistance of $1,352 for the past two days. The 20-day EMA ($1,261) has started to turn up and the RSI is near the overbought territory, indicating the path of least resistance is to the upside.
If buyers catapult the price above $1,352 and the downtrend line, it will suggest a potential trend change. The ETH/USDT pair could then rally to $1,700 and if this level is scaled, the next stop could be $1,800. The bears are likely to defend this zone with vigor.
Contrarily, if the price turns down from the overhead resistance, the pair could again drop to the moving averages. If this support cracks, it will suggest that the pair may continue its range-bound action between $1,352 and $1,150 for a while longer.
BNB/USDT
BNB (BNB) turned down from $283 on Jan. 9 but the bears could not yank the price below the 50-day SMA ($269). This suggests that the bulls are buying on dips.
The bulls will again try to kick the price above the overhead resistance at $283. If they manage to do that, the BNB/USDT pair could climb to $300 and then to $318. The rising 20-day EMA ($261) and the RSI in the positive zone, indicate that the bulls have the edge.
This positive view could invalidate in the near term if the price turns down and plunges below the moving averages. The pair could then decline to the $250 to $236 support zone. The bulls are expected to fiercely defend this level because the failure to do so may result in a decline to $220.
XRP/USDT
After trading inside the symmetrical triangle for the past several days, XRP (XRP) has made a strong move higher on Jan. 11. The bulls have pushed the price above the triangle and the 50-day SMA ($0.37).
If bulls sustain the price above the triangle, the possibility of a rally to $0.42 increases. This level may act as a major obstacle but if buyers overcome it, the XRP/USDT pair could soar to $0.51. The RSI has jumped into the positive territory, indicating that the momentum favors the buyers.
If bears want to stop the up-move, they will have to quickly pull the price back into the triangle. The pair could then decline to the 20-day EMA ($0.35) and subsequently to the support line.
ADA/USDT
Cardano (ADA) broke and closed above the downtrend line of the falling wedge pattern on Jan. 9 and 10 but the bulls could not build upon the advantage. This suggests hesitation to buy at higher levels.
The bears are…
cointelegraph.com