Bitcoin and select altcoins have risen above stiff overhead resistance levels, signaling that the bottoming process may have begun.
Bitcoin (BTC) rose above $19,000 on Jan. 12, the highest level since Nov. 8. Although a bull market may not start in a hurry, Glassnode data suggests that the foundation for a macro bottom in Bitcoin may be in place. The on-chain analytics firm tweeted on Jan. 12 that “13% of the Circulating Supply” returned to profit when Bitcoin rallied to $18,200. This suggests a large phase of accumulation took place in the $16,500 to $18,200 range.
Along with Bitcoin, Ether (ETH) is also witnessing signs of accumulation. The number of Ethereum sharks, holding between 100 and 10,000 Ether, has risen by 3,000 since November 22, according to Santiment data.
Many times, traders miss a bottom because they remain in denial. If traders want to catch a trend early, they should keep a close eye on the price action because a sequence of higher highs and higher lows may indicate a bullish sentiment.
Are Bitcoin and altcoins showing signs of starting a new uptrend? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin is on the path of recovery. Strong buying by the bulls propelled the price above the stiff overhead resistance at $18,388 on Jan. 12. This is the first indication that the bears may be losing their grip.
The sharp rally of the past few days has pushed the relative strength index (RSI) into overbought territory, signaling a possible correction or consolidation in the near term.
If bulls do not allow the price to dip below the breakout level of $18,388, it will suggest a change in sentiment from selling on rallies to buying on dips. The BTC/USDT pair could then continue its recovery toward the next major resistance at $21,500.
If bears want to slow down the positive momentum, they will have to quickly pull the price back below $18,388. The pair could then drop to the 20-day exponential moving average ($17,378).
ETH/USDT
Ether soared above the overhead resistance of $1,352 on Jan. 11 and followed that up with a break above the downtrend line on Jan. 12. This suggests that the bulls are on a strong comeback.
The bears will try to stall the recovery and pull the price back below the breakout level of $1,352. If that happens, the ETH/USDT pair could slide to the 20-day EMA ($1,292). A strong bounce off this level will suggest that traders are buying the dips. That could improve the prospects of a rally toward $1,700. This level may again act as a strong hurdle.
The positive view could invalidate if the price turns down and plummets below the moving averages. Such a move could indicate that the recent breakout may have been a bull trap.
BNB/USDT
BNB (BNB) bounced off the 50-day SMA ($268) on Jan. 10 and continued its northward march. The price is nearing $300 where the bears may mount a strong resistance.
The upsloping 20-day EMA ($266) and the RSI near the overbought territory indicate advantage to buyers. If the price turns down from $300, it is likely to find support at the 20-day EMA ($266). A strong bounce off this level could catapult the BNB/USDT pair to the $318 to $338 resistance zone.
Contrary to this assumption, if the price turns down and slides below the moving averages, the pair could retest the $250 to $236 support zone.
XRP/USDT
XRP (XRP) dipped below the 50-day SMA ($0.37) on June 12 but the bulls successfully defended the breakout level from the symmetrical triangle.
The gradually upsloping 20-day EMA ($0.35) and the RSI in the positive zone indicate that bulls have the upper hand. Buyers will try to drive the price above $0.38 and extend the up-move to $0.42.
Conversely, if the price fails to sustain above the 50-day SMA ($0.37), the bears will again try to pull the XRP/USDT pair back into the triangle. If they do that, the pair could tumble to the support line of the triangle.
ADA/USDT
The bears tried to sink Cardano (ADA) back into the wedge on Jan. 11 but the long tail on the candlestick shows strong buying at lower levels.
The ADA/USDT pair has continued its up-move, which has pushed the RSI into the overbought territory. This suggests that the rally may be overheated in the near term and the pair could enter a short-term correction or consolidation.
If the price turns down from the current level but rebounds off the 20-day EMA ($0.29), it will suggest demand at lower levels. Buyers will then again try to clear the hurdle at $0.35 and launch a rally to $0.38 and later to $0.44. The bears will have to yank the price below the moving averages to gain the upper hand.
DOGE/USDT
The bears tried to pull Dogecoin (DOGE) below the 20-day EMA…
cointelegraph.com