A rally in equities markets is providing support to BTC and altcoins, but bulls will likely struggle in keeping the momentum needed to turn overhead resistance levels to support.
The United States December nonfarm payrolls report showed a growth of 223,000 jobs, above the market’s expectation of an increase of 200,000 jobs. While this shows that the economy remains strong, market observers shifted their focus to the slower wage growth of 0.3% for the month, below economists’ expectation of 0.4%.
In addition, the euro zone’s headline inflation dropped from 10.1% in November to 9.2% in December. Both economic data boosted hopes that the central bank’s aggressive rate tightening may slow down. This triggered a rally in the U.S. and European stock markets.
However, the reaction in the cryptocurrency space remains muted, with Bitcoin (BTC) continuing to trade inside a narrow range. The crypto investors may be taking a cautious approach due to rumors about Huobi’s insolvency, which the company’s representative said were untrue.
Several analysts believe that the extended period of low volatility in Bitcoin could be followed by an increase in volatility but John Bollinger, the creator of Bollinger Bands, thinks otherwise. Responding to a tweet by Wolf of All Streets podcast host Scott Melker, Bollinger said that “prolonged squeezes are rarely valuable signs.”
Are Bitcoin and altcoins showing signs of a breakout or will they remain stuck inside the range for some more time? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin rose above the moving averages on Jan. 4 but the bulls could not clear the hurdle at $17,061. This shows that bears are fiercely defending the overhead resistance.
Although the price tumbled below the moving averages on Jan. 6, the long tail on the candlestick shows buying at lower levels. The bulls may make one more attempt to drive the price above $17,061.
If they succeed, the BTC/USDT pair could pick up momentum and rally to $17,854 and then to $18,138.
On the other hand, if the price turns down from the current level or the overhead resistance, it will indicate that the pair may consolidate in the narrow range of $17,061 to $16,256 for a while longer.
ETH/USDT
Ether (ETH) has been range-bound between $1,150 and $1,352 for the past few days. The price action inside the range could be random and volatile.
The moving averages have flattened out but the RSI is in the positive territory, indicating that bulls have a slight edge. If the price turns up and breaks above $1,272, the ETH/USDT pair could rally to the overhead resistance at $1,352.
Another possibility is that the price turns down and dives back below the moving averages. In that case, the pair could decline to the immediate support at $1,150. This level could witness a tough battle between the bulls and the bears.
BNB/USDT
The bears are trying to halt BNB’s (BNB) relief rally at $261 but a minor positive in favor of the bulls is that they have not ceded ground to sellers.
If the price rebounds off the 20-day exponential moving average ($252) with strength, the BNB/USDT pair could jump to the 50-day simple moving average ($268). This level may act as a barrier but it is likely to be crossed. The pair could then soar to $300.
The bears are likely to have other plans. They will try to sink the price back below $250. If that happens, the $236 support may come under attack. If this level also gives way, the pair could dive to the critical support at $220.
XRP/USDT
XRP (XRP) rose above the 20-day EMA ($0.35) on Jan. 4 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick.
The price turned down and slumped to the support line of the symmetrical triangle on Jan. 5. Both moving averages are sloping down and the RSI is in the negative zone, indicating that bears are in command.
If the price closes below the triangle, the XRP/USDT pair could start its downward journey toward the pivotal support at $0.30.
Alternatively, if the price turns up from the current level and climbs above the 20-day EMA, it will suggest strong buying near the support line. The pair could then reach the resistance line of the triangle.
DOGE/USDT
Dogecoin’s (DOGE) rebound off the important support at $0.07 fizzled out at the 20-day EMA ($0.07) on Jan. 5. This suggests that bears are selling on every relief rally.
The price has dropped back to the $0.07 support where buyers are mounting a strong defense because if the level breaks down, the DOGE/USDT pair could tumble to $0.06 and thereafter to the vital support near $0.05. The downsloping moving averages and the RSI in the…
cointelegraph.com