Bitcoin price rose to $42,000 on strong spot trading volumes. Will altcoins follow? What are the important support levels that altcoins like Bitcoin and AVAX Coin can hold? Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
cryptokoin.comAs you follow from , Bitcoin fell below the $40,000 support on January 22. However, the bears failed to sustain lower levels. The price rose above $40,000 again. But some analysts expect the bleeding to continue. Chris Burniske, partner at crypto venture capital firm Placeholder, says he wouldn’t be surprised if Bitcoin falls to 20,000 levels before making a bottom. One of the biggest reasons for Bitcoin’s recent decline was the large liquidations in Grayscale Bitcoin Trust (GBTC). But JPMorgan analysts said in a Jan. 25 market report that most of the profit taking on GBTC “has already occurred,” meaning “much of the downward pressure on Bitcoin from this channel should be largely behind us.”
Every bull market has its share of corrections that help shake off weak hands and allow stronger hands to buy at lower levels. During a correction, it is often a good strategy to wait for a support level to form before buying.
BTC, ETH, BNB, SOL and XRP Coin analysis
Bitcoin (BTC) price analysis
Bulls bought Bitcoin’s dip near $37,980 on January 23. Thus, the price rose to the 20-day exponential moving average ($41,904) on January 26. BTC is likely to face a fierce battle between bulls and bears near the moving averages. If BTC breaks above the 50-day simple moving average ($42,904), the next stop could be $44,700. The bulls will likely face strong opposition from the bears again at this level.
If the price turns down from the current level or overhead resistance, BTC is likely to remain range-bound between $44,700 and $37,980 for a while. However, a slide below $37,980 is possible to start a move towards $34,800.
Ethereum (ETH) price analysis
The long tail on the Ether Jan 25 strategy shows that the bulls are trying to protect the nearby support at $2,168. ETH will attempt to pull back to the downtrend line, which is likely to act as a hard barrier. If the price turns down from overhead resistance, it will indicate that sentiment remains negative and traders are selling on rallies. This will likely increase the possibility of a drop to $2,100.
Buyers are expected to defend this level vigorously. Conversely, a rise above the moving averages would be the first indication that the selling pressure is easing. It is possible that the bullish momentum could recover on a rally above $2,400.
Binance Coin (BNB) price analysis
BNB’s bounce from the strong support at $288 suggests that the bulls are buying aggressively at this level. The 20-day EMA ($304) is flattening and the RSI is near the midpoint. This shows that there is a balance between supply and demand.
If the price breaks above the 20-day EMA, it is possible for BNB to rise to the downtrend line. This is the key level to pay attention to. Because a break above this is possible to push BNB to $338. Instead, if the price turns down from the 20-day EMA or the downtrend line, it will indicate that BNB will remain inside the descending triangle formation for a few more days. A break below $288 would complete the bearish setup with a target of $238.
Solana (SOL) price analysis
The bears pulled SOL below the 61.8% Fibonacci retracement level at $87 on January 22. However, the bears could not benefit from this power. The bulls have pulled the price towards the moving averages, which are likely to act as stiff resistance. However, if buyers push the price above the downtrend line, it will indicate that the corrective phase may be over.
It is possible for SOL to first rise to $107 and then initiate a rally to $117. Instead, if the price turns down from the downtrend line, it will indicate that the bears are holding the edge. Sellers will need to push the price below $79 to open the doors for a possible decline to $64.
Ripple (XRP) price analysis
Bulls are trying to stop the decline in XRP at $0.50. However, a weak recovery suggests a lack of demand at higher levels. Both moving averages are sloping down and the RSI is close to the oversold zone. This shows that the bears are in the driver’s seat.
If the price turns down from the 20-day EMA ($0.55), sellers will try to push the price below $0.50. Moreover, they will push the next support at $0.46. On the upside, a break above the 20-day EMA would be the first sign that the bears are losing control. XRP will then attempt to climb to the downtrend line where the bulls are likely to face stiff resistance from the bears.
ADA, DOGE, DOT, LINK and AVAX Coin analysis
Cardano (ADA) price analysis
Cardano bounced off the support line of the descending channel formation on January 23. Now after a brief hesitation, the bulls are trying to extend the relief rally to the 20-day EMA ($0.51). The downward sloping 20-day EMA and the RSI in the negative zone show that the bears have the upper hand.
The bears will try to stop the rally at the 20-day EMA. If they achieve this, ADA is likely to retest the channel’s support line. If this level gives way, sales will probably intensify. In this case, it is possible for ADA to fall to the next support at $0.35. If the bulls want to prevent the downside, they will need to push the price above the 20-day EMA. If they do so, ADA is likely to climb to the downtrend line, where the bears are expected to mount a strong defense.
Avalanche (AVAX Coin) price analysis
AVAX Coin started a relief rally. Thus, the bulls pushed the AVAX Coin price above the overhead resistance at $31.
The recovery is likely to hit a wall at the downsloping 20-day EMA ($33.81). If AVAX Coin price declines sharply from the 20-day EMA, this would indicate that sentiment remains negative and traders are selling on rallies. AVAX Coin price is likely to retest the $27.24 low later. A break below this level would risk a drop to $24. Instead, if the bulls push the AVAX Coin price above the 20-day EMA, this would indicate strong demand at lower levels. It is possible that AVAX Coin price could later rise towards the overhead resistance of $38.
Dogecoin (DOGE) price analysis
Dogecoin is facing selling at the downtrend line. However, the bears could not push the price below the $0.07 support. The bulls will again try to defend the $0.07 level fiercely. If the price recovers from $0.07, it is possible for DOGE to rise to the downtrend line.
Buyers will need to overcome this hurdle to show that the correction may be over. DOGE is then likely to initiate a rally towards the $0.10-0.11 resistance zone. Meanwhile, the bears are likely to have other plans. They will try to sink the price below the strong support at $0.07. If they do this, it is possible for DOGE to move downwards to $0.06.
Polkadot (DOT) price analysis
Polkadot completed the head and shoulders formation with a close below the neckline on January 22. The bears tried to initiate a downward move. However, the bulls bought the dip on January 23. Thus, the DOT price rose to the neckline of the formation.
If the price breaks above the neckline, it will indicate that lower levels have attracted solid buying by the bulls. The 20-day EMA is likely to act as a strong barrier. However, if the bulls overcome this, it is possible for DOT to gain momentum and rise to $8.50. Conversely, if the price turns down from the neckline or the 20-day EMA, it will indicate that the bears are active at higher levels. It is possible that a decline below $5.97 could start the next leg of the bear trend towards $4.80.
Chainlink (LINK) price analysis
LINK has been consolidating in the $12.85-$17.32 range for several days. This indicates indecision between buyers and sellers about the next directional move. It is difficult to predict with certainty the direction of a range breakout. Therefore, it is better to wait for the breakout to occur before placing directional bets. Until then, traders typically buy dips towards support and sell near the resistance of the range.
It is possible that the price will drop to $12.85, where buying will increase. A break above the moving averages will increase the likelihood of a rise to $17.32. This view will be invalidated if LINK declines sharply and breaks below $12.85. This would mark the beginning of a downward move towards $10.50.
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