Bitcoin’s downside appears limited as GBTC outflows decline and traders focus on BTC’s halving event in April. What are the critical overhead resistance levels that must be overcome for the upward movement in Bitcoin to continue and for altcoins such as AVAX Coin? 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 followed a volatile course in January. Early on, the price rose to around $49,000 in anticipation of spot Bitcoin ETFs. However, it was later sold off as Grayscale Bitcoin Trust (GBTC) saw massive liquidations. However, it is a positive sign that GBTC outflows have been decreasing over the last few days. Intelligence firm Arkham data shows an outflow of $340 million from Grayscale’s fund. This figure is a marginal increase compared to the $270 million debut on January 30. However, it is much lower than the peak debut of $641 million on January 22.
Investors are likely to gradually shift their focus from Bitcoin ETF flows to the upcoming halving in April. Analyst Rekt Capital says any decline in Bitcoin over the next two weeks will be the last chance to buy before the pre-halving rally begins.
BTC, ETH, BNB, SOL and XRP Coin analysis
Bitcoin (BTC) price analysis
Bitcoin broke above the 50-day simple moving average ($42,893) on January 29. However, the bulls failed to maintain the momentum and rocket the price above $44,700. The bears attempted to sink the price below the 20-day exponential moving average ($42,277) on January 31. However, the bulls held their ground. This shows that buyers are trying to turn the 20-day EMA into support.
The bulls will again try to push the price above $44,700. If they do so, it is possible for BTC to gain momentum and surge towards $49,000. Alternatively, if the price turns down from $44,700, it would indicate that the bears are fiercely defending the level. BTC will likely trade in a tight range between the 20-day EMA and $44,700 for a while thereafter.
Ethereum (ETH) price analysis
Bulls pushed Ether above the moving averages on January 30. However, it failed to clear the overhead hurdle of $2,400. Sellers are trying to push the price below the moving averages and maintain it. If they are successful, it would indicate that ETH could oscillate in the $2,100 to $2,400 range for a while.
The flat moving averages and the RSI just below the midpoint also indicate a possible consolidation in the near term. The next trend move is likely to start with a break above $2,400 or below $2,100. If it clears the $2,400 level, it is possible for ETH to rally towards $2,700 and eventually $3,000.
Binance Coin (BNB) price analysis
BNB’s turn down from the downtrend line on January 30 shows that the bears are fiercely defending this level. If the price breaks below the 20-day EMA ($305) and sustains this level, it is possible for BNB to drop towards the 50-day SMA ($295) and then the vital support at $288.
Buyers are expected to defend this level with all their might. Because if they cannot do this, BNB will complete the descending triangle formation. The target of this negative formation is $238. If the price turns up from the current level and breaks above the downtrend line, it will invalidate the bearish pattern. BNB is likely to rise to $338 later.
Solana (SOL) price analysis
Solana breaking above the downtrend line is the first sign that the bulls are trying to make a comeback. Buyers attempted to further strengthen their positions by pushing the price above the nearest resistance at $107. But the sellers had other plans.
The long wick on the January 30 candlestick shows that the bears did not give up and sold at $107. If the price turns up from the current level or moving averages, it will indicate buying on dips. This will increase the chances of a break above $107. If this happens, SOL is possible to rise to $117 and then to $126.
Ripple (XRP) price analysis
The bulls failed to push XRP above the 20-day EMA ($0.54) on January 30. This probably attracted strong selling from the bears. The bulls are trying to protect the $0.50 support. But repeated testing of a support level tends to weaken it.
If the price stays below $0.50, XRP is likely to decline to the important support at $0.46. The 20-day EMA remains the first significant resistance on the upside. If the bulls break this barrier, it is possible for XRP to rise to the bear trend line. However, the bears will struggle to maintain this level aggressively.
ADA, DOGE, DOT, LINK and AVAX Coin analysis
Cardano (ADA) price analysis
Buyers pushed Cardano above the 20-day EMA ($0.51) on January 29. However, he could not maintain this power. This indicates that the bears are active at higher levels. The 20-day EMA has flattened out and the RSI is near the midpoint. This signals a range-dependent movement in the near term.
If the price remains below the 20-day EMA, a drop of ADA to $0.46 and then to the support line of the channel is possible. Instead, if the price rises from the current level and rises above $0.54, ADA is likely to rise to the bearish trend line. Buyers will need to overcome this hurdle to suggest that the correction is over.
Avalanche (AVAX Coin) price analysis
AVAX Coin has been correcting in a descending channel formation for several days. This shows that there is buying during declines and selling during rallies. AVAX Coin price turned down from the bear trend line on January 30. Thus, it reached the 20-day EMA ($34.29).
A break below the 20-day EMA indicates that AVAX Coin price will likely remain within the channel. Conversely, if the price rises and breaks above the downtrend line, it will indicate that the bulls are in the driver’s seat. AVAX Coin could then start the next leg of the up move to $44 and then psychological resistance at $50.
Dogecoin (DOGE) price analysis
DOGE is witnessing a tough battle between bulls and bears at the 20-day EMA ($0.08). The bears have repeatedly thwarted the bulls’ attempts to surpass the 20-day EMA. But one positive sign is that buyers haven’t given up much ground. This shows that the bulls are expecting a rise towards the bear trend line.
This is an important level to pay attention to. Because a break above will indicate a short-term trend change. In this case, it is possible for DOGE to rise towards the $0.10 to $0.11 resistance zone. This positive view will be invalidated if DOGE turns down and falls below the $0.07 support.
Polkadot (DOT) price analysis
DOT broke above the 20-day EMA ($6.95) on January 29. However, the long wick on the day’s candlestick indicates selling at higher levels. Both moving averages have flattened out and the RSI is just below the midpoint. This shows that the selling pressure has decreased.
DOT is likely to remain between $6 and the 50-day SMA ($7.46) for a while. If the price rebounds from the current level, the bulls will try to push DOT towards the 50-day SMA. A breakout and close above this resistance is likely to push DOT to $8.50. Conversely, a break below the neckline is possible to push DOT towards $6. If it breaks this level, DOT is likely to drop to $4.80.
Chainlink (LINK) price analysis
LINK has been hovering between $12.85 and $17.32 for days. This shows that there is a balance between supply and demand. Usually, in a range, traders buy near support and sell at resistance. A breach of the moving averages on January 29 opened the doors for a rise towards the overhead resistance of $17.32. At this level, bears are likely to make strong sales.
If the price declines sharply from $17.32, LINK is likely to remain in this range for a few more days. The bulls will need to push the price above $17.32 and sustain it to signal the beginning of the next leg of the bull trend. The upside target for LINK is $21.79.
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