Let’s take a look at the short-term targets of altcoin projects such as NEAR, ATOM, FTM, and FTT, which can be watched closely this week, and critical support levels to defend possible declines.
Institutional investors continue their Bitcoin savings
Bitcoin (BTC) has stopped its decline and is attempting a recovery with certain altcoins. Some traders fear a massive sell-off in Bitcoin, but Capriole CEO Charles Edwards said that Bitcoin’s worst crashes were “due to miner capitulation (December 2018 and March 2020) where BTC’s production costs fell below.” However, the current cost of production of Bitcoin was $34,000, which is well below the price.
In a sign that institutional investors continue to rise in the crypto market even after the recent decline, Cathie Wood’s Ark Invest has acquired 6.93 million shares of the private buyout company that will merge with Circle, the main operator of USD Coin (USDC). Also, another sign that the market is maturing is that NFTs are not reacting negatively to the correction. A recent report from DappRadar said that in the first ten days of 2022, NFT trading generated $11.90 billion, compared to $10.7 billion in Q3 2021. So, can Bitcoin continue to recover and push certain altcoin projects higher? For estimates, cryptocoin.com Let’s continue with the technical analysis of Rakesh Upadhyay, whose analysis we shared.
Bitcoin (BTC) technical analysis
The bulls have been struggling to push Bitcoin above the 20-day EMA ($44,415) for the past few days, but a small piece of positive news is that the buyers are not giving up on defending the area. This shows that the bulls are buying on every small dip.
If buyers push and sustain the price above the 20-day EMA, it will signal a possible change in trend. The BTC/USDT pair could then rally to the 50-day SMA ($47,987), where the bears could form stiff resistance again. A break and close above this resistance could open the way for a rally to $52,088. Contrary to this assumption, if the price fails to break above the 20-day EMA, it will indicate that the sentiment will remain negative and sell in rallies. The bears will then attempt to push the price below the critical support at $39,600. If they are successful, the downtrend could be prolonged.
On the technical side, the moving averages have flattened and the RSI is just above the midpoint on the 4-hour chart. This suggests a range-bound action in the short term. According to the analyst, Bitcoin could be stuck between $39,600 and $45,456. A break and close above $45,456 could turn the advantage in favor of the bulls and signal the start of a possible rally to $52,088. Alternatively, a break and close below $39,600 will signal the resumption of the downtrend.
Altcoin NEAR continues its uptrend
NEAR Protocol (NEAR) continues its strong uptrend. The price rallied above the previous ATH level of $17.95 on Jan. 11, signaling a resumption of the upward move. The bears pushed the price below $17.95 on January 12, but the bulls bought the drop and regained the level on January 13.
On the technical side, both MAs are rising and the RSI is in the positive zone, indicating that the path of least resistance is to the upside. If the bulls do not allow the price to drop below the $17.95 breakout level, he thinks the price could slide back to $13:
The NEAR/USDT pair could rally to $25.44. Alternatively, if the bears sink the price below $17.95, the pair could drop to the 20-day EMA ($16.42). A bounce from this level can keep the uptrend stable, but a break and close below it indicates investors are in a rush to exit. The pair could drop to $13 later.
The 4-hour chart shows the price holding support at the 20-day EMA. The rising moving averages and RSI in the positive zone show that the short-term trend is supporting the buyers. If the bulls propel the price above $20.59, the uptrend could begin. The pair could then rally to $22 and then to $25. Contrary to this assumption, if the price drops below the 20-day EMA, it will indicate that short-term traders will take profits. The pair could then drop to the 50-day SMA. A break and close below this support will indicate the start of a deeper correction.
Cosmos (ATOM) technical analysis
Altcoin project Cosmos (ATOM) is attempting to create an inverted head and shoulders pattern that will complete with a breakout and close above the overhead resistance at $44.80.
The ascending moving averages and the RSI in the overbought zone suggest the path of least resistance to the upside. A close above $44.80 could open the doors for a rally to the psychological level at $50 and then towards the formation target of $69.42. Alternatively, if the price breaks down from overhead resistance, the ATOM/USDT pair could drop to the 20-day EMA ($36). This is a key level for the bulls to defend. If the price bounces back from this level, the bulls will again try to push the pair above the overhead resistance and continue the uptrend. A break and close below the 20-day EMA will be the first sign that the upside movement may lose strength. The analyst predicts that the bears may later push the price to $32.90.
The 4-hour chart shows that the price has exited the symmetrical triangle pattern and the uncertainty has been resolved in favor of the buyers. The bears can try to defend the overhead resistance at $44.80, but if they fail, the pair could rally to the formation target at $51.19. Alternatively, the pair could drop to the 20-day EMA if the bears successfully defend the resistance at $44.80. If the price bounces back from this support, the bulls will again try to break through the general hurdle. This positive view will be rejected on a break and close below the 50-day SMA.
Altcoin Phantom (FTM) surpasses $10B in TVL
Phantom (FTM) is in a strong uptrend. Price action over the past few days has created an upside-down head-and-shoulder pattern that will complete with a break and close above $3.17.
On the other hand, the bears might try to stop the rally at $3.48. However, if the bulls push the price above this level, the next leg of the uptrend could begin. In this scenario, the upward move could first reach $4 and then continue its journey towards the pattern target at $5.11. Contrary to this assumption, if the price drops from the resistance level, the bears will try to pull the FTM/USDT pair to the 20-day EMA ($2.62). If the price rises above this level, it will indicate that the sentiment is positive and traders are buying the dips. However, a break and close below this support will signal the start of a deeper correction at the 50-day SMA ($2.07).
The bears tried to stop the rise at $3.17 but the bulls had other plans. They bought the dip to the 20-day EMA and pushed the price above the overall barrier. If the bulls hold the price above the breakout level, it will signal a resumption of the uptrend. On the other hand, if the bears pull the price below $3.17, the pair could drop to the 20-day EMA. This is an important level to watch out for because a break and close below this could indicate that the current breakout could be a bull trap. The pair could then decline to $2.80 and then to the 50-day SMA.
FTX Token (FTT) technical analysis
The last altcoin project on the list, FTX Token (FTT), has been in a strong correction phase for the past few weeks. The bulls pushed the price above the downtrend line on Jan. 14, signaling a possible change in trend.
The moving averages are on the verge of a bullish crossover and the RSI has rallied above 64 after forming a positive divergence. This indicates that the bulls are trying to bounce back. If the price stays above the downtrend line, the FTT/USDT pair could rally to $53.50. Contrary to this assumption, if the price drops from the current level and falls below the moving averages, the breakout would suggest a bull trap. This could push the price to $33.76. A break and close below this support could open the doors for a possible drop to $24.
The 4-hour chart shows the formation of a falling wedge formation. Buyers pushed the price above this pattern and broke the horizontal resistance at $45.07. Both moving averages are rising and the RSI is in the overbought zone, indicating that the bulls have prevailed. If the bulls hold the price above $45.07, the pair could start its march towards psychological resistance at $50. This positive view will be invalidated if the price drops and re-enters the wedge. Such a move would indicate demand drying up at higher levels.
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