January was a mixed month for the cryptocurrency market, characterized by significant volatility. Crypto analyst Valdrin Tahiri evaluates technical pictures for BTC, SOL and TAO Coin for February.
Bitcoin (BTC) will fall below $40,000
BTC price has fallen since reaching $49,114 on January 11, 2024. The downward move resulted in a breakout of an ascending support trend line formed on January 18. After bouncing, BTC confirmed the trend line as resistance on January 30 (red icon). This started the current downward move. The daily RSI justifies rejection.
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and decide whether to accumulate or sell an asset. Data above 50 and a bullish trend indicate that the bulls still have the advantage. However, data below 50 indicates the opposite. While the trend line rejected the price, the indicator was rejected by 50 (red circle). If the decline continues, BTC is likely to decline to the 0.5 Fib retracement support level at $37,000. This would mean a 12% drop from its current price.
Despite this bearish BTC price prediction, a daily close above $45,100 will invalidate the bearish scenario and could lead to new yearly highs. In this case, it is possible for the Bitcoin price to increase by 17% to $ 49,100. Cryptocurrency traders XForceGlobal and TheTradingHubb believe that the Bitcoin price correction is not over. However, they are predicting another high around $45,000-46,000 before the recent downward move.
Solana (SOL) will rise above $120
cryptokoin.comAs you follow from , Solana price has fallen since reaching $126 on December 25, 2023. This decline continued up to $79 on January 23. However, the price of SOL has increased since then. It retook the $88 horizontal area during the upward move. Additionally, descending resistance has broken out of the trend line. Moreover, the daily RSI has moved above 50. Since the 0.5 Fib retracement support level rejected the LEFT on January 30 (red icon), the resistance moved back to the trend line and the $88 sideways area. If the area holds, it is possible for SOL to bounce. Thus, it increases by 30% to $125.
Despite this bullish SOL price prediction, a close below $88 could trigger a 30% decline to the next closest support at $68. Cryptocurrency trader Bluntz uses Elliott Wave theory to come to the same conclusion. In this regard, the analyst says, “…Don’t be surprised if we retreat to the high $80s here.”
There is a 55% drop in profits for Bittensor (TAO Coin)!
Technical analysis of the three-day time frame shows that the TAO Coin price has increased rapidly since May 2023. The upward movement accelerated in November and went almost completely parabolic. Yesterday the price reached an all-time high of $480. However, Elliott Wave Theory and RSI data show that the top is near. The most likely count shows the price is in the fifth and final wave of an upward move that begins in May 2023 (white). This situation is also supported by the downward trend in the 3-day RSI (green). Therefore, if TAO Coin reaches its top, it is likely to drop 55% to the nearest support at $220.
Despite the bearish TAO Coin price prediction, an extension of the fifth wave is likely to trigger an increase towards the next resistance at $717. This will mean a 65% increase for the token.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. We strongly recommend that you do your own research before investing.
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