A look at the cryptocurrency market shows that cryptocurrencies are on a mini rally. Equity markets have recently boosted Bitcoin and altcoins, but bulls may have trouble sustaining the momentum needed to rally overhead resistance levels. So, what to expect for major cryptocurrencies? Here are the prospects for BTC and five altcoins, according to analyst Ann Mugoiri.
Weekly analysis for BTC and these altcoins
When the bulls and bears are in the “pull the rope” struggle, cryptocoin.com Bitcoin is trading in a narrow range at $16,930.76, according to data. The analyst expects the BTC price to bounce back above $17,000 or below $16,800 soon. On January 4, Bitcoin surpassed the moving averages but failed to break the $17,061 barrier; this shows that sellers continue to strongly maintain this overall resistance. The bulls could try to push it above $17,061 once again before it pulls back.
If the BTC/USDT pair is successful, it could gather enough momentum and momentum to reach $17,854, and then hit the high at $18,138. However, if the pair dips below $16,800, it could decline to the $16,000 support. Conversely, if the price drops from where it is currently or breaks the overhead resistance, it could indicate that this pair could enter a period of consolidation between $17,061 and $16,256. This can convert general resistance levels into support levels.
The RSI indicator is in neutral territory and does not provide clear indications of future price movements, while the MACD shows no significant trend. Overall, the short-term outlook for Bitcoin remains bearish as it failed to break the overall resistance levels. To reverse the trend in the BTC/USDT pair, buyers will need to surpass $17,061 before attempting to move higher.
Ethereum is currently trading between the two moving averages at $1,216.40 with no clear trend in sight. If the ETH/USDT pair breaks out of the lower $1,160 support level, it could hit a new low and test the $1,056 support. However, if it succeeds in breaking the overhead resistance at $1,252, it could face another strong resistance level at $1,352. If buyers decide to push Ethereum above this level, their next target could be the top price of $1,300. Price action within the current range can be random and volatile.
A break above $1,252 or a drop below $1,160 could indicate that ETH/USDT could enter a period of consolidation between these two levels. The RSI indicator also does not show a clear direction. While the coin is hovering just above the oversold zone, the MACD line crosses below the signal line in the positive zone, indicating that the pair may enter a bearish trend.
Binance Coin is trading at $261.06 while its price is stuck between the $250 support and the overhead resistance at $290. According to the analyst, the BNB/USD pair could break both ways in the next few days. In other words, it can go above these two levels, or it can go below. If it breaks the resistance, its next target could be the peak price of $365. On the other hand, if it breaks below $250, Binance Coin could test the $220 support and then drop further to make a fresh low.
The Stochastic RSI is currently in neutral territory and does not provide a clear indication of future price action. The MACD line had a bearish cross with the signal line but remained in the positive territory. This suggests there may still be some buying pressure on this pair. The RSI (Relative Strength Index) is close to the 50 level and is trading sideways. If the price turns stronger from the 20-day exponential moving average ($252), BNB/USD could bounce back to the 50-day simple moving average ($268). This level can act as a barrier but is likely to be overcome. The pair could rally to $300 later.
Ripple’s price is starting to gain momentum and it is currently trading at $0.3424. If the buyers manage to clear the $0.3500 resistance, the XRP/USD pair is likely to reach its next target at $0.3900. This is a potential increase towards the all-time high of $3.84. On the other hand, if the price dips below $0.3250, XRP/USD could make a fresh bottom and test the support level at $0.3050. The RSI is currently hovering around the 50 levels but still in an uptrend. This suggests that buyers can gain some momentum on their part. The MACD shows that the price action inside this range is moving towards an uptrend.
Dogecoin is trading at $0.07241, up percent in the last 24 hours. Dogecoin price has been in an uptrend since December 28, 2022 and is currently trading above the 20-day EMA ($0.067). If the DOGE/USD pair manages to clear the $0.079 resistance, it could rally to its next target of $0.096. This is close to the peak price of $0.10. The MACD line is above the signal line in the positive zone, indicating buying pressure.
If buyers manage to push Dogecoin above $0.079, it could face another strong resistance at $0.096. If they fail to clear this level, the price could return to the $0.07 support line and test a critical $0.062 support level. Dogecoin’s recovery from the critical threshold $0.07 stopped when it reached the 20-day EMA ($0.07) on Jan. 5, indicating that the bears are selling sharply with each recovery period.
This scenario will remain dormant until buyers break the $0.079 resistance level and as a result, potential gains may be blocked. If the bulls are to manage to improve the situation, they will need to push prices above the resistance zone located between the 20-day EMA and $0.08. This could start a long-term uptrend towards $0.11, which is an attractive prospect for investors.
On January 4, Cardano closed above the 20-day EMA ($0.26) as the bulls try to gain momentum. But the bears insist on maintaining their lead. ADA support levels are set at $0.26 and $0.25, respectively. If the price drops below any of these levels, it could drop to the next target of $0.20. Conversely, bullish traders will try to maintain the 20-day EMA. If prices rebound from current levels, the pair could move higher towards its 50-day SMA ($0.29).
The Fib retracement levels also indicate the possibility of a rise towards the $0.36 and $0.40 Fib extension levels, respectively, if buyers manage to push the pair above $0.30. Therefore, if the bulls can push the price above the 20-day EMA and sustain these gains over a period of time, the ADA/USD pair could reach its next target of $0.30. It could then rally to $0.40.