According to crypto analyst Rakesh Upadhyay, a rally in the stock markets provides support for BTC and altcoins. However, the bulls will likely struggle to maintain the momentum needed to turn the overall resistance levels to support. Are altcoins including Bitcoin and DOGE showing signs of a breakout or will they be stuck in the range for a while? The analyst lays out the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
The US December nonfarm payroll report showed 223,000 jobs, above the market’s expectation of 200,000 job gains. This is a sign that the economy remains strong. Market watchers turned their focus to slower wage growth of 0.3%, below economists’ expectation of 0.4%. In addition, the eurozone’s headline inflation fell from 10.1% in November to 9.2% in December. Both economic data raised hopes that the central bank’s aggressive rate hike could slow down. This triggered a rally in the US and European stock markets.
However, Bitcoin continues to trade in a narrow range. In this environment, the reaction in the cryptocurrency space remains muted. cryptocoin.com As you follow, crypto investors may be taking a cautious approach regarding Huobi’s bankruptcy due to rumors that the company representative said were not true. Several analysts believe that the prolonged period of low volatility in Bitcoin could be followed by an increase in volatility. But John Bollinger, creator of the Bollinger Bands, thinks otherwise. Responding to a tweet from Wolf of All Streets podcast host Scott Melker, Bollinger said that “prolonged squeezes are rarely valuable signs.”
BTC, ETH, BNB, XRP and DOGE analysis
Bitcoin broke above the moving averages on Jan. However, the bulls failed to break the $17,061 barrier. This suggests that the bears are fiercely defending the general resistance.
Although the price broke below the moving averages on Jan. 6, the long tail on the candlestick indicates buying at lower levels. The bulls may make another attempt to push the price above $17,061. If they are successful, BTC could gain momentum and rally to $17,854 and then to $18,138. On the other hand, if the price drops from the current level or overhead resistance, it will indicate that BTC could consolidate in the narrow gap of $17,061-$16,256 for a while.
ETH has been fluctuating between $1,150 and $1,352 for the past few days. Price action within the range can be random and volatile.
The moving averages have flattened but the RSI is in the positive territory. This shows that the bulls have a slight advantage. If the price rises and rises above $1,272, ETH could rally towards the overhead resistance at $1,352. Another possibility is that the price is moving down and falling below the moving averages. In this case, ETH could decline to the close support at $1,150. This level can be the scene of a fierce battle between bulls and bears.
Binance Coin (BNB)
The bears are trying to stop BNB’s BNB relief rally at $261. A minor positive point in favor of the bulls, however, is that they have left no ground for the sellers.
If the price rebounds from the 20-day exponential moving average ($252), BNB could bounce back to the 50-day simple moving average ($268). This level can act as a barrier but is likely to be crossed. BNB could then rise to $300. The bears may have other plans. They will try to push the price below $250. If that happens, the $236 support could be hacked. If this level also gives way, BNB could dive towards the critical support at $220.
XRP rose above the 20-day EMA ($0.35) on Jan. However, the bulls failed to hold higher as seen from the long wick on the day’s candlestick.
The price bounced back and fell to the support line of the symmetrical triangle on Jan. Both moving averages are tilting downwards and the RSI is in the negative territory. This shows that bears dominate. If the price closes below the triangle, XRP could start its downward journey towards the key support at $0.30. Alternatively, if the price rises from the current level and rises above the 20-day EMA, it will suggest strong buying near the support line. XRP may then reach the resistance line of the triangle.
DOGE retraces crucial support at $0.07, which failed at the 20-day EMA ($0.07) on Jan. This shows that the bears are selling on every relief rally.
DOGE price bounced back to the $0.07 support, where buyers formed a strong defense. Because if the level breaks down, DOGE could drop to $0.06 and then vital support near $0.05. The downward sloping moving averages and RSI in the negative region suggest that the bears have the upper hand. If the bulls want to salvage the situation, they will have to push the DOGE price above the resistance zone between the 20-day EMA and $0.08. This could start a sustained recovery towards $0.11.
ADA, MATIC, DOT, LTC and UNI analysis
ADA climbed above the 20-day EMA ($0.26) and closed on Jan. This is the first indication that the bulls are trying to make a comeback. But the bears are not in the mood to give up their advantage.
The long wick on the January 6 candlestick indicates that higher levels are attracting sellers. The bears will try to push the price below the 20-day EMA and ADA will pull it towards the critical support near $0.24. On the contrary, the bulls will try to protect the 20-day EMA. If the price rebounds from the current level, ADA could rise to the 50-day SMA ($0.29). This level could witness strong selling again by the bears.
MATIC climbed above the 20-day EMA ($0.80) on Jan. However, the bulls failed to sustain the recovery. The bears pulled the price below the 20-day EMA on Jan.
The bears will now attempt to push the price below the immediate support at $0.75. If they manage to do so, the MATIC could drop to the support of the $0.69 range. Buyers will probably defend this level with all their might. Because, a break below this could initiate a new downward move. If the bulls want to invalidate the negative view, they will have to quickly push the price above the moving averages and sustain it. MATIC could rise to $0.97 later.
DOT recovery stalled near the 20-day EMA ($4.59). One small positive, however, is that the bulls are not leaving much ground. This indicates that the buyers are expecting a higher move so they do not close their positions in a hurry.
If the price rises above $4.68, the DOT may attempt a rally towards the 50-day SMA ($4.98). This level can act as a barrier again, but if the bulls break it, the pair may rise to the downtrend line. Instead, if the price drops and dips below $4.50, it will show that the bears continue to defend the zone between the moving averages. The DOT could then decline again to the vital support at $4.22.
LTC bounced back from minor resistance at $78 on Jan 4. However, it recovered from the moving averages on January 6th. This suggests that the bulls see the dips as a buying opportunity.
The upward sloping moving averages and the RSI in the positive zone suggest the path of least resistance to the upside. If the bulls push the price above the $78 resistance, LTC could rally to $85. On the other hand, if the price drops from the current level or overhead resistance, it will indicate that the bears are selling in rallies. A break and close below the moving averages could turn the advantage in favor of the bears. LTC could then slide to the next support at $65.
The UNI recovery hit a roadblock at the 50-day SMA ($5.56) on Jan. This may have encouraged short-term traders to take profits. This brought the price to the support line of the triangle on January 6.
The bulls bought the dip and pushed the price above the 20-day EMA ($5.36). This indicates that the bulls are aggressively guarding the support line. Buyers will again try to break through the hurdle at the 50-day SMA. If they succeed, UNI can start marching towards the resistance line. The bears will have to push and sustain the price below the support line to gain the upper hand. UNI could then decline to the $4.94 to $4.71 support zone.