Bitcoin and select altcoins have advanced above the hard-above resistance level, indicating that a bottoming process may have begun.
Bitcoin
BTC
Make a ticker below
$23,007
It rose above $19,000 on Jan. 12, the highest level since Nov. 8. Although the bull market isn’t starting to accelerate, GlassNode data suggests bitcoin’s macro bottom base is likely to be in place. The on-chain analytics firm tweeted on Jan. 12 that “13% of circulating supply” returned to profit while bitcoin rose to $18,200. This indicates that a major phase of accumulation occurred between $16,500 and $18,200.
With Bitcoin and Ether
Eth
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$1,643
It also looks at the signs of accumulation. According to data from Sentiment, the number of ether sharks holding between 100 and 10,000 ether has increased by 3,000 since November 22nd.
Daily cryptocurrency market performance. Source: Coin360
Too often businesses miss a floor because they are in denial. If traders want to catch a trend early on, they should keep a close eye on price action as a sequence of too high and too low could indicate bullish sentiment.
Are Bitcoin and altcoins showing signs of starting a new uptrend? Let’s study the chart of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin is on the road to recovery. Strong bull buying pushed the price above hard-up resistance to $18,388 on January 12. This is the first sign that the bears may be losing their grip.
BTC/USDT daily chart. Source: TradingView
The sharp rise of the past few days has pushed the Relative Strength Index (RSI) into overbought territory, indicating a possible correction or consolidation in the near term.
If the bulls prices do not dip below the breakout level of $18,388, this would indicate a change in sentiment from a rally sell to a dip buy. The BTC/USDT pair can then continue its recovery towards the next major resistance at $21,500.
If the Bears want to slow the positive momentum, they will have to quickly pull the price back below $18,388. The pair could then reach its 20-day exponential moving average (EMA) of $17,378.
ETH/USDT
Ether flew above the upper resistance of $1352 on January 11 followed by a break above the downtrend line on January 12. This indicates that the bulls are in a strong comeback
ETH/USDT daily chart. Source: TradingView
The bears will try to halt the recovery and pull the price back below the $1,352 breakout level. If that happens, the ETH/USDT pair could slip to its 20-day EMA of $1,292. A strong bounce from these levels would indicate that traders are buying a dip. That could improve the chances of a move back to $1700. This layer can again act as a strong barrier.
If prices decline and fall below the moving average, the positive outlook may be invalidated. Such a move could indicate that today’s breakout could be a bull trap.
BNB/USDT
BNB
BNB
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$330
On January 10, the 50-day simple moving average (SMA) bounced from $268 and continued to move north. The price is near $300, with strong bear resistance likely to increase.
BNB/USDT daily chart. Source: TradingView
The 20-day upsloping EMA at $266 and the RSI near the overbought zone indicates buyer gain. If the price falls below $300, support can be found at the 20-day EMA of $266. A strong bounce from this level could catapult the BNB/USDT pair into the $318 to $338 resistance zone.
Contrary to this assumption, if the price eases and slides below the moving average, the pair could retest the $250 to $236 support area.
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XRP/USDT
XRP
XRP
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$0.40
On June 12, the 50-day SMA fell below $0.37, but the bulls successfully defended the breakout level from the symmetrical triangle.
XRP/USDT daily chart. Source: TradingView
A slowly moving 20-day EMA of $0.35 and RSI in positive territory indicates that the bulls are on hand. Buyers will try to drive the price above $0.38 and extend an up-move to $0.42.
Conversely, if the price doesn’t hold above the 50-day SMA of $0.37, the bears will again try to pull the XRP/USDT pair back into the triangle. If they do, the pair falls on the line of support of the triangle.
ADA/USDT
The Bears tried to dunk Cardano
Ada
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$0.390
Back in the fort on January 11 but the long tail in the candle shows strong buying at lower levels.
ADA/USDT daily chart. Source: TradingView
The ADA/USDT pair has continued its up-move pushing the RSI into overbought territory. This suggests that the rally may overheat in the near-term and the pair may enter into a short-term correction or consolidation.
If the price falls below current levels but bounces back from the 20-day EMA of $0.29, that would indicate lower levels of demand. Then the buyer
