Bitcoin and altcoins shook off the news of the Genesis bankruptcy, throwing up their immediate support levels and rallying even higher.

US equity markets are on track to end the week in the red but Bitcoin has not suffered more deep losses as a result
BTC

Ticker below
$22,888

. . . . . . . . . . . . . . . . News of the Chapter 11 bankruptcy filing of cryptocurrency lender Genesis also had no meaningful impact on bitcoin prices. This suggests that selling pressure may be easing.

But trading firm QCP Capital warned in the latest edition of its regular market newsletter that bitcoin’s current recovery is merely an extension of relief in a bear market. They expect this recovery to be followed by another onslaught of selling that could sink Bitcoin and Ether prices
Eth

Ticker below
$1,616

below its 2022 low. QCP used Elliott wave analysis to reach this conclusion.

Daily Cryptocurrency Market Performance. Source: Coin360
After an extended bear phase, price action always climbs the wall of anxiety in the early days of a new bull market. At that time, many analysts remain unconvinced as they expect prices to come down but traders can catch a trend change if they watch for higher highs and lows.

Are Bitcoin and select altcoins showing signs of bottoming out? Let’s study the chart of the top 10 cryptocurrencies to find out.

BTC/USDT
Bitcoin prices have been trading in a tight range between $20,400 and $21,650 over the past few days. Typically, tight consolidation in the face of stiff resistance is a positive sign because it shows that traders are not in a hurry to book profits.

BTC/USDT Daily Chart. Source: TradingView
In the overbought area, the Upsloping Moving Average and Relative Strength Index (RSI) indicate that the path of least resistance is already on the upside and a rise above $21,650 to signal the resumption of up-move to Buyers will need price to retain. The BTC/USDT pair can then begin its journey towards $25,211.

Conversely, if the bear does not allow a rise above $21,650, some traders who may have bought at the lows may be tempted to book a profit by selling at a break below $20,400.

The next support on the downside is the 20-day exponential moving average ($19,268). If the price bounces back from this support, the bulls will again try to clear the upper barrier at $21,650 but if the 20-day EMA crack occurs, the correction could extend to $18,388.

ETH/USDT
Sellers are trying to start a deeper correction in ether but the bulls bought a dip near $1500 on January 18. This suggests that the bulls are buying into a small pullback.

ETH/USDT daily chart. Source: TradingView
The bulls are trying to push the price above the upper resistance area above $1610 to $1680. If that succeeds, the ETH/USDT pair could reach $1,800. This level could again act as a barrier but if the bulls exceed it, the pair could reach $2,000.

If the bears want to undermine the momentum, they’ll have to protect the upper zone and pull prices below $1,500. The pair could then slide towards the 20-day EMA ($1,428), which could attract buyers.

BNB/USDT
BNB
BNB

Ticker below
$326

bounced off the 20-day EMA ($281) on Jan. 6.19 But bulls are struggling to keep up as higher levels attract sellers.

BNB/USDT daily chart. Source: TradingView
The area between the 20-day EMA and the 50-day SMA ($268) is important to watch as if the price moves above that, the bulls will try to throw the BNB/USDT pair back above $318. If they do, this pair of bulls will complete the upside-down head and shoulders pattern.

On the other hand, if the price is low and breaks below the moving average, this could pave the way for a possible decline to $240 and later to $220.

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XRP/USDT
XRP
XRP

Ticker below
$0.40

It reached support at the moving average on January 18 and occurred on January 19. This indicates a strong buy at the 20-day EMA ($0.37).

XRP/USDT daily chart. Source: TradingView
Buyers will try to sustain the momentum and push the price towards upper resistance at $0.42. This is a key level for bear protection as if it were pulled out, the XRP/USDT pair could soar to $0.51 as there is no major barrier in between.

Bears are likely to have more planned as they try to pull prices back below the moving average. If they manage to do that, the pair could drop to a support line where a buying rise could emerge.

ADA/USDT
Cardano
Ada

Ticker below
$0.386

On January 19, this flag pattern moved above the support line, which is a positive sign. Buyer: Dhaka

Source: CoinTelegraph

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