Last week Bitcoin and the broader cryptomarket began to correct after the bullish momentum began to fade after rising to a year-high last week.
Bitcoin
BTC
Ticker below
$23,800
Over the past few days, it has consolidated to about $23,000. The next big question plaguing investors is whether the rally is over or whether bitcoin is starting to recover.
Bitcoin’s strong year-long rise has led many analysts to be bullish in the short term. They predict an up-move of Bitcoin to $25,000 and even $30,000.
But for a little longer, analysts seem divided. In a note to Cointelgraph, economist Lynn Alden said bitcoin could face a “major crisis” in the second half of 2023 as liquidity risks rise.
Daily Cryptocurrency Market Performance. Source: Coin360
On the other hand, ARK Invest CEO and Chief Investment Officer Cathy Wood said in the company’s videoblog on January 23 that crypto assets could see a big change in 2023 as the Fed pivots towards a downturn in inflation.
What are the most important support and resistance levels to watch? Let’s study the chart of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has witnessed a see-saw battle near $22,800. The Bears want to stop the up-move in this round but the Bulls are not ready to surrender.
BTC/USDT Daily Chart. Source: TradingView
The 20-day exponential moving average ($20,700) rising, and the Relative Strength Index (RSI) in the overbought area indicates that the bulls have the hand and the buyer price will rise from $23,371 to start the next leg of the rally to $25,211.
If the price falls below current levels and breaks below $22,292, this could give many short-term traders pause. That could intensify the sell-off and the BTC/USDT pair could dive to $21,480.
If prices bounce back from these levels, the bulls will try to resume the up-move again. The short-term trend could be bearish below $20,400.
ETH/USDT
Jan. 22 and 23. Ethereal by creating a pattern of dull candles
Eth
Ticker below
$1,675
There was a sharp drop on January 24, indicating that the uncertainty has been resolved in favor of the bears.
ETH/USDT daily chart. Source: TradingView
The ETH/USDT pair corrected its 20-day Exponential Moving Average (EMA) of $1,496 on January 25, which is important support to watch. If prices rebound from these levels, it would indicate that sentiment remains positive and traders are buying close to support.
The pair can then retest the resistance at $1,680. A pause above this level could signal the start of the next phase of an up-move. The first couple can raise up to $1,800 and then raise up to $2,000 after that.
If the price falls below the 20-day EMA, this bullish outlook could be negated in the short term. The pair could then fall to $1,352.
BNB/USDT
BNB
BNB
Ticker below
$328
The $318 price flew over the upper barrier on January 24 but the bull failed to deliver any visible breakthrough from the long brick at the day candle.
BNB/USDT daily chart. Source: TradingView
The bull bought the 20-day EMA ($290) dip on Jan. 25 as seen by the long tail on the candle. This suggests that the BNB/USDT pair could swing between $318 off the 20-day EMA as the bulls and bears try to assert their dominance.
If the price moves above $318, it would indicate that the bulls have outperformed the bears. That could catapult the pair up to $360. Conversely, a fall below the 20-day EMA could skew gains in favor of bears. The pair could then dip into the 50-day SMA ($270).
advertisement
Stay safe on Web3. Learn more about Web3 Antivirus →
XRP/USDT
XRP
XRP
Ticker below
$0.41
On January 23, $0.42 broke above the upper resistance but that proved to be a bull trap. Bears pulled the price back below the breakout level on January 24th.
XRP/USDT daily chart. Source: TradingView
The most important level to note on the lower chart is the 20 day EMA ($0.38). If prices bounce back from this support, it would signal that the lower levels are attracting buyers. The bulls will then try to push the price above $0.42 into the $0.44 region. If that succeeds, the XRP/USDT pair could start an up-move to $0.51.
If the bear wants to strengthen its position, it has to drag the price below the 20-day EMA. That may tempt short-term traders to book profits and the pair could fall to the 50-day SMA ($0.37).
ADA/USDT
Cardnoh
Ada
Ticker below
$0.404
The rally seems to have hit a wall near $0.38. The bear repeatedly thwarted the bull’s attempts to cross the barrier between Jan. 22 and Jan. 24.
ADA/USDT daily chart
