Bitcoin (BTC) prices and US stock markets fell sharply on January 5, reacting negatively to the minutes from the Federal Reserve’s December meeting, which showed that members expect the balance sheet to start shrinking after the Fed starts raising interest rates in early 2022.

An addition to the negative sentiment was the closure of the world’s second largest bitcoin mining center in Kazakhstan, where the internet was closed after massive public protests. As a result, the Bitcoin network’s total hash rate decreased by around 13.4% from 205,000 pethashes per second (PH / s) to 177,330 PH / s.

Daily market indicators for cryptocurrency. Source: Coin360
The current decline is due to lower volumes and expects markets to be volatile in the coming days, said Mike Novogratz, CEO of Galaxy Digital Holdings. Novogratz notes that a huge amount of “institutional demand” was waiting on the sidelines, and he expects bitcoin to reach its lowest level in the $ 38,000 region at $ 40,000.

Can Bitcoin and the regular cryptocurrency continue to face sales, or will they return from strong support levels? Let’s take a look at the 10 best cryptocurrency charts to find out.

Bitcoin / US dollars
Bitcoin’s limited range movement was resolved by the low on January 5 when bears pushed the price below the strong support of $ 45,456. This indicates that supply exceeds demand.

BTC / USDT daily chart. Source: TradingView
It was a modest attempt to defend the $ 42,500 support on January 6, but continued sales pushed the price closer to the next support of $ 39,600. This downturn eliminated the positive divergence that formed on the RSI.

The moving averages of the downtrend and the RSI near the oversold area indicate that the bears are in control. If the bears fall and keep the price below $ 39,600, the BTC / USDT pair could fall to $ 30,000.

Conversely, if the price bounces below $ 39,600, the bulls will again try to push the pair above the 20-day exponential moving average (EMA) ($ 46,811). This movement will be the first sign that the downward trend may end.

The bullish momentum can be amplified by a breakout and a close above the 50-day simple moving average (SMA) ($ 50,610).

Ether (ETH) deviated from the 20-day moving average ($ 3,756) on January 5 and fell below the intraday low on December 4 at $ 3,503.68. This indicates that the bears have regained their supremacy.

ETH / USDT daily chart. Source: TradingView
The downward moving averages and the oversold RSI indicate that the bears are in control. If the bears keep the price below $ 3250, the decline could extend to the channel support line.

The Bulls will try to defend this level and push the price against the channel resistance line. An eruption and a closure across the channel will indicate a trend change.

Alternatively, if the bears push the price below the channel, ETH / USDT may fall to the strong support level of $ 2,652.

Binance Coin (BNB) broke during the strong psychological support of $ 500 on 5 January. Subsequent sales pushed the price towards the next support of $ 435.30.

BNB / USDT daily chart. Source: TradingView
If the price falls back from the current level, the BNB / USDT pair could rise to $ 500, as the bears are likely to offer strong resistance. The downward moving averages and the oversold RSI indicate that the bears are in control.

If the $ 435.30 support weakens, the pair may continue to decline to $ 392.20 and then to $ 320. This negative perception will be reversed if the price breaks and settles across the channel. Such a move could open the door for a potential move to $ 575.

Solana (SOL) fell below $ 167.88 and lowest intraday on December 13 to $ 148.04 on January 5. This indicates that the bears have repeated their dominance.

SOL / USDT daily chart. Source: TradingView
Sales continued and the Bears will now try to pull SOL / USDT against the strong support of 116. This level may attract strong purchases from the bulls, but the rush of relief is likely to meet sales close to the 20-day EMA ($ 170). ))).

Such a move may indicate that sentiment is still negative and that traders are selling higher. This may increase the possibility of outbreaks below 116. The next stop may be the channel’s guide line.

Source: CoinTelegraph