Bitcoin (BTC) experienced rapid growth in 2021, and despite BTC’s sharp correction from its all-time high of $ 69,000, the digital asset is still up 60% this year. Over the same period, gold fell more than 5%.
With inflation on the rise in the US and many other parts of the world, Bitcoin’s better performance than gold indicates that investors may see it as a better hedge against inflation than gold.
Over the course of the year, the total market capitalization of cryptocurrencies increased to about $ 3 trillion, but the dominance of Bitcoin fell from about 70% at the beginning of the year to 40%. This shows that many cryptocurrencies have surpassed Bitcoin by a huge margin.
Daily viewing of cryptocurrency market data. Source: Coin360
With the widespread use of cryptocurrencies, it is likely that more altcoins will grab the attention of investors. They can provide investors with solid returns next year.
Technical analysis has been used to compile the current list of high-net worth cryptocurrencies that could remain in the spotlight in 2022 and benefit from cryptocurrency trading.
Let’s take a look at the charts of the top five cryptocurrencies to calculate their potential targets and support levels to look out for in 2022.
BTC / USDT
Bitcoin (BTC) broke through and closed above the $ 64,854 total resistance in early November, but the weekly long candlestick shows gains taking in higher levels. Selling continued the following week and the price fell below $ 64,854.
BTC / USDT weekly chart. Source: TradingView
The bulls tried to defend the 20-week exponential moving average ($ 51,999) but could not hold the decline. This boosted selling and pushed the price below the 50-week simple moving average (SMA) ($ 47,681).
The bulls bought the fall but failed to extend the recovery beyond the 20-week moving average. This indicates a possible shift in sentiment from buying in the fall to selling in an upward direction. The bears are again trying to pull price and keep it below the 50-week simple moving average.
If successful, BTC / USDT could drop to strong support at $ 39,600. The 20-week moving average began to decline and the Relative Strength Index (RSI) fell below 50, indicating the bears’ advantage.
A break and close below $ 39,600 could lead to a deeper retracement towards $ 28,805. Such a sharp drop could delay the start of the next phase of the uptrend.
On the other hand, if the bulls manage to defend the 100-week SMA, the pair will make another attempt to rise above the 20-week SMA. If this happens, the pair will try to rise to the upper area of $ 64,854 to $ 69,000.
A break and close above this area could start the next phase of the trend, pushing the pair towards the psychologically critical $ 100,000 level.
ETH / USDT
Ether (ETH) is correcting with a strong uptrend. Both the moving averages are sloping and the RSI is in positive territory, indicating that the bulls are ahead.
ETH / USDT weekly chart. Source: TradingView
While the bears have tried to push the price below the 20-week moving average ($ 3,745), the long tails of the candlesticks in recent weeks indicate that bulls are aggressively buying at lower levels.
Now the bulls will make another attempt to remove the upper barrier at the psychologically critical $ 5,000 level. If successful, the ETH / USDT pair may start the next trend phase with the first target, which is the 100% Fibonacci extension level at $ 5719.68.
If momentum pushes the price above this level, the next target would be a 138.2% Fibonacci extension at $ 6,566.19 and then a 161.8% extension at $ 7,089.17.
Contrary to this assumption, if price breaks below the current level or overall resistance and below the 20-week moving average, it would indicate that traders are selling higher. This could open the door for a possible decline towards strong support at $ 2,652.
This is an important level to look at as a break below it could push the pair towards the $ 1,700 mark.
BNB / USDT
Binance Coin (BNB) fell from $ 669.30, indicating that bears are aggressively defending their all-time high of $ 691.80. The least positive point, however, is that bulls buy on dips in the 20-week EMA ($ 500).
BNB / USDT weekly chart. Source: TradingView
Bullish moving averages and the RSI are in positive territory, indicating a buyer’s advantage.