After two weeks of an amazing rally, Bitcoin (BTC) price was largely flat this week. This is a positive sign as it shows that market participants are not getting nervous ahead of a series of central bank meetings next week. The United States Federal Reserve, the European Central Bank and the Bank of England are expected to announce their monetary policy decisions next week.
Bulls’ confidence received another boost after US core personal consumption spending (PCE) data for December showed the slowest annual rate of increase since October 2021. Core PCE rose 4.4% year over year, in line with analysts’ expectations.
Daily performance of the cryptocurrency market. Source: Coin360
US institutions have not abandoned cryptocurrency markets, according to a report by Markus Thielen, Head of Research and Strategy at Matrixport. The financial services company reached this conclusion by assuming that if the gains came during US trading hours, it was because institutions were buying. Using this metric, the company said that 85% of January’s rally was due to institutional buying.
Could Bitcoin and select altcoins shake off their range bound action and resume the uptrend? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin (BTC) surged to $23,816 on Jan. 25, but the bulls failed to hold the higher levels as indicated by the long wick on the daily candle.
BTC/USDT daily chart. Source: TradingView
The BTC/USDT pair’s repeated failure to sustain above $23,000 could tempt short-term traders to book profits. Immediate support stands at $22,292. If this level gives way, the pullback could reach the 20-day exponential moving average or EMA ($21,172).
This is an important level to watch as a strong rebound from it will indicate strong demand at lower levels. The pair could then make another attempt to continue its upward move and reach the critical overhead resistance at $25,211.
On the other hand, if the price turns down and breaks below the 20-day EMA, it will signal that the bulls might rush to exit. Below $20,400, the bears could regain control.
ETH/USDT
Buyers failed to build on Ether (ETH)’s solid recovery from the 20-day EMA ($1,520) on Jan. 25, suggesting bears sell on rallies near the $1,680 overhead resistance.
ETH/USDT daily chart. Source: TradingView
The bears need to sink the price below the horizontal support near $1,500 to tip the short-term advantage in their favor. The ETH/USDT pair might then start its decline towards the strong support at $1,352.
If bulls are to avoid this short-term bearish view, they need to quickly push the price above the overhead resistance at $1,680. If they succeed, the pair could start its journey to $2,000 with a brief stop at $1,800.
BNB/USDT
BNB (BNB) has been trading between the 20-day EMA ($293) and the overhead resistance of $318 for the past few days. This shows that bulls are buying the dips at the 20-day EMA and bears are selling on rallies near $318.
BNB/USDT daily chart. Source: TradingView
The rising 20-day EMA and Relative Strength Index (RSI) in positive territory are indicating that buyers have a slight advantage. To build on this advantage, the bulls need to push the price above $318 and sustain it. If successful, the BNB/USDT pair could gain momentum and climb to $360.
The bears may have other plans. They will attempt to vigorously protect the $318 level and pull the price below the 20-day EMA. If they do, the pair could drop to $281. This level could act as a minor support, but if it breaks, the pair could touch the 50-day simple moving average or SMA ($270).
XRP/USDT
XRP (XRP) bounced off the 20-day EMA ($0.39) on Jan 25 and surged above the overhead resistance of $0.42, but buyers failed to sustain the price above it.
XRP/USDT daily chart. Source: TradingView
The repeated failure of the overhead hurdle could tempt the short-term bulls to book profits. That could pull the price below the 20-day EMA and open the doors for a potential drop to the 50-day SMA ($0.37).
This negative view might be invalidated in the short-term if the price breaks up from the 20-day EMA and scales into the $0.42-$0.44 zone. The XRP/USDT pair could then start a strong rally that could reach $0.51.
ADA/USDT
Cardano’s ADA (ADA) surged above the $0.38 overhead resistance on Jan. 26, but the bulls failed to hold the higher levels. Still, it’s important to note that if a resistance is pierced frequently, it tends to weaken.
ADA/USDT daily chart. Source: TradingView
The bulls will again attempt to push the price above the overhead resistance. If they succeed, the ADA/USDT pair could sprint to $0.44. This level could act as a formidable barrier again, but if the bulls don’t give up much ground, the pair could continue its uptrend.
The rising 20-day EMA points to an upside for buyers, but the negative divergence in the RSI warns that the bullish momentum could weaken. The bears need to sink the price below the 20-day EMA to initiate a deeper correction to the 50-day SMA ($0.30).
DOGE/USDT
Dogecoin (DOGE) rebounded from the 20-day EMA ($0.08) on Jan. 25, but the bulls failed to continue the rally on Jan. 26. The price turned down and slipped to the 20-day EMA on Jan. 27.
DOGE/USDT daily chart. Source: TradingView
The DOGE/USDT pair has been stuck between $0.09 and the 20-day EMA for the past few days. If the price turns up from the current levels and scales above $0.09, the probability of a rally to the next resistance at $0.11 will increase.
Alternatively, if the price stays lower and breaks below the 20-day EMA, it will indicate that the bulls are losing their footing. The pair could then dive down to the strong support at $0.07. Such a move could hint at possible range bound action between $0.07 and $0.09 for a few more days.
MATIC/USDT
Polygon’s MATIC (MATIC) rebounded from the 20-day EMA ($0.97) on Jan. 25 and surged above the key resistance of $1.05 on Jan. 26. The break above this level suggests that the uncertainty of the range has dissipated in bulls’ favor.
MATIC/USDT daily chart. Source: TradingView
Buyers continued to build on the momentum and the MATIC/USDT pair broke the minor resistance at $1.16 on Jan 27th. This paves the way for a possible rally to $1.30 where the bears could once again mount strong defenses. If the bulls clear this obstacle, the rally could extend to $1.50.
On the other hand, if the price turns sharply lower and falls below $1.05, it will indicate that the breakout may have been a bull trap. The pair could then drop to $0.91.
Related: Litecoin “Headfake” Rally? LTC price technicals suggest a 65% crash
LTC/USDT
Litecoin (LTC) has been bouncing between the 20-day EMA ($85) and the overhead resistance at $92 for the past few days. This indicates uncertainty among the bulls and bears about the next directional move.
LTC/USDT daily chart. Source: TradingView
Although the rising moving averages indicate an advantage for the bulls, the negative divergence on the RSI suggests that the buying pressure is easing. The bears will gain the upper hand if they manage to sink the price below the 20-day EMA.
This could trigger short-term traders’ stops and the LTC/USDT pair could then drop to $81 and later to $75.
If bulls want to maintain dominance, they must step and sustain the price above $92. This could signal the resumption of the uptrend. The pair could then rally to $100 and then $107.
DOT/USDT
Polkadots DOT (DOT) has been trading near the resistance line for the past few days. Usually, a tight consolidation near a strong overhead resistance shows that buyers are holding onto their positions as they anticipate upward movement.
DOT/USDT daily chart. Source: TradingView
If buyers catapult the price above the resistance line, the DOT/USDT pair could signal a possible trend reversal. The pair could then start its journey towards $8.05 with a brief stop at $7.42.
On the other hand, if the price fails to sustain above the resistance line, it suggests that demand is drying up at higher levels. This could attract profit booking by short-term traders. The pair might initially drop to the 20-day EMA ($5.88) and if that level breaks, the decline could reach $5.50.
AVAX/USDT
The bulls attempted to push Avalanche’s AVAX (AVAX) above the resistance line on Jan. 26, but the bears thwarted their attempt. The bulls did not give in to the bears and try again to clear the barrier on January 27th.
AVAX/USDT daily chart. Source: TradingView
The rising moving averages and the RSI near the overbought zone indicate that the path of least resistance is up. If the price breaks above the resistance line, the AVAX/USDT pair could rally to $22 and $24 thereafter.
On the upside, a break and close below the 20-day EMA ($16.31) would be the first indication that the buying pressure is easing. That could open the doors for a potential drop to $14.65 and then the 50-day SMA ($13.69).
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