The cryptocurrency markets have made a robust comeback previously few days. That drove the whole crypto market capitalization to $995 billion on Jan. 14, based on CoinMarketCap knowledge. Bitcoin (BTC) led the restoration from the entrance and skyrocketed above $21,000 on Jan. 14.
After the sharp rally, the massive query is whether or not the restoration is a lifeless cat bounce that may be a promoting alternative, or is it the beginning of a brand new uptrend. It’s troublesome to foretell with certainty if a macro backside has been made however the charts recommend {that a} bottoming course of has begun.
Impartial market analyst HornHairs highlighted that the 2017 to 2018 bear market lasted for 364 days and from 2021 to the present market low, the period is once more 364 days. One other fascinating similarity is that the 2015 to 2017 bull market and the 2018 to 2021 bull part each lasted for 1,064 days. If historical past repeats itself, then Bitcoin may make the next top in roughly 1,000 days.
Bitcoin’s brief time period value motion has been thrilling for bulls however are there altcoins which are exhibiting related energy within the close to time period?
Let’s research the charts to search out out.
BTC/USDT
Bitcoin shot as much as $21,258 on Jan. 13 and that propelled the relative energy index (RSI) above 89, signaling that the rally was overheated within the brief time period. The bears are anticipated to mount a robust protection at $21,500.
Generally, when a development change occurs, the RSI might stay within the overbought territory for a very long time. If the BTC/USDT pair doesn’t quit a lot floor from the present degree, it’ll recommend that merchants are in no hurry to e-book earnings as they anticipate one other leg larger.
If patrons kick the worth above $21,500, the pair may climb to $22,800. This degree might once more act as a significant roadblock.
On the best way down, the bears must drag the worth under the psychological degree of $20,000 to make a dent within the bullish momentum. The pair may then hunch to the breakout degree of $18,388.
The 4-hour chart exhibits that the bears are guarding the $21,250 degree however a constructive signal is that the bulls haven’t allowed the worth to slip again under $20,000. Consumers might once more try to clear the overhead hurdle at $21,258 and resume the uptrend.
Quite the opposite, if the worth as soon as once more turns down from $21,250, it could tempt short-term merchants to e-book earnings. That might sink the pair under the 20-EMA. The bears might attempt to capitalize on this case and pull the pair to $18,388.
LTC/USDT
Litecoin (LTC) broke above the overhead resistance at $85 on Jan. 12, indicating the beginning of a brand new uptrend. There is no such thing as a main hurdle till the worth reaches $107.
On the draw back, the bulls will attempt to fiercely defend the zone between $85 and the 20-day EMA ($79). If the worth springs again from this zone, the LTC/USDT pair may proceed its uptrend and attain $107.
The upsloping shifting averages sign benefit to bulls however the RSI above 77 suggests {that a} minor pullback or consolidation is probably going.
If bears need to acquire the higher hand, they must pull the worth under the breakout degree of $75. That might make manner for a collapse to $61.
The 4-hour chart exhibits the pair is in an uptrend and the bulls are fiercely defending the 20-EMA. If patrons drive the worth above $92, the pair may choose up momentum and rally towards the psychological degree of $100.
Conversely, if the worth turns down and dives under the 20-EMA, it’ll recommend that short-term merchants could also be reserving earnings. That might pull the worth to the 50-SMA. This is a vital degree for the bulls to defend as a result of a break under it may heighten the danger of a drop to $80 after which $75.
OKB/USDT
Whereas a number of cryptocurrencies try to backside out, OKB (OKB) has began a brand new uptrend. Often, it’s a good technique to purchase the dips in an uptrend by maintaining an acceptable cease loss.
The upsloping shifting averages and the RSI within the overbought territory point out that bulls are in command however a short-term consolidation or correction cannot be dominated out. The OKB/USDT pair may slip to the 20-day EMA ($27.64), which is prone to act as a robust assist.
If the worth rebounds off this degree, the pair may contact the robust overhead barrier at $34.18. Crossing this degree could also be a troublesome process but when the bulls handle to attain it, the pair may skyrocket to $42.
If bears need to stall the up-move, they must yank the worth under the 20-day EMA. In the event that they succeed, the pair may plummet to the 50-day SMA ($24.05).
The 4-hour chart exhibits that the uptrend met with robust promoting close to $33 and the pair may appropriate to the 20-EMA. If the worth rebounds off this assist, it’ll recommend that bulls are shopping for on each minor dip. That might drive the worth to $34.18.
Contrarily, if the worth plunges under the 20-EMA, the correction may deepen to the 50-SMA. If the worth rebounds off this degree, the bulls will once more attempt to resume the up-move however might face resistance at $31 and once more close to $33.
Associated: Bitcoin fails to convince that bottom is in with $12K ‘still likely’
BIT/USDT
BitDAO (BIT) rallied sharply from $0.26 on Dec. 27 to $0.53 on Jan. 14, indicating a robust bullish momentum. As well as, the shallow pullback on Jan. 15 means that merchants should not exiting their positions in a rush as they anticipate the up-move to proceed.
If bulls thrust the worth above the overhead resistance at $0.54, the BIT/USDT pair may resume its up-move. The subsequent resistance on the upside is at $0.68. The bears might pose a robust problem at this degree as a result of a break and shut above it may open the doorways for a doable rally to $0.80.
On the draw back, the primary assist is at $0.46 after which the 20-day EMA ($0.42). A powerful bounce off both assist will recommend that merchants are shopping for on declines. That might end in a retest of $0.54. The bears might take management in the event that they sink the worth under the 20-day EMA.
The 4-hour chart exhibits that the pair is going through resistance close to $0.54 however the bulls are prone to defend the drop to the 20-EMA. A powerful rebound off this degree will recommend that bulls are shopping for on shallow declines. That might enhance the prospects of a break above $0.54.
Alternatively, if the worth turns down and breaks under the 20-EMA, a number of short-term merchants might e-book earnings. That might pull the pair to the 50-SMA. If this degree additionally cracks, the pair may tumble to $0.41.
FTM/USDT
Fantom (FTM) broke above the downtrend line on Jan. 9, indicating a possible development change. The breakout was adopted by a pointy rally which pushed the RSI into deeply overbought ranges.
Vertical rallies are unsustainable, therefore a pullback was to be anticipated. The FTM/USDT pair may dip to the 38.2% Fibonacci retracement degree of $0.30 after which to the 50% retracement degree of $0.28.
If the worth turns up from this zone, it’ll recommend a change in sentiment from promoting on rallies to purchasing on dips. The bulls will then attempt to resume the restoration and drive the pair above $0.36. In the event that they try this, the pair may surge to $0.42.
Contrarily, a break and shut under $0.28 may pull the pair all the way down to the 61.8% retracement degree of $0.26. A deeper fall may break the bullish momentum and enhance the potential of a spread formation.
Each shifting averages are sloping up and the RSI is within the constructive territory, indicating a bonus to patrons. The pair may slide to the 20-EMA, which is prone to act as a robust assist. If the worth rebounds off this degree, the bulls will attempt to resume the up-move.
Quite the opposite, if the worth breaks under the 20-EMA, it’ll recommend that merchants are aggressively reserving earnings after the latest rally. The pair may then prolong its correction to the 50-SMA.
The views, ideas and opinions expressed listed below are the authors’ alone and don’t essentially replicate or signify the views and opinions of Cointelegraph.
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.
