Bitcoin (BTC) has been consolidating near $23,000 for the past few days. The next big question troubling investors is whether the rally is over or if Bitcoin resume its recovery.
The strong year-to-date rally in Bitcoin has turned several analysts bullish in the short term. They anticipate Bitcoin to extend its up-move and reach $25,000 and even $30,000.
However, for the slightly longer term, analysts seem to be divided. In comments to Cointelegraph, economist Lyn Alden said Bitcoin could face “considerable danger” in the second half of 2023 as liquidity risks rise.
What are the critical support and resistance levels to watch out for? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has been witnessing a see-saw battle near $22,800. The bears want to stall the up-move at this level but the bulls are not willing to surrender.
If the price turns down from the current level and breaks below $22,292, it could trigger the stops of several short-term traders. That could intensify selling and the BTC/USDT pair could dive to $21,480.
If the price rebounds off this level, the bulls will again try to resume the up-move. The short-term trend may turn bearish below $20,400.
ETH/USDT
After forming Doji candlestick patterns on Jan. 22 and 23, Ether (ETH) turned down sharply on Jan. 24, indicating that the uncertainty resolved in favor of the bears.
The pair could then retest the resistance at $1,680. A break above this level could signal the start of the next leg of the up-move. The pair could first rise to $1,800 and thereafter dash toward $2,000.
This bullish view could be negated in the short term if the price plunges below the 20-day EMA. The pair could then fall to $1,352.
BNB/USDT
BNB (BNB) soared above the overhead barrier at $318 on Jan. 24 but the bulls could not maintain the breakout as seen from the long wick on the day’s candlestick.
If the price rises above $318, it will indicate that the bulls have overpowered the bears. That could catapult the pair to $360. Conversely, a collapse below the 20-day EMA could tilt the advantage in favor of the bears. The pair could then plunge to the 50-day SMA ($270).
XRP/USDT
XRP (XRP) broke above the $0.42 overhead resistance on Jan. 23 but that proved to be a bull trap. The bears yanked the price back below the breakout level on Jan. 24.
If bears want to strengthen their position, they will have to drag the price below the 20-day EMA. That could tempt short-term traders to book profits and the pair may plummet to the 50-day SMA ($0.37).
ADA/USDT
Cardano’s (ADA) rally seems to have hit a wall near $0.38. The bears repeatedly thwarted attempts by the bulls to overcome this barrier between Jan. 22 and Jan. 24.
Alternatively, if the price turns up and ascends above $0.38, it will negate the negative divergence. The pair could then travel to $0.44.
DOGE/USDT
Dogecoin (DOGE) has been facing strong resistance at $0.09. The price once again turned down from this level and slipped to the 20-day EMA ($0.08) on Jan. 24.
On the contrary, if bulls want to retain their edge, they will have to quickly propel and sustain the price above $0.09. That could open the doors for a rally to $0.11, which may again act as a formidable resistance.
MATIC/USDT
The bulls again tried to thrust Polygon (MATIC) above the overhead resistance at $1.05 on Jan. 24 but the bears did not budge. That pulled the price down to the 20-day EMA ($0.93).
Contrary to this assumption, if the price turns down and tumbles below the 20-day EMA, it will suggest that the pair could remain stuck inside the range between $0.69 and $1.05 for a while longer.
Related: Six on-chain metrics suggesting Bitcoin is a ‘generational buying opportunity’
LTC/USDT
Litecoin (LTC) remains in a strong uptrend. Buyers pushed the price above $93 on Jan. 23 but the bears sold at higher levels as seen from the long wick on the day’s candlestick.
Contrarily, if the price turns down from the current level or the overhead resistance and breaks below the 20-day EMA, it will suggest that traders are booking profits. That could start a correction to the breakout level of $75.
DOT/USDT
Polkadot (DOT) nudged above the resistance line on Jan. 23 and Jan. 24 but the bulls could not sustain the higher levels. This suggests that bears are selling on rallies.
If the price rebounds off the 20-day EMA with strength, it could increase the possibility of a break above the resistance line. The DOT/USDT pair could then climb to $7.42 and later to $8.05.
The bears will gain the upper hand if they sink the price below the 20-day EMA. That could start a deeper correction to $5.50 and below that to the 50-day SMA ($5.08).
AVAX/USDT
Avalanche (AVAX) turned down from the resistance line on Jan. 24, indicating that bears are defending this level aggressively.
This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. The pair could then decline to the 50-day SMA ($13.48).
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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