January 2 BTC, ETH, XRP, LTC, DOT, BCH, ADA, BNB, LINK and BSV Price Analysis
Altcoins can see strong buying interest and could rise vertically if Bitcoin rises above $ 30,000.
January 2 BTC, ETH, XRP, LTC, DOT, BCH, ADA, BNB, LINK and BSV Price Analysis
Altcoins can see strong buying interest and could rise vertically if Bitcoin rises above $ 30,000.Bitcoin (BTC) rose from an intraday low of $ 17,573.29 on December 11 to its intraday high of $ 29,310.19 on December 31, with a short rally of 66.78%. This shows the strong demand from traders at every high level.
According to data from Coin98 Analytics, institutional crypto investment giant Grayscale purchased 72,950 Bitcoins in December, which is 159.49% more than the 28,112 Bitcoins mined at that time.It’s not just institutions buying – a strong bull run is also attracting speculators and momentum traders who are trying to keep up. According to the on-chain analytics resource Digital Assets Data, this can be seen from the increase in Bitcoin’s transaction volume in December 202
However, at one level, buyers will stop chasing prices higher, which will cause the rally to end. When it does, speculators and momentum traders can rush to the exit. When this development occurs, buyers are likely to buy again at lower levels. This scenario could result in a sharp retreat. Therefore, tarders should use appropriate risk management strategies.
In a strong bull run, traders can watch the resistance levels for signs of a possible reversal, but when the levels scale easily it indicates that the trend remains strong. Let’s examine the charts of the top 10 cryptocurrencies to identify critical upside resistance levels.
Bitcoin (BTC) is in a strong uptrend and traders are buying the intraday bearish every day without waiting for a deeper correction. The leggy Doji candlestick pattern on December 31 indicates that the bears are trying to initiate a correction, but the bulls are aggressively buying the fall.
However, the strong rise over the past few days has pushed the relative strength index (RSI) deep into the overbought zone. This suggests that the BTC / USD pair could enter a minor consolidation or correction near the $ 30,000 mark.
Contrary to this assumption, if the bulls push the price above $ 30,000, the pair could continue its rally and the price could rise to $ 37,000. But with every step above, the risk of the downside increases.
If the price drops below $ 30,000, the pair could drop to the 20-day exponential moving average ($ 24,842). A strong recovery at this level will show that the uptrend remains intact, but a break below it could pull the pair to the 50-day simple moving average ($ 20,614).
ETH / USD
Ethereum (ETH) is facing resistance near the $ 750 level for the past few days. But the positive sign is that the bulls haven’t given up too much ground. This suggests that traders are not aggressively taking profits as they expect the uptrend to continue.
If the bulls can push the price above $ 750 and maintain it, the ETH / USD pair could rise to $ 800, where the bears can try to stop the uptrend again. Rising moving averages and the RSI near the overbought zone show the bulls have the upper hand.
However, if the pair breaks below $ 717, the correction could deepen to the 20-day EMA ($ 663). If the price returns above this support, it will show that sentiment continues to rise and traders are buying on dips.
Conversely, a break below the 20-day EMA will indicate that traders are not buying the dips and are aggressively making profits. This improvement may signal the beginning of a deeper correction.
XRP / USD
XRP formed an intraday candlestick pattern on December 30 and 31, indicating the instability between the bulls and bears. Uncertainty is reversed today and the bulls launched a relief rally.
In a strong downtrend, traders use rallies to create short positions or to close long positions. The declining 20-day EMA and the RSI near the overbought zone show that the bears are in the management seat.
Therefore, the current bullish attempt could face strong resistance at the 20-day EMA ($ 0.357). If the price falls from this level, the bears will try to continue the downtrend. If they can break the price below $ 0.172536, the XRP / USD pair could drop to $ 0.10.
If the bears push the price above the 20-day EMA, this negative view will be invalid. Such a move would indicate that the sale is exhausted and this may be followed by several days of price range action.
LTC / USD
Litecoin (LTC) has held above $ 124.1278 over the past few days. This indicates that the bulls are striving to support this level. The upward moving averages and the RSI in the positive zone indicate that the bulls are in control.
If the bulls can push the price above the $ 140 resistance, the LTC / USD pair could continue its uptrend. The bears may try to stop the rally in psychological resistance again at $ 150, but if this level scales, the upward move could reach $ 160.
Contrary to this assumption, if the bears keep the price below $ 124.1278, the pair could drop to the 20-day EMA ($ 113.79).
If the price returns from this level, the bulls will try to resume the uptrend again. However, a break below the 20-day EMA will open the possibility of a deeper correction to the 50-day SMA ($ 91.96).
DOT / USD
Polkadot (DOT) continued its rise after a minor one-day correction on December 30th. The rally on December 31 shows the altcoin being supported by strong momentum.
However, the bullish trend has pushed the RSI into the overbought zone and the bears are currently trying to stop the upward movement in the $ 9.51 to $ 10 overbought zone.
If the DOT / USD pair again witnesses a minor correction and moves from the 38.2% Fibonacci retracement level to $ 7.7614, this will indicate that traders are not closing their positions in a hurry and buying every small drop. This development could push the pair to $ 11.
Conversely, if the bears pull the price below $ 7.7614, it will be possible to retest the breakout level at $ 6.8619.
BCH / USD
Bitcoin Cash (BCH) bounced back from the $ 370 overall resistance on December 28 and fell below the $ 353 support on December 31st. The bulls are currently trying to keep the price above the 20-day EMA ($ 323).
If the price rises from the current levels, the bulls will make another attempt to push the price above $ 370. The upward moving averages and the RSI in the positive zone show that the bulls have the upper hand.
A break above $ 370 and a closing could continue the upward movement and the BCH / USD pair could reach $ 430 and then $ 500.
ADA / USD
Cardano’s ADA has been standing above the $ 0.175 support for the past two days, indicating that the bulls are buying dips to this level. However, the inability to continue the upward trend suggests that demand is drying at higher levels.
December has contracted for the past two days, and a range expansion will soon follow. If the range dissolves upwards and the bulls push the price above $ 0.1966315, the ADA / USD pair could rise to $ 0.22 and then to $ 0.235.
Rising moving averages and RSI in the positive zone indicate the path of lowest resistance is up. If the bears sink and keep the price below the 20-day EMA ($ 0.165), this positive view will become invalid. In such a case, it will give the impression that the final break was a bull trap.
BNB / USD
Binance Coin (BNB) did not even correct the 38.2% Fibonacci retracement level of the last leg of the rally and rose from $ 36.5157 on December 31st. This indicates that traders are aggressively buying the bearish.
If the bulls can push the price above the $ 40 resistance, the BNB / USD pair could continue the rally and reach $ 45 and then $ 50. Rising moving averages and the RSI near the overbought zone suggest the bulls are in control.
Contrary to this assumption, if the price falls again from $ 40, the pair could stay in the $ 35.69 to $ 40 range for a few days. The trend may change if the bears break the price below the 20-day EMA ($ 34).
LINK / USD
LINK is trading in a descending channel. The bears’ failure to push and maintain the price below the $ 11.29 support has attracted buyers today trying to push the price above the 20-day EMA ($ 12.13).
If they are successful, the LINK / USD pair could rise to the channel’s resistance line. A break above the channel and resistance at $ 13.28 could start a new uptrend that could reach $ 16.39.
However, if the price falls from the current levels or the resistance line of the channel, the bears will again try to break the $ 11.29 support. If they manage to do this, the rate could drop to $ 10 and then to the support line of the channel around $ 9.60.
BSV / USD
Bulls are struggling to push Bitcoin SV (BSV) above the 20-day EMA ($ 167), and bears can’t keep the price below $ 160. This suggests that there is a balance between supply and demand, but this narrow-range action may not continue for long.
If the bulls push the price above the moving averages, the BSV / USD pair could rise to $ 181, where the bears are likely to show stiff resistance. If the price falls from this level, the action depending on the price range may extend for a few more days.
On the other hand, if the pair breaks below $ 160, buyers could step in and drop the pair to $ 146. A strong jump can keep the price within the angle for a while longer. The indicators show no clear advantage over either the bulls or the bears.