Bitcoin (BTC) immersed below the $ 40,000 mark on January 10th for the first time since September 2021. The crypto markets weren’t alone as the US stock markets also saw strong sales when traders chose to do so to reduce Risk and incorporated into the 10-year Treasury yield, which has increased from 1.51% at the end of 2021 to 1.8%.
On January 9th, Goldman Sachs chief economist Jan Hatzius, said that the US Federal Reserve could raise rates by four quarter percentage points in 2022.
Analyst Alex Krüeger also warned that crypto markets may not be able to ignore the Fed when it “decides to swing everything with a deflationary machete”. He wasn’t alone because ex-BitMEX CEO Arthur Hayes and Pentoshi also projected a declining image.
Daily performance of the cryptocurrency market. Source: Coin360
Quant analyst Benjamin Cowen raised some hopes for the bulls when he said the Crypto Fear & Greed Index had only recorded “extreme fear” four times since 2018, and these have followed bullish reversals that lead to strong returns between 17% and 1.585% in Bitcoin.
Could Bitcoin and large altcoins usher in a sustained recovery or will support levels decline? Let’s check out the top 10 cryptocurrency charts to find out.
BTC / USDT
Bitcoin plummeted to $ 39,650 today as buyers stepped in and bought aggressively, as evidenced by the long tail of the candlestick. If buyers maintain the rebound, price could attempt to move towards the 20-day exponential moving average ($ 45,369).
BTC / USDT daily chart. Source: TradingView
Both moving averages are sloping down and the relative strength index (RSI) is in the oversold territory, suggesting that the bears are in charge. If the price deviates from the 20-day EMA, the BTC / USDT pair could fall back to the strong support at USD 39,600 and stay between these two levels for a few days.
If the support at $ 39,600 subsides, sales could intensify further and the pair could begin its march towards $ 30,000.
Conversely, if the bulls push price above the 20-day EMA, the pair could move to stiff overhead resistance at $ 52,088. A break and close above this resistance could signal a possible turnaround.
ETH / USDT
The bulls have held the support line of the descending channel for the past few days but have not been able to make a strong rebound from it. This suggests that demand is drying up at higher levels. Ether (ETH) attempted a rebound on Jan 9, but failed to break above the $ 3,250 breakdown.
ETH / USDT daily chart. Source: TradingView
The price has fallen again today and the bears are trying to pull the ETH / USDT pair below the descending channel. If they do, selling could intensify and the pair could fall to the next strong support at $ 2,652.
This is major support for the bulls to be defended because if it cracks the pair could tumble towards psychological support at $ 2,000.
Conversely, if the price recovers from current levels, the bulls will make another attempt to break the overhead hurdle at USD 3,250 and push the pair to the resistance line of the channel.
BNB / USDT
Binance coin (BNB) slid below the support line of the descending channel on Jan 8, but the long tail of the daily candle showed buying at lower levels. The bulls pushed the price back into the channel on January 9th but failed to hold the price above the plunge level of $ 435.30.
BNB / USDT daily chart. Source: TradingView
Price fell again today and the bears are trying to keep the BNB / USDT pair below the channel. If successful, the pair could drop to $ 392.20. This is important support for the bulls to be defended because if it cracks the next stop could be at $ 330.
The RSI has fallen into the oversold territory, suggesting the selling may be overdone in the short term. This could result in a minor rebound or area-bound action in the next few days. A breakout and close above the 20-day EMA ($ 492) is the first sign that sellers may be losing control.
SOL / USDT
Solana (SOL) attempted a rebound on Jan. 8, but the bulls were unable to push the price back above $ 150. This suggests that bears are selling due to recovery rallies.
SOL / USDT daily chart. Source: TradingView
If bears keep the price below $ 133, the SOL / USDT pair could fall to the strong support at $ 116. Both moving averages are sloping down and the RSI is near the oversold zone, suggesting that the bears are in control.
If the $ 116 level breaks, the pair could fall to the channel’s support line. If this support collapses as well, sales could intensify and the pair could fall to $ 82. The first sign of strength will be a breakout and close above the 20-day EMA ($ 162).
ADA / USDT
Cardano (THERE IS) broke through and closed below the USD 1.18 support on Jan 9, indicating a resumption of the downtrend. The next support on the downside is the critical level at USD 1.
ADA / USDT daily chart. Source: TradingView
The bulls are likely to aggressively defend this level as it has not been breached in the past few months. If the price rebounds from $ 1, the pair could move to the 50-day SMA ($ 1.39) where the bears are likely to build strong resistance.
If the price deviates from the moving averages, the bears will make another attempt to pull the ADA / USDT pair below $ 1. If successful, sales could gain momentum and the pair could fall to the support line of the channel.
XRP / USDT
XRP closed below the USD 0.75 support on Jan 8th but rose back above the level on Jan 9th. This suggests that the bulls were trying to lure the aggressive bears into the trap, but the attempt at recovery was short-lived.
XRP / USDT daily chart. Source: TradingView
The price is back below $ 0.75 today, suggesting bears are selling on every small rally. The falling moving averages and RSI near the oversold zone show that the bears are in charge.
If the price holds below $ 0.75, the XRP / USDT pair could hit the December 4th intraday low of $ 0.60. The bulls need to push and hold the price above the 50-day SMA ($ 0.87) to signal the start of a stronger rebound.
MOON / USDT
Terra’s LUNA token broke below the descending channel pattern on December 8, but the day’s candle’s long tail suggests buying at lower levels. The bulls pushed the price back into the channel and above the 50-day SMA ($ 70) on December 9th.
LUNA / USDT daily chart. Source: TradingView
The relief rally hit a barrier at $ 75.67 and the price has fallen below the 50-day SMA today. This suggests that bears will continue to sell in rallies. The 20-day EMA ($ 78) is sloping down and the RSI is near 43, suggesting the bears are in control.
If bears pull the price below $ 62.46, sales could intensify and the LUNA / USDT pair could fall to $ 51.84. This bearish view will be undone if price rises from the support line of the channel and breaks above the resistance line.
Related: Billion miller investor invests 50% of the net worth in Bitcoin
DOT / USDT
Speckle (POINT) attempted to rebound from the strong support at $ 22.66, but the bulls were unable to push the price down to the 20-day EMA ($ 26.95). This suggests that demand is drying up at higher levels.
DOT / USDT daily chart. Source: TradingView
The falling moving averages and the RSI in negative territory suggest that the bears have the upper hand. If the bears sink and hold the price below $ 22.66, the DOT / USDT pair could begin its downtrend to $ 16.81.
Alternatively, if the price recovers from current levels, the bulls will try again to push the pair above the 20-day EMA. If they do, the pair could rise to the 50-day SMA ($ 29.66) and then to the overhead resistance at $ 32.78.
AVAX / USDT
Avalanche (AVAX) slipped below the uptrend line of the symmetrical triangle on Jan 8, but the bears failed to build on that advantage. The bulls pushed the price back into the triangle on January 9th.
AVAX / USDT daily chart. Source: TradingView
However, the recovery was short-lived as the bears dragged the price back below the triangle. This suggests sentiment remains negative and traders sell on every small rally.
There is strong support at $ 75.50, but if it breaks the AVAX / USDT pair could fall to $ 57.02 and then $ 50.
On the other hand, if price bounces off current levels or the USD 75.50 support and holds within the triangle, it indicates accumulation at lower levels. The pair could then move to $ 98 where bears could build strong resistance.
A break and a close above the moving average could open the doors for a rally to the downtrendline.
DOGE / USDT
Dogecoin (DOGE) has fallen below the critical support at $ 0.15, signaling the start of the next leg of the downtrend.
DOGE / USDT daily chart. Source: TradingView
The falling moving averages and the RSI in the oversold territory suggest that the path of least resistance is on the downside. If the bears keep the price below $ 0.15, the DOGE / USDT pair could hit the December 4th intraday low of $ 0.13.
Contrary to this assumption, the bulls will seek to push the pair above the moving averages as the price rebounds from current levels. When they do, the range between $ 0.19 and $ 0.15 will come into play and the pair could climb to $ 0.19.
The bulls need to push and hold the price above this resistance to indicate the start of a new bullish move.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.
Market data is provided by HitBTC Exchange.
