BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX

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US stock markets are on track to end the week in the red, but that didn’t lead to a bigger loss for Bitcoin (BTC). News of cryptocurrency lender Genesis filing for Chapter 11 bankruptcy also did not have a significant impact on the price of Bitcoin. This shows that the selling pressure could decrease.

However, trading firm QCP Capital warned in the latest edition of its regular Markets Newsletter that Bitcoin’s current rally is just a relief rally from the bear market. They forecast that this rally will be followed by another bout of selling which could send the price of Bitcoin and Ether (ETH) below their 2022 lows. QCP used Elliott Wave analysis to arrive at this conclusion.

Daily performance of the cryptocurrency market. Source: Coin360

After an extended bearish phase, price action always climbs a wall of worry during the first few days of a new bull market. At this time, several analysts remain in disbelief as they expect the price to decline, but traders might notice a change in trend if they watch for higher highs and higher lows to form.

Are Bitcoin and some altcoins showing signs of bottoming out? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin price has been trading in a narrow range between $20,400 and $21,650 for the past few days. Usually, a tight consolidation near strong resistance is a positive sign as it shows that traders are not rushing to take profits.

BTC/USDT daily chart. Source: Trading View

Upward moving averages and the Relative Strength Index (RSI) in the overbought zone indicate that the path of least resistance is to the upside. Buyers will need to drive and hold the price above $21,650 to signal the resumption of the upside. The BTC/USDT pair could then start its journey towards $25,211.

Conversely, if the bears do not allow the price to rise above $21,650, several traders who may have been buying at lower levels may be tempted to take profits. Selling could gain momentum on a break below $20,400.

The next downside support is the 20-day exponential moving average ($19,268). If the price bounces off this support, the bulls will again attempt to breach the overhead hurdle at $21,650, but if the 20-day EMA cracks, the correction could extend to $18,388.

ETH/USDT

The sellers attempted to initiate a deeper correction in Ether, but the bulls bought the decline near $1,500 on January 18th. This shows that bulls are buying on minor pullbacks.

ETH/USDT daily chart. Source: Trading View

The bulls will attempt to propel the price above the overhead resistance zone between $1,610 and $1,680. If they succeed, the ETH/USDT pair could rise to $1,800. This level can again act as a barrier, but if the bulls overcome it, the pair could reach $2,000.

If the bears want to weaken the momentum, they will have to defend the air zone and pull the price below $1,500. The pair could then slide towards the 20-day EMA ($1,428), which could attract buyers.

BNB/USDT

BNB (BNB) bounced off the 20-day EMA ($281) on January 19, but bulls are struggling to maintain momentum as higher levels attract sellers.

BNB/USDT daily chart. Source: Trading View

The area between the 20-day EMA and the 50-day SMA ($268) is important to watch because if the price breaks out of it, the bulls will again try to push the BNB/USDT pair above $318. If they do, the pair will complete a bullish inverse head and shoulders pattern.

On the other hand, if the price continues to decline and breaks below the moving averages, it could pave the way for an eventual decline to $240 and later to $220.

XRP/USDT

XRP (XRP) found support at the moving averages on January 18 and rose on January 19. This indicates a strong buy at the 20-day EMA ($0.37).

XRP/USDT daily chart. Source: Trading View

The buyers will try to keep the momentum going and push the price up to the overhead resistance at $0.42. This is a key level for the bears to defend because if pulled out, the XRP/USDT pair could rise to $0.51 as there is no major hurdle in between.

The bears are likely to have other plans as they will again try to pull the price below the moving averages. If they succeed, the pair could drop to the support line where buying could emerge.

ADA/USDT

Cardano (ADA) broke out of the flag pattern support line on January 19, which is a positive sign. Buyers will try to propel the price above the flag to signal the start of the next leg up.

ADA/USDT daily chart. Source: Trading View

On a break above the flag, the bears can mount a strong defense at $0.37, but if the bulls overcome this barrier, the ADA/USDT pair could rise to $0.44. This level could once again prove to be a sticking point for the bulls.

This positive view could be invalidated in the short term if the price declines and falls below the flag. This could attract further selling from short-term traders and the pair could drop to the 50-day SMA ($0.29).

DOGE/USDT

The buyers attempted to push Dogecoin (DOGE) above $0.09 on January 18, but the bears aggressively protected the level as seen from the long wick on the days candlestick.

DOGE/USDT daily chart. Source: Trading View

The bulls held the 20-day EMA support ($0.08) on the downside, but the weak rally on January 19-20 indicates hesitation to buy aggressively. This may embolden the bears who will attempt to sink the DOGE/USDT pair below the 20-day EMA.

If they do, the pair could drop to strong support near $0.07. The flattening 20-day EMA and RSI just above the midpoint point to possible limited short-term action.

If the bulls want to maintain their edge, they will need to break through the hurdle at $0.09. The pair could then start its march north at $0.11.

MATIC/USDT

Polygon (MATIC) is trading in a wide range between $0.69 and $1.05. Typically, within a well-established range, traders buy near support and sell near resistance.

MATIC/USDT daily chart. Source: Trading View

That’s what happened with the MATIC/USDT pair pulling back from the broad resistance at $1.05. The first line of support is at the 20-day EMA ($0.90). The buyers held this level on January 19, but they will need to propel the price above $1.05 to start a fresh rise.

Alternatively, if the price breaks below the 20-day EMA, this will indicate that the pair may extend its stay in the range for a few more days. The short-term advantage could tip in favor of the bears on a break below the 50-day SMA ($0.86).

Related:Bitcoin eyeing $21.4,000 zone as analyst predicts BTC price will chase gold

LTC/USDT

Litecoin (LTC) came back from the 20-day EMA ($81) on Jan. 19, indicating that bulls view the dips as a buying opportunity.

LTC/USDT daily chart. Source: Trading View

The bulls will attempt to propel the price to $91 where they may encounter strong resistance from the bears. If the bulls force their way above $91, the LTC/USDT pair could accelerate and reach the psychologically important level of $100 and then $107.

Another possibility is that the rebound is running out of steam and not breaking above $91. This could increase the likelihood of a break below the 20-day EMA. The pair could then collapse to the breakout level of $75.

DOT/USDT

Polkadot (DOT) continues to witness a seesaw battle near the downtrend line. This indicates that the lower levels are attracting buyers, but the bears are selling on rallies.

DOT/USDT daily chart. Source: Trading View

The rising 20-day EMA ($5.34) and RSI in positive territory suggest that the uncertainty may be resolving in favor of the bulls. Buyers will need to push the price above $6.53 to take charge. If they can pull this off, the DOT/USDT pair could climb to $7.42 and then to $8.05.

Contrary to this assumption, if the price turns down and dips below the 20-day EMA, it will indicate that the bears have mastered the bulls. This could push the price down to the 50-day SMA ($5).

AVAX/USDT

Avalanche (AVAX) rejected the resistance line on January 14, but the bears failed to pull the price towards the 20-day EMA ($14.72). This suggests sellers may be losing their grip.

AVAX/USDT daily chart. Source: Trading View

The buyers will make another attempt to push the price above the resistance line. If successful, the AVAX/USDT pair could gain momentum and rally to $22 and then $24. The rising 20-day EMA and RSI near the overbought zone indicate an advantage for buyers.

This positive view could be negated in the short term if the price turns down and dips below the 20-day EMA. This could attract further selling and the pair could then extend its decline to the 50-day SMA ($13.09).

The views, thoughts and opinions expressed herein are the sole authors 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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