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Bitcoin (bitcoin) dip Below the $40,000 level on Jan. 10 This is the first time since September 2021.Crypto markets are not alone as U.S. stocks also see a strong sell-off when traders choose to trade reduce The 10-year U.S. Treasury yield surged to 1.8% from 1.51% at the end of 2021.
On January 9, Goldman Sachs chief economist Jan Hatzius, Say The Fed is likely to raise interest rates by four quarters of a percentage point in 2022.
Analyst Alex Krueger also warned that the crypto market It may not be possible to ignore the Fed If it “decides to go all out to wield the deflationary machete”. He is not alone, as former BitMEX CEOs Arthur Hayes and Pentoshi also predicted a bearish picture.
Quant analyst Benjamin Cowen gave the bulls some hope, saying that the “extreme fear” level of the Crypto Fear and Greed Index has only occurred four times since 2018, followed by Bullish reversal leads to strong returns Bitcoin is between 17% and 1,585%.
Can Bitcoin and major altcoins start a sustained recovery, or will support give way? Let’s study the chart of the top 10 cryptocurrencies to find out.
Bitcoin/USDT
Bitcoin plummeted to $39,650 today as buyers stepped in and bought aggressively, as seen by the long tail on the candlestick. If buyers sustain the rally, the price could try to move towards the 20-day exponential moving average ($45,369).
Both moving averages are sloping down and the relative strength index (RSI) is in oversold territory, suggesting bears are in command. If the price turns down from the 20-day EMA, the BTC/USDT pair could fall again to strong support at $39,600 and remain range-bound between these two levels for a few days.
If the $39,600 support gives way, selling could intensify further and the pair could start a march towards $30,000.
Conversely, if the bulls push the price above the 20-day EMA, the pair could rally to strong overhead resistance at $52,088. A breakout and close above this resistance could signal a possible trend change.
ETH/USDT
The bulls have been defending the support line of the descending channel for the past few days but have failed to achieve a strong rebound. This suggests that demand is drying up at higher levels. Ether (Ethereum) attempted to recover on Jan. 9 but failed to rise above the $3,250 breakdown level.
Prices fell again today and the bears are attempting to pull the ETH/USDT pair below the descending channel. If they manage to do so, the sell-off could intensify and the pair could drop to the next strong support at $2,652.
This is an important support for the bulls to defend, as if it breaks, the pair could plummet to the psychological support level of $2,000.
Conversely, if the price bounces off the current levels, the bulls will make another attempt to clear the overhead barrier at $3,250 and push the pair to the resistance line of the channel.
BNB/USDT
Binance Coin (BNB) fell below the support line of the descending channel on January 8, but the long tail on the candlestick on the day showed buying at lower levels. The bulls pushed the price back into the channel on January 9 but were unable to sustain the price above the $435.30 breakdown level.
Prices fell again today and the bears are trying to keep the BNB/USDT pair below the channel. If they are successful, the pair could drop to $392.20. This is an important support for the bulls to defend, as if it breaks, the next stop could be $330.
The RSI has dipped into the oversold territory, indicating that there may be excessive selling in the short-term. This could lead to a slight recovery or range-bound action in the next few days. A breakout and close above the 20-day EMA ($492) would be the first sign that the sellers may be losing control.
Sol/USDT
Solana (Sol) attempted to bounce back on January 8, but the bulls were unable to push the price back above $150. This shows that the bears are selling on the rally.
If the bears sustain the price below $133, the SOL/USDT pair could drop to a strong support at $116. Both moving averages are sloping down and the RSI is close to the oversold territory, suggesting that the bears are in control.
If the $116 level breaks down, the pair could drop to the support line of the channel. If this support is also broken, the selling could intensify and the pair could plummet to $82. The first sign of strength will be a breakout and close above the 20-day EMA ($162).
ADA/USDT
Cardano (have) broke and closed below the $1.18 support on Jan. 9, signaling that the downtrend has resumed. The next support on the downside is the key $1 level.
With no breakout in the past few months, the bulls are likely to defend this level aggressively. If the price bounces off $1, the pair could rise to the 50-day SMA ($1.39), where the bears are expected to form strong resistance.
If the price turns down from the moving averages, the bears will make another attempt to drag the ADA/USDT pair below $1. If they are successful, the selling momentum is likely to intensify and the pair may drop to the support line of the channel.
Ripple/USDT
Ripple It closed below the $0.75 support on Jan. 8, but recovered above that level on Jan. 9. This suggests that bulls are trying to trap aggressive bears, but recovery attempts are short-lived.
The price has fallen back below $0.75 today, indicating that the bears are selling on every small rally. The downward sloping moving averages and the RSI near the oversold zone suggest that bears are in control.
If prices sustain below $0.75, XRP/USDT could fall to the December 4 intraday low of $0.60. The bulls will have to push and sustain the price above the 50-day SMA ($0.87) to signal the start of a strong recovery.
Moon/USDT
Terra’s LUNA token broke below a descending channel pattern on December 8, but a long tail on the candlestick on the day indicated buying at lower levels. The bulls pushed the price back into the channel and above the 50-day SMA ($70) on Dec. 9.
The relief rally hit resistance at $75.67 and the price has broken below the 50-day SMA today. This suggests that the bears continue to sell on rallies. The 20-day EMA ($78) is sloping down and the RSI is near 43, suggesting that the bears are in control.
If the bears sink the price below $62.46, selling could intensify and the LUNA/USDT pair could drop to $51.84. This bearish view will be negated if the price moves up from the support line of the channel and breaks above the resistance line.
related: Billionaire investor Bill Miller puts 50% of his net worth in Bitcoin
Points/USDT
polka dot(point) attempted to bounce off strong support at $22.66, but the bulls were unable to push the price above the 20-day EMA ($26.95). This suggests that demand is drying up at higher levels.
The downward sloping moving averages and the RSI in negative territory suggest that the bears have the upper hand. If the bears sink and sustain the price below $22.66, the DOT/USDT pair could start a downward move towards $16.81.
Alternatively, if the price bounces off the current levels, the bulls will make another attempt to push the pair above the 20-day EMA. If they manage to do so, the pair could rise to the 50-day SMA ($29.66) and then the overhead resistance at $32.78.
AVAX / USDT
avalanche(AVAX) broke below the ascending trendline of the symmetrical triangle on January 8, but the bears were unable to take advantage. The bulls pushed the price back into the triangle on January 9.
However, the recovery was short-lived as the bears pulled the price back below the triangle. This shows that market sentiment remains negative, with traders selling on every small rally.
There is strong support at $75.50, but if it collapses, the AVAX/USDT pair could fall to $57.02 and then $50.
On the other hand, if the price bounces off the current levels or the $75.50 support and sustains within the triangle, it will indicate accumulation at lower levels. The pair could then rise to $98, where the bears could encounter strong resistance.
A breakout and close above the moving average could open the door for a rally to the downtrend line.
Dogecoin/USDT
Dogecoin (Governor) has broken below key support at $0.15, signaling the start of the next downtrend.
The downward sloping moving averages and the RSI in the oversold zone suggest that the path of least resistance is to the downside. If bears keep prices below $0.15, the DOGE/USDT pair could fall to the Dec. 4 intraday low of $0.13.
Contrary to this assumption, if the price bounces off current levels, the bulls will try to push the pair above the moving averages. If they do, it will play in the $0.19 to $0.15 range and the pair could rise to $0.19.
The bulls will have to push and sustain the price above this resistance to signal the start of a new uptrend.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk. You should do your own research when making a decision.
Market data provided by bitcoin exchange.
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