The cryptocurrency markets have made a powerful comeback previously few days. That drove the entire crypto market capitalization to $995 billion on Jan. 14, in line with CoinMarketCap information. Bitcoin (BTC) led the restoration from the entrance and skyrocketed above $21,000 on Jan. 14.
After the sharp rally, the large query is whether or not the restoration is a lifeless cat bounce that may be a promoting alternative, or is it the beginning of a brand new uptrend. It’s tough to foretell with certainty if a macro backside has been made however the charts recommend {that a} bottoming course of has begun.
Impartial market analyst HornHairs highlighted that the 2017 to 2018 bear market lasted for 364 days and from 2021 to the present market low, the period is once more 364 days. One other fascinating similarity is that the 2015 to 2017 bull market and the 2018 to 2021 bull section each lasted for 1,064 days. If historical past repeats itself, then Bitcoin might make the subsequent high in roughly 1,000 days.
Bitcoin’s quick time period value motion has been thrilling for bulls however are there altcoins which might be displaying comparable energy within the close to time period?
Let’s research the charts to seek out out.
BTC/USDT
Bitcoin shot as much as $21,258 on Jan. 13 and that propelled the relative energy index (RSI) above 89, signaling that the rally was overheated within the quick time period. The bears are anticipated to mount a powerful protection at $21,500.
Typically, when a development change occurs, the RSI might stay within the overbought territory for a very long time. If the BTC/USDT pair doesn’t hand over a lot floor from the present degree, it should recommend that merchants are in no hurry to e-book earnings as they anticipate one other leg larger.
If patrons kick the worth above $21,500, the pair might climb to $22,800. This degree might once more act as a serious roadblock.
On the best way down, the bears must drag the worth beneath the psychological degree of $20,000 to make a dent within the bullish momentum. The pair might then stoop to the breakout degree of $18,388.
The 4-hour chart reveals that the bears are guarding the $21,250 degree however a optimistic signal is that the bulls haven’t allowed the worth to slip again beneath $20,000. Consumers might once more try and clear the overhead hurdle at $21,258 and resume the uptrend.
Quite the opposite, if the worth as soon as once more turns down from $21,250, it might tempt short-term merchants to e-book earnings. That would sink the pair beneath the 20-EMA. The bears might attempt to capitalize on this case and pull the pair to $18,388.
LTC/USDT
Litecoin (LTC) broke above the overhead resistance at $85 on Jan. 12, indicating the beginning of a brand new uptrend. There isn’t a main hurdle till the worth reaches $107.
On the draw back, the bulls will attempt to fiercely defend the zone between $85 and the 20-day EMA ($79). If the worth springs again from this zone, the LTC/USDT pair might proceed its uptrend and attain $107.
The upsloping shifting averages sign benefit to bulls however the RSI above 77 suggests {that a} minor pullback or consolidation is probably going.
If bears wish to acquire the higher hand, they must pull the worth beneath the breakout degree of $75. That would make method for a collapse to $61.
The 4-hour chart reveals the pair is in an uptrend and the bulls are fiercely defending the 20-EMA. If patrons drive the worth above $92, the pair might decide up momentum and rally towards the psychological degree of $100.
Conversely, if the worth turns down and dives beneath the 20-EMA, it should recommend that short-term merchants could also be reserving earnings. That would pull the worth to the 50-SMA. This is a crucial degree for the bulls to defend as a result of a break beneath it might heighten the chance of a drop to $80 after which $75.
OKB/USDT
Whereas a number of cryptocurrencies try to backside out, OKB (OKB) has began a brand new uptrend. Often, it’s a good technique to purchase the dips in an uptrend by conserving an appropriate cease loss.
The upsloping shifting averages and the RSI within the overbought territory point out that bulls are in command however a short-term consolidation or correction cannot be dominated out. The OKB/USDT pair might slip to the 20-day EMA ($27.64), which is more likely to act as a powerful help.
If the worth rebounds off this degree, the pair might contact the sturdy overhead barrier at $34.18. Crossing this degree could also be a tough process but when the bulls handle to realize it, the pair might skyrocket to $42.
If bears wish to stall the up-move, they must yank the worth beneath the 20-day EMA. In the event that they succeed, the pair might plummet to the 50-day SMA ($24.05).
The 4-hour chart reveals that the uptrend met with sturdy promoting close to $33 and the pair might right to the 20-EMA. If the worth rebounds off this help, it should recommend that bulls are shopping for on each minor dip. That would drive the worth to $34.18.
Contrarily, if the worth plunges beneath the 20-EMA, the correction might deepen to the 50-SMA. If the worth rebounds off this degree, the bulls will once more attempt to resume the up-move however might face resistance at $31 and once more close to $33.
Associated: Bitcoin fails to persuade that backside is in with $12K ‘nonetheless doubtless’
BIT/USDT
BitDAO (BIT) rallied sharply from $0.26 on Dec. 27 to $0.53 on Jan. 14, indicating a powerful bullish momentum. As well as, the shallow pullback on Jan. 15 means that merchants aren’t exiting their positions in a rush as they anticipate the up-move to proceed.
If bulls thrust the worth above the overhead resistance at $0.54, the BIT/USDT pair might resume its up-move. The following resistance on the upside is at $0.68. The bears might pose a powerful problem at this degree as a result of a break and shut above it might open the doorways for a doable rally to $0.80.
On the draw back, the primary help is at $0.46 after which the 20-day EMA ($0.42). A robust bounce off both help will recommend that merchants are shopping for on declines. That would lead to a retest of $0.54. The bears might take management in the event that they sink the worth beneath the 20-day EMA.
The 4-hour chart reveals that the pair is going through resistance close to $0.54 however the bulls are more likely to defend the drop to the 20-EMA. A robust rebound off this degree will recommend that bulls are shopping for on shallow declines. That would enhance the prospects of a break above $0.54.
Alternatively, if the worth turns down and breaks beneath the 20-EMA, a number of short-term merchants might e-book earnings. That would pull the pair to the 50-SMA. If this degree additionally cracks, the pair might tumble to $0.41.
FTM/USDT
Fantom (FTM) broke above the downtrend line on Jan. 9, indicating a possible development change. The breakout was adopted by a pointy rally which pushed the RSI into deeply overbought ranges.
Vertical rallies are unsustainable, therefore a pullback was to be anticipated. The FTM/USDT pair might dip to the 38.2% Fibonacci retracement degree of $0.30 after which to the 50% retracement degree of $0.28.
If the worth turns up from this zone, it should recommend a change in sentiment from promoting on rallies to purchasing on dips. The bulls will then attempt to resume the restoration and drive the pair above $0.36. In the event that they do this, the pair might surge to $0.42.
Contrarily, a break and shut beneath $0.28 might pull the pair all the way down to the 61.8% retracement degree of $0.26. A deeper fall might break the bullish momentum and enhance the potential for a spread formation.
Each shifting averages are sloping up and the RSI is within the optimistic territory, indicating a bonus to patrons. The pair might slide to the 20-EMA, which is more likely to act as a powerful help. If the worth rebounds off this degree, the bulls will attempt to resume the up-move.
Quite the opposite, if the worth breaks beneath the 20-EMA, it should recommend that merchants are aggressively reserving earnings after the latest rally. The pair might then prolong its correction to the 50-SMA.
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