The cryptocurrency markets have made a robust comeback prior to now few days. That drove the entire crypto market capitalization to $995 billion on Jan. 14, in accordance with CoinMarketCap information. Bitcoin (BTC) led the restoration from the entrance and skyrocketed above $21,000 on Jan. 14.
After the sharp rally, the massive 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 counsel {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 length 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 could make the subsequent high in roughly 1,000 days.
Bitcoin’s brief time period worth motion has been thrilling for bulls however are there altcoins which might be exhibiting related power within the close to time period?
Let’s research the charts to search out out.
BTC/USDT
Bitcoin shot as much as $21,258 on Jan. 13 and that propelled the relative power index (RSI) above 89, signaling that the rally was overheated within the brief time period. The bears are anticipated to mount a robust protection at $21,500.
Typically, when a development change occurs, the RSI could stay within the overbought territory for a very long time. If the BTC/USDT pair doesn’t surrender a lot floor from the present degree, it would counsel that merchants are in no hurry to guide income as they anticipate one other leg increased.
If consumers kick the value above $21,500, the pair may climb to $22,800. This degree could once more act as a serious roadblock.
On the best way down, the bears must drag the value beneath the psychological degree of $20,000 to make a dent within the bullish momentum. The pair may then stoop to the breakout degree of $18,388.
The 4-hour chart exhibits that the bears are guarding the $21,250 degree however a constructive signal is that the bulls haven’t allowed the value to slip again beneath $20,000. Patrons could once more try and clear the overhead hurdle at $21,258 and resume the uptrend.
Quite the opposite, if the value as soon as once more turns down from $21,250, it could tempt short-term merchants to guide income. That might sink the pair beneath the 20-EMA. The bears could 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 any main hurdle till the value 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 value springs again from this zone, the LTC/USDT pair may 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 achieve the higher hand, they must pull the value beneath the breakout degree of $75. That might make method for a collapse to $61.
The 4-hour chart exhibits the pair is in an uptrend and the bulls are fiercely defending the 20-EMA. If consumers drive the value above $92, the pair may choose up momentum and rally towards the psychological degree of $100.
Conversely, if the value turns down and dives beneath the 20-EMA, it would counsel that short-term merchants could also be reserving income. That might pull the value to the 50-SMA. This is a vital degree for the bulls to defend as a result of a break beneath it may heighten the danger 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. Normally, it’s a good technique to purchase the dips in an uptrend by holding 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 may slip to the 20-day EMA ($27.64), which is prone to act as a robust help.
If the value rebounds off this degree, the pair may contact the sturdy overhead barrier at $34.18. Crossing this degree could also be a tough job but when the bulls handle to attain it, the pair may skyrocket to $42.
If bears wish to stall the up-move, they must yank the value beneath the 20-day EMA. In the event that they succeed, the pair may plummet to the 50-day SMA ($24.05).
The 4-hour chart exhibits that the uptrend met with sturdy promoting close to $33 and the pair may right to the 20-EMA. If the value rebounds off this help, it would counsel that bulls are shopping for on each minor dip. That might drive the value to $34.18.
Contrarily, if the value plunges beneath the 20-EMA, the correction may deepen to the 50-SMA. If the value rebounds off this degree, the bulls will once more attempt to resume the up-move however could face resistance at $31 and once more close to $33.
Associated: Bitcoin fails to persuade that backside is in with $12K ‘nonetheless probably’
BIT/USDT
BitDAO (BIT) rallied sharply from $0.26 on Dec. 27 to $0.53 on Jan. 14, indicating a robust bullish momentum. As well as, the shallow pullback on Jan. 15 means that merchants will not be exiting their positions in a rush as they anticipate the up-move to proceed.
If bulls thrust the value above the overhead resistance at $0.54, the BIT/USDT pair may resume its up-move. The subsequent resistance on the upside is at $0.68. The bears could pose a robust problem at this degree as a result of a break and shut above it may open the doorways for a attainable rally to $0.80.
On the draw back, the primary help is at $0.46 after which the 20-day EMA ($0.42). A powerful bounce off both help will counsel that merchants are shopping for on declines. That might lead to a retest of $0.54. The bears could take management in the event that they sink the value beneath the 20-day EMA.
The 4-hour chart exhibits that the pair is going through resistance close to $0.54 however the bulls are prone to defend the drop to the 20-EMA. A powerful rebound off this degree will counsel that bulls are shopping for on shallow declines. That might enhance the prospects of a break above $0.54.
Alternatively, if the value turns down and breaks beneath the 20-EMA, a number of short-term merchants could guide income. That might pull the pair to the 50-SMA. If this degree additionally cracks, the pair may 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 may dip to the 38.2% Fibonacci retracement degree of $0.30 after which to the 50% retracement degree of $0.28.
If the value turns up from this zone, it would counsel 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 try this, the pair may surge to $0.42.
Contrarily, a break and shut beneath $0.28 may pull the pair right down to the 61.8% retracement degree of $0.26. A deeper fall may break the bullish momentum and enhance the potential for a variety formation.
Each shifting averages are sloping up and the RSI is within the constructive territory, indicating a bonus to consumers. The pair may slide to the 20-EMA, which is prone to act as a robust help. If the value rebounds off this degree, the bulls will attempt to resume the up-move.
Quite the opposite, if the value breaks beneath the 20-EMA, it would counsel that merchants are aggressively reserving income after the current rally. The pair may then lengthen its correction to the 50-SMA.
The views, ideas and opinions expressed listed here are the authors’ alone and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes danger, and readers ought to conduct their very own analysis when making a call.
