Cryptocurrency markets have seen a major rally in recent days. That led to the Total cryptocurrency market capitalization will hit $995 billion on January 14, according to data from CoinMarketCap. Bitcoin (BTC) led the rally from the front and shot up above $21,000 on Jan. 14.
After the sharp rebound, The big question is whether the rally is a dead cat bounce (short-term rally) that represents a selling opportunity, or is it the start of a new uptrend.. It is difficult to predict with certainty whether a macro bottom has been hit, but the charts suggest that a bottoming out process has started.
Independent market analyst HornHairs noted that the bear market from 2017 to 2018 lasted 364 days and from 2021 to the current market low, the duration is again 364 days. Another interesting similarity is that the bull market from 2015 to 2017 and the bull phase from 2018 to 2021 both lasted 1,064 days. If history repeats itself, then bitcoin could make the next high in about 1,000 days.
Bitcoin’s short-term price action has been exciting for bulls, but are there any altcoins showing similar near-term strength?
Let’s study the graphs to find out.
BTC/USDT
The bitcoin price shot up to $21,258 on January 13 and that pushed the relative strength index (RSI) above 89.Indicating that the rally overheated in the short term. The bears are expected to mount a major defense at $21,500.
Sometimes when a trend change occurs, the RSI can stay in the overbought territory for a long time. If the BTC/USDT pair does not give up much ground from the current level, it will suggest that traders are in no rush to take profit as they anticipate another leg higher..
If buyers break above $21,500, the pair could reach $22,800. This level can again be a major obstacle.
On the way down, bears will have to push the price below the psychological $20,000 level to dent the bullish momentum. Then, the pair could drop to the breakout level of $18.388.
The 4 hour chart shows that The bears are protecting the $21,250 levelbut a positive sign is that the bulls have not allowed the price to pull back below $20,000. The buyers could try to break above the $18.388 level. Buyers may try again to break through the $21.258 barrier and resume the uptrend.
On the contrary, if the price turns back from $21,250, short-term traders might be tempted to take profits. This could send the pair below the 20-EMA. The bears could try to capitalize on this situation and push the pair to $18.388.
USDT/LTC
Litecoin (LTC) broke above the $85 overhead resistance on Jan. 12, signaling the start of a new uptrend. There are no major hurdles until the price reaches $107.
Besides, The bulls will try to fiercely defend the area between $85 and the 20-day EMA ($79).. If the price leaves this zone, the LTC/USDT pair could continue its bullish trend and reach $107.
Bullish moving averages indicate advantage for bulls, but RSI above 77 suggests a small pullback or consolidation is likely.
If the bears want to take the lead, they will have to take the price below the breakout level of $75.. This could lead to a crash to $61.
The 4-hour chart shows that the pair is in an uptrend and the bulls are fiercely protecting the 20-EMA. If the buyers push the price above $92, the pair could pick up momentum and rally towards the psychological $100 level..
On the contrary, if the pair falls below the 20-EMA, investors would be taking profits. This could drive the price to the 50-SMA. This is an important level for bulls to defend, as a break below could increase the risk of a drop to $80 and then $75.
USDT/OKB
As various cryptocurrencies try to reach a bottom, OKB (OKB) has started a new uptrend. It is generally a good strategy to buy on dips in an uptrend, keeping a suitable stop loss.
The bullish moving averages and the RSI in the overbought zone indicate that the bulls are in command, but a short-term consolidation or correction cannot be ruled out.. The OKB/USDT pair could slide down to the 20-day EMA ($27.64), which is likely to act as major support.
If the price bounces from this level, the pair could touch the important upper barrier of $34.18.. Crossing this level may be a difficult task, but if the bulls manage to reach it, the pair could skyrocket to $42.
If the bears want to stop the uptrend, they will need to push the pair below the 20-day EMA. If they do, the pair could plummet to the 50-day SMA (24.05).
The 4-hour chart shows that the uptrend was met with significant selling near $33 and the pair could correct back to the 20-day EMA.. If the price bounces off this support, it will suggest that the bulls are buying every minor dip. In this way the pair could reach $34.18.
On the contrary, if the price falls below the 20-EMA, the correction could deepen to the 50-SMA. If the pair bounces from this level, the bulls will try again to resume the move higher, but they could run into resistance at $31 and again near $33.
BIT/USDT
BitDAO (BIT) surged from $0.26 on Dec. 27 to $0.53 on Jan. 14, signaling strong bullish momentum. Furthermore, the shallow pullback on January 15 suggests that traders are not exiting their positions in a hurry, as they expect the bullish move to continue.
If the bulls push the price above the resistance at $0.54, the BIT/USDT pair could resume its bullish move. The next bullish resistance lies at $0.68. The bears could pose a significant challenge at this level, as a break and close above it could open the doors for a potential rally to $0.80.
To the downside, the first support lies at $0.46 and then the 20-day EMA ($0.42).. A major bounce off any of these supports would indicate that traders are buying dips. This could lead to a retest at $0.54. The bears could take over if they push the price below the 20 day EMA.
The 4-hour chart shows that the pair is facing resistance near $0.54, but the bulls are likely to defend the dip to the 20-EMA.. A significant bounce from this level will suggest that the bulls are buying shallow dips. That could improve the prospects for a break above $0.54.
Secondly, If the pair falls below the 20-EMA, several short-term traders could take profits. This could take the pair all the way to the 50-SMA. If this level is also broken, the pair could fall to $0.41.
FTM/USDT
Fantom (FTM) broke above the downtrend line on January 9, indicating a possible trend reversal. The breakout was followed by a major rally that pushed the RSI to overbought levels.
Vertical rallies are unsustainable, so a pullback was to be expected. The FTM/USDT pair could drop to the 38.2% Fibonacci retracement level of $0.30, and then down to the 50% retracement level of $0.28.
If the price rises from this zone, it would indicate a change in sentiment, from selling on rallies to buying on dips. The bulls will try to resume the rally and push the pair above $0.36. If successful, the pair could reach $0.42.
Conversely, a break and close below $0.28 could take the pair to the 61.8% retracement level of $0.26.. A deeper drop could break the bullish momentum and increase the possibility of a range formation.
Both moving averages are sloping higher and the RSI is in positive territory, indicating an advantage for buyers.. The pair could slide towards the 20-EMA, which is likely to act as major support. If the pair recovers this level, the bulls will try to resume the uptrend.
On the contrary, if the pair falls below the 20-EMA, investors would be taking profits. So the pair could extend its correction to the 50-SMA.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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