LINK, ICP, LEO, and ONE could rally if traders feel that the Bitcoin sale is close to completion.
Bitcoin (BTC) and most of the major altcoins remain under pressure as supports give way and bears sell with every recovery attempt. This negative sentiment pushed the Crypto Fear & Greed Index to 10/100 on January 8, one of the lowest readings ever. By comparison, 2021 had started on a bullish note with reading levels of 93/100, indicating “extreme greed.”
This weak open in the new year has not fazed Bloomberg Intelligence analyst Mike McGlone, who remains bullish. He said in a recent analysis that Bitcoin may rise to $ 100,000 and Ether (ETH) to $ 5,000 this year.
However, some analysts argue that Bitcoin may find it difficult to maintain its uptrend in an environment where interest rates are increasing. Holger Zschaepitz he questioned whether Bitcoin could be sustained without “rock-bottom rates and trillions of dollars in central bank money and government stimulus.”
Could Bitcoin bounce off strong support, attracting purchases in select altcoins? Let’s study the charts of the top 5 cryptocurrencies that can remain positive in the short term.
USDT / BTC
Bitcoin’s downtrend has reached strong support at $ 39,600. The price formed a Doji candlestick pattern on January 8, indicating indecision between the bulls and the bears.
Both moving averages are sloping downward and the RSI is close to the oversold zone, indicating that the path of least resistance is to the downside. If the bears slide the price below $ 39,600, the selling could intensify and the BTC / USDT pair could begin its journey towards the next strong support at $ 28,805.
On the other hand, if the price rises from the current level, the pair could rise to the 20-day exponential moving average ($ 45.876). If the price falls from this level, it will suggest that sentiment is still negative and that traders are selling on rallies. That will increase the probability of a breakout below $ 39,600.
The bulls will have to push and hold the price above the moving averages to indicate a possible change in trend.
The 4-hour chart shows that selling momentum rebounded on a breakout and closed below $ 45,456. The bulls are attempting to halt the slide at $ 40.501, but the recovery attempt is likely to face a strong sell near the 20-day EMA.
If the price turns down from the 20-day EMA, the bears will attempt to sink the pair below $ 39,600 and extend the downtrend.
Alternatively, a breakout and close above the 20 EMA could push the pair to the 50 SMA. If the bulls push the price above this resistance, it will suggest that the bears may be losing control.
LINK / USDT
Chainlink (LINK) has been trading in a wide range between $ 15 and $ 35.33 for the past few months. The bulls have pushed the price above the moving averages and the RSI has risen near the overbought zone, indicating that buyers have a short-term advantage.
The bears posed a strong challenge near $ 27.61 for the past few days, but the bulls did not allow the price to dip below the 20-day EMA ($ 23.23). This indicates that sentiment has changed from selling on the rises to buying on the dips.
If the bulls hold the price above $ 27.61, the LINK / USDT pair could rise to 30 and then to the resistance above $ 35.33. This bullish view will be invalidated if the price turns down from the current level and breaks below the moving averages. The pair could fall to $ 18.
The 4-hour chart shows that the price broke through the overhead resistance at $ 27.61. The bears will now attempt to stop the bullish move at $ 30. If the subsequent correction does not fall below $ 27.61, it will increase the possibility of a rally to $ 35.33.
On the contrary, if the price turns down from the current level, it will suggest that the breakout above $ 27.61 may have been a bullish trap. Then the bears will try to bring the price below the 50-day SMA. If they do, the next stop could cost $ 22.
ICP / USDT
Internet Computer (ICP) broke and closed above the downtrend line on January 4, which was the first indication that the downtrend might be coming to an end. The bears tried to catch the aggressive bulls and lower the price below the 20-day EMA ($ 29), but they failed.
The bulls pressed again and closed the price above the downtrend line on January 8. The moving averages are on the verge of a bullish crossover and the RSI jumped into the positive zone, indicating that the bulls are attempting to come back.
If buyers push and hold the price above $ 38.02, the ICP / USDT pair could rally to $ 45.79. This level may once again act as a stiff obstacle, but if it is crossed, the upward move may hit $ 58.30.
Contrary to this assumption, if the price turns down from the current level and breaks below the 20-day EMA, it will indicate that the breakout above the downtrend line may have been a bull trap.
The 4-hour chart shows that the bulls have pushed the price above $ 33.29 but are struggling to overcome the $ 38.02 hurdle. This suggests that the bears continue to sell near the upper resistance. This has kept the couple sandwiched between the two levels.
If the bulls push and hold the price above $ 38.02, the pair could extend its bullish move. Conversely, If the price turns down from the overhead resistance, the bears will try to carry the pair below $ 33.29. If they manage to do that, the pair could fall to the 50-day SMA.
LEO / USD
UNUS SED LEO (LEO) has been trading in a gradual uptrend for the past few weeks, where the 50-day SMA ($ 3.55) has been acting as strong support.
The bears tried to lower the price below the 50-day SMA on January 7, but the bulls did not relent. This resulted in a strong bounce on January 8 that pushed the LEO / USD pair back above the 20-day EMA ($ 3.69).
The bulls will now try to push the price above the all-time high of $ 3.92. If they are successful, the pair can resume its uptrend and hit $ 4.25. This positive view will be invalidated if the price turns down and falls below the 50-day SMA. That could initiate a correction to $ 3.40.
The pair has been trading within an ascending channel pattern. The bears mounted stiff resistance near $ 3.85, which may have attracted profit booking from short-term traders. That brought the pair to the channel support line where buyers stepped in and halted the decline.
The bulls are again trying to push and hold the price above $ 3.85. If they manage to do that, the pair could start their journey towards the resistance line of the channel. The bears will have to sink and keep the price below the channel to invalidate the bullish view.
ONE / USDT
Harmony (ONE) has been trading between the 20-day EMA ($ 0.27) and $ 0.33 for the past few days. This suggests that bulls buy dips and bears sell highs.
The 20-day EMA to the upside and the RSI in positive territory suggest an advantage for buyers. If the bulls lift the price above $ 0.33, the bullish move could resume. The ONE / USDT pair could then attempt to move up to $ 0.38.
Contrary to what was supposed, If the price falls below the 20-day EMA, it will suggest that the bears have beaten the bulls. That could lead the pair to the 50-day SMA ($ 0.24) and then to $ 0.21.
The 4-hour chart has been moving up within an ascending channel pattern. Although the bulls pushed the price above the channel, they were unable to sustain the higher levels. This suggests that the bears tried to catch the aggressive bulls.
The price dipped back into the channel, but a minor upside is that it bounced off the 50-day SMA. This indicates that sentiment remains positive and the bulls are buying on dips.
If the price rises above the 20-day EMA, the pair could climb back to the resistance line of the channel. A breakout and close above this level could indicate a rebound in momentum. Conversely, a breakout and close below the 50 SMA could lead the pair to the channel support line.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk, you must do your own research when making a decision.