LUNA, FTM, ATOM, and ONE could rebound if Bitcoin breaks the 50-day SMA
The price of Bitcoin (BTC) continues to languish below the psychological level of $ 50,000 in the early days of the new year, indicating a lack of aggressive buying by traders.. Former BTCC CEO Bobby Lee said the exodus of Chinese traders who had until December 31 to exit Chinese exchanges may have kept prices lower by the end of the year.
But nevertheless, President Nayib Bukele of El Salvador, the first country to adopt Bitcoin as legal tender, believes that Bitcoin could go as high as $ 100,000 this year. President Bukele also said that two other countries will accept Bitcoin as legal tender in 2022.
Increased adoption of cryptocurrencies by institutional investors in 2021 is another long-term positive. According to CoinShares, net inflows into cryptocurrency funds in 2021 were over $ 9.3 billion. A majority of more than two-thirds of the cryptocurrency inflows were in Bitcoin.
Could the price of Bitcoin start a new bullish move in January, taking with it certain altcoins to the upside? Let’s study the charts of the top 5 cryptocurrencies that can remain positive in the short term.
- The Year of Bitcoin: A 2021 Recap for the Star Cryptocurrency
BTC / USDT
Bitcoin price has been trading between the 20-day exponential moving average ($ 48,720) and firm support at $ 45,456 for the past few days.. This suggests that purchases sell out at the highest levels.
Both moving averages are turning down and the Relative Strength Index (RSI) is in the negative zone, indicating that the bears have the upper hand. If the price turns lower from the 20-day EMA, the bears will try to push the price below $ 45.456.. If they succeed, the next leg of the downtrend could begin to $ 42,000 and then to $ 40,000.
Contrary to this assumption, if the price breaks above the 20-day EMA, the BTC / USDT pair could rise to the 50-day SMA ($ 52,332). A breakout and close above this level could signal the start of a new bullish move that could hit the 61.8% Fibonacci retracement level at $ 58,686..
The 4-hour chart shows that the pair is in a range between $ 45,456 and $ 51,936.33. The price has rebounded from $ 45,456 and If the bulls push the pair above the 50 SMA, it will suggest a build-up at lower levels. This could push the price towards $ 51,936.33.
Conversely, if the price turns down from the 50 SMA, the bears will make one more attempt to carry the pair below $ 45,456. If they succeed, the pair could resume the downtrend with the next target at $ 38,975.67.
- The price of Bitcoin has risen between 7% and 36% in the first week of January of every year since 2018
MOON / USDT
Terra’s LUNA token tries to resume its uptrend, but the bears have other plans, drawing a line near $ 93.81.
The rising moving averages and the RSI in positive territory suggest a slight upside for buyers. If the price rebounds off the 20-day EMA ($ 82), it will indicate that the bulls continue to accumulate on the dips..
The LUNA / USDT pair will attempt to break above $ 93.81 and challenge the all-time high of $ 103.60. If it breaks and closes above this resistance, the next leg of the uptrend could start to $ 135.26.
Conversely, If the price turns lower and breaks below the 20-day EMA, it will signal a short-term trend reversal. The pair could then fall to $ 65.15.
The $ 81.11 rebound is facing selling in the zone between the 50% Fibonacci retracement at $ 92.35 and the 61.8% retracement level at $ 95.01.. The bears will now try to carry the price below the 20 EMA and the uptrend line.
If they succeed, the pair could fall to $ 84 and then to $ 81.11. If it breaks and closes below this support, the bears will be back.
Conversely, If the price rebounds from the current level or the uptrend line, buyers will attempt to carry the pair above $ 95.01 and retest the overhead resistance of $ 103.60.
- What BTC price drop? Bitcoin outperforms stocks and gold for the third year in a row
FTM / USDT
Fantom (FTM) has turned lower from the overhead resistance at $ 2.67, suggesting that bears are vigorously defending this level..
The FTM / USDT pair could fall to the 20-day EMA, which could act as firm support.. A major bounce from this support will suggest that buyers are accumulating on the dips.
The rising 20-day EMA ($ 2.03) and RSI above 68 suggest the path of least resistance is to the upside..
A Breakout And Close Above $ 2.67 Will Suggest The Bulls Are Back. The pair could then start its march higher, towards $ 3.17 and then towards $ 3.48. The bears will have to drop and hold the price below $ 2 to invalidate the bullish sentiment.
The 4-hour chart shows a rounded bottom formation, which will complete if it breaks and closes above the overhead resistance at $ 2.67. If the price bounces off the 20 EMA, the bulls will once again try to break above the $ 2.67 barrier. If this happens, the bullish movement could begin.
Conversely, If the price breaks below the 20 EMA, it will suggest that the short-term bullish momentum might be weakening. Then the pair could fall to the 50 SMA and later to the important support at $ 2.
- Related: Three reasons why PlanB’s stock-to-flow model is unreliable
ATOM / USDT
Cosmos (ATOM) broke and closed above the overhead resistance of $ 34 on Jan 1. The moving averages have completed a bullish crossover, indicating that the bulls have the upper hand.
If the price sustains above $ 34, the bullish momentum could increase and the ATOM / USDT pair could rally to $ 38 and thereafter to $ 43.28.. The moving averages have completed a bullish crossover and the RSI is in the positive zone, indicating that the bulls are in control.
Conversely, If the price breaks out and closes below $ 34, it will suggest that the bears are trying to catch the aggressive bulls.. The pair could fall to the 20-day EMA ($ 28).
If the price bounces from this level, the bulls will make one more attempt to overcome the hurdle, but if the pair breaks below the moving averages, the decline could extend to $ 25.
Both moving averages are sloping up and the RSI is in positive territory, suggesting that the bulls have the upper hand.. If the price bounces off the 20 EMA, it will indicate that the sentiment is still positive and that traders are buying during the dips.
The bullish move could resume if it breaks out and closes above $ 37. Conversely, If the bears bring the price down below the 20 EMA, it could cause short-term traders to reap their profits.. This could drive the price to the SMA 50 area.
ONE / USDT
Harmony (ONE) has reached the downtrend line, where the bears are likely to place significant resistance. If the price turns lower from the current level, the altcoin could drop to the 20-day EMA ($ 0.24).
If the price rebounds from the 20-day EMA, it will suggest that the sentiment is still bullish and traders are accumulating during the dips.. The bulls will try again to bring the price above the downtrend line.
If they succeed, a new bullish movement will start. The first target on the upside is $ 0.34 and a break above this could lead to a retest at $ 0.38. This positive view will be invalidated if the price turns lower and breaks below $ 0.21.
The 4-hour chart shows the formation of a cup and mango pattern, which will complete if it breaks and closes above $ 0.29.. This reversal setup has a pattern target at $ 0.38. It is unlikely to be a direct race to the target because the bears will likely put up a firm resistance at $ 0.34.
Conversely, if the price turns down from the current level, it could fall to the moving averages. If this support cracks, the ONE / USDT pair could drop to $ 0.21. A bounce from this support could keep the pair in a range between $ 0.21 and $ 0.27 for some time.
Points of view and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. All investments and trading involve risk, so you should do your own research when making a decision.
Keep reading:
- The Year of Bitcoin: A 2021 Recap for the Star Cryptocurrency
- The price of Bitcoin has risen between 7% and 36% in the first week of January of every year since 2018
- What BTC price drop? Bitcoin outperforms stocks and gold for the third year in a row
- The Republic of San Marino signs a memorandum of understanding with the blockchain platform VeChain
- European Central Bank to Discuss Bitcoin and Blockchain with Young People
- Binance: futures trading platform to launch in September
- Three reasons why PlanB’s stock-to-flow model is unreliable