The downturn in the price of Bitcoin (Btc) and major altcoins signifies a negative sentiment of Cryptocurrency Investor. Prices are being rejected at resistance level with a forced break below the support region. Consecutive lower highs and lower lows are being formed in charts indicating a bearish signal. This has left traders no choice but to sell in a loss in a bid to prevent more loss
According to an analyst at Decentrader, Philip Swift revealed his analysis on the spent profit output ratio (SOPR) metric. The SOPR is simply the sum of the price bought versus the price sold during a specific period. The metric indicated that a lot of sellers have been selling at a loss for the past few months. In addition, the funding rate has been another metric that has kept traders worried and short-term traders panicking. It dipped more into the negative region after a comment by the U.S Federal Reserve was released.
While there are several bearish predictions, Cathy Woods Ark Invest predicted a long-term bull run. He said that the prices of Bitcoin (BTC) and Ethereum (ETH) should go above $1million and $170,000 respectively by 2030.
Bitcoin (BTC/USDT)
The bears are not willing to let go of their strength as bitcoin keeps consolidating between $37,300 and $39,600 region. There have been some pullbacks to the upside which are a result of the relative strength index being oversold. The bears would try breaking below the support region and push the BTC price to $32,917.17. A break below that price would push bitcoin’s price to the next support at $30,000
On the other hand, if the price bounces off support and goes above $37,332.70, it would only mean that BTC has been accumulating in those support regions. This will give buyers more strength as they attempt to push prices a little bit higher than the 20-day Exponential Moving Average (EMA) at $39,714. The next resistance would be the 50-day Simple Moving Average (SMA) which is at $44,428. A confirmed close above this resistance would indicate that the downtrend might have come to an end
Ethereum (ETH/USDT)
On the 26th of January, Ether went above strong resistance at $2,652. Unfortunately, it was a fake breakout as sellers aggressively sold above resistance to push the price back below the support region. Ever since then, buyers have been trying to push prices back above resistance. If they are unable to do that, the bears will then continue in the bearish run and try to push the price below an intraday low at $2,159. A successful drop in price below that would push Ether’s price to $2000 and then continue to $1700.
BNB/USDT
There was rejection at the $330 support region as the price rebounded from it on the 25th of January. Shortly after, price moved back into the descending region and buyers have been trying to push the price back up as it is a very crucial zone to defend. The target is the next resistant zone $424 which is at the 20-day EMA indicator. A break above it will signal a possible end to the downtrend.
ADA/USDT
It is evident the bulls are defending the support at $1 as Ada has been trading slightly below $1. Sellers might be able to push the price down to $0.80 because tge low momentum from buyers has been unable to push the price far above $1. Its price is currently below support and resistance (SMA AND EMA). Ada would have to trade above these barriers to signal a possible change in market direction.
SOL (SOL/USDT)
A descending channel with a strong support line has been the region where Solana has been trading. This signifies the support line is being defended well by the buyers although a strong rebound off it has not been achieved yet. A minor pullback or consolidation might occur after the RSI indicator has been trading in the oversold territory for the last few days. A break above the 20-day EMA ($118) could signal a bull run. Price could go to $66 if it breaks the channel to the downside
RIPPLE (XRP/USDT)
A long wick on a daily chart at the resistance region signifies the seller’s strength as buyers are trying to push prices above $0.65. A confirmed break above the 20-day EMA at $0.68 would indicate reduced selling pressure and could cause XRP to rally to the resistant zone at $0.75
LUNA/USDT
With the RSI and 20-day EMA ($68.8), an indicator trading close to the oversold territory shows sellers have more chance to push the price to the downside. This has been evident in the downward channel as prices have been strongly rejected at different resistance regions along the channel. Luna’s price might decline to $37.82 if the support region breaks
DOGE/USDT
The bears have been in control as they strongly sell at any point of resistance. This has pushed the price of doge down below the 20-day EMA. With RSI indicating a bullish divergence, a reduction in selling pressure could occur. If its price goes above the 20-day EMA, it might head for the next resistance at $0.19. If otherwise, the price might drop down to the support zone at $0.10
DOT/USDT
There hasn’t been a rebound off the support at $16.81 signaling a weak momentum from buyers. The price might decline to $10.37 if sellers can break below the support. On the other hand, if the price breaks above $20.16, it may keep rising to the next resistance at the 50-day SMA indicator at $25.44. This will indicate a possible change in trend.
AVAX/USDT
A break below $47.66 would signal another leg or lower low in a downtrend. Conversely, a break above $75.50 will indicate that the bearish run might be coming to an end. A rebound off the $51.04 support zone would signal that buyers are buying the deep
