The cryptocurrency markets have made a powerful comeback previously few days. That drove the entire crypto market capitalization to $995 billion on Jan. 14, in response to CoinMarketCap information. Bitcoin (BTC) led the restoration from the entrance, skyrocketing above $21,000 on Jan. 14.
After the sharp rally, the large query is whether or not the restoration is a useless cat bounce that may be a promoting alternative, or the beginning of a brand new uptrend. It is troublesome to foretell with certainty if a macro backside has been made however the charts counsel {that a} bottoming course of has begun.
Crypto market information each day view. Source: Coin360
Independent market analyst HornHairs highlighted that the 2017 to 2018 bear market lasted for 364 days and that from 2021 to the present market low, the period is once more 364 days. Another attention-grabbing similarity is that the 2015 to 2017 bull market and the 2018 to 2021 bull part 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 short-term worth motion has been thrilling for bulls however are there altcoins which might be displaying comparable energy 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 energy index (RSI) above 89, signaling that the rally was overheated within the brief time period. The bears are anticipated to mount a powerful protection at $21,500.
BTC/USDT each day chart. Source: TradingView
Sometimes, 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 hand over a lot floor from the present degree, it would counsel that merchants are in no hurry to ebook earnings as they anticipate one other leg increased.
If consumers kick the value above $21,500, the pair might climb to $22,800. This degree could once more act as a significant roadblock.
On the best way down, the bears must drag the value under the psychological degree of $20,000 to make a dent within the bullish momentum. The pair might then hunch to the breakout degree of $18,388.
BTC/USDT 4-hour chart. Source: TradingView
The four-hour chart exhibits that the bears are guarding the $21,250 degree however a optimistic signal is that the bulls haven’t allowed the value to slip again under $20,000. Buyers could once more try to clear the overhead hurdle at $21,258 and resume the uptrend.
On the opposite, if the value as soon as once more turns down from $21,250, it could tempt short-term merchants to ebook earnings. That might sink the pair under the 20-day exponential shifting common (EMA). The bears could attempt to capitalize on this example 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 is not any main hurdle till the value reaches $107.
LTC/USDT each day chart. Source: TradingView
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 might 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 need to acquire the higher hand, they must pull the value under the breakout degree of $75. That might make manner for a collapse to $61.
LTC/USDT 4-hour chart. Source: TradingView
The four-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 might choose up momentum and rally towards the psychological degree of $100.
Conversely, if the value turns down and dives under the 20-EMA, it would counsel that short-term merchants could also be reserving earnings. That might pull the value to the 50-day easy shifting common (SMA). This is a vital degree for the bulls to defend as a result of a break under it might heighten the chance of a drop to $80 after which $75.
OKB/USDT
While a number of cryptocurrencies try to backside out, OKB (OKB) has began a brand new uptrend. Usually, it’s a good technique to purchase the dips in an uptrend by retaining an appropriate cease loss.
OKB/USDT each day chart. Source: TradingView
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 might slip to the 20-day EMA ($27.64), which is more likely to act as robust help.
If the value rebounds off this degree, the pair might contact the robust overhead barrier at $34.18. Crossing this degree could also be a troublesome job but when the bulls handle to realize it, the pair might skyrocket to $42.
If bears need to stall the up-move, they must yank the value under the 20-day EMA. If they succeed, the pair might plummet to the 50-day SMA ($24.05).
OKB/USDT 4-hour chart. Source: TradingView
The four-hour chart exhibits that the uptrend met with robust promoting close to $33 and the pair might 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 under the 20-EMA, the correction might 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.
Related: 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 powerful bullish momentum. In addition, the shallow pullback on Jan. 15 means that merchants aren’t exiting their positions in a rush as they anticipate the up-move to proceed.
BIT/USDT each day chart. Source: TradingView
If bulls thrust the value above the overhead resistance at $0.54, the BIT/USDT pair might resume its up-move. The subsequent resistance on the upside is at $0.68. The bears could pose a powerful problem at this degree as a result of a break and shut above it might open the doorways for a doable rally to $0.80.
On the draw back, the primary help is at $0.46 after which the 20-day EMA ($0.42). A robust bounce off both help will counsel that merchants are shopping for on declines. That might end in a retest of $0.54. The bears could take management in the event that they sink the value under the 20-day EMA.
BIT/USDT 4-hour chart. Source: TradingView
The four-hour chart exhibits that the pair is dealing with resistance close to $0.54 however the bulls are more likely to defend the drop to the 20-EMA. A robust 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 under the 20-EMA, a number of short-term merchants could ebook earnings. That might pull the pair to the 50-SMA. If this degree additionally cracks, the pair might 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.
FTM/USDT each day chart. Source: TradingView
Vertical rallies are unsustainable, therefore a pullback was to be anticipated. The FTM/USDT pair might 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. If they try this, the pair might surge to $0.42.
Contrarily, a break and shut under $0.28 might pull the pair all the way down to the 61.8% retracement degree of $0.26. A deeper fall might break the bullish momentum and improve the potential of a spread formation.
FTM/USDT 4-hour chart. Source: TradingView
Both shifting averages are sloping up and the RSI is within the optimistic territory, indicating a bonus to consumers. The pair might slide to the 20-EMA, which is more likely to act as a powerful help. If the value rebounds off this degree, the bulls will attempt to resume the up-move.
On the opposite, if the value breaks under the 20-EMA, it would counsel that merchants are aggressively reserving earnings after the current rally. The pair might then prolong its correction to the 50-SMA.
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