Bullish Momentum Steers Bitcoin: A Close Look at Top Cryptocurrencies' Performance
Summary:
Bitcoin shows a gradual upward trend, suggesting an ongoing demand from buyers. As it consolidates its gains, traders are focusing on newly launched Bitcoin-exchange-traded funds, the upcoming Bitcoin halving in April, and potential performances of select altcoins. Bitcoin's price rose above the 20-day exponential moving average, indicating a decrease in selling pressure, while Solana (SOL) and Avalanche (AVAX) display an upward trend. The cryptocurrency Render (RNDR) has entered a consolidation phase, while Sui (SUI) continues to show an upward trajectory, with bears aiming to halt the rally at $1.50. The market dynamics manifest a balance between the bulls and the bears, depending on the price movements above or below moving averages.
Over the weekend, Bitcoin (BTC) has shown consistent upward movement, pointing towards an ongoing interest from buyers. On January 26, Bloomberg analyst James Seyffart disclosed that BlackRock's iShares Bitcoin Trust (IBIT) assets under management exceeded $2 billion. Despite substantial purchases at lower Bitcoin levels preventing a drop, it is unlikely that a fresh bull market will quickly emerge. As Bitcoin stabilizes its gains, traders are keeping an eye on the newly launched Bitcoin exchange-traded funds and waiting for the Bitcoin halving in April.
Maintaining a range could be a positive indication for Bitcoin, suggesting traders are not in a rush to take profits as they expect the uptrend to sustain. This could also be beneficial for selected altcoins attracting investors and resuming their upward trend. Bitcoin’s recovery uplifted several altcoins. Now, the focus shifts to examining the charts for the top 5 cryptocurrencies with promising performance in the near term.
Bitcoin rose above the 20-day exponential moving average ($41,959) on January 27, hinting towards a decrease in selling pressure. The situation between supply and demand currently balances with both moving averages leveling out and the relative strength index (RSI) around the midpoint. Bitcoin may oscillate between $44,700 and $37,980 for a while.
If Bitcoin breaks and consolidates above $44,700, it could signal that buyers are gaining control, potentially pushing the price towards the local high of $48,970. Conversely, a fall below $37,980 might trigger a deeper correction towards $34,800.
On the 4-hour chart, the moving averages show a bullish crossover, and the RSI is within the overbought zone, implying bulls are staging a comeback. The rally could hit $43,500, and then $44,700. On the other hand, a slip below the 50-simple moving average could offer an upper hand to the bears, potentially triggering a slump to $39,500 and later to $37,980.
On January 27, Solana (SOL) climbed above the moving averages and attempted to retain above the downtrend line on January 28. The SOL/USDT pair may try for a rally to $107 and then $117 if the price stays above the downtrend line. If the price drops below the moving averages, it could trap aggressive bulls, potentially triggering a retest of the support at $79.
Avalanche (AVAX) has been fluctuating within a descending channel pattern for a few days now. On January 23, investors bought the dip to the support line, pushing the price above the 20-day EMA ($34) on January 28.
If the price crosses the overhead resistance, it would demonstrate aggressive buying by bulls. The pair may then accelerate and rally to $44, and potentially to the psychologically significant level of $50. A drop below the moving averages might suggest that bears are resiliently selling at higher levels, possibly leading to the pair remaining within the channel for a longer duration.
Render (RNDR) has been in a consolidation phase between $3.56 and $4.40 following an initial pullback. If the price rises above $4.40, it could suggest that buyers are overpowering the sellers. The pair might then rally to $5.07 and eventually to $5.28. A successful surge above this level will signal the uptrend's resumption. However, if the price turns and falls below the 20-day EMA ($4), the pair may prolong its range-bound action for a few more days.
Sui (SUI) has been on an upward trajectory for the past few days. However, bears aim to pause the rally at $1.50. If the rounded bottom pattern completes on a break with closure above $1.50, the bullish momentum may gear up, propelling the pair towards $2 and potentially to $2.64.
On the contrary, a slide below the 20-day EMA ($1.18) could pave the way for a fall to the 50-day SMA ($0.92). If the price rebounds vigorously off the 20-day EMA, it augments the likelihood of a rally above $1.50.
While the bullish sentiment persists, if the price dips and rebounds off the 20-EMA, it could breach the hurdle at $1.50 and inaugurate the next uptrend. Conversely, breaking below the 20-EMA could induce a pullback to the 50-SMA.
Published At
1/28/2024 8:40:41 PM
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