On-chain data suggests that high-net-worth individuals continued to buy Bitcoin (BTC) after Christmas. Analysts at Santiment said that smaller traders sold about $647 million worth of Bitcoin and this sum may have been bought up by Bitcoin whales.
Data also signals that large investors have been buying and holding their purchases throughout 2020, without booking profits in an aggressive manner. According to Glassnode analysts, this has caused the number of Bitcoin in circulation to decline by about 1 миллион.
That means, out of the total available supply, 14.5 million Bitcoin are considered illiquid. Glassnode analysts say that this leaves only 4.2 million Bitcoin in constant circulation that are available for trading..
This could further increase the imbalance in the demand and supply equation boosting Bitcoin’s price higher.
тем не мение, every bull market goes through periodic corrections and Bitcoin may also be due for one. Следовательно, traders should weigh the risks before buying at the current levels.
Let’s analyze the charts of the top-10 cryptocurrencies to find the altcoins that may join Bitcoin in the breakout.
BTC / USD
Bitcoin had formed a gravestone Doji candlestick pattern on Dec. 27 but the bears could not pull the price down on Dec. 28. The bears again tried to start a correction on Dec. 29 but the hammer candlestick formation suggests strong buying on dips.
The bulls have pushed the BTC/USD pair to a new all-time high at $28,587.67 Cегодня. This suggests that the uptrend has resumed. The next level to watch on the upside is the psychological barrier at $30,000.
Although the rising moving averages suggest an advantage to the bulls, the relative strength index (RSI) has risen deep into overbought territory, which suggests that a correction could be around the corner.
Overbought levels at the start of a rally is a sign of accumulation, but after a mature rally, an RSI above 80 suggests buying due to FOMO and this usually leads to a correction. Следовательно, traders should remain cautious and protect their paper profits with a suitable stop-loss.
A break below $25,800 could signal the start of a deeper correction to the 20-day exponential moving average ($23,836) and then to the 50-day simple moving average ($20,077).
ETH / USD
Эфир (ETH) formed an inside day long-legged Doji candlestick pattern on Dec. 29. This suggests that the bears tried to pull the price down but the bulls absorbed all the selling and staged a strong recovery by the end of the day.
The bulls are currently attempting to push the price above $750 but the Doji candlestick pattern suggests indecision among the bulls and the bears.
If this uncertainty resolves to the upside and the ETH/USD pair rises above $750, the uptrend could reach $800 where the bears may again mount a stiff resistance.
The upsloping moving averages and the RSI near the overbought territory suggest that bulls are in control.
тем не мение, if the bulls fail to drive the price above $750, the pair could attract profit booking by the short-term traders. If the bears sink the price below $$680, the pair could drop to the 20-day EMA ($645).
A strong rebound off the 20-day EMA will suggest that the sentiment remains bullish and traders are buying on dips. С другой стороны, a break below the 20-day EMA may signal the start of a deeper correction.
XRP / доллар США
XRP continues to be in a strong downtrend and every attempt to start a relief rally is facing aggressive selling by the bears. The altcoin dipped to $0.172536 в декабре. 29 but the long tail on the candlestick suggests that bulls are attempting to defend this level.
The relief rally could face stiff resistance at the 38.2% Уровень коррекции Фибоначчи на $0.358202. Если цена отклонится от этого уровня, the bears will again try to resume the downtrend. A break below $0.172536 could result in a fall to $0.10.
тем не мение, if the bulls defend the $0.169 служба поддержки, the XRP/USD pair could consolidate in a tight range for a few days before starting the next trending move.
LTC / USD
The bulls have managed to keep Litecoin (LTC) above the $124.1278 support for the past few days but the failure to resume the uptrend suggests a lack of demand at higher levels.
When the price fails to rise, it could attract selling by short-term traders and that may pull the price down to the 20-day EMA ($110).
If the LTC/USD pair rebounds off this support, the bulls will again try to resume the uptrend. If they succeed in driving the price above $140, the pair could rally to $160.
тем не мение, the RSI has formed a negative divergence, which suggests that the momentum is weakening. A break below the 20-day EMA could drag the price down to $95.40.
BCH / USD
Биткойн Кэш (BCH) is struggling to rise above the $370 overhead resistance but the positive thing is that the price has not given up much ground. This suggests that traders are not closing their positions in a hurry.
The upsloping moving averages and the RSI above 60 предполагают, что путь наименьшего сопротивления - вверх. Если быки могут подтолкнуть и поддержать цену выше $370, the BCH/USD pair may rise to $430 а затем в $500.
This positive view will be negated if the pair drops below the 20-day EMA ($317). Such a move could keep the pair range-bound for a few more days.
DOT / USD
В горошек (ТОЧКА) soared above the $5.60 к $6.0857 overhead resistance zone on Dec. 28 and followed it up with another sharp up-move on Dec. 29 that carried the altcoin to $7.70, just above the $7.67 target objective mentioned in the previous analysis.
The bears are currently attempting to defend the $7.70 level but the long tail on today’s candlestick suggests aggressive buying by the bulls on intraday dips.
If the price does not drop below the 38.2% Fibonacci retracement of $6.6428, the DOT/USD pair could resume the uptrend, with the next target at $10.
Наоборот, if the bears pull the price below $6.6428, капля в $6.3163 а затем в $5.9897 возможно. Such a move will suggest that the momentum has weakened and that could keep the pair range-bound for a few days.
ADA / доллар США
Кардано (ЕСТЬ) сломался над $0.175 к $0.1826315 overhead resistance zone on Dec. 29 but the bulls have not been able to sustain the breakout. The price has dipped back below $0.1826315 Cегодня.
тем не мение, the upsloping moving averages and the RSI in the positive zone suggest that bulls are in control.
If the ADA/USD pair rebounds off the current levels, it will suggest that $0.175 has flipped to support. The bulls will then try to push the price above $0.1966315, which could result in a rally to $0.22 а затем в $0.235.
This positive view will invalidate if the price dips and sustains below $0.175. Such a move could result in a drop to the 20-day EMA ($0.161).
BNB / USD
Binance Coin (BNB) closed above the $35.69 overhead resistance on Dec. 28 and followed it up with another sharp up-move on Dec. 29 that pushed the price to a new all-time high at $39.99.
The rising moving averages and the RSI in the positive zone suggest that bulls have the upper hand.
The bears are currently attempting to stall the up-move near $40 but if the price does not dip below $35.69, it will increase the possibility of the resumption of the uptrend. Если это произойдет, the BNB/USD pair could rise to $50.
Вопреки этому предположению, if the price dips back below $35.69, падение к 20-дневной EMA ($33) is likely.
LINK / USD
The bulls could not propel Chainlink (ССЫЛКА) above the $13.28 overhead resistance on Dec. 27 and the altcoin turned down on Dec. 29. The bears are currently attempting to sink the price below the $11.29 служба поддержки.
Если им это удастся, пара LINK / USD может упасть до $10 and if this support also gives way, the decline may extend to $8. The downsloping 20-day EMA ($12.24) and the failure of the RSI to sustain above 50 suggests that bears have the upper hand.
This negative view will be invalidated if the pair rebounds off the current levels and rises above the $13.28 сопротивление. Если это произойдет, it will suggest accumulation at lower levels. The pair could then rally to $16.39.
Биткойн SV (BSV) has been range-bound between $146 и $181 for the past few weeks. The flat moving averages and the RSI just below the midpoint suggest a balance between supply and demand.
In a well-defined range, traders buy the dips to the support and sell near the resistance. Таким образом, the BSV/USD pair may rebound off $146 and extend its stay inside the range for a few more days.
The longer the consolidation, the stronger will be the breakout from it. If the pair rises above the moving averages, the bulls will once again try to push the price above $181. Если им это удастся, митинг $216 а затем в $227 возможно.
Вопреки этому предположению, если медведи опустят цену ниже $146, the trend will shift in favor of the bears.
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