At a time when bitcoin price movements remain transverse and limited, a bunch of coin-operated instruments have been mobilized to stabilize the new historical highs (ATH) in their prices.
In addition to the almost neutral fluctuations of bitcoin, traders are looking to institutional investors and buying this category to help them determine the end of bitcoin reform. The recent purchase of $ 10 million (approximately 314 bitcoins) by Microstrategy with an average price of $ 31,808 is a slight boost to market sentiment. But if buyers do not work hard and do not continue their purchases at higher levels, this will not be enough to prevent price reductions.
A recent analysis by Singaporean investment firm Kyusipi on time zones divided Asian and US business meetings into 12-hour timeframes and found that since March 2020, bitcoin prices have risen sharply. US trading sessions have increased due to the consistent purchases of institutional investors. However, buying pressure has eased over the past two weeks after the bitcoin price cap was fixed.
Although monitoring the inflow of institutional investors is a good strategy, it will also be important to monitor small traders. In recent months, the volume of investment in this category has been growing and has supported the capital market globally in all parts of the world.
Bitcoin is currently seeking to reclaim its historic high, but at this time a number of Altcoins have reached new highs. Finally, these factors indicate the current focus of small traders on pennies. Let’s take a look at this week’s chart of the top 5 digital currencies that have the ability to move in an uptrend.
The price of Bitcoin has jumped from around the 50-day moving average (SMA 50 – red line in the picture) to $ 28,632, and in the current situation with the resistance of the 20-day moving average (EMA 20 – blue line in the picture) in $ 33,775. Failure to move above this average is not a good sign, as it indicates a shift in market sentiment from Buy the dip to Sell on rallies.
The 20-day moving average is sloping and the relative strength index (RSI) is fluctuating below the 50 level. These factors warn bears to return to the market. The pattern of Harami candelabra on January 23rd (February 4th) as well as yesterday’s candelabra shows a lack of certainty between buyers and sellers.
If this uncertainty leads to a price drop, sellers will try to dominate and the price will fall below the simple 50-day moving average. In this case, the price correction is likely to deepen to the level of 50% Fibonacci retracement of $ 25,897.42 and then to the level of 61.8% Fibonacci at $ 22,106.73.
Conversely, if the market moves the price above the 20-day moving average (EMA 20 – blue line in the picture), price growth will be possible up to the downtrend line. Vendors are also likely to defend this key and strong resistance. If the price moves above this level and moves below the 20-day moving average, sellers’ entry into the price recovery waves can be concluded. On the other hand, the movement of the price above the downtrend line indicates the end of the price correction.
By stabilizing (close, valid closing of the price) above the downtrend line, the possibility of retesting the highest price ceiling will increase to $ 41,959.63. Above this level, the next target is the $ 50,000 psychological level price.
The bearish slope of the moving averages and the relative strength index (RSI) in its negative area in the four-hour time frame indicate the dominance of market bears. The price movement shows the formation of a downward triangle pattern in the chart, which will be activated by breakout and stabilization of the price below the level of $ 30,450, and shows the target of $ 18,940.37 in the price.
Also, if buyers push the price above the moving averages, it will be possible to grow up to the downtrend line. Monitoring this key resistance is important because breakout of the price above it will eliminate the downside scenario. In such a situation, sellers will be surprised, and as a result, applying a small pressure on the price will increase the likelihood of it growing to new price levels.
The price of Ethereum has broken the resistance of $ 1,300 and buyers in the current situation are trying to continue the upward trend in prices. The upward slope of the moving averages and the placement of the relative strength index (RSI) above the level of 60, indicate the dominance of buyers in the market.
The price has stabilized above this resistance and the historical price ceiling of $ 1,438,318 has been seen again today. With a valid breakout of the price above this resistance, it will open the way to its next station at the level of $ 1,675. On the other hand, if the price moves down from its historical level, it is likely to move to the 20-day moving average (EMA 20 – blue line in the picture) at $ 1,200. A price jump above this moving average will increase the likelihood that the uptrend will continue. Also, moving the price below the uptrend line indicates a possible change in the price trend. The next price support on the downtrend is the simple 50-day moving average (SMA 50 – red line in the picture) at $ 882.
The bears are currently trying to defend the resistance at $ 1,438,318. If the price moves down from the current levels, it is likely to be supported by moving averages. A jump in prices from these levels means buyers are entering every fall, and the outlook for the price break will strengthen above the historic ceiling.
On the other hand, if sellers push the price below the moving averages, there is a possibility that the price will fall to the uptrend line. Breakout prices warn below this support for changing market sentiment and deeper correction.
The current price of Polkadot is limited between two levels, one at $ 19.40 and the other at 38.2% Fibonacci correction at $ 14.7259. The entry of the price into the consolidation phase near the historical ceiling is a positive sign because it shows that buyers are not in a hurry to save the profit of their trades.
The Bears are currently trying to defend the high resistance at $ 19.40, which can keep the price in the range for a few more days. However, the uptrend of the 20-day moving average (EMA 20 – blue line in the picture) and the relative strength index (RSI) near the buy saturation zone indicate the superiority of buyers. If this group manages to push the price above this resistance, there is a possibility of starting the next bullish wave of prices. The first price target will be $ 24 and above $ 30.
The uptrend will be eliminated by turning it down and moving below the 20-day moving average (EMA 20 – blue line in the picture). Such a move would increase the likelihood of further price declines to the 61.8% Fibonacci retracement level at $ 11.8383.
The price has moved down from the upside resistance, which means that the bears will not give up easily. The horizontal slope of the 20-day moving average and the relative strength index (RSI) in the middle of the four-hour chart represent the balance between supply and demand.
If traders lower the price below the simple 50-day moving average (SMA 50 – red line in the picture), the price will fall to $ 16 and below it to $ 14.7259. Buyers are likely to call everyone who looks appropriate, if there are only a few. The next move of the price will be formed with its breakout below or above the mentioned range.
The Iowa price has been on a strong uptrend and has been steadily stabilizing new ceilings throughout its history over the past few days. This indicates the arrival of buyers at any high price level. In an uptrend, buyers enter the market with each drop to the 20-day moving average (EMA 20 – blue line in the picture). This is evident in the recent fall in prices on January 21 (February 2).
The current bullish wave shows the target price of $ 263.23 and $ 294.229. Yesterday’s candle wick also indicates the sellers’ efforts to delay the uptrend to $ 290, which has pushed the price closer to this level. The first price support is at $ 200 and then at the 20-day moving average (EMA 20 – blue line in the picture) at $ 176. The upward slope of the moving averages and the placement of the Relative Strength Index (RSI) in the buying saturation zone give buyers the advantage.
The first sign of a price weakening, falling and closing below the 20-day moving average will be. Such a move would indicate that supply exceeds demand by buyers who have entered the market in the downturn, and would be a warning of a reversal.
The four-hour price chart shows that the price is trading in an uptrend channel. As prices fall to the bottom of this channel, buyers are likely to make a profit.
Breaking the price below the channel will be able to pull it down to the 20-day moving average. A strong jump in prices from this average indicates an extension of the accumulation of buyers in the fall. A break below the moving average will be a warning for a deeper price correction.
The price of Synthetics experienced a rapid correction on January 21 (February 2), but recovered quickly and is trying to continue the upward trend. The buying pressure on January 22 (February 3) near the 50% Fibonacci retracement level at $ 10.744 indicates the demand at low price levels.
The slope of both moving averages is upwards and the relative strength index (RSI) has jumped from its mid-range. These factors indicate the continuation of the upward trend in prices. With the price moving above $ 17,150, there is a possibility that the next bullish wave will start. The first target price on the way up will be $ 20 and above it $ 24,083. However, if the price falls below the level of $ 17.150, there is a possibility that the price will fall to the 20-day moving average (EMA 20 – blue line in the picture) at $ 13.68. This level will be a key and powerful support for the price.
The four-hour chart shows vendors trying to defend the high resistance at $ 17. If the price moves above current levels, there is a possibility that the downtrend will continue with the target of moving averages and then $ 14. The entry of the price into the consolidation phase between the two levels of $ 14 and $ 17 will be a positive sign for the price and the possibility of a breakout will increase the price to above $ 17.15.
On the other hand, if the price moves below the $ 14 level, the correction is likely to deepen to $ 11,263. Such a move warns of a momentary weakening of the price. Under this support, the price could fall to the level of 61.8% Fibonacci correction to $ 9,232 and then to $ 7,880.