The price of Bitcoin may be in the last stage of its parabolic or parabolic trend, but if this uptrend stabilizes again, it is likely that the price of a group of Altcoins will continue to grow.
ToReport Bitcoin Telegraph, Bitcoin is constantly breaking its price records. According to MarketWatch, a website that collects financial information, business news, and stock market data analysis, the latest surge in bitcoin prices has led to a new ceiling on gold prices. This may be a sign that bitcoin is being hailed as a new base for value storage and may attract more investors than gold.
Analysts attribute the recent rise in prices above the $ 30,000 level to the sudden influx of institutional investors into the Coinbase exchange. As far as the $ 350 price difference between Bainance is concerned, this entry has not been an obstacle.
With the latest price surge, the market value of Bitcoin has now reached close to $ 600 billion, which is a short distance from Alibaba, the ninth largest company in the world in terms of market value. Meanwhile, breakouts or price breaks above $ 30,000 may be the reason for FOMO or the fear of being left among institutional investors who have missed the opportunity to buy bitcoins at lower levels.
With these interpretations, the recent uptrend in order to keep the uptrend stable should remain intact and complete, because if this uptrend stops, a group of institutional investors and traders who have bought at lower levels may be tempted to save their trading profits. . In such a situation, prices may fall quickly and investors’ recent purchases may be lost. Eventually, this flow may lead to the rapid exit of other traders and further falling prices. Therefore, traders should be cautious about their positions in both market directions and use appropriate risk management strategies to protect the profit of their trades.
Let’s take a look at the charts of the top five digital currencies selected this week, which have the ability to expand their uptrend if bullish sentiment stabilizes.
On January 2, the price of Bitcoin peaked above its $ 30,000 resistance and increased its momentum. This is due to the entry of momentum traders into the market.
While a parabolic price wave provides a very high return for the trader in a short period of time, at the end of this uptrend with a sudden reversal, it may surprise many traders, because after such a strong upward move, the price It can correct between 62 and 79% of the total ascent in a short time.
If such a move occurs, there is a possibility of a 30% drop in the price and even a correction to the support of $ 20,000. In a parabolic price trend, it is difficult to predict the end point of this trend, as traders see FOMO still looking to buy in the fall, so the next technical level that can act as a resistance to price movement is $ 37,000.
Entering a sell position in a bullish rally, given that the price has entered the buy-saturation zone at all time intervals, can be a losing proposition, as it is possible for the price to remain in the maximum or buy-saturation zone for more than Traders will be expected.
On the other hand, traders who have open buying positions in the market, it is better to use the principles of risk management to gradually save their trading profits and avoid greed.
The four-hour chart shows the buying trend in price falls to the 20-day moving average (EMA 20 – blue line in the picture). Market bears have not been able to break the level of dynamic support of the 50-day moving average (SMA 50 – red line in the picture) since breaking the resistance price of $ 20,000.
With these interpretations, the first sign of a price weakening will be moving below the 20-day moving average. Such a move indicates that traders are saving profits after rapid price growth. A deeper price correction below the simple 50-day moving average may indicate a reversal of the uptrend.
The key price resistance on the uptrend is at $ 37,000, which is likely to rise to $ 40,000 if the resistance is broken.
Ethereum prices have continued to rise after a shallow and two-day correction on January 2. Following this move, we have also witnessed strong price growth today. The upward slope of the moving averages and the placement of the Relative Strength Index (RSI) in the buy saturation zone indicate the superiority of buyers.
Buyers are likely to push the price higher by $ 840.93 to $ 900. The next price resistance is at the level of $ 1,000. Although the price has fluctuated above this level during the current day, it has not been able to stabilize above it. Given the price move above this level, we can expect buyers to defend the broken level (breakout) of $ 840.93.
With such a move and price jumps from this support, we can expect the upward trend in the hands of market cows to continue. On the other hand, if the price falls below this level, it will be possible to continue falling down to $ 700. A break below this level will confirm the short-term price ceiling at $ 1,160.
The four-hour price chart shows the momentum increase after it was driven above the $ 840.93 resistance by the market cows. The latest wave of price uptrends has pushed the Relative Strength Index (RSI) to the high or saturation zone. This indicates the possibility of the price entering the consolidation or partial correction phase.
The daily high price candle wick during the day also indicates the trading profit of traders above $ 1,000. If buyers do not allow the price to fall further and the price jumps above the $ 900 support, the probability of a valid price failure will increase above this level.
The uptrend will be eliminated with the price turning and falling below the level of $ 840.93 and the support of the simple 50-day moving average (SMA 50 – red line in the picture).
The current price of Polkadot is consolidating its foothold in a strong uptrend. Market bears are defending the $ 9.50 price resistance, while cows are entering the market with a drop in support to $ 7.89.
The price closed in red on January 1 with a candlestick, but buyers showed a strong return the next day. This indicates that buyers do not expect a deeper correction in order to enter the market as they expect further price growth. If these people manage to push the price above the resistance level of $ 9.50 to $ 9.89, there is a possibility that the uptrend will continue to the $ 12.29 target.
However, if the price moves from the upward resistance to the downside, it is likely to fluctuate in the next few days. The momentum price will lose itself as it falls and stabilizes below $ 7.89 support.
The four-hour chart shows the flow of buyers entering the price drop to the 20-day moving average (EMA 20 – blue line in the picture). This indicates that market sentiment is still rising. The upward slope of the moving averages and the placement of the Relative Strength Index (RSI) in its positive area show the superiority of buyers.
If the bulls of the market manage to guide and stabilize the price for four hours above $ 9.50, there is a possibility that the next price wave will start. However, if the price moves down from the upper resistance and moves below the 20-day moving average, its uptrend will slow down and it is likely to fluctuate in the range of $ 7.89 to $ 9.50 for a few days.
Bainance Coin (BNB)
Binance coin continued its uptrend with a move to the new historic high (ATH) at $ 41.5372 yesterday. The upward slope of the moving averages and the placement of the Relative Strength Index (RSI) in the buy saturation zone indicate the superiority of buyers.
The next target price will be $ 46 on the way up and $ 50 on top. This price range is set as a strong resistance area on the price path. However, the recent breakout of the price above $ 40 has led to traders saving profits. If buyers fail to stabilize above $ 40, there is a possibility of limited price fluctuations between the upper and lower levels of $ 36 to $ 40.
A break below the 20-day moving average (EMA 20 – blue line in the picture) at $ 34.99 indicates a weakening market sentiment and traders’ reserves.
The four-hour chart shows a strong sell-off above the $ 41 level. This can be seen from the long wick of the price candle during the last two days. If the price moves below $ 40 again, ۲۰ will be supported on the 20-day moving average.
A rapid jump in prices from this level means that there will be demand at lower levels and buyers will try to continue the upward trend. On the other hand, if sellers drive prices below moving averages, there is a possibility of a short-term price trend reversal.
On December 30, the price of Uniswap broke its intensive consolidation range between $ 2.90 and $ 4, and moved up to $ 5.29 the next day. The bear market in the current situation is trying to delay the uptrend in resistance at $ 5.60. But the good thing here is that buyers have not allowed the price to fall too much.
The uptrend of the 20-day moving average and the relative strength index (RSI) above the level of 67, indicate the possibility of continuing the uptrend. If buyers push the price above $ 5.60, the uptrend is likely to extend to $ 7.50 and above $ 8.60.
On the other hand, if the price moves down from the $ 5.60 level, there is a possibility of cross-fluctuations between the two levels of $ 4.50 to $ 5.60 for a few days. The uptrend will be eliminated with the price falling below $ 4.
The four-hour chart shows the price breakout above the symmetrical triangle pattern. If buyers fix the price above the pattern, it is likely to start moving up to its target at $ 6.
On the other hand, if the price returns to the pattern, it is likely to fall to the 20-day moving average. A strong jump in prices from this support will mean the accumulation flow at lower levels and the possibility of continuing the upward trend in prices.
This uptrend will be eliminated by turning the price from current levels and falling below the triangle pattern.