The US Producer Price Index (PPI) fell 0.5% this month, well above the 0.1% decline estimated by economists polled by the Dow Jones. The biggest monthly drop since April 2020 was also aided by a plunge in energy prices.
Another report said retail sales data fell 1.1% in December, slightly above the expected 1% decline.
Both data points point to lower inflation, but the US stock market failed to sustain its initial gains. Similarly, several cryptocurrencies have sold intraday highs, indicating that the trader may have made a profit ahead of his February 1st Federal Reserve meeting.
A strong cryptocurrency recovery over the past few days has put traders back at the forefront. Bitcoin (BTC) trading volume increased by 114% in 7 days. Strong volume with strong price gains usually indicates aggressive buying by the bulls. This makes it more likely that Bitcoin will not break his November low of $15,476.
How far can bitcoin and altcoins fix and what are the key support levels to watch? Let’s explore the top 10 cryptocurrency charts to find out.
Bitcoin broke above the overhead resistance of $21,480 on January 17-18, but the bulls failed to sustain higher levels as evidenced by the long core of the candlestick. This shows that bears are protecting the level.
Short-term traders can attract profit taking as the overhead resistance cannot be crossed. This could lead to a short-term correction for the BTC/USDT pair. The first strong support is the 38.2% Fibonacci retracement level at $19,489.
If the price bounces off this level, it suggests a shallow drop attracting buyers. The bulls will then attempt to push the price above his US$21,480 level. If successful, the pair could enter her next rally to $25,000.
Our bullish view may be invalidated if the price continues to fall and breaks below the 20-day exponential moving average ($18,865).
Ether (ETH) at $1,600 levels is proving to be a formidable resistance for the bulls. Buyers managed to break through this resistance but were unable to break it.
The ETH/USDT pair could reach the 38.2% Fibonacci retracement level at $1,439 before starting a possible rebound that could reach the 20-day EMA ($1,400).
This zone may attract buyers who previously missed the bus. As a result, the $1,600 resistance is likely to be retested. If this level is scaled on a close basis, the pair could rise to $1,800 and then surge to $2,000.
If the bears want to negate this positive view, they will have to pull the price back below the 20-day EMA.
BNB (BNB) pulled back from the overhead resistance at $318 on Jan 14 and reached the 20-day EMA ($280) on Jan 18. Buyers strongly bought the drop given the long tail of the candlesticks on the day.
Buyers are looking to capitalize on this momentum and push the price above the overhead resistance to $318. If successful, the BNB/USDT pair could march towards $338. The bears can put up a strong defense at this level, but the pair could surge to his $400 if the bulls get over this hurdle.
Contrary to this assumption, if the price breaks below the 20-day EMA, it suggests that the pair may move within the grand range between $250 and $338 for some time.
XRP (XRP) has fallen, dropping to the moving averages on Jan. 18, but the long tail of the candlestick indicates aggressive buying at lower levels.
The moving averages have completed a bullish crossover and the RSI is in the positive zone, indicating a possible win for the bulls. A breakout and close of $0.42 can initiate an upside move that could reach the overhead resistance of $0.51. This level may invite selling again, but if the bulls break this resistance, a rally to $0.56 is possible.
If the bears want to stop the bulls from rising, they should pull the XRP/USDT pair back below the moving averages and hold it.
Cardano (ADA) has been forming a bullish flag trading pattern over the past few days. If buyers push the price above the flag, it indicates that the upward movement could resume.
The ADA/USDT pair could rise first to $0.44 and then to the psychologically significant $0.50. Such a move suggests that the downtrend may have ended.
The bear may not want it. They try to bring the price below the flag. If successful, the pair can drop to his 20-day EMA ($0.31). If the price rebounds strongly from this level, the buyer will try to climb over her $0.37 again.
Conversely, a break below the moving averages may favor the bears.
Dogecoin (DOGE)’s rally was rejected near $0.09 on Jan 14 and Jan 18, indicating that the bears are not giving up and are operating at higher levels.
The bears broke below the moving averages on Jan. 18 but were unable to sustain the downside. The rising 20-day EMA ($0.08) and the RSI in the positive zone show a slight edge for the bulls. Buyers will try to push the price above $0.09 and start moving north towards $0.11.
Conversely, if the price breaks below the moving averages, the DOGE/USDT pair could fall towards the critical support of $0.07.
Buyers tried to push Polygon (MATIC) above the overhead resistance at $1.05 again on Jan 16, but the bears held on.
Repeatedly failing to overcome the hurdles may encourage short-term traders to take profit. In that case, the MATIC/USDT pair could drop to his 20-day EMA ($0.90). Such a move suggests that the pair may stay within the grand range between $0.69 and $1.05 for some time.
Alternatively, if the price resurfaces and rises above $1.05, it marks the beginning of another rally. After that, the pair could rise to $1.30.
Related: Ethereum Tech Data Shows It Will Outperform Bitcoin By 35% By 2023
Litecoin’s (LTC) rally dipped at $91 on Jan 14, and the bears pulled the price back to the 20-day EMA ($80) on Jan 18.
The rising 20-day EMA and RSI in the positive zone indicate a slight upside for buyers. If the price rises above $91, the LTC/USDT pair could rise to $100 and even $107.
On the other hand, if the price breaks below the 20-day EMA, the pair could reach the $75 breakout level. This is an important level for the bulls to defend. Because if this support ruptures, the pair could plunge to $65.
The Polka Dot (DOT) has been trading near the downtrend line for the past few days, indicating that the bulls and bears are vying for dominance.
The 20-day EMA ($5.24) is starting to rise and the RSI is approaching the overbought territory, indicating the path of least resistance is on top. If buyers push the price above $6.53, the DOT/USDT pair will continue to gain momentum, with a potential rally to $7.42 and then $8.05.
On the other hand, if the price dips below $5.60, it indicates that the bears are about to make a comeback. If the pair can sink below the moving averages, the seller will be the top.
Avalanche (AVAX) broke above the downtrend line on Jan. 11, indicating a possible change in trend. The bears are not giving up yet as they are trying to slow the move up at $18.54.
The rising 20-day EMA ($14.42) points to an upside for buyers, while the RSI in the overbought zone suggests a few days of consolidation or a small correction in the short term.
The AVAX/USDT pair could drop towards the 20-day EMA if the price falls and breaks below $15.50. This is a key level and a bounce from there is likely to lead to a rally to $20.63. The bears will have the upper hand once the pair breaks down of the 20-day EMA.
The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
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