Bitcoin experienced a rapid fall to $41,500 after approval of cash ETFs in the US. Despite this drop, the upward movements of some altcoins can be considered a sign of a change in the short-term trend of the market.
Currently, some analysts have changed their view and have a $25,000 or lower target for the price. Although anything is possible in the market, the $38,000 level is expected to attract and encourage long-term investors to buy Bitcoin, who are still hoping for an upcoming halving and new funds entering the market through newly launched ETFs.
Bitcoin cash ETFs saw a total of $1.4 billion in inflows in their first two trading days, according to Bloomberg analyst Eric Balchunas. In the meantime, Grayscale Institute's Bitcoin Fund has witnessed an outflow of $579 million, but the net inflow of cash ETFs in these two days is a total of $819 million and positive.
But can the positive news of inflows into Bitcoin cash exchange funds reverse the current trend of BTC and altcoins? In the following, we will examine the chart of Bitcoin and 4 digital currencies that can perform better than the rest of the digital currencies in the short term.
Bitcoin (BTC) price analysis
Bitcoin has gone through volatile days. The unsuccessful attempt of the price to cross $48,000 finally caused a part of the market to save profits, and then the price experienced a rapid fall on January 12 (December 22).
Buyers and sellers are competing hard near the support of the ascending triangle pattern on the one-day chart. So far, buyers have managed to close recent candles above this level, but have failed to initiate a meaningful recovery. This means that sellers have maintained their pressure.
The 20-day exponential moving average (EMA 20 – blue line in the picture), which is now at the level of $43,933, has taken a downward slope, and the relative strength index (RSI) is also below the middle axis (level 50), which means Sellers are trying to get back into the market.
If the price continues to fall below the triangle pattern, the way will open for Bitcoin to fall to $40,000 and then $37,980. Buyers should also push the price above $44,700 to regain market control have taken
Also read: Getting to know 10 technical analysis chart patterns that every trader should know
In the 4-hour view of the Bitcoin market, the moving average of 20 candlesticks has a downward slope, and the relative strength index is in the negative area (under the middle axis), which shows the superiority of sellers. If the $42,000 support is broken further, the selling pressure will intensify and the possibility of Bitcoin falling to $41,500 and then $40,000 will increase.
In order to prevent this drop, buyers should raise the price above the 20-candleli moving average. This will pave the way for Bitcoin to reach $44,700; A level that is considered an important resistance for Bitcoin.
Internet Computer Price Analysis (ICP)
On January 8th (December 18th), the price of computer internet returned to the top from the 20-day moving average, and on January 13th (December 23rd), this happened again, which means that buyers strongly support this level.
The upward slope of the moving averages shows the superiority of buyers, but the negative divergence between the relative strength index and the price is a warning for the possibility of a decrease in the downward momentum of the price. Crossing and closing the price candle above $14.21 could open the way to reach the peak of $16.30. The success of buyers in crossing this level will increase the probability of ICP reaching $18.
The 20-day EMA ($12.11) remains an important support to watch if the market turns bearish. A break of this support would turn the tables in favor of the sellers and increase the risk of the price falling to $9.36.
As can be seen from the 4-hour ICP chart, the price has been fluctuating between $12 and $14 for some time, and this shows the indecisiveness of buyers and sellers. If the buyers can continue to push the price above 14 dollars, the chances of the price to jump up to 16.30 dollars will increase.
On the other hand, if the price falls below the moving averages, it means that part of the market will sell after the price peak. After that, the price will likely retest the $12 support. In addition, falling below this level can lead to the fall of computer internet up to 10 dollars.
Celestia Price Analysis (TIA)
Celestia has been experiencing a strong uptrend for several days, and this situation is a sign that traders are buying at intermittent lows with every drop in price.
There is a not so serious psychological resistance at the $20 level; The level at which TIA previously experienced a pullback. If the buyers do not continue, the price falls below $17.29, which means that this level has become a support. This bullish outlook will be reinforced by crossing $20, and after that $25 could be Celestia's bullish target.
On the other hand, if the price experiences a quick correction below $17.29, it means that buyers are aggressively storing profits. Next, sellers will have a chance to push the price to the 20-day EMA at $14.89.
As can be seen from the 4-hour chart of Celestia, the upward momentum of the price has increased after passing the $17.29 resistance. Therefore, this level is of particular importance in case of a market decline. If a pullback is recorded on the chart, first the 20 candlestick exponential moving average appears as support.
In such a situation, if the price returns above the level of the EMA of 20 candlesticks, it means that traders' sentiments are still positive and they start buying at the price floors. In this case, Celestia can start the next uptrend up to $23. If the price falls below $17.29, the sellers will temporarily control the market. In this situation, the candlestick 50 simple moving average (SMA 50 – red line in the picture) will be the next support of the TIA.
Mentel Price Analysis (MNT)
Mantel has just experienced a break above the ascending channel on the one-day chart and has since reached $0.85. However, the long shadow of the candlestick on January 11th (21st) shows that part of the traders started saving profits at the price peaks.
The price is now hovering at a short distance from the breakout of the ascending channel, and buyers are expected to become more active at this level. Both moving averages have taken an upward slope, which is a sign of the superiority of buyers, but a negative divergence between the relative strength index and the price is considered a warning.
If the price continues to recover from the breakout of the ascending channel on the chart, buyers will once again have the opportunity to push MNT to $0.85. This level is expected to act as a serious barrier, but if the price breaks through it, the way for Mantel to reach $1 will be open.
As can be seen from the 4-hour view, the buyers first tried to stop the price correction at the 20 candle moving average, but the sellers had another plan. They started selling again after the price bounced and caused the price to fall near the 50 candlestick simple moving average. Any attempt to recover the price will now be met with resistance at the EMA level of 20 candles. Therefore, buyers need to break through the resistance zone between this moving average and $0.78 for bullish signals to be received from the market.
On the other hand, if the downtrend continues and the 50 candlestick simple moving average is broken, it will mean that the uptrend is probably over. In such a situation, we face the risk of falling to $0.65 and then $0.58.
Sei price analysis (SEI)
Thirty symmetrical triangle patterns are formed on the one-day chart, which clearly shows indecision between buyers and sellers.
The symmetrical triangle is mostly known as a trend continuation pattern, but in rare cases it can also act as a trend reversal pattern.
The upward slope of the 20-day moving average ($0.64 level) and the placement of the relative strength index in the positive area indicate the superiority of buyers. Now, if the buyers can bring the price above the resistance line of the symmetrical triangle pattern, it means the resumption of the upward trend. The target of the pattern in this situation is the $1.10 level.
This bullish outlook will be invalidated if it loses the thirty symmetrical triangle support on the chart. This event can be considered as a signal to change the trend and continue to correct the market to the 50-day simple moving average at $0.43.
In the 4-hour timeframe, the moving averages have a neutral slope and the relative strength index oscillates near the middle axis, which indicates a balance between supply and demand. Predicting the price path when the pattern breaks (up or down) is currently difficult. Therefore, it is recommended to wait until the support or resistance triangle is broken on the chart.
If the price of C stays above the moving averages, buyers can try to break the resistance of the pattern. On the other hand, if the price breaks below the moving averages, we may see a drop of 3 to the moving averages on the chart.
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