Bitcoin and most major altcoins have dropped to key support levels, which could be an early sign of an impending oversold bounce. Bitcoin and many altcoins fell sharply on January 5th. The root cause was minutes from the Federal Reserve’s December FOMC meeting, which showed that members expected the balance sheet cut to begin after the Fed began raising interest rates early. Somanews will take a look at analyst Rakesh Upadhyay’s predictions for BTC, DOGE and 8 altcoins.
Predictions about Bitcoin and other coins
BTC/USDT. Adding to the negative sentiment, the closure of the world’s second largest Bitcoin mining center in Kazakhstan, where the internet was shut down after intense protests from citizens, accelerated the crypto collapse as negative factors. This resulted in a nearly 13.4% drop in the overall hash rate of the Bitcoin network from 205,000 petahash per second (PH/s) to 177,330 PH/s. Bitcoin dissolved to the downside on Jan 5 as bears pulled the price below strong support at $45,456. According to the analyst, if the bears hold the price below $39,600, the BTC/USDT pair could drop to $30,000. Conversely, if the price rises above $39,600, the bulls will attempt to push the pair back above the 20-day exponential moving average (EMA) ($46,811). Such a move will be the first indication that the downtrend may be coming to an end.
ETH/USDT. Ether (ETH) fell from the 20-day EMA ($3,756) on January 5 and broke below the intraday low of $3,503.68 on December 4. The downward sloping moving averages and the RSI in the oversold zone suggest bears dominate. If the bears sustain the price below $3,250, the decline could extend to the support line of the channel. The bulls will try to defend this level and push the price to the resistance line of the channel. A break and close above the channel will signal a change in trend.
BNB/USDT. Binance Coin (BNB) dropped below strong psychological support at $500 on Jan. If the price bounces off the current level, the BNB/USDT pair could rally to $500 where the bears are likely to form stiff resistance. If the $435.30 support is replaced, the pair could extend its decline to $392.20 and later to $320. This negative view will be rejected if the price breaks above the channel and continues. Such a move could open the doors for a possible move to $575.
SOL/USDT. Solana (SOL) dropped below $167.88 on Jan. 5 and dropped to $148.04, an intraday low of Dec. 13. This level may attract strong buying from the bulls, but the relief rally is likely to face selling close to the 20-day EMA (170). This could increase the likelihood of a break below $116. The next stop could be the support line of the channel. Buyers will have to push and sustain the pair above the resistance line of the channel to signal that the downtrend may be ending.
Analyst’s predictions for Cardano
ADA/USDT. Cardano (ADA) bounced back from the 20-day EMA ($1.33) on Jan. 5 and dropped to the strong support at $1.18. The bulls successfully defended this level but failed to push the price above the 20-day EMA. If the bears pull the price below $1.18, the ADA/USDT pair could drop to the critical support at $1. This is an important support to watch out for because if it breaks, selling momentum could increase and the pair could drop to $0.68. Conversely, if the bulls push the price above the moving averages, the pair could rally to the resistance line of the channel. A break and close above the channel will signal a possible change in trend. The pair could rally to $1.87 later.
XRP/USDT. Ripple (XRP) fell below the $0.75 support on Jan. It looks like the bulls are buying this dip. However, the XRP/USDT pair formed a Doji candlestick pattern on January 8 and the bulls are currently trying to push the price below $0.75. If this happens, the downtrend could continue and the pair could drop to $0.60. The downward sloping moving averages and the RSI in the negative territory suggest bears dominate. Contrary to this assumption, if the price rises above the current level, the bulls will try to push the pair above the moving averages. If they are successful, it will indicate that the selling pressure has subsided. The pair could then rally to $1.
LUNA/USDT. Terra’s LUNA token fell below the 20-day EMA ($81) on Jan. The bears pulled the price to the 50-day SMA ($69), which could act as a strong support. If the price bounces back from the current level, the bulls will try to push the LUNA/USDT pair to the downtrend line of the descending channel. A break and close above the channel will indicate that the correction may be over. The bulls will then try to push the price towards $93.81. On the contrary, a break and close below the 50-day SMA could intensify selling and the pair could drop to the psychological support at $50.
DOT/USDT. The price has been fluctuating between $22.66 and $32.78 for the past few days. The 20-day EMA ($28) has started to drop and the RSI has dropped into the negative territory. If the sellers push and sustain the price below $22.66, the DOT/USDT pair could drop to $16.81. Contrary to this assumption, if the price rises from $22.66, the bulls will try to push the pair to $32.78. A break and close above this level could signal a possible change in trend. According to the analyst, the pair could rally to $40 first and then to $44.