Bitcoin (BTC) has been one of the most popular digital currencies in the world, with its value rising steadily over the past few years. Recently, however, it has been consolidating near the $23,000 mark, raising the question of whether the rally is over or if Bitcoin will resume its recovery.
Analysts have been divided on the issue. Economist Lyn Alden suggested that Bitcoin could face “considerable danger” in the second half of 2023, due to liquidity risks. On the other hand, ARK Invest CEO and chief investment officer Cathie Wood said in a company video blog that crypto assets could witness a huge turnaround in 2023 as the Federal Reserve pivots due to falling inflation.
To better understand the current situation and the potential for future price movement, let’s take a closer look at the critical support and resistance levels for the top-10 cryptocurrencies.
Bitcoin (BTC)
Bitcoin has been witnessing a see-saw battle near $22,800. The bulls are attempting to push the price above $23,371, which could start the next leg of the rally to $25,211. If the price turns down from the current level and breaks below $22,292, it could trigger the stops of several short-term traders and the BTC/USDT pair could dive to $21,480.
Ether (ETH)
After forming Doji candlestick patterns on Jan. 22 and 23, Ether (ETH) turned down sharply on Jan. 24, indicating that the uncertainty resolved in favor of the bears. The critical level to watch on the downside is the 20-day exponential moving average (EMA) of $1,496. If the price rebounds off this level, it will suggest that the sentiment remains positive and traders are buying near support. The pair could then retest the resistance at $1,680.
Binance Coin (BNB)
Binance Coin (BNB) soared above the overhead barrier at $318 on Jan. 24 but the bulls could not maintain the breakout. The bulls purchased the dip to the 20-day EMA ($290) on Jan. 25, which is crucial support to keep an eye on. If the price rises above $318, it will indicate that the bulls have overpowered the bears. That could catapult the pair to $360.
XRP (XRP)
XRP (XRP) broke above the $0.42 overhead resistance on Jan. 23 but that proved to be a bull trap. The critical level to watch on the downside is the 20-day EMA ($0.38). If the price rebounds off this support, it will indicate that lower levels continue to attract buyers. The bulls will then try to drive the price above the $0.42 to $0.44 zone.
Cardano (ADA)
Cardano’s (ADA) rally seems to have hit a wall near $0.38. The bears repeatedly thwarted attempts by the bulls to overcome this barrier between Jan. 22 and Jan. 24. The RSI is showing signs of a negative divergence, signaling that the bullish momentum could be slowing down. Sellers could strengthen their position further if they pull and sustain the price below the 20-day EMA ($0.34).
Dogecoin (DOGE)
Dogecoin (DOGE) has been facing strong resistance at $0.09. The price once again turned down from this level and slipped to the 20-day EMA ($0.08) on Jan. 24. If the price continues lower and breaks below the moving averages, it will suggest that the bulls may be losing their grip. The DOGE/USDT pair could then extend its stay inside the $0.07 to $0.09 range for a few more days.
Polygon (MATIC)
Polygon (MATIC) has been trading inside a range between $0.69 and $1.05 for some time now. The bulls again tried to thrust the price above the overhead resistance at $1.05 on Jan. 24 but the bears did not budge. While the upsloping 20-day EMA ($5.73) indicates advantage to buyers, the negative divergence on the RSI suggests that the bullish momentum may be weakening.
Litecoin (LTC)
Litecoin (LTC) remains in a strong uptrend. Buyers pushed the price above $93 on Jan. 23 but the bears sold at higher levels as seen from the long wick on the day’s candlestick. The important support to watch on the downside is the 20-day EMA ($84). If the price rebounds off this support, the bulls will again try to clear the overhead hurdle.
Polkadot (DOT)
Polkadot (DOT) nudged above the resistance line on Jan. 23 and Jan. 24 but the bulls could not sustain the higher levels. This suggests that bears are selling on rallies. While the upsloping 20-day EMA ($5.73) indicates advantage to buyers, the negative divergence on the RSI suggests that the bullish momentum may be weakening.
Avalanche (AVAX)
Avalanche (AVAX) turned down from the resistance line on Jan. 24, indicating that bears are defending this level aggressively. The important support to watch on the downside is the 20-day EMA ($15.79) as the bulls are expected to buy the dips to this level. If the price rebounds off the 20-day EMA with strength, it could increase the possibility of a break above the resistance line.
In conclusion, the current market situation is complex and crypto traders should be cautious when making investment decisions. Keeping a close watch on the critical support and resistance levels of the top-10 cryptocurrencies can help traders to identify the right entry and exit points. Additionally, it is important to stay informed of the latest developments in the crypto space and to keep track of the changing market sentiment.
