This week’s big 5 cryptocurrencies to watch : BTC, ETH, DOT, AAVE, SNX

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Select altcoins are rallying to fresh all-time highs while bitcoin is already pinned below $33,000.

As Bitcoin’s price trading sideways, traders are holding an eye on new investments from retail investors to gage if BTC’s correction is over.

MicroStrategy’s latest acquisition of 314 Bitcoin at an average price of $31,808 is a moderate sentiment booster, but it might not be enough to halt the fall if consumers do not step up to hold their sales at higher prices.

A new timezone study by QCP Capital separated Asia and the U.S. trading sessions into a 12-hour bracket and found that the Bitcoin price has increased in U.S. hours since March 2020 thanks to continuous purchases by retail investors. However, this buying momentum from the U.S. has showed signs of fatigue for the first time since Bitcoin came out almost two weeks ago.

Crypto market data daily view. Source: Coin360

While keeping an eye on institutional investor inflow is a good strategy, it’s also important to monitor what is happening on the retail side.  In the past few months, retail investor volume has picked up and this is supporting equity markets across the globe.

Bitcoin may be trying to regain its all-time peak, but during this time, a number of altcoins have come to new heights. This shows that retailers are currently betting on altcoins.

Let’s look at the top-five cryptocurrencies charts that might trend in the next several days.

BTC/USD

Bitcoin’s rebound off the 50-day simple moving average ($28,632) is facing opposition close to the 20-day exponential moving average ($33,775). Failure to climb above the 20-day EMA is a negative indicator since it indicates a potential shift of sentiment from buying dips to selling at each rally.

BTC/USDT daily chart. Source: TradingView

The 20-day EMA began to fall and the relative strength index (RSI) was trading below the 50-level, suggesting that bears are seeking to stage a comeback. The inner day candlestick pattern on Jan. 23 and today reveals indecision between the bulls and the bears.

If the confusion is resolved to the downside, bears will continue to develop their dominance and sink the BTC/USD pair below the 50-day SMA. If they succeed, it could result in a deeper reversal of the 50 percent Fibonacci retracement level at $25,897.42 and then the 61.8 percent retracement level at $22,106.73.

On the opposite, if the bulls drive the price above the 20-day EMA, the pair can climb to the downtrend line, where they are likely to face strong resistance again. If the market drops from this stage and falls below the 20-day EMA, it would mean that bears are selling at rallies, but if the bulls drive the price above the downtrend line, that would imply that the downturn might be over.

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Close above the downtrend line would raise the probability of an all-time high re-test to $41,959.63. A break over this resistance could lead to a $50,000 rally.

BTC/USDT 4-hour chart. Source: TradingView

The downward moving averages and the RSI in the negative region on the 4-hour map show the bears on the upper side. The market action reveals a bearish falling triangle pattern that will be completed on a collapse and close to $30,450. The goal trend for this configuration is $18,940.37.

Contrarily to this theory, if the bulls could push the market over the moving averages, the pair could climb to the downtrend. This is a vital resistance to look out for, since a split above would invalidate the Bear setup. If that happens, the aggressive bulls could be trapped on the wrong foot, resulting in a quick tightening that could push the market to a new all-time high.

ETH/USD

Ether (ETH) has risen above the $1,300 overhead resistance, and the bulls are struggling to get the upside down. The upward moving averages and the RSI over 61 indicate that the bulls are in charge.

ETH/USDT daily chart. Source: TradingView

If the price is greater than $1,300, the ETH/USD pair could re-test the all-time high at $1,438,318. A breakout and close above this resistance may launch a journey to a goal of $1,675.

On the other hand, if the price drops from the overhead resistance, the pair can drop to the 20-day EMA ($1,166). A turnaround of this help would raise the probability of a resumption of the uptrend.

However, if the next drop breaks below the uptrend line, there will be a potential shift in the pattern. The next downside help is the 50-day SMA ($882).

ETH/USDT 4-hour chart. Source: TradingView

The bears are now struggling to protect the $1,350 overhead resistance. If the price is lower than the present amount, it may be supported by moving averages. A rebound off this amount would suggest that bulls are buying on any slight dip, and this will boost the possibility of a $1,350 breakout.

Contrarily to this theory, if bears fall below the moving averages, the pair could fall to the uptrend side. A fall below this support signifies a shift in sentiment and can result in a deeper correction.

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DOT/USD

Polkadot (DOT) is actually between the maximum at $19.40 and the 38.2 percent Fibonacci retracement stage at $14.7259. Consolidation at the all-time peak is a good indication, as it indicates that traders are not trying to book gains.

DOT/USDT daily chart. Source: TradingView

The bears are now maintaining the $19.40 overhead resistance. This could prolong the stay of the DOT/USD pair inside the range for a few more days.

However, the upward 20-day EMA ($14.11) and the RSI near the overcrowded territory indicate that the bulls have the upper hand. If investors can push the price beyond $19.40, the next leg of the up-move will begin. The first upside goal is $24, and then $30.

This optimistic opinion would be invalidated if the pair turns down and breaks below the 20-day EMA. Such a move could open up the prospect of a deeper decline to the 61.8 percent Fibonacci retracement stage of $11.8383.

DOT/USDT 4-hour chart. Source: TradingView

The pair turned away from the overhead opposition, which shows that the bears are not ready to give up without a contest. The flattening 20-EMA and the RSI near the midpoint of the 4-hour map display a balance between supply and demand.

If the bears sink the pair below the 50-SMA, a drop to $16 and a drop to $14,7259 is probable. The bulls are likely to buy this dip and continue to keep the price within the cap. The next pattern could start after the price breaks above $19.40 or drop below $14.7259.

AAVE/USD

AAVE is in a clear uptrend and has been reaching new highs in the last few days, which suggests traders want to buy at any higher level. In the uptrend, the bulls were purchasing the 20-day EMA dips and that was reflected in the latest decline of January 21.

AAVE/USDT daily chart. Source: TradingView

The new leg of the uptrend has a goal of $263.23, followed by $294.229. The wick on today’s candlestick indicates that bears are trying to slow the rally around a $250 psychological resistance.

If the price is cheaper than the present standard, the first aid is $200 and then the 20-day EMA is $166. The upsloping moving averages and the RSI in the overcrowded region suggest that the bulls are in charge.

The first sign of weakening is a breakdown and near below the 20-day EMA. Such a step would suggest that production met the demand of dip consumers, and that may be an indication of a shift in trend.

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AAVE/USDT 4-hour chart. Source: TradingView

The 4-hour map displays the price of trade within the ascending channel. If the price dips from the current rate, it could slip to the support line of the ascending channel where the buyers are likely to move in.

A split below the channel could carry the price down to the 20-EMA. A good bounce from this help would imply that the bulls begin to accumulate on the dips. However, a break below the moving average would open the doors for a deeper correction.

SNX/USD

Synthetix (SNX) experienced a sharp correction on January 21, but has rapidly recovered and is currently seeking to restart the uptrend. Aggressive buying around the 50 percent Fibonacci retracement level at $10,744 on Jan. 22 suggests lower interest.

SNX/USDT daily chart. Source: TradingView

Both moving averages are sloping up and the RSI has bounced from the midpoint, suggesting that the direction of least resistance is upside down. If the bulls could push the market beyond $17,150, the next leg of the uptrend could begin.

The next upside goal is $20, and then $24,083. However, if the price drops from $17,150, the SNX/USD pair can fall into the 20-day EMA ($13,68), which is likely to serve as strong support.

SNX/USDT 4-hour chart. Source: TradingView

The 4-hour chart reveals that the bears are struggling to protect the $17 overhead resistance. If the price is lower than the current cost, the pair could sink to the moving averages and then to $14. Consolidation between $14 and $17 would be a good indication and raise the likelihood of a split in excess of $17.15.

Contrary to this theory, if the price breaks below $14, the correction could accelerate to $11,263. Such a move would mean that the momentum of the bull was diminished. A break below $11,262 may lower the price to 61.8 per cent of Fibonacci’s retracement at $9,232 and then $7,880.

 

-cointelegraph

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