Bitcoin (BTC) has experienced volatility in January, with the price rising to nearly $49,000 in anticipation of the launch of spot Bitcoin exchange-traded funds (ETFs), but then dropping as the Grayscale Bitcoin Trust (GBTC) saw large liquidations. However, there is a positive sign as GBTC’s outflows have been decreasing in the past few days. Intelligence firm Arkham’s live data shows outflows of $340 million from Grayscale’s fund, a slight increase compared to the $270 million outflow on January 30 but much lower than the peak outflow of $641 million on January 22.
Traders are likely to shift their focus from Bitcoin ETF flows to the upcoming halving in April. Pseudonymous crypto trader Rekt Capital mentioned in a post on January 29 that any dip in Bitcoin over the next two weeks could be the last opportunity to buy before the pre-halving rally begins.
Now, let’s analyze the charts of the top 10 cryptocurrencies to determine the critical overhead resistance levels that need to be surpassed for the upward movement to resume.
Bitcoin price analysis:
On January 29, Bitcoin rose above the 50-day simple moving average ($42,893), but the bulls were unable to maintain the momentum and push the price above $44,700. The bears attempted to bring the price below the 20-day exponential moving average ($42,277) on January 31, but the bulls held their ground, indicating that buyers are trying to establish the 20-day EMA as support. The bulls will once again attempt to propel the price above $44,700, and if successful, the BTC/USDT pair could gain momentum and surge towards $49,000. However, if the price turns down from $44,700, it would suggest that bears are strongly defending that level, and the pair may trade within a narrow range between the 20-day EMA and $44,700 for some time.
Ether price analysis:
On January 30, Ether (ETH) crossed above the moving averages but could not overcome the resistance at $2,400. Sellers are trying to keep the price below the moving averages, and if they succeed, it may indicate that the ETH/USDT pair will consolidate within the $2,100 to $2,400 range for a while. The flat moving averages and the RSI just below the midpoint also suggest a possible consolidation in the near term. The next significant move is expected to occur either above $2,400 or below $2,100. If the $2,400 level is broken, the pair could rally to $2,700 and eventually reach $3,000.
BNB price analysis:
BNB turned lower from the downtrend line on January 30, indicating that bears are strongly defending that level. If the price drops and sustains below the 20-day EMA ($305), the BNB/USDT pair could decline to the 50-day SMA ($295) and then to the crucial support at $288. Buyers are expected to defend this level, as a failure to do so would complete a descending triangle pattern with a target of $238. However, if the price turns up from the current level and breaks above the downtrend line, it would invalidate the bearish setup and the pair could climb to $338.
Solana price analysis:
Solana’s break above the downtrend line is the first sign that bulls are attempting a comeback. Buyers tried to push the price above the nearest resistance at $107, but sellers pushed back, as shown by the long wick on the January 30 candlestick. If the price turns up from the current level or the moving averages, it would suggest that dips are being bought and increase the likelihood of a break above $107. If that happens, the SOL/USDT pair may surge to $117 and then to $126.
XRP price analysis:
The failure of bulls to push XRP above the 20-day EMA ($0.54) on January 30 may have attracted strong selling by bears. Bulls are trying to defend the $0.50 support, but repeated retests of a support level tend to weaken it. If the price stays below $0.50, the XRP/USDT pair may decline to the crucial support at $0.46. The 20-day EMA remains the first major resistance on the upside, and if bulls overcome this barrier, the pair could rally to the downtrend line, which is expected to be defended aggressively by bears.
Cardano price analysis:
Buyers pushed Cardano above the 20-day EMA ($0.51) on January 29 but were unable to sustain the strength. This suggests that bears are active at higher levels. The 20-day EMA has flattened out, and the RSI is near the midpoint, indicating a range-bound action in the near term. If the price stays below the 20-day EMA, the ADA/USDT pair could drop to $0.46 and later to the channel’s support line. On the other hand, if the price rises above $0.54, the pair may climb to the downtrend line, and breaking above this level would suggest that the correction may be over.
Avalanche price analysis:
Avalanche has been correcting inside a descending channel pattern, with buying on dips and selling on rallies. The price turned down from the downtrend line on January 30 and reached the 20-day EMA ($34.29). A drop below the 20-day EMA suggests that the AVAX/USDT pair may remain within the channel. However, if the price turns up and breaks above the downtrend line, it would indicate that bulls are in control, and the pair may begin the next leg of the up move to $44 and potentially to the psychological resistance at $50.
Dogecoin price analysis:
Dogecoin has been witnessing a battle between bulls and bears at the 20-day EMA ($0.08). The bears have repeatedly prevented the bulls from breaking above the 20-day EMA, but the buyers have not given up much ground, indicating an anticipation of a move higher towards the downtrend line. A break above this level would indicate a short-term trend change, with the DOGE/USDT pair potentially climbing towards the $0.10 to $0.11 resistance zone. However, if the pair turns down and breaks below the $0.07 support, this positive view would be invalidated.
Polkadot price analysis:
Polkadot rose above the 20-day EMA ($6.95) on January 29, but encountered selling at higher levels, as shown by the long wick on the candlestick. Both moving averages have flattened out, and the RSI is just below the midpoint, indicating reduced selling pressure. The DOT/USDT pair may remain range-bound between $6 and the 50-day SMA ($7.46) for some time. A rebound off the current level may lead to an attempt by bulls to push the pair to the 50-day SMA, and a break above this resistance could propel the pair to $8.50. On the other hand, a break below the neckline could pull the pair to $6, and a further break below that level may result in a slide to $4.80.
Chainlink price analysis:
Chainlink has been trading within a range between $12.85 and $17.32, indicating a balance between supply and demand. Traders typically buy near support and sell at resistance in a range-bound market. The break above the moving averages on January 29 opened the possibility of a rally to the overhead resistance at $17.32, which is likely to attract strong selling by bears. If the price sharply turns down from $17.32, the LINK/USDT pair may continue to trade within the range for a while longer. To signal the start of the next leg of the uptrend, bulls will need to sustain the price above $17.32, with a target objective of $21.79.
Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.