Bitcoin (BTC) has experienced a gradual increase in value over the weekend, indicating sustained demand from bullish investors. Bloomberg analyst James Seyffart shared data on January 26th, revealing that BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed $2 billion in assets under management.
While solid buying at lower levels has prevented a decline in Bitcoin, it is unlikely that a new bull market will begin immediately. Bitcoin may consolidate its gains as traders focus on the inflows into newly launched Bitcoin exchange-traded funds and await the Bitcoin halving in April.
If Bitcoin enters a range, it would be a positive sign indicating that traders are not rushing to book profits because they anticipate the uptrend to continue. This could also bode well for select altcoins, attracting investor interest and resuming their upward movement.
Bitcoin’s recovery has also lifted select altcoins. Let’s examine the charts of the top 5 cryptocurrencies that may outperform in the near future.
Bitcoin’s price analysis reveals that it has risen above the 20-day exponential moving average ($41,959) on January 27th, indicating a decrease in selling pressure. Both moving averages have flattened out, and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand. The BTC/USDT pair may fluctuate between $44,700 and $37,980 for some time. A break and close above $44,700 would be the first indication that buyers are back in control, potentially propelling the price to the local high of $48,970. On the downside, a slide below $37,980 could lead to a deeper correction towards $34,800.
The 4-hour chart for Bitcoin shows that the moving averages have completed a bullish crossover, and the RSI is near the overbought zone, indicating a comeback for the bulls. The rally could reach $43,500 and then $44,700. The moving averages are likely to act as strong support on the downside. However, a break below the 50-simple moving average could favor the bears, causing the pair to slump to $39,500 and later to $37,980.
Solana (SOL) has climbed above the moving averages on January 27th and is attempting to sustain above the downtrend line on January 28th. The 20-day EMA ($93) has flattened out, and the RSI is just above the midpoint, indicating a balance between buyers and sellers. If the price maintains above the downtrend line, the SOL/USDT pair could attempt a rally to $107 and then to $117. However, if the bears push the price back below the moving averages, it may trap aggressive bulls and lead to a retest of support at $79. On the 4-hour chart, the pair has risen above the downtrend line, invalidating the bearish descending triangle pattern. This is a positive sign as it indicates that bulls are entering the market and bears are exiting. If buyers hold the price above the downtrend line, the pair is likely to ascend towards $107 and later to $117. On the other hand, a downturn and a drop below $85 would invalidate this positive view.
Avalanche (AVAX) has been trading inside a descending channel pattern for several days. Buyers purchased the dip to the support line on January 23rd and pushed the price above the 20-day EMA ($34) on January 28th. Sellers will attempt to halt the recovery at the downtrend line. If the price turns down from the overhead resistance, it will suggest that bears remain active at higher levels, potentially keeping the AVAX/USDT pair inside the channel for some time. However, if the price breaks through the overhead resistance, it will signal aggressive buying from bulls, potentially leading to a rally to $44 and subsequently to the psychologically important level of $50. On the 4-hour chart, the 20-EMA has started to turn up, and the RSI is near the overbought zone, indicating strong buying by the bulls. Sellers have successfully defended the downtrend line on three previous occasions and will likely try to do so again. If the price turns down from the downtrend line but rebounds off the 20-EMA, it will suggest that traders view the dips as buying opportunities, enhancing the prospects of a rally above the channel. However, if the price turns down and breaks below the moving averages, it will suggest that bears are aggressively selling at higher levels, potentially keeping the pair inside the channel for a while longer.
After an initial pullback, Render (RNDR) has been consolidating between $3.56 and $4.40 for the past few days. Both moving averages have flattened out, and the RSI is just above the midpoint, indicating a balance between bulls and bears. If the price turns down from $4.40 and breaks below the 20-day EMA ($4), the RNDR/USDT pair may continue its range-bound action. However, if the price rises above $4.40, it will signal that buyers have gained the upper hand. The pair could then rally to $5.07 and eventually to $5.28, indicating a resumption of the uptrend. On the 4-hour chart, the pair has formed a symmetrical triangle pattern, reflecting indecision among bulls and bears. If the buyers manage to push the price above the triangle, the pair may climb to $4.40 and then to $4.71. Conversely, if the price continues to decline and breaks below the 20-EMA, it will indicate that bears are defending the downtrend line, potentially leading to a decline towards the support line.
Sui (SUI) has been in an uptrend for several days, but the bears are trying to halt the rally at $1.50. The SUI/USDT pair has formed a rounding bottom pattern, which will complete on a break and close above $1.50. If this occurs, bullish momentum could pick up, driving the pair towards $2, with a pattern target of $2.64. However, bears are likely to fiercely defend the $1.50 level and attempt to pull the price to the 20-day EMA ($1.18). If the price rebounds off the 20-day EMA strongly, the chances of a rally above $1.50 increase. On the other hand, a break below the 20-day EMA could result in a decline to the 50-day SMA ($0.92). The 4-hour chart shows that bulls are struggling to push the price above the overhead resistance at $1.50. If the price continues to decline and breaks below the 20-EMA, a pullback to the 50-SMA may occur. Conversely, if the price rebounds off the 20-EMA, it will indicate positive sentiment and a willingness to buy the dips. The pair may then overcome the obstacle at $1.50 and continue the uptrend.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.