Top 4 cryptocurrencies to watch this week: BTC, HNT, FLOW, ONE
On Jan. 29, Bitcoin’s (BTC) relief bounce surpassed $38,500, but the bulls are fighting to maintain the higher levels. Bitcoin’s price has been closely following the stock market in the United States for the previous few days. As a result, economists cautioned traders against reading too much into any potential weekend surges when regular markets are closed, as this might be a trap.
In a recent study, analysts at trading platform Decentrader predicted a “near-term relief bounce.” According to the research, “significant buyers” have entered the market, which might lead to “a probable change in the upper time frame trend from bearish to positive.”
The latest decline in Bitcoin appears to have frightened JPMorgan analysts, who feel that higher volatility may “hinder further institutional adoption.” The strategists’ long-term theoretical Bitcoin price target has been cut from $150,000 to $38,000, according to a note.
Select cryptocurrencies may draw buying from ardent bulls if Bitcoin’s rebound continues. Let’s look at the top-5 cryptocurrencies’ charts to see if they can extend the rebound in the short term.
The relief surge in Bitcoin has approached the hard resistance zone of $37,332.70 to $39,600. This zone also contains the 20-day exponential moving average ($39,475), making it crucial for the bears to defend.
Bears have an advantage because the 20-day EMA is downsloping and the relative strength index (RSI) is in the negative zone.
The BTC/USDT pair might progressively decline to $35,507.01 and eventually retest the Jan. 24 intraday low of $32,917.17 if sellers pull the price back below $37,332.70. A break and closing below this support might pave the way for a slide to $30,000 or even lower.
Alternatively, if the price rises from its current level and breaks above $39,600, it could signal a short-term trend change. After that, the pair might rally to $43,505 before retesting the 200-day simple moving average ($48,833).
The 20-EMA has gradually begun to turn up, and the RSI has risen into the positive zone, as shown on the 4-hour chart. This signals that the bulls are attempting a comeback. The pair might reach the 200-SMA, which could function as resistance if buyers push the price beyond $39,600.
On the other side, if the price drops below $37,312.70 from its current level, it indicates that bears haven’t given up yet. The sellers will next attempt to drag the price down to $35,507.01, a key support level for the bulls to defend.
If the price rises above this level, it indicates that traders are looking to purchase on dips. This could enhance the chances of a break above $39,600.
On Jan. 21, Helium (HNT) fell below the 200-day SMA ($26.67), but the bears were unable to maintain the lower levels. On Jan. 26, the bulls aggressively bought the $20 dip and pushed the price back above the 200-day SMA.
The recovery encountered a brick wall at the 20-day EMA ($28.84), but the bulls didn’t let the price go below the 200-day SMA. For the past three days, the price has been fluctuating between the moving averages.
Trading in such a narrow range is unlikely to last for long. The HNT/USDT pair might rally to $36 and subsequently to the downtrend line if bulls drive and sustain the price above the 20-day EMA.
If the price falls below the 200-day SMA, this bullish view will be invalidated. This might bring the price of the pair down to $20.
The price broke out of the downtrend line, indicating that the bears’ hold on the market may be slipping. The bears attempted to lower the price below the 20-EMA, but the bulls are defending the support.
The uptrend may gain traction if bulls push the price over $31, which would indicate a 1-2-3 bottom. The 200-SMA provides little resistance, but once crossed, the pair might resume its march toward $40. On the other hand, if the price falls below $26, the pair might fall below $24.
For the past few months, Flow (FLOW) has been in a significant downturn. On Jan. 22, the bears dragged the price below a solid support level of $6, but they were unable to extend their lead. This shows that buildup is occurring at a lower level.
Today, the bulls pushed the price above the breakdown level ($6.41) and the 20-day EMA ($6.41). If they can keep the price above the resistance level, it could suggest a trend change.
The 20-day EMA is flattening out, and the RSI has recovered to positive territory, indicating that bulls are on the verge of making a comeback.
If the price declines from its current level and falls below the $6 support, this bullish view will be invalidated. This would indicate that bears are still selling aggressively at greater levels.
The price is meeting resistance at the 200-SMA on the 4-hour chart. Because the previous recovery had stalled at this resistance, this is a vital level to keep an eye on. The FLOW/USDT pair could drop to the 20-EMA if the price drops from its present level.
If the price bounces back strongly from this level, it means bulls are buying on dips. The buyers will then aim to push the pair over the 200-SMA once more. If they succeed, the pair might rally to the $9.27 to $9.70 upper resistance zone.
Harmony (ONE) is currently trading in a wide range of $0.16 to $0.36. The bears recently attempted to push the price below the range, but the bulls stood firm.
The bulls will try to push the ONE/USDT pair over the 200-day SMA ($0.19) now that the price has recovered from the support. If they succeed, the pair might rally to the 20-day EMA ($0.23), where the bears may once again put up a strong fight.
A break and closing above the 20-day exponential moving average (EMA) might pave the way for a surge above $0.28. In the event that the price falls below $0.16, the bears will attempt to bring the pair below it. If they succeed, it might indicate the start of a new downward trend.
An asymmetrical triangular pattern can be seen on the 4-hour chart. The 20-EMA has flattened down, and the RSI is just below the midway, indicating that supply and demand have reached a point of equilibrium.
If the price rises and holds above the triangle, this indecision could tip in favor of the bulls. This might indicate a trend reversal, with the pair rising to $0.22 and then $0.26.
If the price falls below the support line, this bullish view will be invalidated. This indicates that the triangle was used as a continuation motif.