Top 4 Cryptocurrencies To Watch This Week : BTC, LUNA , ATOM , ACH
Bitcoin (BTC) dropped to around $34,000 on Jan. 21, a 50% drop from its all-time high of $69,000 set on Nov. 10, 2021. Altcoins were unable to defy the trend and were subjected to heavy selling pressure, bringing the whole crypto market value down to $1.6 trillion, a 46 percent drop from its all-time high near $3 trillion in November 2021.
Several retail traders have expressed their concerns on social media after purchasing Bitcoin around its all-time high. El Salvador’s President, Nayib Bukele, is unconcerned with the recent drop, as he recently announced the purchase of 410 Bitcoin at an average price of $36,585.
Could Bitcoin and other altcoins see a rebound after the recent devastation? Let’s take a look at the charts of the top five cryptocurrencies that could outperform if a relief rally begins.
On Jan. 21, Bitcoin fell below the $39,600 to $37,332. support zone, indicating panic selling. On Jan. 22, the selling persisted, and the price dropped to $34,008.
The relative strength index (RSI) has dipped below the 20 mark in recent days, indicating that the selling may have been overdone in the short term. A consolidation or relief rally usually follows such oversold levels.
In the overhead zone, recovery attempts are likely to be met with stiff opposition. If the $37,332 to $39,600 zone turns into resistance, it means that traders are selling on rallies and mood is still bearish.
The bears will next try to resume the decline by sinking the BTC/USDT pair to $30,000. The first sign that bears are losing their grip will be a break and closing above the 20-day exponential moving average ($41,427).
The pair is trading inside a descending channel pattern on the 4-hour chart. The bears were able to push the price below the channel, but they were unable to keep it there. This indicates that the bulls, who have driven the price back into the channel, have been aggressive buyers.
The duo might advance to the 20-EMA, where the bears could once again put up a fight. If the price falls below $34,008 and breaks through this resistance, the selling could become more intense. A break above the 20-EMA, on the other hand, might pave the way for a probable rise to the channel’s resistance line.
For the previous few days, Terra’s LUNA token has been trading in a downward channel. On Jan. 22, the price plummeted to the channel’s support line, but the bulls pounced, as evidenced by the lengthy tail on the day’s candlestick.
The LUNA/USDT pair may try a pullback to the moving averages, then to the channel’s downtrend line. The pair might increase to $87.90 and then to $93.81 if bulls push the price above the channel.
On the contrary, if the price falls below the present level or the moving averages, it indicates that bears are selling on every tiny gain. The pair might then retest the channel’s support line. If this support is broken, the selling could pick up speed.
The relief rally has reached the 20-EMA on the 4-hour chart, which is an important level to watch. The 20-EMA is slightly downsloping, and the RSI is barely below the midpoint, indicating a slight bearish advantage.
If bulls can push the price above the 20-EMA, the pair may try to rally toward the channel’s downtrend line. If the price falls below the present level, the bears will take advantage of the situation and try to drag the pair below the channel’s support line.
Cosmos (ATOM) sank to the 200-day simple moving average ($27.57) on Jan. 22 after breaking through the overhead resistance at $40.
The ATOM/USDT pair has swiftly rebounded from the 200-day SMA, indicating that bulls are fiercely defending this level. The buyers will now attempt to push the price to the 20-day exponential moving average ($35.91).
A break and closing above this level could signal the end of the correction. The pair could then rally to $44.80, which is a key overhead resistance level.
If the price falls below the 200-day SMA and breaks below the current level or the 20-day EMA, this bullish view will be invalidated. A move like this might pave the way for a decline to $20.
A double top formation can be seen on the 4-hour chart, which was completed on a break and closed below $34. The pair fell to an intraday low of $27.31 in this topping out pattern, with a target of $23.20.
The relief rally from lower levels is meeting severe opposition at the $34 level, which represents the breakdown level. The pair could advance to the downtrend line if bulls push and sustain the price above this barrier. A break and closure above this level indicate a potential trend change.
Alchemy Pay (ACH) intends to eliminate the divide between the crypto and fiat worlds by allowing for seamless transfers between the two. Its latest cooperation with MEXC Global will enable users in Japan, Korea, and Indonesia with a variety of payment choices.
Alchemy Pay also partnered with Algorand and Avalanche to add direct fiat payment channels to their network, including Visa, Mastercard, PayPal, and a number of local payment channels.
Alchemy Pay’s clients in the 190+ countries where NIUM operates will benefit from new cooperation with NIUM. Alchemy Pay will benefit from NIUM’s licenses in financially vital regions such as the United Kingdom, Europe, the United States, Singapore, Hong Kong, and Australia.
Following a new collaboration with MakerDAO, the network expanded support for Dai and announced a partnership with IoTeX. (IOTX). IOTX can now be used for business-to-business (B2B) and customer-to-business (C2B) payments in a variety of countries thanks to the integration.
Multiple collaborations have allowed the project to expand its support to over 70 countries, with 300 payment methods reaching over 2 million retailers. On January 10, ACH was added to the Binance exchange, making it easier for a bigger group of traders to trade the coin.
Since reaching an all-time high in August 2021, ACH has been progressively dropping. This indicates that traders have been profiting from rallies.
On Jan. 21, the ACH/USDT pair fell below a significant support zone at $0.056 to $0.045, but bears were unable to capitalize on their advantage. This shows a high amount of demand at a lower price point.
Several aggressive bears who may have sold recently may become stuck if buyers push the price back over the overhead zone. This might cause a short squeeze, pushing the pair towards the falling triangle’s downtrend line. On a break, the bullish momentum could pick up and close above the triangle.
If the price falls below the above zone, however, it indicates a shift in mood from buying on dips to sell on rallies. The bears will next try to push the market below $0.03, resuming the slump.