Top 4 Cryptocurrencies To Watch This Week : BTC, NEAR, FTM , ATOM
Bitcoin (BTC) has halted its slump and, along with a few other altcoins, is seeking a comeback. Bitcoin’s greatest falls, according to Capriole CEO Charles Edwards, occurred “due to miner capitulation (December 2018 and March 2020), when BTC went below production costs.” However, Bitcoin’s recent production cost was $34,000, which is far less than its current price.
Cathie Wood’s Ark Invest purchased 6.93 million shares of the special purchase acquisition company that will merge with Circle, the principal operator of USD Coin (USDC) and the second-largest stablecoin in terms of market capitalization, indicating that institutional investors remain bullish on the crypto sector despite the recent drop.
The fact that nonfungible tokens (NFTs) have not reacted negatively to the drop in crypto prices is another indicator that the crypto markets are maturing. According to a recent analysis by DappRadar, NFT trading generated $11.90 billion in the first ten days of 2022, compared to $10.7 billion in Q3 2021.
Could Bitcoin’s comeback continue to push some cryptocurrencies higher? Let’s look at the charts of the top four cryptocurrencies to see what we can learn.
For the previous three days, the bulls have struggled to push Bitcoin above the 20-day exponential moving average ($44,415), but one slight positive is that purchasers have not given up much ground. Bulls are buying on every tiny dip, according to this.
If buyers can drive the price above the 20-day EMA and keep it there, it could suggest a trend change. The BTC/USDT pair might next rally to the 50-day simple moving average ($47,987), where the bears could once again put up a strong fight. If this barrier is broken and closed above, a rally to $52,088 could be possible.
If the price fails to move above the 20-day EMA, contrary to popular belief, it indicates that sentiment is negative and traders are selling on rallies. The bears will next try to push the stock below $39,600, which is a major support level. If they succeed, the pair’s slump could be extended.
On the 4-hour chart, the moving averages have flattened down, and the relative strength index (RSI) is slightly over the midpoint. In the short run, this predicts a range-bound action. It’s possible that the pair may remain locked between $39,600 and $45,456.
A break and close above $45,456 might tip the scales in the bulls’ favour, indicating the commencement of a probable surge to $52,088. A break and closing below $39,600, on the other hand, could signal a resumption of the downturn.
The NEAR token of the NEAR Protocol is on a significant upward trend. On Jan. 11, the price broke over the previous all-time high of $17.95, signifying a resumption of the upward trend. On Jan. 12, the bears dragged the price back below $17.95, but the bulls pounced on the opportunity and recaptured the level on Jan. 13.
The RSI is in positive territory, and both moving averages are trending up, indicating that the path of least resistance is upward. The NEAR/USDT pair might rally to $25.44 if bulls do not allow the price to go below the breakout barrier at $17.95.
Alternatively, the pair might drop to the 20-day EMA ($16.42) if bears push the market below $17.95. A bounce off this level might keep the uptrend going, but a break and closing below it would indicate that traders are fleeing. After that, the pair might drop to $13.
The price has been taking support near the 20-EMA on the 4-hour chart. The bullish RSI and upsloping moving averages signal that the short-term trend is in favour of buyers.
The rally could start if bulls push the price above $20.59. After that, the pair could move to $22 and ultimately to $25.
In contrast to popular belief, if the price falls below the 20-EMA, it indicates that short-term traders are likely to be taking profits. After that, the pair might drop to the 50-SMA. The commencement of a deeper correction will be signalled by a break and closing below this support.
Cosmos (ATOM) is aiming to build an inverse head and shoulders pattern that will finish on a breakout and close above the $44.80 overhead resistance.
The rising moving averages and an overbought RSI suggest that the route of least resistance is to the upward. If the price closes over $44.80, it might set the stage for a rise to the psychological threshold of $50, and then to the pattern goal of $69.42.
Alternatively, the ATOM/USDT pair might drop to the 20-day EMA ($36) if the price falls below the overhead barrier. The bulls must protect this crucial level. If the price bounces off this level, bulls will try to push the pair above overhead resistance and restart the upswing.
The first sign that the uptrend is losing pace will be a break and closure below the 20-day EMA. The two might then work together.
The price has broken out of the symmetrical triangular pattern on the 4-hour chart, indicating that the ambiguity has resolved in the buyers’ favour. The bears may try to defend $44.80 as overhead resistance, but if they fail, the pair might rally to $51.19 as the pattern goal.
Alternatively, the pair might drop below the 20-EMA if the bears successfully defend the barrier at $44.80. If the price bounces off this support, the bulls will try to break through the overhead barrier once more. A break and closure below the 50-SMA will invalidate this bullish stance.
Fantom (FTM) is now on a solid upward trend. The recent price movement has formed an inverse (IH&S) pattern, which will complete on a break and closure above $3.17.
The bears may try to halt the rally at $3.48, but if the price rises over this level, the next leg of the uptrend might commence. The upward movement could first hit $4 before continuing on to the pattern target of $5.11.
Bears will try to drag the FTM/USDT pair to the 20-day EMA ($2.62) if the price drops from the overhead resistance, contrary to popular belief. If the price rises from this level, it indicates that traders are buying the dips and mood is still favourable.
A break and closure below this support, on the other hand, will signal the commencement of a more significant correction below the 50-day SMA ($2.07).
At $3.17, the bears attempted to halt the uptrend, but the bulls had other ideas. They took advantage of the slide to the 20-EMA and drove the price above the overhead resistance. The return of the uptrend will be signalled if bulls can keep the price above the breakout level.
If bears manage to push the price below $3.17, the pair may drop to the 20-EMA. This is a key level to keep an eye on because a break and closure below it could signal that the latest breakout was a bull trap. After that, the pair could decline to $2.80 and then to the 50-SMA.