In the first few days of the New Year, Bitcoin (BTC) has remained below the psychological level of $50,000, signaling a lack of aggressive buying by traders. President Nayib Bukele of El Salvador, the first government to recognize Bitcoin as legal tender, believes the cryptocurrency might reach $100,000 this year. In addition, President Bukele stated that in 2022, two more countries would accept Bitcoin as legal cash.
Another long-term benefit is the rising use of cryptocurrency by institutional investors in 2021. Net inflows into crypto funds in 2021 were more than $9.3 billion, according to CoinShares. Bitcoin received more than two-thirds of all crypto inflows.
Could Bitcoin begin a new uptrend in January, causing several altcoins to rise as well? Let’s take a closer look at three cryptocurrencies for this week.
Market Watch: BTC/USDT
For the previous two days, Bitcoin has traded between the 20-day exponential moving average ($48,720) and firm support at $45,456. This shows that at greater levels, buying dries up.
Bears have the upper hand as both moving averages are trending down, and the relative strength index (RSI) is in the negative zone. The bears will aim to push the price below $45,456 if the price drops below the 20-day EMA. If they succeed, the next leg of the downturn, which may take them to $42,000 and then $40,000, could begin.
In contrast to this notion, the BTC/USDT pair might advance to the 50-day simple moving average ($52,332) if the price breaks above the 20-day EMA. A break and closure above this level might signify the start of a new uptrend, with the 61.8 percent Fibonacci retracement level of $58,686 as a target.
The BTC/USDT pair is range-bound between $45,456 and $51,936.33 on the 4-hour chart. The price has recovered from $45,456, and if bulls can take the pair above the 50-SMA, accumulation at lower levels is likely. This might push the cost up to $51,936.33.
If the price falls below the 50-SMA, the bears will seek to push the pair below $45,456 once more. If they succeed, the pair’s downtrend might resume, with the next target at $38,975.67.
Market Watch: FTM/USDT
In this week’s market watch, Fantom (FTM) has retreated from the $2.67 overhead resistance level, indicating that bears are defending this level aggressively.
The FTM/USDT pair might drop to the 20-day exponential moving average, acting as solid support. A fast comeback from this support level will indicate that buyers are piling in on dips.
The 20-day EMA ($2.03) is increasing, and the RSI is above 68, indicating that the path of least resistance is up.
Bulls will be back in the game if they break and close over $2.67. LUNA/USDT may begin their ascent northward toward $3.17 and then $3.48. To invalidate the bullish attitude, the bears will have to pull the price below $2 and keep it there.
The 4-hour chart shows a rounding bottom formation, complete on a break, and closes above the overhead resistance at $2.67. If the price rebounds off the 20-EMA, the bulls will try to overcome the barrier at $2.67. If that happens, the up-move could begin.
Conversely, if the price breaks below the 20-EMA, it will suggest that the short-term bullish momentum could be weakening. The pair could then drop to the 50-SMA and later to the strong support at $2.
Terra’s LUNA token is attempting to resume its bullish trend, but the bears have other plans, drawing a line near $93.81.
The upsloping moving averages and the RSI in the positive territory suggest a slight edge to the buyers. If the price again rebounds off the 20-day EMA ($82), it will indicate that bulls continue to accumulate on dips.
The LUNA/USDT pair will try to break above $93.81 and challenge the all-time high at $103.60. A break and close above this resistance could start the next leg of the uptrend to $135.26.
Conversely, if the price turns down and breaks below the 20-day EMA, it will change the short-term trend. LUNA could then drop to $65.15.
Between the 50% Fibonacci retracement level at $92.35 and the 61.8% retracement level at $95.01, the bounce from $81.11 is facing selling. The bears will now attempt to lower the stock below the 20-EMA and the uptrend line.
If they do, the pair may fall to $84 and ultimately to $81.11. A break and close below this support level could indicate that the bears have re-entered the fray.
Buyers will try to push the pair over $95.01 and retest the overhead barrier at $103.60 if the price bounces off the current level or the uptrend line.
The author’s views and opinions are purely his or her own, and do not necessarily reflect those of LightBlocks News. Every investing and trading decision entails risk, so do your homework before making a decision.