Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP
Over the past seven days, the crypto market saw an uptick in volatility as Bitcoin (BTC) and Dogecoin (DOGE) price rallied higher simply because of social media activity. In situations like these, traders who make their investment decisions based on emotions tend to incur heavy losses and this is exactly what happened last week.
Dogecoin'south (DOGE) recent pump and dump acquired several new traders who bought due to FOMO to lose money within a brusk fourth dimension and this scenario is probable to play out again as social media groups accept decided that collective pumps of altcoins is a new method of investing.
A similar trend currently seems to be developing in Bitcoin (BTC), which has retraced a big portion of the upwardly-move that was acquired due to the "Elon pump" on Jan. 29. This shows that barring a few emotional buyers, near professional traders may have used the rally to lighten their long positions.
Stack Funds head of inquiry Lennard Neo believes the Bitcoin miners are selling on rallies and that trend may continue as the Chinese New Twelvemonth holiday approaches. Neo expects Bitcoin's cost to remain volatile in the near term.
Fifty-fifty as Bitcoin'south toll consolidates, the decentralized finance tokens go along to surge, which suggests traders' focus has shifted to the DeFi infinite. Let'southward analyze the charts of the top-5 cryptocurrencies that could trend in the next few days.
BTC/USD
Bitcoin's long wick on Jan. 29 shows the bears aggressively sold the rally above the downtrend line of the descending triangle. That was followed by a Doji candlestick blueprint on Jan. 30, indicating indecision among the bulls and the bears.
The failure of the bulls to button the price above the downtrend line today has attracted further selling. The bears are currently trying to sustain the price below the 20-day exponential moving average ($33,395).
If they succeed, the BTC/USD pair may drop to the l-twenty-four hour period unproblematic moving boilerplate ($thirty,631) and so to $28,850.
A breakdown and close beneath $28,850 volition complete the bearish descending triangle pattern that has a target objective at $15,741. However, it is unlikely to be a straight fall considering the bulls volition try to arrest the reject at the 50% Fibonacci retracement level at $25,897.42 and again at the 61.8% retracement at $22,106.73.
This negative view will invalidate if the price turns up from the electric current level or rebounds off the $28,850 support and sustains above the downtrend line. Such a move will suggest potent accumulation at lower levels, which could event in a ascent to $xl,000.
The 4-hour chart shows the breakout above the downtrend line met with strong selling pressure and the price quickly retracted back into the triangle.
The failure of the bulls to push the cost back in a higher place the downtrend line has attracted selling and the bears have pulled the price below the 20-EMA. The bulls are currently attempting to defend the fifty-SMA simply if this support besides cracks, the pair may starting time its journey towards $28,850.
This negative view will invalidate if the toll rebounds off the current level and rises to a higher place the downtrend line. Such a motion could push the price to $38,519.63.
ETH/USD
Ether (ETH) broke above the $1,400 resistance on three previous occasions but the bulls could not sustain the breakout, which shows profit-booking at higher levels. However, the positive thing is that the bulls have not given upward much ground in the by few days. This shows the bulls are accumulating on dips.
The ETH/USD pair had formed a Doji candlestick pattern on Jan. 30, indicating uncertainty. That indecision has resolved to the downside today and the pair may now driblet to the 20-day EMA ($1,253), which is likely to act as strong back up.
A bounce off the support will suggest the sentiment remains bullish and traders are buying on dips. The bulls will so try to resume the uptrend. If the bulls tin drive the cost in a higher place the $1,400 to $1,473.096 resistance zone, the pair could rally to $i,675 then to $2,000.
This bullish view will invalidate if the bears sink the price below the 20-solar day EMA and the uptrend line. In such a case, the pair may drop to the fifty-day SMA ($990).
The 4-hour chart shows the formation of an ascending triangle design, which will consummate on a breakout and close above $1,440. This bullish setup has a target objective of $1,768.
However, the moving averages have flattened out and the relative strength index (RSI) is just beneath the midpoint, which suggests a balance between supply and need.
If the bears sink the price below the support line of the triangle, it volition invalidate the pattern. The next support on the downside is the uptrend line then $1,050.
UNI/USD
Uniswap (UNI) is in a strong uptrend that has pushed the RSI deep into the overbought territory. While the RSI can remain overbought for an extended period, traders should be cautious as corrections from overbought levels can be swift and sharp.
The first support on the downside is the 38.ii% Fibonacci retracement level at $fifteen.3963. If the cost rebounds off this level, it will suggest the bulls are aggressively buying the dips and are not waiting for a deeper correction to enter.
If the bulls can push the price above $twenty.5612, the UNI/USD pair could rally to $28 and then to $32. Both moving averages are rising and the RSI is above 79, indicating the bulls are in control.
Nevertheless, if the correction deepens below $15.3963, the next support is at the 20-day EMA ($11.85), which is near the 61.8% Fibonacci retracement level at $12.2054. A deeper fall usually delays the start of the side by side leg of the uptrend.
The four-60 minutes chart shows the pair has fabricated a flag design. If the bulls can push the toll to a higher place the flag, the uptrend could resume and the pair may rally to $22 and so to $25.
Another possibility is that the pair continues to correct and drop to the 20-EMA. If the cost rebounds off this support, information technology will suggest the sentiment remains positive and the bulls are buying on small dips.
During the electric current leg of the uptrend, the price has repeatedly taken support at the 20-EMA. Therefore, a break beneath the 20-EMA will advise the bullish sentiment may be waning and could event in a drop to $xv.3963 and then to the 50-SMA.
ATOM/USD
Cosmos (Atom) has formed a cup and handle blueprint that will complete on a breakout and close higher up $8.877. If the bulls tin propel the price above the $10.20 resistance, the uptrend could begin.
The commencement target on the upside is $11.151 and the next level to scout out for is $xiii.554. The rise moving averages and the RSI'south bounciness from the midpoint suggest the bulls take the upper hand.
If the bears sink the price beneath the 20-day EMA ($7.65), the Atom/USD pair may remain range-leap between $six.603 and $viii.877 for a few more than days.
The bullish assumption will be negated if the bears sink and sustain the price below the fifty-solar day SMA ($half-dozen.iv). Such a move may pull the toll downwardly to $five.50 and and so to $4.50.
The 4-hour chart shows the bulls have pushed the cost above the downtrend line of the descending triangle. This has invalidated the bearish setup only the bulls are struggling to thrust the cost higher up the $8.877 resistance.
The apartment moving averages and the RSI near the midpoint suggest the pair may remain range-bound between $8.877 and $6.726 for some more time. If the bulls can propel the cost to a higher place $viii.877, the pair could rise to $ten.xx, while a pause below $6.726 will suggest the bears are trying to brand a improvement.
COMP/USD
Compound (COMP) completed a rounding bottom pattern on Jan. 29 when it broke and closed in a higher place the $272.61 resistance. This reversal setup has a target objective of $464.60.
The upsloping moving averages and the RSI near the overbought territory advise bulls are in command. Afterward the breakout from a blueprint, the toll normally retraces and retests the breakout level, but if the trend is very strong, information technology only consolidates or enters a minor correction earlier resuming the upwardly-motility.
If the COMP/USD pair rebounds off $272.61, information technology will advise the bulls have flipped the previous resistance into support. That could so act equally a launchpad for the next leg of the uptrend.
This positive view will invalidate if the bears sink and sustain the price beneath $272.61. Such a move volition bespeak profit-booking at higher levels and a lack of buying on dips.
The four-hour chart shows traders booked profits most $340 only the correction was curt-lived as the price turned up from $304.84. If the bulls tin now drive the price above $340, the pair may rally to $405.
On the other hand, if the toll again turns down from $340, the pair may drop to the 20-EMA. If the price rebounds off this support, the bulls volition again try to resume the up-move, just if the bears sink the pair below the xx-solar day EMA, a drop to $272.61 will be on the cards.
The views and opinions expressed here are solely those of the author and exercise not necessarily reverberate the views of Cointelegraph. Every investment and trading motility involves adventure, y'all should bear your own research when making a decision.
Source: https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-eth-uni-atom-comp
Posted by: lillystuaque.blogspot.com
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