Price analysis 1/29: BTC, ETH, DOT, XRP, ADA, LINK, LTC, BCH, BNB, XLM

Sentiment plays a major role in the short-term price action of an asset. This truth was demonstrated today when Elon Musk, the world’s richest man, simply wrote ‘Bitcoin’ in his Twitter bio. Crypto traders and Musk followers immediately noticed and Bitcoin price conveniently shot up a few minutes after the tweet.

When BTC price makes a sharp directional move, traders buy into the breakout and short-sellers are squeezed out of their positions. That is what seems to have happened with Bitcoin (BTC) as the sentiment swiftly turned bullish.

It is not only Bitcoin that has seen a pick up in sentiment. Rumors were afloat that Reddit users, who were recently responsible for GameStop’s massive surge in price, were discussing whether or not Dogecoin’s (DOGE) could be pushed to $1. This resulted in a huge spike in Dogecoin’s price.

Daily cryptocurrency market performance. Source: Coin360

Trading with excessive greed and emotion can be risky. While professional traders may make money in such volatile environments, the novice retail trader usually gets stuck at higher levels and has to bear heavy losses. Therefore, traders should keep their greed in check and stick to their trading strategy.

In volatile environments, the price action and trends can change quickly. Let’s analyze the charts of the top-10 cryptocurrencies to spot the support and resistance levels that could be helpful in making trading decisions.