Price analysis 1/7: BTC, ETH, BNB, SOL, ADA, XRP, LUNA, DOT, AVAX, DOGE

Bitcoin
(BTC)
and
the
U.S.
equity
markets
fell
sharply
on
Jan.
5,
reacting
negatively
to
the
minutes
from
the
Federal
Reserve’s
December
FOMC
meeting,
which
showed
that
the

members
expect
the
balance
sheet
reduction

to
start
after
the
Fed
begins
hiking
interest
rates
in
early
2022.

Adding
to
the
negative
sentiment
was
the
shutdown
of
the
world’s
second-biggest
Bitcoin
mining
hub
in
Kazakhstan,
where
the
internet
has
been
shut
down
following
massive
protests
by
citizens.
This
caused
a
dip
of
about

13.4%
in
the
Bitcoin
network’s
overall
hash
rate

from
205,000
petahash
per
second
(PH/s)
to
177,330
PH/s.


Daily
cryptocurrency
market
performance.
Source:



Coin360

According
to
Galaxy
Digital
Holdings
CEO
Mike
Novogratz,
the
current
decline
was
with
low
volumes
and
he
believes
that
the
markets
will
be
volatile
in
the
next
few
days.
Novogratz
suggests
that
a
huge
amount
of
“institutional
demand”
was
waiting
on
the
sidelines
and
he
expects
Bitcoin
to

bottom
out
in
the
$38,000
to
$40,000
zone
.

Could
Bitcoin
and
major
altcoins
continue
to
face
selling
or
will
they
bounce
off
strong
support
levels?
Let’s
study
the
charts
of
the
top
10
cryptocurrencies
to
find
out.

BTC/USDT

The
range-bound
action
in
Bitcoin
resolved
to
the
downside
on
Jan.
5
when
bears
pulled
the
price
below
the
strong
support
at
$45,456.
This
suggests
that
supply
exceeds
demand.


BTC/USDT
daily
chart.
Source:
TradingView

There
was
a
meek
attempt
to
defend
the
$42,500
support
on
Jan.
6
but
sustained
selling
has
pulled
the
price
close
to
the
next
support
at
$39,600.
This
leg
down
has
invalidated
the
positive
divergence
that
was
forming
on
the
relative
strength
index
(RSI).

The
downsloping
moving
averages
and
the
RSI
near
the
oversold
zone
suggest
that
bears
are
in
control.
If
bears
sink
and
sustain
the
price
below
$39,600,
the
BTC/USDT
pair
could
nosedive
to
$30,000.

On
the
contrary,
if
the
price
rebounds
off
$39,600,
the
bulls
will
again
try
to
push
the
pair
above
the
20-day
exponential
moving
average
(EMA)
($46,811).
Such
a
move
will
be
the
first
indication
that
the
downtrend
could
be
ending.

The
bullish
momentum
could
pick
up
on
a
break
and
close
above
the
50-day
simple
moving
average
(SMA)
($50,610).

ETH/USDT

Ether
(ETH)
turned
down
from
the
20-day
EMA
($3,756)
on
Jan.
5
and
plunged
below
the
Dec.
4
intraday
low
at
$3,503.68.
This
suggests
that
bears
have
reasserted
their
supremacy.


ETH/USDT
daily
chart.
Source:
TradingView

The
downsloping
moving
averages
and
the
RSI
in
the
oversold
zone
suggest
that
bears
are
in
command.
If
bears
sustain
the
price
below
$3,250,
the
decline
could
extend
to
the
support
line
of
the
channel.

The
bulls
will
attempt
to
defend
this
level
and
push
the
price
to
the
resistance
line
of
the
channel.
A
break
and
close
above
the
channel
will
signal
a
change
in
trend.

Alternatively,
if
bears
sink
the
price
below
the
channel,
the
ETH/USDT
pair
could
decline
to
the
strong
support
at
$2,652.

BNB/USDT

Binance
Coin
(BNB)
broke
below
the
strong
psychological
support
at
$500
on
Jan.
5.
Follow-up
selling
has
pulled
the
price
to
the
next
support
at
$435.30.


BNB/USDT
daily
chart.
Source:
TradingView

If
the
price
bounces
off
the
current
level,
the
BNB/USDT
pair
could
rally
to
$500
where
the
bears
are
likely
to
mount
a
stiff
resistance.
The
downsloping
moving
averages
and
the
RSI
in
the
oversold
zone
suggest
that
bears
are
in
control.

If
the
$435.30
support
gives
way,
the
pair
could
extend
its
decline
to
$392.20
and
later
to
$320.
This
negative
view
will
be
negated
if
the
price
breaks
and
sustains
above
the
channel.
Such
a
move
could
open
the
doors
for
a
possible
move
to
$575.

SOL/USDT

Solana
(SOL)
plummeted
below
$167.88
and
the
Dec.
13
intraday
low
at
$148.04
on
Jan.
5.
This
indicated
that
bears
have
reasserted
their
dominance.


SOL/USDT
daily
chart.
Source:
TradingView

The
selling
has
continued
and
the
bears
will
now
try
to
pull
the
SOL/USDT
pair
to
the
strong
support
at
$116.
This
level
could
attract
strong
buying
from
the
bulls
but
the
relief
rally
is
likely
to
face
selling
near
the
20-day
EMA
($170).

Such
a
move
will
indicate
that
the
sentiment
remains
negative
and
traders
are
selling
on
rallies.
That
could
increase
the
likelihood
of
a
break
below
$116.
The
next
stop
may
be
the
support
line
of
the
channel.

The
buyers
will
have
to
push
and
sustain
the
pair
above
the
resistance
line
of
the
channel
to
signal
that
the
downtrend
could
be
ending.

ADA/USDT

Cardano
(ADA)
turned
down
from
the
20-day
EMA
($1.33)
on
Jan.
5
and
dropped
to
the
strong
support
at
$1.18.
The
bulls
have
successfully
defended
this
level
but
have
failed
to
push
the
price
above
the
20-day
EMA.


ADA/USDT
daily
chart.
Source:
TradingView

If
bears
pull
the
price
below
$1.18,
the
ADA/USDT
pair
could
drop
to
the
critical
support
at
$1.
This
is
an
important
support
to
watch
out
for
because
if
it
cracks,
the
selling
momentum
could
pick
up
and
the
pair
could
slide
to
$0.68.

On
the
contrary,
if
bulls
drive
the
price
above
the
moving
averages,
the
pair
could
rise
to
the
resistance
line
of
the
channel.
A
break
and
close
above
the
channel
will
signal
a
possible
change
in
trend.
The
pair
could
then
rally
to
$1.87.

XRP/USDT

Ripple
(XRP)
broke
below
the
$0.75
support
on
Jan.
5
but
the
long
tail
on
the
candlestick
suggests
that
bulls
purchased
this
dip.
However,
a
minor
negative
is
that
the
buyers
have
not
been
able
to
build
upon
the
rebound.


XRP/USDT
daily
chart.
Source:
TradingView

The
XRP/USDT
pair
formed
a
Doji
candlestick
pattern
on
Jan.
8
and
the
bulls
are
currently
attempting
to
sink
the
price
below
$0.75.
If
that
happens,
the
downtrend
could
resume
and
the
pair
may
drop
to
$0.60.

The
downsloping
moving
averages
and
the
RSI
in
the
negative
zone
indicate
that
bears
are
in
command.
Contrary
to
this
assumption,
if
the
price
rebounds
off
the
current
level,
the
bulls
will
attempt
to
push
the
pair
above
the
moving
averages.

If
they
succeed,
it
will
suggest
that
the
selling
pressure
may
be
reducing.
The
pair
could
then
rise
to
$1.

LUNA/USDT

Terra’s

LUNA

token
plummeted
below
the
20-day
EMA
($81)
on
Jan.
5,
indicating
that
short-term
traders
may
have
booked
profits
after
bulls
failed
to
clear
the
hurdle
at
$93.81.


LUNA/USDT
daily
chart.
Source:
TradingView

The
bears
have
pulled
the
price
to
the
50-day
SMA
($69),
which
may
act
as
a
strong
support.
If
the
price
rebounds
off
the
current
level,
the
bulls
will
try
to
push
the
LUNA/USDT
pair
to
the
downtrend
line
of
the
descending
channel.

A
break
and
close
above
the
channel
will
indicate
that
the
correction
may
be
over.
The
bulls
will
then
try
to
push
the
price
to
$93.81.
On
the
contrary,
a
break
and
close
below
the
50-day
SMA
could
intensify
selling
and
the
pair
may
drop
to
the
psychological
support
at
$50.



Related:




Bitcoin
and
Ether
heading
$100K
and
$5K
in
2022:
Bloomberg
Intelligence

DOT/USDT

Polkadot
(DOT)
is
range-bound
in
a
downtrend.
The
price
has
been
oscillating
between
$22.66
and
$32.78
for
the
past
few
days.


DOT/USDT
daily
chart.
Source:
TradingView

The
20-day
EMA
($28)
has
started
to
turn
down
and
the
RSI
has
dipped
into
the
negative
territory,
suggesting
that
bears
have
the
upper
hand.
If
sellers
sink
and
sustain
the
price
below
$22.66,
the
DOT/USDT
pair
could
plunge
to
$16.81.

Contrary
to
this
assumption,
if
the
price
rebounds
off
$22.66,
the
bulls
will
try
to
push
the
pair
to
$32.78.
A
break
and
close
above
this
level
could
signal
a
possible
change
in
trend.
The
pair
could
first
rise
to
$40
and
later
to
$44.

AVAX/USDT

Avalanche
(AVAX)
broke
below
the
$98
support
on
Jan.
5
and
dropped
to
the
uptrend
line
of
the
symmetrical
triangle
on
Jan.
7.
The
bulls
will
attempt
to
defend
this
level
and
push
the
price
back
to
the
downtrend
line.


AVAX/USDT
daily
chart.
Source:
TradingView

The
20-day
EMA
($104)
has
turned
down
and
the
RSI
is
below
38,
indicating
that
rallies
are
likely
to
be
sold
into.
If
the
bounce
off
the
current
level
turns
down
either
from
$98
or
from
the
20-day
EMA,
the
possibility
of
a
break
below
the
triangle
increases.

The
AVAX/USDT
pair
could
then
decline
to
the
$75.50
support
where
the
bulls
will
try
to
arrest
the
decline.
This
negative
view
will
invalidate
if
the
price
turns
up
and
breaks
above
the
triangle.
The
pair
could
then
rise
to
$128.

DOGE/USDT

Dogecoin
(DOGE)
dipped
below
the
$0.15
support
on
Jan.
5
but
the
long
tail
on
the
candlestick
shows
that
bulls
defended
this
level.
That
was
followed
by
a
Doji
candlestick
pattern
on
Jan.
6,
indicating
indecision
among
the
bulls
and
the
bears.


DOGE/USDT
daily
chart.
Source:
TradingView

The
bears
tried
to
resolve
the
uncertainty
to
the
downside
on
Jan.
7
but
the
bulls
are
not
willing
to
relent.
However,
unless
buyers
quickly
push
the
DOGE/USDT
pair
above
the
20-day
EMA
($0.17),
the
risk
of
a
break
and
close
below
$0.15
increases.

If
that
happens,
the
pair
could
slide
to
$0.13
and
then
to
$0.10.
Alternatively,
if
bulls
push
the
price
above
the
20-day
EMA,
it
will
suggest
that
buyers
are
attempting
a
comeback.
The
pair
could
then
rise
to
$0.19
and
if
bulls
clear
this
hurdle,
the
rally
may
extend
to
$0.22.


The
views
and
opinions
expressed
here
are
solely
those
of
the
author
and
do
not
necessarily
reflect
the
views
of
Cointelegraph.
Every
investment
and
trading
move
involves
risk.
You
should
conduct
your
own
research
when
making
a
decision.


Market
data
is
provided
by



HitBTC


exchange.

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