Price Bitcoin will push other cryptocurrencies to grow
2023.01.23 04:25
Price Bitcoin will push other cryptocurrencies to grow
Bitcoin (BTC) is on track to end this week with gains of roughly 10%, following a rally of nearly 20% the week before. Several altcoins have been purchased as a result of Bitcoin’s rally, which has improved sentiment. As a result, the total cryptocurrency market capitalization significantly surpassed $1 trillion.
Several analysts, who continue to be skeptical of the rally, have been shocked by the rapid recovery of Bitcoin. While others see parallels between the current rally and the recovery from the 2018 bear market, others believe that the current rise is merely a dead cat bounce that will abruptly change direction.
Despite the fact that traders ought to be prepared for anything, the rate of Bitcoin’s rise does indicate a potential major bottom. Down the road, there will probably be hiccups, but traders will probably aggressively buy the dips.
The sustained recovery of Bitcoin may encourage the purchase of particular altcoins.
Let’s examine the Bitcoin charts and pick some altcoins that are likely to gain strength in the near future.
BTC/USDT
On January 20, Bitcoin rose above the overhead resistance of $21,650, indicating that the uptrend had resumed. This demonstrates that strong demand remains at higher levels.
The long wick on the day’s candlestick shows that, despite pushing the price above the $22,800 resistance on Jan. 21, the bulls failed to build on the breakout.
The relative strength index (RSI) is in overbought territory, despite the upsloping moving averages indicating that bulls are in control. It suggests that minor correction or consolidation may take a few days.
However, bears are irritated when the RSI stays in the overbought zone when a new uptrend begins. If that takes place, the pair may reach $25,211 and the uptrend may continue without a significant correction.
On the negative side, the initial support level is $21,480. The bulls are buying on every minor dip if the price recovers from this level. That may raise the probability of a rally to $25,211.
According to the four-hour chart, the bulls are attempting to convert the $22,800 level into support. The pair may accelerate toward $25,211 if the price continues to rise and reaches a high above $23,271.
The pair could fall to the 20-day exponential moving average (EMA) if the price falls below $22,600. If bears manage to push the price below this level, the next stop could be $21,480. However, this level may serve as a support.
APE/USDT
The price of ApeCoin (APE) has fluctuated between $3 and $7.80 over the past few months. The bulls are attempting a comeback after the bears failed to lower the price below the range. They’ll try to get the price to the range’s resistance.
The overbought area’s RSI and upsloping moving averages suggest that buyers control the market. The APE/USDT pair may surge to $7.80 if buyers bulldoze their way through a small resistance near $6.40. The bears may engage in aggressive selling at this level.
If the price falls below the 20-day exponential moving average (EMA) ($4.80), the optimistic outlook may be invalidated in the near future. That could cause the price to fall below the $4.17 50-day simple moving average.
The four-hour chart indicates that the pair is strongly moving up. Although the bears are attempting to halt the upward movement at $6, the fact that the bulls have not given up much ground is encouraging. This suggests that each and every minor dip is being bought. Now, the bulls will try to get the price above $6 and get the uptrend going again.
The bears, on the other hand, will attempt to lower the price below the 20-EMA. The pair might get profit-booking from the short-term bulls if they succeed. After that, the pair might fall to $5.
MANA/USDT
Decentraland (MANA) surged from $0.28 on December 30 to $0.78 on January 21, indicating strong bullish momentum.
On January 17, the bears sold the break above $0.74, but the bulls intervened and purchased the dip at $0.61. This demonstrates that sentiment remains upbeat and that traders see dips as an opportunity to buy.
To signal the beginning of the subsequent phase of the recovery, the bulls will need to keep the price above $0.74. The MANA/USDT pair might shoot up to $0.87, breaking through the psychological barrier at $1.
Bears will need to bring the price down below $0.61 in order to gain the upper hand. The pair may begin a longer correction to $0.53 if they do that.
An inverse head and shoulders pattern emerges in the four-hour chart. The setup will be completed if buyers push the price above the pattern’s neckline, and the pair may accelerate toward the $0.93 target objective.
On the other hand, a decline from the current level and a break below the moving averages will indicate that the $0.74 resistance is being closely guarded by the bears. The pair might then fall to the support range of $0.61 to $0.55.
