Investors are starting to worry that the Bitcoin (BTC) uptrend could be threatened by the higher rated cryptocurrency failing to raise more than $ 40,000. Some traders fear that a repeat of the bear market in 2018 is inevitable if BTC doesn’t find upward momentum.
However, a study of the beef market reveals notable differences. A study by Pantera Capital found that 86% of the value of the cryptocurrency market is concentrated in Bitcoin and Ethereum after the current upward movement, mainly due to the influx of institutional money into each cryptocurrency.
In 2017, the top two coins contained only 52% of the value, and the remainder was held in several alternative currencies, which turned out to be “dysfunctional” currencies. In the current beef market, retail investors seem to be largely absent, so the speculation seen in 2017 has not yet emerged in 2021.
Scott Meinerd, chief investment officer at Guggenheim Partners, recently said that the long-term target price of $ 400,000 is still in place and that a recent tweet in which he asked his followers to “get some money out of the table” is based on short urgent price action.
Although Minerd did not include bitcoin in investment fund portfolios, he said the purchases were made from some private funds operated by the Guggenheim.
While Bitcoin is consolidating after the recent bullish move, some altcoins are expanding their rally. Can it continue? Let’s analyze 10 cryptocurrency charts to find out.
Bitcoin / US dollar
Bitcoin is trying to recover from a 20-day exponential moving average ($ 34,380), but a weak pullback indicates bulls have no urgency to accumulate after the dip. Since price is stuck inside a symmetrical triangle, technical traders can wait for price to break the pattern before buying.
If the price does not rise to the resistance line of the symmetrical triangle, the bears may sense an opportunity and try to push the price below the triangle. If successful, BTC / USD could drop to the 38.2% Fibonacci retracement level of $ 29,688.10.
This is an important level to look out for because if the price falls below this support, the decline could extend to the 50-day SMA ($ 26,932). The deeper the fall, the longer it will take before the trend resumes, because each advance will be met by a wave of selling traders stuck at higher levels.
Another sharp correction can be avoided if the bulls pushed the price above the triangle. The all-time high of $ 4,1559.63 may seem like tough resistance, but if the bulls manage to overcome it, the pair could reach $ 50,000.
ETH / USD
ETH remains in a strong uptrend and is currently consolidating near the upper resistance between $ 1300 and $ 1349.10. Bullish moving averages and Relative Strength Index (RSI) near the overbought zone indicate that the path of least resistance is heading up.
The ETH / USD pair formed a Doji candlestick pattern on January 17 and again today, indicating a swing among bears and bears. If the uncertainty evaporates and the bulls push the price above the upper resistance, the trend may resume. The next target is $ 1,420, then $ 1,675.
Conversely, if the price falls below current levels and drops below $ 1,152, the pair could fall to the 20-day moving average ($ 1,079). A strong pullback from this support would indicate a build-up at lower levels and the bulls will try to resume the trend again.
However, if the bears push the price below the 20-day EMA, the fall could deepen to $ 1,000 and then $ 900.
DOT / USD
The Polkadot (DOT) is in a strong bullish trend and momentum has recovered after the alternative currency broke the $ 10.68 resistance on January 13. On Jan. 16, it rose $ 19.40, up 143% in four days.
Some short-term traders may have made a profit after a sharp rise, but a shallow correction indicates that most traders are not alarmed. If the bears fail to pull the price below the 38.2% Fibonacci retracement level of $ 14.7259, the trend may resume.