Bitcoin (BTC) dropped below $ 29,000 as a result of a strict profit order on January 21, but was this a sign that institutional investors are giving up their positions? This is one of the most important issues of concern to traders because the large institutional flows led to the $ 42,000 jump in the first place.

Cointelegraph author Marcel Pehman analyzed data from various exchanges that showed professional traders could buy at lower levels. The plunge appears to have hit traders especially hard, leading to the liquidation of $ 460 million in derivatives on exchanges.

CryptoQuant data shows that as of January 17th, the largest Bitcoin mining pool, F2Pool, was churning out 10,000 bitcoins daily for three consecutive days.

While the outflow does not mean that the miner has unloaded the entire amount, it shows a possible intention to reduce some of the reserves. This could attract sales from dealers, fearing a sharp drop if miners flooded the open market with bitcoin.

Bitcoin is returning to $ 34,000 for now, but is the current bounce a dead cat bounce or a renewed trend?

Let’s examine 10 cryptocurrency charts to find out.

Bitcoin / US dollar
On January 20, Bitcoin retained its 20-day exponential moving average ($ 34,146), but the bulls were unable to pull the price back into the symmetrical triangle, indicating a lack of demand at higher levels. On January 21, the Bears resumed selling and decisively broke through the support of the 20-day moving average. This is the first sign of weak bullish momentum.

BTC / USD bounced off the 50-day simple moving average ($ 28,103) today, but the rally could meet resistance at the 20-day moving average. If the pair rejects the 20-day moving average, it would mean that sentiment has changed from buying in the fall to selling in groups.

If the next dip falls below the 50-day simple moving average, the correction could deepen to the 61.8% Fibonacci retracement level at $ 22,106.73. Such a move can delay the resumption of the trend.

Contrary to this assumption, if the bulls manage to push the price above the 20-day moving average, the pair could rally lower. A break of this resistance could lead to a new all-time high of $ 4,1559.63.

Ether (ETH) fell below the $ 1,300 support level and the 20-day moving average ($ 1,142) on Jan.21, but bulls defended the rally today. Buyers are currently trying to push the price above the $ 1,300 resistance level.

If successful, the ETH / USD pair could be constantly tested at $ 1,438. A break near this resistance would indicate a renewed trend. The next target is $ 1,675.

However, if the price falls from the upper resistance level, the pair may consolidate in a specific area several days before the start of the next trend movement. The bears will return to play if the pair falls and breaks the uptrend line.

Polkadot (DOT) is currently consolidating in an uptrend. The bulls did not allow the price to fall below the 38.2% Fibonacci retracement level of $ 14.7259, indicating that traders are not working until the end, waiting for the trend to resume.

Bullish moving averages and Relative Strength Index (RSI) near overbought territory indicate that the bulls are in control. If buyers manage to push the price above its upper resistance zone from $ 18 to $ 19.40, the trend could resume. The next level where you can see an uptrend is $ 24, then $ 30.

If the price falls from the general resistance, DOT / USD may remain in this range for several more days. The pair could be negative if the bears fall and keep the price below the 20-day moving average ($ 13.25).

XRP / US dollar
XRP fell below the $ 0.25 support today, but the bears were unable to hold the lows. Bulls are buying lower and are currently trying to push the price above the 20-day moving average ($ 0.29).

If they manage to do this, the XRP / USD pair could fall, which in the two previous cases acted as tough resistance. If price falls again from this resistance, the bears will try to push the pair below $ 0.25 and complete the descending triangle pattern. If this happens, the pair could drop to $ 0.169.

Source: CoinTelegraph