Following the recent correction, Bitcoin (BTC) will need strong inflows to absorb potential sales from short-term traders and momentum players as the price approaches $ 40,000. In recent months, Grayscale Investments has been one of the main organizations responsible for growth in demand.

However, analysts at JPMorgan Chase in a recent note suggested that grayscale flows “appear to have peaked” based on a four-week moving average. Many analysts believe that without strong headwinds from institutional investors, Bitcoin will not be able to exceed $ 40,000.

Failure to resume the trend does not mean that Bitcoin will collapse and enter a bear market similar to what was seen in 2018. Low levels continue to attract investment from institutions, and the latest revelation of a site in Bitcoin is the Nevada mining company Patent , Patent Marathon Group. The company bought Bitcoins worth $ 150 million at an average price of $ 31,168.

Although Bitcoin will remain in a limited area for the next few days, some altcoins may continue to move to new heights.

Let’s examine the maps of the top 10 cryptocurrencies to find out which one is in a trend.

Bitcoin / USD
Bitcoin (BTC) broke above the 20-day exponential moving average ($ 33851) today, indicating an accumulation at lower levels. The current upward movement can rise to the downward line, as the bulls are likely to face fierce resistance from the bears.

A steady 20-day EMA and the relative strength index (RSI) just above the midpoint indicate a balance between supply and demand.

If the price reverses from the downward line, the Bears will try to move down again while holding the BTC / USD pair below the $ 30,450 support. If successful, the pair will complete the descending triangle pattern with a goal of $ 18,940.37.

Contrary to this assumption, if the bulls move the price over a downward line, the ferocious bears, which may have been short in recent days, may close their positions, resulting in a short squeeze. Above the downward line, the pair may rise to $ 40K and then $ 41,959.63.

Ether (ETH) rose above the $ 1,350 resistance level on January 24 and was today followed by a new rally, reaching a new full-time high of $ 1,473,096. However, the long week on the candlestick today indicates gains at higher levels.

The RSI has also generated negative divergence, indicating that momentum may decline. If the bears fall below the support level of $ 1350, the ETH / USD pair may fall to the 20-day moving average ($ 1195).

A strong jump from the 20-day moving average will indicate that the bulls are building up during deflation periods. Buyers will then try to resume the trend. If they manage to push the price above $ 1500, the pair can go up to $ 1675.

Conversely, if the Bears push the price below the uptrend line, the pair may fall to the next support level of $ 840, indicating a change of direction.

DOT Polkadot formed a long-week Doji candlestick pattern today, indicating that Bear is trying to stop the current bullish move of $ 19.40. Nevertheless, the bullish moving averages and RSI near the overbought zone indicate that the bulls are in control.

If the bulls do not deviate from the current level, buyers will absorb the supply, and this will increase the probability of an outbreak above $ 19.40. If this happens, the DOT / USD may resume the trend and target the next target at $ 24, then $ 30.

Contrary to this assumption, if the bears push the price below $ 16.7951, the pair may fall to the 20-day moving average ($ 14.51). The strong bounce from this support will keep the upside intact, and the bulls will try to resume the bullish trend again. On the other hand, if the bears push the price below the 20-day moving average, this indicates a change of direction.

XRP / US Dollar
XRP’s intraday trading area has been reduced in the last two days. The gradually declining moving averages and RSI in negative territory indicate a small advantage for the bears.

Source: CoinTelegraph