Public companies bought around 85,000 bitcoin (BTC) last year, and institutional investors flattened Grayscale Investments, showing that the rise in institutional adoption is one of the main reasons behind the recent rise in bitcoin.

However, institutional investors are unlikely to chase price increases. If the new cash flow stops or drops sharply, it could cause the price of bitcoin to fall. If this happens, short-term traders and momentum players could profit and cause a deeper correction.

The correction will be a good sign, as it will shake up speculators, and only long-term players will remain in the market. As the price falls, more institutional investors may start buying at lower levels. The transfer of bitcoin ownership from speculators to investors in the long run will be a positive thing.

If Bitcoin undergoes a deeper correction in the short term, many altcoins are likely to follow.

Let’s take a look at the top 10 cryptocurrency charts to determine the support levels that buyers can enter.

Bitcoin / US dollar
Bitcoin broke above the 20-day exponential moving average ($ 33,254) on January 25, but traders used this rally to sell, pushing the price up to the $ 30,450 support level on January 26. The price is above the 20-day moving average.

The BTC / USD pair continued its correction today, indicating that the bulls cannot absorb the supply. The 20-day sloping EMA and Relative Strength Index (RSI) are in negative territory, indicating bear dominance.

If the bears can move below and hold the price below the 50-day moving average ($ 29,407), the pair will complete the descending descending triangle pattern. This could lead to a fall to the 50% Fibonacci retracement level of 25897.42, and then to the 61.8% retracement level of $ 22106.73.

This bearish view will be rejected if price returns from the current level and breaks the descending line. If that happens, the pair could rise to $ 40,000 and then to $ 41,959.63.

ETH’s failure to stay above $ 1,400 on January 25 shows that bears have taken profits at higher levels. The bulls tried to rally again on January 26, but the currency fell today, indicating that traders may close their long positions.

A negative RSI deviation indicates weakening progress. If the bears manage to push the price below the 20-day moving average ($ 1211), the uptrend line is likely to be revised. This is an important support to look out for as a break below it would indicate a possible trend change. The next support on the back is the 50-day simple moving average ($ 928).

On the other hand, if the bulls are able to support the current bounce, this would indicate that the bulls are buying on the dips. If the bulls manage to push ETH / USD through the 1400 resistance zone to $ 1,473,096, the trend could resume with the next target at $ 1,675.

Polkadot (DOT) fell from the top resistance on January 25 and today fell to the support level of $ 14.7259. The bulls are likely to defend this support strongly.

A strong jump of $ 14.7259 would indicate that traders are targeting a downtrend. This could hold the DOT / USD range between $ 14.7259 and $ 19.40 for a few more days. A gradual 20-day rally in the EMA and RSI in positive territory indicates that the bulls have a slight edge.

Conversely, if the price falls below $ 14.7259, the decline could extend to a 50% Fibonacci retracement of $ 13.2821 and then to a 61.8% retracement of $ 11.8383. A deeper correction will indicate that the trend has lost momentum and this could lead to consolidation several days before the start of the next trend.

XRP / US dollar
After defending the 20-day moving average ($ 0.28) in recent days, the bears are currently trying to push XRP below the $ 0.245 support. Bearish moving averages and RSI in negative territory indicate that the path of least resistance is the downside.

A break below $ 0.245 would increase the likelihood of a fall to the next significant support at $ 0.17351. If that support breaks as well, XRP / USD could resume its decline with the next possible stop at $ 0.10.

Source: CoinTelegraph