Network data shows that high net worth individuals have continued to buy bitcoin (BTC) after Christmas. Santiment analysts said that the small merchants sold $ 647 million worth of bitcoins, and that amount could have been bought by bitcoin whales.

The data also indicates that major investors are buying and holding their purchases throughout 2020 without significant gains. According to analysts at Glassnode, this has reduced the number of Bitcoin in circulation by nearly a million.

This means that 14.5 million Bitcoins are considered illiquid out of the total available supply. Glassnode analysts say this leaves only 4.2 million Bitcoins available for continued circulation.

This could exacerbate the imbalance in the supply and demand equation and raise the bitcoin price.

However, every bull market goes through periodic corrections, and Bitcoin may also be in demand. Therefore, traders should weigh risk before buying at the current level.

Let’s analyze the top ten cryptocurrency charts to find alternative currencies that can join Bitcoin on a hiatus.

Bitcoin / USD
On December 27, bitcoin formed a doji, but bears were unable to lower the price on December 28. The bears attempted to start the correction again on December 29th, but the hammer candle formation indicates strong buy in the fall.

Daily chart BTC / USDT. Source: TradingView
The bulls pushed the BTC / USD pair to an all-time high of $ 28,587.67. This indicates that the trend has resumed. The next level to look at is the $ 30K psychological barrier.

While the bullish moving averages point to an advantage for the bulls, the Relative Strength Index (RSI) has risen deep into overbought levels, indicating that the correction may not be far off.

Overbought levels at the start of a rally are a sign of a build-up, but after a mature rally, the RSI above 80 is indicating buying in FOMO and this usually results in a correction. Therefore, traders must be careful and protect their paper profits with an appropriate stop loss.

A break below $ 25,800 could indicate a deeper retracement towards the 20-day exponential moving average ($ 23,836) and then to the 50-day simple moving average ($ 20,077).

On December 29, Ether (ETH) formed a long-legged internal doji candle. This indicates that the bears tried to push the price down, but the bears absorbed all the sales and made a solid rally at the end of the day.

The bulls are currently trying to push the price back above $ 750, but a doji candlestick pattern indicates hesitation among the bulls and the bears.

If this uncertainty disappears and the ETH / USD pair rises above $ 750, the trend may reach $ 800, as the bears can find strong resistance again.

Higher moving averages and RSI near overbought territory indicate bulls are in control.

However, if the bulls fail to push the price above $ 750, the pair could benefit traders in the short term. If the bears drop below $ 680, the pair may drop to the 20-day moving average ($ 645).

The strong bounce off the 20 day moving average indicates that sentiment is still bullish and traders are buying on dips. On the other hand, a break through the 20 day EMA might signal the start of a deeper correction.

XRP / US Dollar
XRP continues its strong downtrend and any attempt to initiate a relief meeting is met with strong bears selling. The alt currency fell to $ 0.172536 on December 29, but the long tail of the candle indicates that the bulls are trying to defend this level.

The meeting with relief may face strong resistance at the 38.2% Fibonacci retracement level at $ 0.358202. If the price falls from this level, the bears will try to resume the decline again. A break below $ 0.172536 could drop to $ 0.10.

However, if the bulls defend the support of $ 0.169, the XRP / USD pair might consolidate in a tight range for several days before the next trend move begins.

In recent days, the bulls have managed to hold Litecoin (LTC) above $ 1241278 support, but the failure to resume the trend indicates a lack of demand at higher levels.

LTC / USDT daily chart. Source: TradingView
When the price does not rise, it can attract short-term selling from traders and can bring the price down to 20 days E.

Source: CoinTelegraph