Bitcoin (BTC) has not yet traced back the $ 40K level, and traders who expected a quick resumption of the trend may be surprised by the recent withdrawal. This may have resulted in the settlement of $ 500,000 in futures positions for cryptocurrencies over the past 24 hours.

A leveraged position provides support during an uptrend, but becomes an obstacle when the trend reaches a turning point.

When markets fall, long-term positions quickly turn into losses, leading to margin calls from brokers. When the margin requirements are not met, brokers give positions to the market price, causing a sharp fall.

As such, data indicating a decline in current Bitcoin positions in recent days is a positive sign, as it reduces the risk of cascading liquidity.

While sharp falls are usually avoided when the markets are not too much in debt, further purchases are needed to maintain higher levels. Otherwise, the price gradually continues to adjust.

Grayscale Investments has been among the most important buyers in recent months, but now they have a new competitor, Osprey Funds, which started pricing in the OTC market on January 15 under the ticker OBTC. The company offers a competitive administration fee structure compared to grayscale.

This is a positive sign for the cryptocurrency markets, because if these two companies attract institutional investors, purchases can resume and Bitcoin can change course to reach new heights.

While Bitcoin stays in a certain area, specific altcoins work hard. Let’s take a look at the charts of the five cryptocurrencies that the bulls might have preferred over the next few days.

Bitcoin / US dollars
Bitcoin is currently consolidating in an upward trend. The price action in recent days has formed a symmetrical triangle that usually acts as a continuation pattern. The long tail of light today shows that bulls are buying on the fall of the 20-day exponential moving average ($ 34,241).

Bullish moving average and relative strength index (RSI) in positive territory indicate that the bulls are in control. If buyers manage to push the price towards the triangle, the next phase of the trend may begin.

The first stop may be the current all-time high of $ 41,959.63, but if the bulls manage to push the price above it, the BTC / USD pair could rise to a target pattern of $ 50,000.

Contrary to this assumption, if the bounce does not find buyers at higher levels, the bears may try to flood the price below the triangle. If successful, the pair may fall to 38.2% of the Fibonacci retracement level to $ 29,688.10.

This level may attract buyers, but if the bulls fail to push the price above the 20-day EMA, the correction could be extended to the 50-day SMA ($ 26,581).

The 4-hour chart shows that the bulls have bought the decline to the symmetrical triangular support line, but may face resistance in the declining moving averages.

If the price falls below the moving average, the bears will try to pull the price below the triangle. If they succeed, a deeper correction is likely.

Conversely, if the bulls manage to push the price above the moving average, the pair can rise to the symmetrical triangular resistance line. An outbreak of this resistance may initiate an upward trend.

However, if the price falls from the resistance line of the triangle, the pair can trade within the triangle for several more days.

Link / USD
Chainlink (LINK) broke through the $ 20,1111 resistance on January 15, followed it with a new upward move on January 16, setting a new all-time high of $ 22.96. But the long week on the candlestick on January 16 indicates profits at higher levels.

The price jumped from the outbreak of $ 20.1111 today, indicating that the bulls reversed this level of support. If the bulls can now push the price above $ 23, LINK / USD could rise to $ 27 and then $ 30.

The 20-day bullish EMA ($ 16.25) and RSI are close to overbought territory, indicating that the bulls are in control.

Contrary to this assumption, the price is likely to be $ 17.7777 if the price falls and falls below $ 20,111. This is important support as a break below it will indicate a possible change of direction.

Source: CoinTelegraph

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