After multiple tries, Bitcoin has finally conquered the $20,000 mark. Is it safe to trade the giants?
After a strong rally, Bitcoin has managed to reclaim the $20,000 level. It came after a long sideways consolidation that tested the patience of many traders.
Is this the breakout we have all been waiting for? At the moment, the trend seems perfect. Therefore, in this week's analysis, we will observe what coins have the potential to outperform the market.
BTC/USDT
In the chart above, the sideways consolidation that started in November is clearly visible. After continuously failing to break above the resistance level in December, BTC finally succeeded last week. This led to a strong price move in the upward direction, and the price went above $20,000 in no time.
After a strong trend, it looks like BTC will stay in the $20,500-$21,800 range for a while before the next move. Traders can expect some sideways movement (movement within the range) for the next few days. It is crucial for BTC to hold the support at $19,850 for a continuation of the uptrend.
Once the final resistance at $21,800 is broken, expect the the next resistance to be at $24,400.
Also Read: A Complete Guide to Death Cross and Golden Cross?
ETH/USDT
ETH has go up by over 35% this month, and it looks like this could just be the start of the rally!
ETH broke the strong resistances at $1,420 and $1,520 easily and is currently consolidating after a strong rally. If the momentum is maintained, traders can expect the price to break the supply zone (resistance) at $1,650 soon. Once the supply zone is broken, a clear path to $1,811 can be seen.
This view is only valid if the price is able to break the supply zone/resistance at $1,650.
Also Read: Breakout vs Fakeout (False Breakout) — Spot the Difference and Increase Accuracy
NEAR/USDT
NEAR has doubled in price this month after it rallied from $1.2 to $2.4 in just half a month.
It seems like NEAR will now retest the support line at $1.8 before rallying further. Therefore, traders should wait before taking long positions. If the retest is successful, traders can expect the price to test the supply zone/resistance at $2.8 soon.
Also Read: What Is Fundamental Analysis in Cryptocurrency and Stocks?
ADA/USDT
ADA has formed a bullish pattern with a round bottom as can be seen in the chart above. It finally broke the resistance at $0.33 after multiple trying multiple times in December.
At the time of writing, the price is trading close to the support zone and is on the verge of falling below the support line. Therefore, traders should wait until the price is able to recover back to $0.37 before taking long positions.
FTM/USDT
FTM seems to be retesting the support at $0.29 after a very strong rally in the past few weeks. If this retest is successful, we may see a strong price move up to $0.36 in the coming week.
AVAX/USDT
In the chart above, we can see that AVAX is consolidating under the resistance at $19. Traders should note that if the price falls below $14, AVAX may find it difficult to go up again in the short term. A move to $20 can be expected once the consolidation is over.
Also Read: What Is Crypto Options Trading?
Summary
A quick recap of all the coins:
- BTC is consolidating.
- ETH is trading near the support.
- NEAR’s price has almost doubled.
- ADA is trading close to the support.
- FTM is retesting the support.
- AVAX has to trade above the support.
Writer’s Disclaimer: This article is based on my limited knowledge and experience. It has been written for educational purposes. It should not be construed as advice in any shape or form. As always do your own research.
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