Breaking the downtrend line in the PC Internet and Harmony; Five digital currencies that traders need to monitor this week
According to some digital currency market analysts, if bitcoin exits the sales pressure phase, we could see a jump in the price of some coins. In recent days, we have continued to see bears dominate the digital currency market, and this factor has created a sense of fear and a negative attitude of investors during this period.
Unlike 2021, when the index of fear and greed in the digital currency market had a promising start and showed 93 out of 100, this year we will experience a completely different trend and we will see the number 10 out of 100.
However, Mike McGlone, as a Bloomberg Intelligence analyst, has a positive and optimistic view of the market and believes that by 2022, Bitcoin will trade in the $ 100,000 range and Atrium in the $ 5,000 range. شد.
However, according to some other market analysts, given the current economic conditions in the United States and rising interest rates, the conditions for the continuation of the upward trend of bitcoin may be delayed. So we have to wait for the decision of the US government and their macroeconomic policy in this area.
In this analysis, we will try to examine the price chart and trend ahead of Bitcoin and 4 selected coins this week in the short term.
Bitcoin (BTC)
The price of Bitcoin on January 8, with the formation of the Dodge Kendall pattern, shows that there is a challenge between buyers and sellers to increase or decrease the price. The bitcoin price trend continues to decline and is currently near the strongest support level at $ 39,600.
The downward slope of the 50-day moving average (SMA-50, red line in the picture) and the 20-day exponential movement (EMA-20, blue line in the picture) as well as the relative strength index (RSI) within the selling pressure range indicate a negative atmosphere. In the market and continue the downward trend for bitcoin. If the bears continue to dominate the Bitcoin trading market and succeed in pulling the price down from the $ 39,600 support level, then they will have to wait for the price to reach the next support range of the Bitcoin / Tetra (BTC / USDT) pair at level 28. Let’s be $ 805.
On the other hand, with the formation of an upward trend in the price of Bitcoin from the current level, the currency pair can rise to the average of the 20-day moving average (EMA-20, blue line in the picture) at the level of $ 45,876. Otherwise, and the price returns from the current level, negative sentiment in the Bitcoin trading market will cause the price to fall below the range of 39,600. In this situation, we need the support of cows from the current price levels to form an uptrend and change the trend.
According to the 4-hour Bitcoin price chart, we see an increase in selling pressure by traders and a closing price below the $ 45,456 level. Although the 20-day moving average indicates near-term sell-offs in the range, the cows are trying to delay the fall of the bitcoin price below $ 40,501.
If the price falls below the 20-day moving average, the incentive for traders to lower the price of Bitcoin below $ 39,600 and continue the downward trend will be strengthened.
On the other hand, breaking and closing above the 20-day moving average (20-EMA, blue line in the picture) could move the Bitcoin / Tetra (BTC / USDT) pair towards the 50-day simple moving average (SMA-50, Red line in the picture) push. Now, if the cows can push the price of bitcoin above this resistance, we will see the bears lose control of the bitcoin trading market.
LINK
The price of China Link (LINK) has been trading in the range of $ 15 to $ 35.33 over the past few months. Cows have pushed prices above the 50-day moving average and the 20-day moving average. The Relative Strength Index (RSI) has also risen close to the buy saturation zone, indicating buyers’ superiority in the short term.
The bears faced a challenge near the price level of $ 27.61 during the last few days, while the cows did not allow the price to fall below the 20-day moving average (EMA-20, blue line in the picture) at $ 23.23. This shows that the sentiment in the Chinese trading market has shifted from selling in a rally to buying on a price floor.
If the bulls can keep the price above the $ 27.61 level, the LINK / USDT pair can reach the $ 30 range and then the $ 35.33 resistance level. Now, if the price falls below the current level and closes below the 50-day moving average and the 20-day moving average, this uptrend will be nullified and the LINK / USDT pair could drop to the $ 18 price level.
As you can see in the picture, the four-hour chart shows that the Chinese price has broken the resistance link in front of it at $ 27.61. The bears will now try to stop the price in the $ 30 range, and if the next correction does not fall below the $ 27.61 level, the possibility of a price rally to the $ 35.33 range will increase.
Contrary to this scenario, if the price of China Link falls below the current level, it is possible that the break above the $ 27.61 price level was a bull trap. The bears then try to bring the price below the simple 50-day moving average (50-SMA, red line in the picture). If they do, the next price stop could be in the $ 22 range.
Computer Internet (ICP)
The Definitive Price Index (ICP) closed above the downtrend on January 4. This could be the first sign of an end to the decline of this digital currency. Along the way, the bears tried to trap the cows in the market in order to bring the price below the 20-day moving average (EMA-20, blue line in the picture) at $ 29, but were unsuccessful.
On January 8, the bulls were able to push the Definitive Price Index (ICP) back above the downtrend line and stabilize in that range. Also, the 50-day simple moving average (SMA-50, red line in the picture) and the 20-day moving average (EMA-20, blue line in the picture) are on the verge of an uptrend and the relative strength index (RSI) has entered the positive range. Indicates that cows are trying to return the Definitive Price (ICP) from this level.
If the Definitive Price (ICP) can move above the $ 38.02 level and stabilize, the Definite / Tetra (ICP / USDT) pair could rise to the $ 45.79 range. This price level may again act as a hard resistance; But if it crosses, the upward trend of the definite price (ICP) may continue up to the range of $ 58.30.
Contrary to this hypothesis, if the price falls below the current level and falls below the 20-day moving average (EMA-20, blue line in the picture), it indicates that the price break above the downtrend line may have been a bull trap.
As you can see in the picture, the four-hour Definiti chart shows that the cows have been able to push the price above the $ 33.29 level and are trying to break the $ 38.02 resistance. Bears also continue to trade near the resistance level, which has pushed the Definite / Tetra (ICP / USDT) pair between the two levels.
If the bulls manage to push the price above the $ 38.02 level and can stabilize it at this level, the Definite / Tetra (ICP / USDT) pair can continue the same uptrend. Conversely, if the price bounces back from resistance, the bears will try to pull the pair below $ 33.29. If successful, the Definite / Tetra (ICP / USDT) pair could fall to a simple 50-day moving average (50-SMA, red line in the picture).
LEO
The price of Leo (LEO) has been trading in a steady upward trend in recent weeks. The 50-day moving average (SMA-20, red line in the picture) also showed strong support at the $ 3.55 price level.
Despite the bearish attempt to lower the price on January 7 and move towards a simple 50-day moving average (SMA-50, red line in the picture), this did not happen and the next day, January 8, saw a strong return of the Leo / Tetra pair. (LEO / USDT) was above the 20-day moving average (EMA-20, blue line in the picture) at $ 3.69.
The cows will now try to push Leo above its all-time high of $ 3.92. If successful, the LEO / USDT pair may resume its uptrend to the $ 4.25 range. Now, if the price falls and falls below the simple 50-day moving average (SMA-50, red line in the picture), this view will be invalidated. It could also trigger a price correction to the $ 3.40 range.
The Leo / Tetra (LEO / USDT) currency pair is trading in an uptrend channel pattern. The tendency of short-term traders to save profits in the range of $ 3.85 has dominated the market. This led the pair to the bottom of the canal, and the Leo price decline was halted by the pressure of buying cows.
The cows are still trying to push the price above the $ 3.85 level. If they succeed, the pair can start moving towards the channel resistance line. Bears, on the other hand, have to drive the price below the channel and stabilize it in order to invalidate the uptrend.
Harmony (ONE)
The ONE price has been trading between $ 0.27 and $ 0.33 in the last few days on the 20-day moving average (EMA-20, blue line in the picture). This indicates the tendency of cows to buy at the price floor and to be sold by bears in bullish rallies.
The upward slope of the 20-day moving average and the relative strength of the relative strength index indicate the superiority of the cows. If they manage to reach the price above the level of $ 0.33, the upward trend is also likely. In this case, the Harmonic / Tetra (ONE / USDT) currency pair could rise to the level of $ 0.38.
Contrary to popular belief, if the harmonic price falls below the 20-day moving average, we will see bears dominate cows. This scenario could move the Harmonica / Tetra (ONE / USDT) pair to the 50-day moving average at $ 0.24 and then to the $ 0.21 level.
According to the image above, the 4-hour chart is rising inside a bullish channel pattern. Although the cows are trying to push the price to the upper levels of the channel, they have not been able to reach these levels. This indicates that the bears are trying to destroy the cows in the above range.
Subsequently, the price fell back into the channel. There was a positive, albeit minor, point to this, and that was the return of the price from a simple 50-day moving average. This indicates the continuation of positive emotions in the market and the action of cows to buy on the price floor.
Now, if the price of Harmony rises above the 20-day moving average, the pair could once again climb the channel resistance line. Breaking and closing the price above this level can be a sign that the uptrend will continue. On the other hand, breaking and closing below the simple 50-day moving average could also pull the Harmonic / Tetra (ONE / USDT) pair into the channel support line.