How are Bitcoin charts read?
Japanese candlesticks are typically used in Bitcoin charts to show price movement. Depending on the chart, each candle represents a particular time period and displays the open, close, and price range for that period. Additionally, the chart typically includes a number of technical analysis indicators. Support and resistance levels, trendlines, the Relative Strength Index (RSI), and Fibonacci retracement levels are the most widely used indicators.
What influences Bitcoin’s price?
The price of Bitcoin is influenced by supply and demand, much like the price of any other traded asset. But the occurrence of specific important worldwide events might be related to the price of bitcoin: For instance, the demonetization of Indian banknotes in 2016 had a favorable impact on Bitcoin. The price of the cryptocurrency was 20% greater in India than it was everywhere else. If we look at former years, Facebook’s announcement of the Libra project may be connected to the 2019 bull run. As word about the difficulty of Libra’s regulation began to circulate, the bull-run started to lose steam. In addition to the significant worldwide events, there are several Bitcoin heavy-bag owners, also referred to as Bitcoin Whales. They have thousands of Bitcoins in their possession, which is sufficient to produce large daily price movements.
These 4 altcoins may attract buyers with Bitcoin stagnating
Although LTC, APE, ICP, and BIT are beginning to show signs of beginning a fresh uptrend, Bitcoin is still locked in a narrow range.
The fact that Bitcoin’s volatility stayed low in the last few days of the previous year showed that investors were not in a rush to invest.
Bitcoin closed 2022 near $16,500, and the markets were also dormant on January 1st. This implies that traders should exercise caution and keep an eye out for a trigger to initiate the next trending move.
Numerous analysts are still pessimistic about the near-term price movement of Bitcoin. In a blog post published on December 30, CEO and creator of Bitcoin company Lightspark David Marcus stated that he does not anticipate the crypto winter ending in 2023 or even in 2024. Although he anticipates that it will take some time to win back consumer confidence, he thinks that in the long run, the reset may be beneficial for trustworthy businesses.
Although the bearish calls show that the sentiment is still negative, there is a bright side. Typically, bear markets come to a conclusion when the final bull becomes bearish. Once there are no longer any sellers, the price action settles and new buyers come into the market. That typically results in a reversal and the beginning of a fresh uptrend.
Only a few cryptocurrencies are displaying signs of strength as Bitcoin remains range-bound. Let’s examine the charts and identify the critical levels to pay attention to.
The inability of the bulls to move Bitcoin over the 20-day EMA of $16,778 has emboldened the bears, who are now working harder to drive the price below the $16,256 immediate support level.
Relative strength index (RSI) is close to 43 and the 20-day EMA is progressively trending down, suggesting a little edge for sellers. The BTC/Tether pair might drop to $16,000 and then to the crucial support of $15,476 if bears manage to push the price below $16,256. The downturn can resume if this support is broken below.
If purchasers drive the price above $17,100 in the near future, this unfavorable opinion will be negated. A move like that would suggest impulsive buying on dips. The two might then gain momentum and sprint toward $18,388. At this level, sellers are anticipated to stage a fierce resistance once more.
For some time, the couple has been stuck between $16,256 and $17,061. Selling will be present near the moving averages for the bounce off the support. This implies that bears carry on selling during rallies.
The fact that the bulls have not lost much ground and that the pair is still close to the 20-EMA is a slight plus. As a result, there is a higher chance of a break above the moving averages. The price for the pair might increase to $16,800 and then $17,061 if that occurs.
To set up a retest of $16,256 on the downside, bears will need to push the price below the $16,429 immediate support level.
Litecoin is much above its June low, while several significant cryptocurrencies are still looking for a bottom. This suggests that demand is high at lower levels.
The RSI is barely above the midpoint and the 20-day EMA of $69 has flattened out, pointing to a balance between supply and demand.
If buyers successfully raise and maintain the price above the moving averages, the edge will shift in their favor. Following that, the LTC/USDT pair can ascend to the overhead resistance at $75. In the near future, this is a crucial mark to keep an eye on since a break above it might pave the way for a rally to $85.
On the other hand, if the price declines from the present level and breaches the 20-day EMA, the pair may fall below $65.
The RSI is in the positive region and the moving averages on the 4-hour chart are progressively rising, indicating that bulls are in control. There is some modest resistance at $72, but if it is broken, the uptrend may continue to $75.
In the $72 to $75 range, sellers are likely to stage a robust defense, but if bulls get through, the rebound might quicken and reach $80. On the negative side, a break below $65 might allow for a drop below $61.
For several months, ApeCoin has been fluctuating in a wide range between $3 and $7.80. The RSI is close to the midpoint and the moving averages have flattened down, suggesting that the selling pressure may be easing.
Although the bulls have kept up the purchasing pressure and prevented the price from falling, the bears have not allowed the price to soar above the moving averages. The likelihood of a break above the moving averages rises as a result. If that occurs, the APE/USDT pair may rise to $4.58 before advancing to $5.25.
Alternatively, if the bears prevent the market from breaking through the overhead barrier, the pair may once more fall below the crucial support level of $3. The beginning of the following leg down may be signaled by a decline below the $3 to $2.61 support region.
On the 4-hour chart, the duo has created a symmetrical triangle. This suggests that both bulls and bears are unsure what to do. The RSI has moved into the positive territory, showing that bulls have a tiny advantage even though the moving averages are flattish. Buyers could push the pair up to the triangle’s resistance line if they can get over the small obstacle at $3.71.
On the other hand, it will signal that the bears are once again in the game if the price declines and breaks below the uptrend line. The pair may then fall to $3.20 and eventually to the key support at $3.
Although the price of Internet Computer is still below the $4.61 breakdown level, the RSI is developing a bullish divergence, suggesting that the selling pressure may be lessening.
On December 30, buyers drove the price above the downtrend line, but the bulls were unable to hold the breakout. On January 1, the bulls made another attempt to break through the resistance, but the lengthy wick on the candlestick indicates that bears are selling on intraday rallies.
The bears will attempt to push the price to $3.60 and subsequently to $3.40 if it drops and holds below the 20-day EMA of $3.91.
On the other hand, the bulls will aim to raise the price back over $4.21 if it bounces off the moving averages. The ICP/USDT pair might climb to $4.61 if they are successful, where the bears may attempt to block the recovery.
Although the bulls were able to hold the price above the 20-EMA, they were unable to protect the 50-SMA. This suggests that bear activity is increasing. The pair may fall to $3.76 and then $3.60 if the price reverses and falls below $3.90.
Alternatively, the momentum might ramp up and the pair could rise to $4.46 if bulls break through the overhead resistance range of $4.10 to $4.21. Although it might act as a little barrier, this level will probably be passed. The pair might then exchange for $4.61.
For the previous few days, BitDAO (BIT) has remained consolidated between $0.25 and $0.35, however the market action is indicating a potential breakthrough.
A probable trend change can be seen as a result of the moving averages’ successful bullish crossover. The BIT/USDT pair may begin a new rally if investors propel the price above $0.35. After that, the pair may try to rally to the target price of $0.45.
On the other hand, if the price declines from $0.35, it will indicate that bears are vigorously defending this level. The 20-day EMA of $0.30 may then be reached by the price.
If the price moves back up from this level, it could indicate that investors are now more likely to be buying on dips rather than selling on rallies. The likelihood of a break over $0.35 may increase as a result.
To disprove the bullish hypothesis, the bears will need to drive the price below the moving averages. The two may then spend some more time trapped inside the range.
The price abruptly reversed after hitting the $0.35 overhead barrier, but the bulls are attempting to halt the decline at the 20-EMA. The price may suggest aggressive purchasing on dips if it bounces strongly off the 20-EMA. The duo may then overcome the above resistance and begin their ascent to $0.40 and eventually $0.42.
Instead, a few short-term bulls may book profits if the price declines and breaks below the 20-EMA. The 50-SMA may be reached as a result of such. A move like that would imply that the pair might stay inside the range for a while longer.