Despite Bitcoin falling below $31,000 today, investors remain confident that the coin will rally again in the next few days. The latest report by crypto firm CoinShares indicates that over $330 million in digital asset inflows was channeled into products related to Bitcoin last week.
Even though investors are optimistic, it is important to mention that macroeconomic factors, such as the upcoming release of the US inflation data and the Fed’s monetary action, may negatively affect the crypto market.
So what are the key support levels that BTC and altcoins must defend in order to boost chances of upward price movement? Studying price charts can help us know the answer.
Bitcoin Price Analysis
Buyers helped Bitcoin cross above $31,000 on Wednesday, but the bears could not allow them to strengthen their position further. Increased selling pressure caused BTC to slide to $30,268 on Thursday afternoon. Still, the coin is priced above the 20-day EMA (Exponential Moving Average) of $29,573, which also serves as a support level. If Bitcoin reaches this level and bounces off, it could rally to $31,450, where the bears are expected to mount a strong defence.
On the negative side, dropping below $29,573 could indicate that the bears are taking control and may sink Bitcoin to the 50-day SMA (Simple Moving Average) of $27,800.
Ethereum Price Analysis
The bulls’ goal to take ETH to the $2,005 resistance level seems unlikely at this point after the token plummeted below the 20-day EMA of $1,890 earlier today. If the bears continue fueling a downtrend, we may see Ethereum hit $1,758, where it is predicted that the bulls may buy the dip to start a recovery. If they do so, the token may rise to retest resistance at the 20-day EMA.
BNB Price Analysis
BNB’s value has been declining since the token sunk below the 20-day EMA of $247 on Tuesday. However, with the Relative Strength Index in the middle, we predict that BNB may trade within the range of $223 and $259 over the next few days. If the token breaks above $259, a rally to $269 is a possibility. On the other hand, if it drops below $223, a further decline to $198 is likely.
XRP Price Analysis
All the bulls’ attempts to thrust XRP above the 20-day EMA of $0.4852 have met strong resistance from the bears. The token is now valued at $0.4677. If the sellers cause XRP to slide below $0.4456, the chances of a drop to $0.4126 will increase.
A strong recovery can only be possible if the bulls thrust the Ripple-issued token above $0.4852. If that becomes the case, we predict XRP to rise to $0.5942, where the chances of a massive sell-off are high.
Cardano Price Analysis
Before today, ADA had been trading between $0.2884 and $0.2976 since Saturday. However, the token’s current price ($0.2854) suggests that the bears have defeated the bulls and are now booking profits. If Cardano continues trading below the 20-day EMA of $0.2945, the sellers will be encouraged to sink the token to the $0.2450 support level. In case ADA bounce off from this price, it may rise above $0.2945 to retest a minor resistance at the 50-day SMA of $0.3217.
Dogecoin Price Analysis
DOGE briefly crossed $0.0710 on Tuesday, but the buying pressure wasn’t sufficient enough to cause further price growth. The meme coin began a downturn on Wednesday to reach $0.0662 as of this writing. If Dogecoin crosses below the 20-day EMA of $0.0647, it may touch the $0.0610 support level.
Meanwhile, bulls must thrust DOGE above $0.0710 to boost the chances of a solid recovery. The dog-theme coin may rise to $0.0840 if this is achieved.
Solana Price Analysis
The bulls bought the dip at the $18.54 support level on Thursday morning, pushing Solana’s price to $20.54 at press time. The Relative Strength Index is still in a positive zone, meaning there is more room for buyers to continue acquiring SOL. Increased buying pressure can cause the token to reach $24.30.
Conversely, there is a possibility that the token could decline to $16.13 if it drops below the 20-day EMA of $17.76.
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