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Pico y Pala – Bitcoins, Ethereum, Ripple,…

Prime 5 cryptocurrencies to observe this week: BTC, ETH, UNI, ATOM, COMP

01/31/2021

Bitcoin worth fell again into the descending triangle however this dip might appeal to consumers to altcoins and DeFi tokens within the quick time period.

Over the previous seven days, the crypto market noticed an uptick in volatility as Bitcoin (BTC) and Dogecoin (DOGE) worth rallied increased merely due to social media exercise. In conditions like these, merchants who make their funding selections based mostly on feelings are inclined to incur heavy losses and that is precisely what occurred final week.

Dogecoin’s (DOGE) current pump and dump brought about a number of new merchants who purchased as a result of FOMO to lose cash inside a short while and this situation is prone to play out once more as social media teams have determined that collective pumps of altcoins is a brand new technique of investing.

An identical pattern presently appears to be creating in Bitcoin (BTC), which has retraced a big portion of the up-move that was brought about because of the “Elon pump” on Jan. 29. This reveals that barring a number of emotional consumers, {most professional} merchants might have used the rally to lighten their lengthy positions.

Crypto market information each day view. Supply: Coin360

Stack Funds head of analysis Lennard Neo believes the Bitcoin miners are promoting on rallies and that pattern might proceed because the Chinese language New Yr vacation approaches. Neo expects Bitcoin’s worth to stay unstable within the close to time period.

At the same time as Bitcoin’s worth consolidates, the decentralized finance tokens proceed to surge, which suggests merchants’ focus has shifted to the DeFi house. Let’s analyze the charts of the top-5 cryptocurrencies that would pattern within the subsequent few days.

BTC/USD

Bitcoin’s lengthy wick on Jan. 29 reveals the bears aggressively offered the rally above the downtrend line of the descending triangle. That was adopted by a Doji candlestick sample on Jan. 30, indicating indecision among the many bulls and the bears.

BTC/USDT each day chart. Supply: TradingView

The failure of the bulls to push the worth above the downtrend line at this time has attracted additional promoting. The bears are presently attempting to maintain the worth under the 20-day exponential transferring common ($33,395).

In the event that they succeed, the BTC/USD pair might drop to the 50-day easy transferring common ($30,631) after which to $28,850.

A breakdown and shut under $28,850 will full the bearish descending triangle sample that has a goal goal at $15,741. Nonetheless, it’s unlikely to be a straight fall as a result of the bulls will attempt to arrest the decline on the 50% Fibonacci retracement stage at $25,897.42 and once more on the 61.8% retracement at $22,106.73.

This destructive view will invalidate if the worth turns up from the present stage or rebounds off the $28,850 assist and sustains above the downtrend line. Such a transfer will recommend robust accumulation at decrease ranges, which might end in an increase to $40,000.

BTC/USDT 4-hour chart. Supply: TradingView

The 4-hour chart reveals the breakout above the downtrend line met with robust promoting stress and the worth rapidly retracted again into the triangle.

The failure of the bulls to push the worth again above the downtrend line has attracted promoting and the bears have pulled the worth under the 20-EMA. The bulls are presently trying to defend the 50-SMA but when this assist additionally cracks, the pair might begin its journey in the direction of $28,850.

This destructive view will invalidate if the worth rebounds off the present stage and rises above the downtrend line. Such a transfer might push the worth to $38,519.63.

ETH/USD

Ether (ETH) broke above the $1,400 resistance on three earlier events however the bulls couldn’t maintain the breakout, which reveals profit-booking at increased ranges. Nonetheless, the constructive factor is that the bulls haven’t given up a lot floor previously few days. This reveals the bulls are accumulating on dips.

ETH/USDT each day chart. Supply: TradingView

The ETH/USD pair had shaped a Doji candlestick sample on Jan. 30, indicating uncertainty. That indecision has resolved to the draw back at this time and the pair might now drop to the 20-day EMA ($1,253), which is prone to act as robust assist.

A bounce off the assist will recommend the sentiment stays bullish and merchants are shopping for on dips. The bulls will then attempt to resume the uptrend. If the bulls can drive the worth above the $1,400 to $1,473.096 resistance zone, the pair might rally to $1,675 after which to $2,000.

This bullish view will invalidate if the bears sink the worth under the 20-day EMA and the uptrend line. In such a case, the pair might drop to the 50-day SMA ($990).

ETH/USDT 4-hour chart. Supply: TradingView

The 4-hour chart reveals the formation of an ascending triangle sample, which is able to full on a breakout and shut above $1,440. This bullish setup has a goal goal of $1,768.

Nonetheless, the transferring averages have flattened out and the relative power index (RSI) is just under the midpoint, which suggests a stability between provide and demand.

If the bears sink the worth under the assist line of the triangle, it would invalidate the sample. The following assist on the draw back is the uptrend line after which $1,050.

UNI/USD

Uniswap (UNI) is in a robust uptrend that has pushed the RSI deep into the overbought territory. Whereas the RSI can stay overbought for an prolonged interval, merchants ought to be cautious as corrections from overbought ranges will be swift and sharp.

UNI/USDT each day chart. Supply: TradingView

The primary assist on the draw back is the 38.2% Fibonacci retracement stage at $15.3963. If the worth rebounds off this stage, it would recommend the bulls are aggressively shopping for the dips and should not ready for a deeper correction to enter.

If the bulls can push the worth above $20.5612, the UNI/USD pair might rally to $28 after which to $32. Each transferring averages are rising and the RSI is above 79, indicating the bulls are in management.

Nonetheless, if the correction deepens under $15.3963, the subsequent assist is on the 20-day EMA ($11.85), which is close to the 61.8% Fibonacci retracement stage at $12.2054. A deeper fall normally delays the beginning of the subsequent leg of the uptrend.

UNI/USDT 4-hour chart. Supply: TradingView

The 4-hour chart reveals the pair has made a flag sample. If the bulls can push the worth above the flag, the uptrend might resume and the pair might rally to $22 after which to $25.

One other risk is that the pair continues to right and drop to the 20-EMA. If the worth rebounds off this assist, it would recommend the sentiment stays constructive and the bulls are shopping for on minor dips.

In the course of the present leg of the uptrend, the worth has repeatedly taken assist on the 20-EMA. Subsequently, a break under the 20-EMA will recommend the bullish sentiment could also be waning and will end in a drop to $15.3963 after which to the 50-SMA.

ATOM/USD

Cosmos (ATOM) has shaped a cup and deal with sample that can full on a breakout and shut above $8.877. If the bulls can propel the worth above the $10.20 resistance, the uptrend might start.

ATOM/USDT each day chart. Supply: TradingView

The primary goal on the upside is $11.151 and the subsequent stage to be careful for is $13.554. The rising transferring averages and the RSI’s bounce from the midpoint recommend the bulls have the higher hand.

If the bears sink the worth under the 20-day EMA ($7.65), the ATOM/USD pair might stay range-bound between $6.603 and $8.877 for a number of extra days.

The bullish assumption shall be negated if the bears sink and maintain the worth under the 50-day SMA ($6.4). Such a transfer might pull the worth right down to $5.50 after which to $4.50.

ATOM/USDT 4-hour chart. Supply: TradingView

The 4-hour chart reveals the bulls have pushed the worth above the downtrend line of the descending triangle. This has invalidated the bearish setup however the bulls are struggling to thrust the worth above the $8.877 resistance.

The flat transferring averages and the RSI close to the midpoint recommend the pair might stay range-bound between $8.877 and $6.726 for some extra time. If the bulls can propel the worth above $8.877, the pair might rise to $10.20, whereas a break under $6.726 will recommend the bears try to make a comeback.

COMP/USD

Compound (COMP) accomplished a rounding backside sample on Jan. 29 when it broke and closed above the $272.61 resistance. This reversal setup has a goal goal of $464.60.

COMP/USDT each day chart. Supply: TradingView

The upsloping transferring averages and the RSI close to the overbought territory recommend bulls are in command. After the breakout from a sample, the worth normally retraces and retests the breakout stage, but when the pattern could be very robust, it solely consolidates or enters a minor correction earlier than resuming the up-move.

If the COMP/USD pair rebounds off $272.61, it would recommend the bulls have flipped the earlier resistance into assist. That might then act as a launchpad for the subsequent leg of the uptrend.

This constructive view will invalidate if the bears sink and maintain the worth under $272.61. Such a transfer will point out profit-booking at increased ranges and an absence of shopping for on dips.

COMP/USDT 4-hour chart. Supply: TradingView

The 4-hour chart reveals merchants booked income close to $340 however the correction was short-lived as the worth turned up from $304.84. If the bulls can now drive the worth above $340, the pair might rally to $405.

However, if the worth once more turns down from $340, the pair might drop to the 20-EMA. If the worth rebounds off this assist, the bulls will once more attempt to resume the up-move, but when the bears sink the pair under the 20-day EMA, a drop to $272.61 shall be on the playing cards.

The views and opinions expressed listed below are solely these of the creator and don’t essentially replicate the views of Cointelegraph. Each funding and buying and selling transfer entails threat, it is best to conduct your personal analysis when making a choice.