“Crypto Market Analysis: BTC, ETH, BNB, XRP and More for January 2022”

The debut of Bitcoin (BTC) exchange-traded funds (ETFs) in January did not have a significant impact on prices as traders focused on the outflows from the Grayscale Bitcoin Trust (GBTC) instead of the net inflows into other ETFs. This indicates that traders chose to sell after the news and lock in profits on their positions.

Nevertheless, there is a positive sign that Bitcoin did not remain below the $40,000 mark for an extended period. This suggests that lower levels are still attractive to investors. The strategy of buying during dips and selling during rallies could keep Bitcoin within a certain range for a few days. The upcoming halving in April is expected to be the next major catalyst for Bitcoin.

Furthermore, CoinGlass data shows that Bitcoin has recorded an average monthly gain of around 12% in February. Since 2013, the only instances where Bitcoin ended February with a negative monthly return were in 2014 and 2020.

Will Bitcoin be able to replicate its strong historical performance in February? And will other cryptocurrencies follow its upward trend? To find out, let’s analyze the charts of the top 10 cryptocurrencies.

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Bitcoin price analysis

Bitcoin has been trading within a range of $42,365 to $44,700, with the 20-day exponential moving average acting as support and the overhead resistance at $44,700. The 20-day EMA is gradually turning upwards and the RSI is in the positive zone, indicating a slight advantage for buyers. A breakthrough above $44,700 could lead to a rally towards $49,000, but bears are likely to put up a strong fight at this level.

If the price fails to break above $44,700 and falls below the 20-day EMA, it could signal a shift in momentum towards the bears. This could trigger increased selling pressure, potentially pushing the price down to $41,394 and then $40,000. A further decline to $37,980 cannot be ruled out.

Ether market analysis

Ether (ETH) remains range-bound between $2,100 and $2,400, but buyers are still determined to push the price above the resistance level.

A successful close above $2,400 would signal strength in the market and could attract more buying pressure, potentially driving the ETH/USDT pair towards $2,700. A rebound from $2,400 after a decline from $2,700 would indicate a positive shift in sentiment and increase the likelihood of a rally towards $3,000.

However, a sharp decline from the current level or $2,400 would suggest that the pair may continue to trade within the range. The bears will have the upper hand if the price falls below $2,100.

BNB analysis: Breaking down the price movements

As of January 31, BNB (BNB) fell below the 20-day EMA ($304), but the 50-day SMA ($297) support remained strong against the bears’ attempts.

The 20-day EMA has now flattened out, with the RSI hovering around the midpoint, indicating a balance between supply and demand. A potential break above the downtrend line would shift the balance in favor of the buyers, with a minor resistance at $322 before potentially soaring to $338 for the BNB/USDT pair.

However, if the price fails to break the downtrend line, it suggests that negative sentiment remains and the bears continue to sell on rallies. This increases the risk of a potential break below $288.

Solana price analysis

After facing resistance at $107 on Jan. 30, Solana (SOL) bounced back from the moving averages on Feb. 1.

The bulls will attempt to push the price above $107, potentially completing an inverse head-and-shoulders pattern for the SOL/USDT pair. This could lead to an upward movement towards $126, a significant barrier. If the bulls continue to dominate, the next target could be the pattern’s goal of $134.

To prevent a potential uptrend, bears will need to quickly push the price below the moving averages. In that case, the pair may drop to $80, a strong support level.

XRP price analysis

The recent drop in XRP (XRP) below the crucial support level of $0.50 on January 31st was met with strong buying at lower levels, as evidenced by the long tail on the candlestick.

If the resistance at $0.51 is broken, it could pave the way for a potential rally towards the 20-day EMA ($0.53). However, the bears are expected to put up a fierce fight at this level. In case of a rejection from the 20-day EMA, the XRP/USDT pair could potentially plummet towards $0.46.

The first sign of bullish strength would be a decisive break and close above the 20-day EMA, which could then lead the pair towards the downtrend line. Overcoming this obstacle would be a crucial step for the buyers in initiating a new uptrend towards $0.67.

Analysis of Cardano’s Price Movements

The value of Cardano (ADA) has been following a descending channel pattern for the past few days, indicating that the bears are continuously selling during any upward movement.

The 20-day EMA ($0.51) is relatively flat, and the RSI is hovering around the midpoint, making it difficult to determine a clear advantage for either the bulls or the bears. If the price manages to stay above the 20-day EMA, the bulls will attempt to push the ADA/USDT pair towards the downtrend line. A successful break and closure above this level could suggest that the short-term downtrend is coming to an end.

On the downside, the critical level to keep an eye on is $0.46, followed by the support line of the channel at $0.40.

Avalanche price analysis

The latest market trends for Avalanche (AVAX) show a dip below the 20-day EMA ($34.29) on January 31st, but the bears were unable to capitalize on this momentum.

However, the price has bounced back above the 20-day EMA on February 2nd, indicating a strong interest from buyers at lower levels. This could potentially lead to a break above the downtrend line of the channel, with a potential upswing towards $44 and a crucial resistance level at $50.

To maintain this positive outlook, the price must continue to hold above the downtrend line and not fall below $32. Otherwise, a decline towards the support line of the channel may be in store.

Dogecoin price analysis

The current state of Dogecoin (DOGE) has seen the cryptocurrency trading below the 20-day EMA ($0.08) for a number of days. However, the bears have been unable to challenge the $0.07 support, indicating a lack of selling pressure at lower levels.

In the near future, buyers will attempt to push the price above the 20-day EMA, potentially gaining an advantage. If successful, the DOGE/USDT pair could see a rally towards the downtrend line, which has been a key level of resistance for some time.

Should the price be rejected at the downtrend line, it will signal that the bears are still in control. This could lead to a slide towards the $0.07 support. Alternatively, a break above the downtrend line could indicate a potential trend change, potentially leading to a rise towards the $0.10 to $0.11 resistance zone.

Polkadot price analysis

The bears have pulled Polkadot (DOT) below the neckline of the H&S pattern on Jan. 31, but they were unable to maintain the lower levels.

The bulls stepped in with strong buying, driving the price up to the 20-day EMA ($6.92) on Feb. 2. A successful break and close above the 50-day SMA ($7.44) will indicate a weakening of bearish control. This could potentially lead to a rally towards $8.50.

However, if the price falters and turns down from the moving averages, it will signal that the bears are still active at higher levels. In this case, the DOT/USDT pair may enter a consolidation phase between the 50-day SMA and $6 for a few days.

Chainlink price analysis

After trading within a range, Chainlink’s (LINK) price has broken above the resistance level of $17.32 on Feb. 2, indicating that buyers have taken control of the market.

However, the bears are not likely to give up easily and may attempt to push the price back below the breakout level. This could result in a situation where some aggressive bulls get trapped, potentially leading to a drop towards the 20-day EMA ($15.38).

On the other hand, if buyers can maintain the price above $17.32, it would confirm the validity of the breakout. In this case, the $17.32 level could serve as a launching pad for the LINK/USDT pair to reach its target of $21.79.