BTC tries to form a bottom while other cryptos such as HNT, LINK, FLOW, and ONE, show early accumulation signs.
Bitcoin’s rally increased beyond $38,500, but the bulls struggle to maintain the higher levels. Bitcoin’s sentiment followed the U.S. equity markets for the past couple of days. Therefore, analysts warned traders to be careful and avoid reading into any weekend rallies when traditional markets are closed. The reason is that it could be a trap.
This week in cryptocurrency, the “top cryptos to watch” include Bitcoin, which is likely to make some short-term gains. After a few of its main rivals failed to break out of their downward trend, it would happen. A few of them, like Link (LINK) and Flow (FLOW), have been trading in a range for some time, and finally, One (ONE). All of these have the potential to make some short-term gains, but none of them is a good investment choice over a longer period.
If Bitcoin advances its recovery, these altcoins could attract buying from the aggressive bulls.
Bitcoin reached the rigid resistance zone between $37,333.70 and $39,700. The 20-day exponential moving average ($39,476) is also present in this zone. It makes this necessary for the bears to defend.
The relative strength index (RSI) and the downsloping 20-day EMA in the negative zone indicate an advantage to bears.
If the sellers manage to pull the price back below $37,333.70, the BTC/USDT pair might drop to $35,506.01. It can later retest the Jan. 25 intraday low at $32,917.16. A break and close below this level could clear the way for a potential drop to $30,000.
Alternatively, if the price grows from the current level and goes above $39,600, it will indicate a possible change in the short-term trend. The pair could then rally to $43,506 and retest the 200-day moving average ($48,834).
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