Bitcoin (BTC) staged a sharp recovery on Jan. 24 after falling to long-term support levels. Technical
Bitcoin Magazine will look at the price action of seven different cryptocurrencies, including Cosmos (ATOM), which may have completed a short-term correction.
BTC has been falling since hitting an all-time high of $69,000 on Nov. 10. The downward movement continued until Jan. 24 when BTC fell as low as $32,917.
However, the price rebounded shortly thereafter, creating a long wick down in the process. The bounce also served to confirm the support line of the ascending parallel channel (green symbol) that has been forming since April.
If the uptrend resumes, the $40,500 horizontal area is likely to act as resistance again.
BTC/USDT daily chart | Source: TradingView
ETH has also fallen since hitting an all-time high of $4,838 on Nov. 10.
While the token initially bounced off the 0.618 Fib retracement support (green icon) on Jan. 10, the price eventually broke below it.
Currently, the price is trading just above the $2,400 horizontal support area.
While there are no signs of a bullish reversal in sight, ETH is trading just above a key horizontal support area where bulls will attempt to defend.
ETH/USDT daily chart | Source: TradingView
XRP has been falling along with a descending resistance line since November 10th. The price initially bounced off the $0.72 horizontal support area. However, the price broke below it on January 21.
Despite the collapse, XRP has bounced off an ascending support line that has been forming since June and has now confirmed that line as support for the third time.
As long as the price is trading above it, the possibility of a jump remains.
XRP/USDT daily chart | Source: TradingView
FTT has been falling since September 8th along with a descending resistance line. Additionally, it appears that the token is trading inside a descending wedge, which is considered a bullish pattern.
On Jan 8th and 24th, the FTT bounced off the 0.786 Fib retracement support at $35.25. While the price fell below it twice, the bulls re-entered the support zone shortly after.
Such divergences are often viewed as bullish developments. Since the descending wedge is considered a bullish pattern, a breakout remains the most likely scenario.
Daily FTT/USDT Chart | Source: TradingView
ATOM has been stuck in a descending (highlighted) trend since January 7th. It hit a low of $27.31 on Jan. 22 and bounced back (red circle). The bounce was important as it helped the price rally to the 0.618 Fib retracement support at $29.53.
Furthermore, the downtrend appears to be correcting due to the overlap of impulse pulses.
Therefore, ATOM could continue to rise to new highs.
ATOM/USDT 6 hour chart | Source: TradingView
BNB has been climbing along with an ascending support line since May, peaking at $669 on Nov. 7.
Since then, however, the price has declined, breaking below the support line on January 21st.
The token bounced off the $325 horizontal support area and is likely to confirm the previous support line as resistance.
However, due to the breakdown, it is possible that the upward movement that started in May is complete.
Daily BNB/USDT Chart | Source: TradingView
IOTA has been falling into a descending parallel channel since September 4th. By Jan 17, the price managed to stay above the midline of the channel and the horizontal support area of $1.05.
However, after that, the price collapsed, falling as low as $0.69 on January 4th.
Despite the bounce since then, it is positive that the token will continue its downtrend towards the channel’s support line at $0.60.
IOTA/USDT daily chart | Source: TradingView
You can see the coin prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to beincrypto