In recent years, cryptocurrencies have become a mainstream presence. What does the future hold for these digital assets? And more importantly, how can cryptocurrency help you make money in this volatile market?
Avax is a new cryptocurrency that has been created in order to provide users with a digital asset that can be used for payments, as well as a store of value. Avax is currently trading at $0.002706 USD (-2.82%) on the market. Read more in detail here: avax price.
Bitcoin (BTC) saw a roller coaster ride in 2021, and despite a dramatic correction from its all-time high of $69,000, the digital asset is still up 60% year-to-date. Gold has declined more than 5% in the same time span.
With inflation in the United States and other areas of the globe on the rise, Bitcoin’s outperformance over gold indicates that investors may be seeing it as a stronger inflation hedge than gold.
The whole crypto market valuation increased to almost $3 trillion this year, while Bitcoin’s dominance plummeted from roughly 70% at the start of the year to 40%. This demonstrates that a number of altcoins have surpassed Bitcoin by a significant margin.
View of the cryptocurrency market on a daily basis. Coin360 is the source of this information.
Multiple altcoins are expected to attract investors’ interest as cryptocurrencies acquire greater use. Over the following year, they might provide substantial profits for investors.
The current list of large-cap cryptocurrencies that might stay in focus in 2022 and profit from a crypto bull run was compiled using technical analysis.
Let’s have a look at the charts of the top five cryptocurrencies to see what their potential goal objectives and support levels are in 2022.
In early November, Bitcoin (BTC) breached and closed above the overhead resistance at $64,854, but the candlestick’s extended wick indicates profit-booking at higher levels. The selling continued the next week, with the price falling below $64,854.
Weekly chart of BTC/USDT. TradingView is the source of this information.
The bulls tried to hold the 20-week exponential moving average (EMA) ($51,999) but were unable to do so. The selling accelerated, and the price fell below the 50-week simple moving average (SMA) ($47,681).
The bulls bought the drop but were unable to push the price above the 20-week EMA. This might suggest a shift in mood from buying on dips to selling on rallies. The bears are aiming to knock the price below the 50-week SMA once again.
If they succeed, the BTC/USDT pair might fall below $39,600, which is a solid support level. The 20-week exponential moving average (EMA) has begun to decline, and the relative strength index (RSI) has fallen below 50, suggesting that bears have gained the upper hand.
If the price breaks and closes below $39,600, a further decline to $28,805 is possible. The start of the next leg of the uptrend might be delayed as a result of such a steep drop.
If bulls can successfully defend the 100-week SMA, the pair will try to move over the 20-week EMA once again. If that occurs, the duo will try to rally to the $64,854 to $69,000 overhead zone.
A break and close above this zone might signal the start of the second leg of the uptrend, which could take the pair beyond $100,000, a psychologically significant figure.
In a strong rally, Ether (ETH) is correcting. The RSI is in positive territory, and both moving averages are trending up, suggesting that bulls have the upper hand.
Weekly chart of ETH/USDT. TradingView is the source of this information.
Although bears have attempted to push the price below the 20-week EMA ($3,745), the extended tail on recent candlesticks suggests that bulls are actively purchasing at lower levels.
The bulls will now seek to cross the psychologically important $5,000 overhead obstacle one more time. If they succeed, the ETH/USDT pair may begin the second leg of the uptrend, with the first target being the Fibonacci extension level of 100% at $5,719.68.
If the price rises over this level, the 138.2 percent Fibonacci extension level at $6,566.19 and the 161.8 percent extension level at $7,089.17 are the next targets to monitor.
Contrary to popular belief, if the price falls below the 20-week EMA and breaks below the present level or above resistance, it indicates that traders are selling on rallies. This might pave the way for a collapse to the strong support level of $2,652.
On the downside, this is a key level to monitor since a break below it may push the pair below $1,700.
Binance Coin (BNB) has dropped from $669.30 to $691.80, showing that bears are defending the all-time high. Bulls are buying the dips to the 20-week EMA ($500), which is a small positive.
Weekly chart of BNB/USDT. TradingView is the source of this information.
Buyers have the upper hand, as seen by the upsloping moving averages and the bullish RSI.
The BNB/USDT pair might advance to the upper zone of $669.30 to $691.80 if price bounces from its present level. To signify a return of the uptrend, the bulls must break through this level.
If that occurs, the pair may begin the second phase of the uptrend around $848.30, with a surge to $1,171.90 as a goal.
Another scenario is that the market rebounds off the 20-week EMA but then reverses direction from the above resistance. In this situation, the pair might be stuck in a range for a few weeks.
A consolidation around the all-time high is a good indication since it indicates that traders aren’t panicking. This raises the chances of the upward trend continuing.
Bears sinking and maintaining the price below the 20-week EMA, on the other hand, indicates that supply outweighs demand. This might cause the price to drop to the 50-week SMA ($379). The bullish premise might be called into question if this level is broken and closed below.
Nexo co-founder aims for $100K in Bitcoin by mid-2022
The rapid advance in Avalanche’s (AVAX) stock to an all-time high of $147 had pushed the RSI to 85, suggesting that the uptrend was overextended in the short run. Short-term traders may have profited as a consequence of this.
Weekly chart of AVAX/USDT. TradingView is the source of this information.
The bears dragged the price below $81 for three weeks in a row, but they couldn’t keep it there, as seen by the extended tail on the candlesticks. Bulls have now turned the prior resistance level of $81 into support.
The significant bounce from the 20-EMA ($73) implies that traders are buying on dips and sentiment remains optimistic. The bulls will now try to drive the price above $147, which would be an all-time high.
The second leg of the uptrend might begin if this barrier is broken and closed above. The AVAX/USDT pair may then surge to $213.17, with the rally having the potential to extend to $260 if the momentum continues.
If the price falls below $75.50 and breaks down from the present level or the overhead barrier, this bullish view will be invalidated. Such a move indicates that traders are selling on rallies since mood has become negative.
The pair may then fall under $50, which is a solid support level. The start of the next leg of the up-move is likely to be delayed as a result of such a steep drop.
The MATIC index of Polygon has been rising. The bulls tried but failed to push the price over the all-time high of $2.70. This indicates that the bears are putting up a strong fight against the above opposition.
Weekly MATIC/USDT chart. TradingView is the source of this information.
Bulls are buying declines to the 20-week EMA ($1.62), which is a strong indication. This shows that traders are buying on dips and sentiment is still optimistic.
The rising moving averages and an RSI close to the overbought zone suggest that the route of least resistance is to the upward. The bulls will seek to push the MATIC/USDT pair over $2.70 once again.
If they succeed, the pair may enter the second phase of the uptrend, which may take them to $3.28. If this level is broken and closed above, the surge might continue to $4 and possibly $4.77.
In contrast to this idea, if the price drops below the 20-week EMA after turning down from the present level or above resistance, it indicates that supply outweighs demand.
If the pair continues to trade below the 20-week EMA, selling might gain traction, and the pair could fall below the 50-week SMA ($1.04).
The author’s thoughts and opinions are purely his or her own and do not necessarily represent those of Cointelegraph. Every investing and trading choice has risk, so do your homework before making a decision.
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