Wednesday, January 26, 2022

Bitcoin price in line for ‘impulsive bounce’ as Solana (SOL) leads altcoin surge


Bitcoin (BTC) volatility is once more overdue, and one analyst is favoring an “impulsive” transfer towards $50,000.

BTC/USD 1-hour candle chart (Bitstamp). Supply: TradingView

Dealer: “Chill and wait” for Bitcoin breakout

Information from Cointelegraph Markets Pro and TradingView confirmed BTC/USD persevering with to circle $46,000 on Thursd as an eerie calm lingered over the market. 

Tuesday noticed mass upheaval as a cascade of unwound positions sparked a huge $9,000 daily loss for Bitcoin, one thing analysts have since pinned on overleveraged merchants.

Whereas the occasion’s lows of $42,800 haven’t been retested, a breakdown will not be off the playing cards, common dealer Crypto Ed says.

“Appears like a bullish pennant to me…Impulsive bounce adopted by consolidation,” he summarized alongside an up to date chart Wednesday.

“Chill and await the get away. Unsuitable when it breaks down.”

BTC/USD scenario. Source: Crypto Ed/Twitter

With expectations thus skewed to the upside, fellow trader and analyst Rekt Capital eyed an ongoing retest of Bitcoin’s 50-day exponential moving average (EMA) as a potential game-changer.

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“This is the first time that BTC is retesting the blue 50-day EMA as support, after having reclaimed it as support in late July,” he noted.

“The 50-day EMA is beneficial for understanding bullish momentum because it tends to assist established uptrends.” 

BTC/USD 1-day candle chart (Bitstamp) with 50-day EMA. Supply: TradingView

Altcoins recuperate as Solana passes $200

Improved efficiency throughout main altcoins, in the meantime, is giving hope to the bullish short-term case for Bitcoin.

Associated: Price analysis 9/8: BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, UNI, BCH

Whereas BTC/USD has stayed broadly flat in a single day, all the high 10 cryptocurrencies by market capitalization have posted strong good points of no less than 4%.

Ether (ETH) added 4.5% to circle $3,470 on the time of writing, whereas Cardano (ADA) recovered above $2.50.

Still outshining the pack, nevertheless, is Solana (SOL), now buying and selling above $200 on 32% good points in simply 24 hours.

SOL/USD 1-hour candle chart (FTX). Supply: TradingView