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After spending the whole of January working its way up to a $24,000 local high, Bitcoin appears to be taking a breath. Is the next move a renewed assault of $25,000, or a major correction?
Traders and speculators may be feeling a little uneasy right now. Having got used to a month of generally upside movement, bitcoin has now fallen out of its channel and is currently resting at $22,850.
Traders may be wondering if this is the beginning of the ‘inevitable’ slide all the way back down to perhaps test the bottom, or even make a new low.
However, bitcoin might just have other ideas, at least for the short term. Shorter time frame Stochastic RSIs have all reset to the bottom, and even though the weekly, and 2-weekly are topping, bitcoin might still have a bit more juice left in the tank yet.
For the altcoins, much hinges on whether the Total 3 market cap holds above the top of the downwards sloping channel it's been in since July last year. Total 3 is the total of all the altcoins minus bitcoin and ethereum.
It can also be noticed that many of the altcoins are either just below or just above their 200-day moving averages, and many are also about to have golden crosses (where the 50-day MA crosses up over the 200-day MA).
Where most altcoins are still in the red today there are still the odd few that are in the green and performing exceedingly well. Larger caps are generally down but ETH is still very slightly in the green.
Render ($RNDR) is continuing its heady climb to the upside with no sign of slackening off and a further 3 to 4% higher on the day. With 350% over the last few weeks, this crypto has been a real winner. Major resistance is approaching at around $2 so a healthy correction is due soon.
Iluvium, a collectible NFT RPG game, has settled above resistance and has turned it into support after a nice run over the last month, putting on around 145%. $ILV is up over 3% so far on the day.
Numeraire ($NMR) is one of the AI coins on the move upwards on the day. $NMR is currently +5.72% and has had a 40% breakout over the last 3 days.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.