Top 5 cryptocurrencies to watch this week: BTC, LEO, MANA, KLAY, XTZ
Russia’s massive build-up of soldiers, warplanes, equipment and extended military drills near Ukraine’s borders increased fears of a possible invasion within the next few days. That could have renewed selling in Bitcoin (BTC), which plummeted below the strong support at $39,600.
Among the gloom and doom, there is a ray of hope for crypto investors because data from Glassnode shows that more than 60% of Bitcoin supply has not been used in any transaction for more than a year. This suggests that long-term hodlers are not dumping their positions in the downtrend.
Mike McGlone, chief commodity strategist at Bloomberg Intelligence, warned that Bitcoin could be in for a “rough week ahead" and cautioned that "inflation is unlikely to drop unless risk assets do.” However, McGlone expects Bitcoin to emerge stronger this year.
Could Bitcoin and altcoins stage a recovery and trap the aggressive bears? Let’s study the charts of the top-5 cryptocurrencies that may participate in a relief rally.
The failure of the buyers to defend the strong support at $39,600 indicates that Bitcoin continues to face strong selling by the bears. The 20-day exponential moving average ($41,193) has started to turn down and the relative strength index (RSI) has slipped into the negative territory, suggesting that bears have the upper hand.
If the price sustains below $39,600, the selling could pick up momentum and the BTC/USDT pair could drop to the immediate support zone between $36,250 and $35,507.01.
The bulls are expected to defend this zone aggressively because a break below it could clear the path for a retest of the Jan. 24 intraday low at $32,917.17. The longer the price sustains below $39,600, the greater the possibility of the downward move.
Contrar
Read more on cointelegraph.com
