Bitcoin range consolidation sets stage for SOL, AVAX RNDR and SUI.
Bitcoin (BTC) is slowly rising over the weekend, which shows the continuation of the bulls' demand. According to data shared on January 26 by Bloomberg analyst James Seifert, BlackRock's iShares Bitcoin Trust (IBIT) assets under management have passed the $2 billion mark.
Strong buying at low levels has arrested Bitcoin's decline, but a new bull market is unlikely to start in a hurry. As traders focus on the new Bitcoin exchange-traded funds and the Bitcoin halving in April, Bitcoin may consolidate its gains.
If Bitcoin enters the range, it will be a positive sign as it shows that traders are not in a rush to book profits as they expect the growth to continue. That could be good news for selected altcoins, which could attract investor interest and continue to move higher.
Bitcoin's recovery has pushed select altcoins higher. Let's take a look at the top 5 cryptocurrency charts that are likely to outperform in the near future.
Bitcoin price analysis
Bitcoin rose above its 20-day moving average ($41,959) on January 27, indicating that the selling pressure is easing.
Both moving averages are stretched, and the Relative Strength Index (RSI) is near the midpoint, indicating a balance between supply and demand. The BTC/USDT pair may fluctuate between $44,700 and $37,980 for some time.
A break and close above $44,700 would be the first indication that buyers are back in the driver's seat. That could push the price to a local high of $48,970. On the downside, a slide below $37,980 could initiate a deep correction to $34,800.
The moving averages have completed a bullish cross on the 4-hour chart, and the RSI is near the overbought zone, indicating that the bulls are on their way back. The rally could reach $43,500 and then $44,700.
On the downside, moving averages can act as strong support. A break below the 50-easy moving average will tilt the advantage to the bears. The pair will drop to $39,500 and later to $37,980.
Solana price analysis
Solana (SOL) broke above the moving averages on January 27th and is trying to stay above the low line on January 28th.
The 20-day EMA ($93) is stretched, and the RSI is above the midpoint, indicating a balance between buyers and sellers. If the price stays above the lower line, the SOL/USDT pair may try to rally towards $107 and then towards $117.
If the bears want to prevent the upside, they need to pull the price back below the fast moving averages. That could trap aggressive bulls, opening the door for a retest of support at $79.
The pair rose above the low line, undermining the bearish descending triangle pattern on the 4-hour chart. This is a positive sign when the bulls waiting on the sidelines enter on the bearish decline and the bears rush to the exit.
If buyers hold the price above the lower line, the pair may rise to $107 and later to $117. If the price declines and falls below $85, this bullish outlook is worthless in the near term.
Price analysis
Avalanche (AVAX) has been trading in a descending channel pattern for several days. On January 23, buyers bought support to the support line and pushed the price above the 20-day EMA ($34) on January 28.
Sellers try to stop recovery on the downline. If the price is reduced from the resistance above, it suggests that the bears remain highly active. The AVAX/USDT pair may spend some more time in the channel.
Instead, if the price pierces the upper resistance, bulls will signal aggressive buying. The pair may pick up momentum towards $44 and then the psychologically important $50 level.
The 20-EMA has started to turn, and the RSI is near the overbought zone, indicating strong buying by bulls. Sellers have successfully defended the bottom line on three previous occasions. So, they try to do it again.
If the price breaks from the low line but recovers from the 20-EMA, it suggests that traders see the dips as a buying opportunity. This rally raises hopes beyond the channel. If that happens, the pair could start moving towards $44.
Conversely, if the price declines and breaks below the moving averages, it indicates that the bears will sell at a higher level. The pair can stay in the channel for a long time.
RELATED: There is community speculation that Bitcoin ETF ads may appear on Google starting Monday.
Provide a price analysis
After the initial pullback, Render (RNDR) has been consolidating between $3.56 and $4.40 for the past few days.
Both moving averages are extended, and the RSI is above the midpoint, indicating a balance between bulls and bears. If the price declines below $4.40 and breaks below the 20-day EMA ($4), the RNDR/USDT pair may extend its range-bound action for a few more days.
On the contrary, if the price is above $4.40, it shows that the buyers beat the sellers. The pair could rally to $5.07 and eventually to $5.28. A break above this level indicates a resumption of the uptrend.
The pair has formed a symmetrical triangle pattern on the 4-hour chart, indicating indecision between bulls and bears. The buyers are trying to gain dominance by pushing the price above the triangle. If successful, the pair could climb to $4.40 and then to $4.71.
Contrary to this assumption, if the price is low and breaks below the 20-EMA, it indicates that the bears will strongly defend the lower line. The pair may descend to the support line.
Sui price analysis
The SUI has been at highs for the past several days, but the bears are trying to stop the rally at $1.50.
The SUI/USDT pair has formed a rounded bottom pattern, which will be completed by a break and close above $1.50. If that is the case, the momentum may rise, and the pair may rally to $2. A positive setup pattern target is $2.64.
However, the bears may have other plans. They will strongly defend the $1.50 level and try to pull the price towards the 20-day EMA ($1.18). If the price rebounds strongly from the 20-day EMA, the possibility of a rally above $1.50 increases. On the other hand, a break below the 20-day EMA could open the doors to a decline towards the 50-day SMA ($0.92).
The 4-hour chart shows that the bulls are struggling to resist the price above $1.50. If the price continues lower and breaks below the 20-EMA, it may start pulling towards the 50-SMA.
Alternatively, if the price bounces back from the 20-EMA, the sentiment remains positive and every small dip suggests that it is being bought. The pair can beat the barrier at $1.50 and start the next leg of the uptrend.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
