Bitcoin (BTC) has been gradually moving up during the weekend, indicating continued demand from the bulls. Data shared by Bloomberg analyst James Seyffart on Jan. 26 shows that BlackRock’s iShares Bitcoin Trust (IBIT) assets under management crossed the $2 billion mark.
Solid buying at lower levels arrested the decline in Bitcoin, but a new bull market is unlikely to start in a hurry. Bitcoin may consolidate its gains as traders focus on the inflows into the newly launched Bitcoin exchange-traded funds and wait for the Bitcoin halving in April.
Crypto market data daily view. Source: Coin360
If Bitcoin enters a range, it will be a positive sign as it shows that traders are not hurrying to book profits because they anticipate the uptrend to continue. That may also be good news for select altcoins, which may attract investors’ interest and resume their up move.
Bitcoin’s recovery has pulled select altcoins higher. Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin rose above the 20-day exponential moving average ($41,959) on Jan. 27, indicating that the selling pressure is reducing.
BTC/USDT daily chart. Source: TradingView
Both moving averages have flattened out, and the relative strength index (RSI) is near the midpoint, indicating a balance between supply and demand. The BTC/USDT pair may swing between $44,700 and $37,980 for some time.
A break and close above $44,700 will be the first indication that the buyers are back in the driver’s seat. That may propel the price to the local high of $48,970. On the downside, a slide below $37,980 could start a deeper correction toward $34,800.
BTC/USDT 4-hour chart. Source: TradingView
The moving averages have completed a bullish crossover on the 4-hour chart, and the RSI is near the overbought zone, indicating that the bulls are on a comeback. The rally could reach $43,500 and then $44,700.
On the downside, the moving averages will likely act as a strong support. A break below the 50-simple moving average could tilt the advantage in favor of the bears. The pair may then slump to $39,500 and later to…
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