Top 5 cryptocurrencies to watch this week: BTC, LUNA, FTM, ATOM, ONE

Bitcoin (BTC) continues to remain below the psychological level of $50,000 in the first few days of the New Year, indicating that there are no aggressive purchases by traders. Former BTCC CEO Bobby Lee said the outflows of Chinese traders, who had until Dec. 31 to exit Chinese exchanges, may have kept prices low by the end of the year.

However, El Salvadoran President Nayib Bukele, who was the first country to accept Bitcoin as a legal tender, believes that Bitcoin could rise to $100,000 this year. President Bukele also said that in 2022, two more countries will accept Bitcoin as a legal tender.

The growing adoption of crypto by institutional investors in 2021 is another long-term positive. According to CoinShares, net inflows into crypto funds in 2021 were more than $9.3 billion. More than two-thirds of crypto entries were made to Bitcoin.

Can Bitcoin start a new upward movement by pulling certain altcoins higher in January? Let’s examine the charts of the top 5 cryptocurrencies that may remain positive in the short term.

BTC/USDT
Bitcoin has been trading between the 20-day exponential moving average ($48,720) and the strong support of $45,456 for the past few days. This suggests that buying is drying up at higher levels.

Both moving averages are falling, and the relative strength index (RSI) is in negative territory, indicating that the bears are superior. If the price breaks below the 20-day EMA, the bears will try to push the price below $45,456. If they achieve this, the next leg of the downtrend can start at $42,000 and then $40,000.

Contrary to this assumption, if the price breaks above the 20-day EMA, the BTC/USDT pair can rally to the 50-day simple moving average ($52,332). A break above this level and a close could signal the start of a new uptrend that could reach the 61.8% Fibonacci pullback level at $58,686.

The 4-hour chart indicates that the pair is bounding towards a range between $45,456 and $51,936.33. The price recovered from $45,456 and if the bulls push the pair above the 50-SMA, it will suggest accumulation at lower levels. This could steer the price towards $51,936.33.

Conversely, if the price breaks below the 50-SMA, the bears will make another attempt to push the pair below $45,456. If successful, the pair could continue its downtrend at its next target target of $38,975.67.

LUNA/USDT
Terra’s LUNA token is trying to continue its uptrend, but the bears have other plans and are pulling a line close to $93.81.

The rising moving averages and the RSI in the positive zone give buyers a slight advantage. If the price once again bounces back from the 20-day EMA ($82), it will indicate that the bulls continue to accumulate in the downsides.

The LUNA/USDT pair will then try to break $93.81 and challenge the all-time high of $103.60. A break above this resistance and a close could kick off the next leg of the uptrend at $135.26.

Conversely, if the price falls and breaks below the 20-day EMA, it will signal a change in the short-term trend. The pair may then decline to $65.15.

The $81.11 bounce, the 50% Fibonacci correction at $92.35 and the 61.8% pullback level are facing a sell-off in the zone between $95.01. The bears will now try to push the price below the 20-EMA and bullish line.

If they do, the pair could drop to $84 and then to $81.11. A break and close below this support could indicate that the bears are returning to the game.

Conversely, if the price bounces back from the current level or bullish line, buyers will try to push the pair above $95.01 and retest the overall resistance at $103.60.

FTM/USDT
Phantom (FTM) lowered the overall resistance at $2.67, which suggests that the bears are fiercely defending this level.

The FTM/USDT pair could fall to the 20-day EMA, which can serve as a strong support. A sharp recovery of this support will indicate that buyers are accumulating in declines.

The ascending 20-day EMA ($2.03) and the RSI above 68 indicate that the path to least resistance is upwards.

A break above $2.67 and a close will indicate that the bulls are back in the game. The pair can then start northward at $3.17 and then $3.48. The bears will have to push and sustain the price below $2 to nullify the bullish sentiment.

The 4-hour chart shows a tumbling bottom pattern, which will be completed with a break and close at $2.67 above the overall resistance. If the price bounces back from the 20-EMA, the bulls will again try to break through the hurdle at $2.67. If this happens, the upward movement can begin.

Conversely, if the price breaks below the 20-EMA, it suggests that the short-term bullish momentum may weaken. The pair may then fall to the 50-SMA and then to the strong support at $2.

ATOM/USDT
Cosmos (ATOM) broke above the general resistance at $34 on January 1 and closed. Moving averages completed an upward transition indicating that the bulls had the upper hand.

If the price stays above $34, the bullish momentum could increase further and the ATOM/USDT pair could rally to $38 and then to $43.28. Moving averages have completed an upward transition and the RSI is in positive territory, indicating that the bulls are in control.

Contrary to this assumption, if the price breaks out and breaks below $34, it will indicate that the bears are trying to trap the aggressive bulls. The pair can then break down to the 20-day EMA ($28).

If the price bounces back from this level, the bulls will make one more attempt to overcome the overall hurdle, but if the pair breaks below the moving averages, the decline could extend to $25.

Both moving averages are rising and the RSI is in positive territory, which indicates that the bulls are superior. If the price bounces back from the 20-EMA, it will signal that sentiment remains positive and traders are buying on the downside.

The upward movement may continue with a break and close above $37. Conversely, if the bears push the price below the 20-EMA, it could lead to profit booking from short-term traders. This can push the price to 50-SMA.

ONE/USDT
Harmony (ONE) has reached the downtrend line where bears are likely to form a hard resistance. If the price breaks below the current level, the altcoin could fall to the 20-day EMA ($0.24).

If the price bounces back from the 20-day EMA, it will indicate that sentiment continues to rise and traders are accumulating in declines. The bulls will then try to push the price above the downtrend line.

If they succeed, it will suggest the beginning of a new upward movement. The first target on the upward side is $0.34, and a break above that could lead to a retest at $0.38. This positive opinion will be invalid if the price falls and falls below $0.21.

The 4-hour chart shows the formation of a cup and handle pattern that will complete in a break and close above $0.29. This reversal setup has a pattern target of $0.38. Since the bears are likely to form a strong resistance at $0.34, it is unlikely that there will be a direct line to the target target.

Conversely, if the price falls from the current level, it may fall to the moving averages. If this support breaks, the ONE/USDT pair could fall to $0.21. A bounce from this support could keep the pair between $0.21 and $0.27 for a while.