The ongoing cryptocurrency winter had witnessed both, winners, as well as, losers. Among the losers, some managed to pick themselves up, while others just gave up. Naturally, investors are apprehensive about what 2023 will bring. There is confusion about which coins/tokens to invest in, and which to avoid. Learn more: bit-indexai.net.
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However, experts have been keeping a vigilant eye on the global cryptocurrency marketplace. Their observations have led them to conclude that three coins/tokens are bound to sustain whatever trends the virtual currencies marketplace displays. They are Bitcoin, Solana, and Ethereum. Outlined below is a one-hour price analysis, which represents each one’s current performance. It should help investors decide what they should invest in, via the trading and investment platform, Bitcoin smart.
Investors, whether beginners or professionals, may wonder if the analysis is genuine and if they can trust it. Well, they can, for the information has been provided by TradingView. It refers to a platform that permits cryptocurrency marketplace enthusiasts, traders, educators, and investors to connect. They may converse about, and share ideas about cryptocurrencies. In other words, it fosters community bonding.
Now, certain terms may seem incomprehensible. Brief explanations should suffice to help everyone understand.
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It refers to a well-reputed indicator that comes into use in technical analysis. It filters out short-term pricing fluctuations, enabling the smoothening out of price action. In other words, it displays the direction in which market trends are going. It also helps in identifying resistance and support levels.
Two types of Moving Averages are in evidence. One is the Simple Moving Average, (SMA) which takes into consideration several periods of marketplace volatility concerning a coin/token. Then, it calculates the average/mean price. Exponential Mean Average (EMA) places focus on the existing price action, the SMA.
Relative Strength Index
It is responsible for predicting the value changes concerning a digital asset, stretching over a specific period. By understanding the behavior of diverse cryptocurrencies, investors can make informed decisions.
True, the predictions may not prove to be correct always. Regardless, they provide a direction toward investing in the appropriate coins/tokens, especially during bearish trends.
Average True Range
The technical analysis indicator focuses on a specific period, generally about 14 days. Then, it analyzes the pricing changes for the concerned digital asset during that period and brings up the average value.
Toward this end, the indicator considers three things. One is the existing high less the existing low. Next is the absolute price of the current high less the previous close. Finally, there is the absolute price of the current low less the previous close.
A recent perusal of the one-hour chart associated with Bitcoin/USDT revealed that it was trading in alignment with its 200-day MA (Moving Average). A bearish trend seemed to be in the offing, as indicated by the RSI (Relative Strength Index). The figure stood at 41.91. It seemed to suggest that the bears were striving to push the bulls out of the way. Market volatility was present, as evinced by the ATR (Average True Range). Bitcoin’s ATR was at 158.23.
The latest reports state that Bitcoin, after encountering a lengthy period of consolidation, pushed the 200-day Moving Average downward. Nonetheless, experts believe that the coin will reach a resistance level of $25,000 soon. It will lead to re-testing. Finally, investors may opt for a huge sell-off.
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Recently, the digital asset was close to its one-hour support level, as evinced by the pricing of $1,540. The RSI was inclined toward a bearish trend, exhibiting a reading of 42.89. However, the Bull Bear Power Indicator displayed a healthy figure of 8.76. In other words, there could very well be a bullish trend, instead of a bearish trend.
The snag is that Ether is currently trading below its 200-day Moving Average. It could be that sellers are keen to penetrate the existing support level. In case, the level breaks, then the value of the coin would reach $1,450.
It is well-reputed in the category of NFT Collects. The one-hour chart suggests that Solana’s pathway is in alignment with Bitcoin and Ethereum. Furthermore, the bears are predominating, as displayed on the Bull Bear Power Indicator. The reading is -0.25.