Top Five Cryptocurrencies to Watch This Week: BTC, ETH, UNI, ATOM, COMP

Photo: Coin Telegraph

(Coin Telegraph) - Over the past seven days, the crypto market saw an uptick in volatility as Bitcoin and Dogecoin price rallied higher simply because of social media activity. In situations like these, traders who make their investment decisions based on emotions tend to incur heavy losses and this is exactly what happened last week.

Dogecoin’s recent pump and dump caused several new traders who bought due to FOMO (fear of missing out) to lose money within a short time and this scenario is likely to play out again as social media groups have decided that collective pumps of altcoins is a new method of investing.

A similar trend currently seems to be developing in Bitcoin, which has retraced a large portion of the up-move that was caused due to the “Elon pump” on Jan 29. This shows that barring a few emotional buyers, most professional traders may have used the rally to lighten their long positions.

BTC/USD

Bitcoin’s long wick on Jan 29 shows the bears aggressively sold the rally above the downtrend line of the descending triangle. That was followed by a Doji candlestick pattern on Jan 30, indicating indecision among the bulls and the bears.

BTC/USDT daily chart. Source: Trading View

The failure of the bulls to push the price above the downtrend line today has attracted further selling. The bears are currently trying to sustain the price below the 20-day exponential moving average ($33,395).

If they succeed, the BTC/USD pair may drop to the 50-day simple moving average ($30,631) and then to $28,850.

ETH/USD

Ethereum broke above the $1,400 resistance on three previous occasions but the bulls could not sustain the breakout, which shows profit-booking at higher levels. However, the positive thing is that the bulls have not given up much ground in the past few days. This shows the bulls are accumulating on dips.

The ETH/USD pair had formed a Doji candlestick pattern on Jan 30, indicating uncertainty. That indecision has resolved to the downside today and the pair may now drop to the 20-day EMA ($1,253), which is likely to act as strong support.

Read more from the original article here.

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