5 cryptocurrencies to keep an eye on in 2023
It’s been a tumultuous year for crypto investors, who have seen the total crypto market cap plummet from around $2.2 trillion in early 2022 to around $850 billion in December. Bankruptcy profile in 2022. The entire Terra ecosystem imploded with the collapse of its LUNA token and TerraUSD (UST) stablecoin. The failure of Three Arrows Capital followed this Black Swan event, with the final blow coming when FTX banked and imploded.
These consecutive events triggered a credit and liquidity crunch and appeared to have caused the most significant damage to the cryptocurrency industry. A sustained bear market tends to test investors’ patience but presents one of the best opportunities to buy fundamentally sound cryptocurrencies at lower levels. Intelligent investors who can swim against the grain and invest during panic periods tend to benefit the most when the trend finally turns.
While a bear market is a great time to build a portfolio, traders tend to make the mistake of buying the coins that have fallen the most in hopes that they will return to their former glory. Most of the time, this only happens because every bull market has a new group of leaders. In general, those resilient during the slump or recover quickly from the bottom tend to lead the way up. Let’s look at five cryptocurrencies promising for 2023.
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The broader cryptocurrency market is unlikely to start a new bullish phase until Bitcoin BTCtickers reverses down $16,663.
Although bitcoin has been in a strong downtrend for the past few months, the RSI is forming a positive divergence, suggesting that the bearish momentum may weaken.
However, a positive divergence must have favorable price action to confirm a trend reversal. The first sign of strength will be a break and close above the 20-week EMA at $19,870. The BTC/USDT pair could rally to $25,211, where the bears can once again mount strong defenses. If the price turns down from this level and bounces off the 20-week EMA, it will signal a switch in sentiment from selling on rallies to buying on dips. That could increase the probability of a break of above $25,211.
The pair could then rally to the 50-week SMA of $28,156. This remains the critical level for bears to defend, as a break above it could herald the start of a new uptrend. Minor hurdle near $32,400, but it is likely to be cleared, and the pair could rally to $50,000. However, the downtrend could resume if the price turns down from the current levels or the 20-week EMA and falls below $15,476. Support on the bottom is $12,500 and is $10,000.
Ether ETHtickers is down $1,190 and was in a strong downtrend, but a small upside is that it finds support near the psychological $1,000 level.
Repeated rallies from the 20-week EMA ($1428) also suggest sporadic buying by the bulls.
Though three rallies in the past few weeks have been rejected at the 20-week EMA, the bears have failed to push the ETH/USDT pair to the June low of $881, suggesting traders are discounting the dips to buy. Several bears might cover their short positions to keep the price above the 20-week EMA. This could result in a rally to the overhead resistance at $2,030. The 50-week SMA ($1,977) is close; Therefore, this level can present a significant hurdle for the bulls. If the buyers push the price above $2030, the pair will complete a double-bottom pattern.
This reversal setup has a target of $3,200, but the rally could extend to $3,600. The $3,600-$4,000 area could become a significant barrier for the bulls. If the bears are to invalidate this optimistic view, they must decline and sustain the price below $881.
Read More: https://coinmicroscope.com/5-cryptocurrencies-to-keep-an-eye-on-in-2023/