Bitcoin’s (BTCThe recent plunge could have been triggered by profit postings by institutional investors, one said report by crypto fund manager CoinShares. The report noted a sharp drop in institutional inflows during the first week of the new year and weekly outflows of various crypto investment products.
While the recent 28% drop may have scared some new investors, Bitcoin HODLers probably weren’t impressed Encountered six major corrections during Bitcoin’s massive bull run in 2017. Therefore, describing a 20% decline as a bear market may not apply to cryptocurrencies.
As Bitcoin tries to recover, we’re going to analyze three altcoins that could outperform in the short term.
IOST / USD
As the price of Ether approached its all-time high, traders turned their attention to the competitors, including IOST. In a bullish environment, traders usually buy the rumor of an impending announcement and this appears to have happened with IOST.
IOST co-founder has been Terrence Wang tease future announcements about an IOST-based stablecoin, DeFi integration and major partnerships. Each of these announcements may have played a role in boosting traders’ interest.
Recently XPET’s 2D Game “Dream Monster” was launched on IOST blockchain. Players can store and trade the game’s core assets such as rare pets, equipment, genetic traits, attributes, and more in the form of NFTs in the IOST chain.
IOST’s focus on a decentralized financial ecosystem and NFTs could keep traders connected. The project also recently received awards for being the “2020 Most Influential Public Chain” and one of the “2020 Top 100 Blockchain Companies” by Chinese blockchain media company Jinse. While these may be sentiment boosters, a closer look at the technical aspects of IOST will determine if the rally has room to continue or if a correction is warranted.
IOST rose from an intraday low of $ 0.005734 on Jan. 6 to an intraday high of $ 0.013545 on Jan. 9, up 136% in four days. The breakout and close above USD 0.009 completed a bullish bullish bullish bullish triangle pattern, which has a target of USD 0.016.
The IOST / USD pair fell to $ 0.008 on Jan. 11, but the bulls bought this dip aggressively, resulting in the formation of a hammer candlestick pattern.
Today the bulls attempted to resume the upward movement, but traders appear to be making gains at higher levels, resulting in the formation of a leggy Doji candlestick pattern.
The pair could consolidate between $ 0.009 and $ 0.012 in the coming days as both bulls and bears seek to establish supremacy. If the bulls manage to hold the price above USD 0.012, the next leg of the upward move could be to USD 0.016 and then to USD 0.018 on the chart.
This optimistic view can be voided if the price breaks and remains below $ 0.009. Such a move would suggest that the current breakout was a bull trap.
ZEN / USD
In the digital age, data privacy is one of the most important factors that both individuals and companies strive for. On that front, Horizen (ZEN) has announced that it will build a dedicated sidechain on its Zendoo platform for LTO networks, to add a layer of security to its day-to-day network transactions while maintaining the GDPR compliance side. Horizen also partnered with Dragonchain to cover up its users’ sensitive information and only share necessary data.
Bitcoin’s halves have proven bullish for its price, and Horizen appears to be showing a similar trend after the initial halving occurred on December 1. ZEN token has also been listed on Binance US, Binance futures and Binance loans recently and that could come at a better time.
The project’s decision to join the Messari Registry could increase confidence among the community and investors.
ZEN rallied from an intraday low of $ 13.20 on Jan. 8 to an intraday high of $ 31 today, rallying 134% in five days. The altcoin broke above the $ 19.70 overhead on Jan. 10, signaling the possible start of a new uptrend.
Although the bears pulled the price back to $ 17,211 on Jan. 11, aggressive buying at lower levels kept the uptrend intact. Today the bulls are trying to build on yesterday’s recovery, but the long wick on the candlestick suggests a profit posting of $ 31.
However, if the bulls do not allow the price to fall below the 38.2% Fibonacci retracement level at $ 22,329, the uptrend may resume with the next target target at $ 37,308 and then $ 46.271.
This optimistic view will be voided if the ZEN / USD pair moves down from current levels and plummets below USD 19.70. Such a move suggests rejection on higher levels.
AVAX / USD
Avalanche (AVAX) has seen a flurry of activity since the launch of its full mainnet in September. The platform partnered with Securitize, a primary digital securities issuance and compliance platform, to issue and manage private securities, allowing crypto users to take advantage of the private capital markets.
The partnership between Avalanche, Roche Cyrulnik Freedman LLP and Republic Advisory Services allows investors to take advantage of Litigation funding, opening the opportunities of a new asset class for crypto users.
In addition, Avalanche partnered with DEXs, Synthetics, prediction markets and more such projects.
While these events have already been completed, the upcoming ‘Apricot’ mainnet upgrade being dubbed may be closely watched by the market participants. Another positive development underway is the integration of a bridge for ERC-20 and ERC-721 assets to move between Avalanche and Ethereum.
AVAX rose from $ 3.2283 on Jan. 4 to $ 8.2356 today, a 155% gain in a short space of time. In a strong upward trend, the corrections usually don’t last longer than three days and this is reflected in the current upward movement that started on December 31st.
The bulls pushed the price above the USD 7.50 resistance today and resumed the uptrend which could reach USD 10.42 and beyond at USD 12.20.
The rally in recent days has pushed the relative strength index (RSI) into overbought territory. While this is a sign of excess in a mature rally, it indicates strength in a new uptrend.
This optimistic view will be voided if the AVAX / USD pair goes down below the January 11 intraday low of $ 5.72. Such a move could bring the price down to the 20-day exponential moving average ($ 4.84).
When that happens, the pair can consolidate for a few days before embarking on the next trend move.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move carries risks, you should do your own research when making a decision.