Bitcoin has been consolidating nicely in the $22.5k-24k zone, with the $22.5k level acting as strong support. The market has shifted into greed mode, with global sentiment improving across the board. Bitcoin’s next resistance level is a very strong one, namely the psychological level of $25k, which also happens to represent the confluence between the 200 MA and 50 EMA on the weekly chart. Altcoins have also held up well in the recent period, reflecting increasing risk appetite by investors in the market.
Polygon (MATIC) has performed strongly since the beginning of the year, going from the $0.75 price level to the $1.28 local top, before settling above the $1.17 support level. The $1.28-1.35 price area offers a strong resistance zone, and the bulls would have much work to do should the price break into new highs in the coming period. It is notable that the famed Layer-2 token had previously broken past the 50 EMA on the weekly chart and held it as support, something it failed to manage in October and November 2022.
Despite printing a bearish engulfing candle on the weekly chart, Solana (SOL) has so far managed to successfully hold over the $22-23 support zone. However, it faces strong resistance represented by the 200 MA on the daily chart. The $28 level in particular is critical, as this current resistance had been previously acting as support between June and November 2022. If the bulls fail to flip this level into support, then the bears could take over and drive the price back down to previous lows.
Chainlink (LINK) has recovered in the recent period, rising from a market bottom of $5.3 per token, on December 31, 2022, to reach the $7.5 resistance level towards the end of January 2023, representing a 41.5% price gain. At the time of writing, it is battling with the 200 MA on the daily chart, and has attempted to establish it as a support level several times without success. Chainlink has struggled in recent times, and thus the bulls will be doing their best to register higher lows in the market, at the very least, in the upcoming period.
