Home News Top 5 cryptocurrencies to watch in 2022: BTC, ETH, BNB, AVAX, MATIC

Top 5 cryptocurrencies to watch in 2022: BTC, ETH, BNB, AVAX, MATIC

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Even if Bitcoin (BTC) has retreated dramatically from its all-time high of $69,000 in 2021, the digital asset is still up by 60% year-to-date. Gold has declined more than 5% over the same time span.

With inflation in the United States and other parts of the world on the rise, Bitcoin’s outperformance over gold suggests that investors may be seeing it as a stronger inflation hedge than gold.

The whole crypto market valuation increased to around $3 trillion this year, while Bitcoin’s dominance plummeted from around 70% at the start of the year to 40%. This indicates that a number of altcoins have outperformed Bitcoin by a significant margin.

Crypto market data daily view. Source: Coin360

As cryptocurrency popularity grows, a slew of altcoins are vying for investors’ attention. Over the following year, these might generate significant profits for investors.

The current list of large-cap cryptocurrencies that could remain in focus in 2022 and benefit from a crypto bull run is based on technical analysis.

Let’s have a look at the charts of the top five cryptocurrencies to see what their potential target objectives and support levels might be in 2022.

BTC/USDT

In early November, Bitcoin (BTC) broke and closed above the overhead resistance at $64,854, but the lengthy wick on the candlestick indicates profit-booking at higher levels. The selling continued the next week, with the price dropping below $64,854.

BTC/USDT weekly chart. Source: TradingView

The bulls tried to defend the 20-week exponential moving average (EMA) ($51,999) but were unable to keep the rally going. This accelerated the selling and sent the price below the 50-week SMA ($47,681).

The bulls bought the dip but couldn’t push the price above the 20-week EMA. This could signal a shift in sentiment from a purchase on dips to sell on rises. The bears are aiming to bring the price below the 50-week SMA once more.

If they succeed, the BTC/USDT pair might drop to $39,600, which is a solid support level. The 20-week exponential moving average (EMA) has begun to decline, and the relative strength index (RSI) has dropped below 50, indicating that bears have gained the upper hand.

If the price breaks and closes below $39,600, it may fall much more to $28,805. The onset of the following leg of the uptrend may be delayed as a result of such a precipitous drop.

If bulls are successful in defending the 100-week SMA, the pair will attempt to move above the 20-week EMA one more time. If that happens, the pair will try to rise from $64,854 to $69,000, which is the overhead zone.

A break and close above this zone could signal the start of the next leg of the uptrend, which could take the pair beyond $100,000, a psychologically important figure.

ETH/USDT

The cryptocurrency Ether (ETH) is currently in a strong upswing. The RSI is positive and both moving averages are trending up, indicating that bulls have the upper hand.

ETH/USDT weekly chart. Source: TradingView

Although bears have been seeking to push the price below the 20-week EMA ($3,745), the extended tail on recent candlesticks indicates that bulls are aggressively purchasing at lower levels.

The bulls will now try one more time to clear the psychologically important $5,000 ceiling. If they are successful, the ETH/USDT pair might begin the next leg of the uptrend, with the first target being the 100% Fibonacci extension mark of $5,719.68.

If the price rises over this level of momentum, the next objective is the 138.2% Fibonacci extension level at $6,566.19, followed by the 161.8% extension level at $7,089.17.

Traders are selling on rallies if the market moves down from the current level of overhead resistance and breaks below the 20-week EMA, contrary to popular belief. This might lead to a probable decline to the strong support level of $2,652.

On the downside, this is a key milestone to watch because a break below it may push the pair under $1,700.

BNB/USDT

Bears are vigorously defending the all-time high of $691.80, as Binance Coin (BNB) has gone down from $669.30. Bulls are purchasing declines to the 20-week EMA ($500), which is a small positive.

BNB/USDT weekly chart. Source: TradingView

The positive RSI and upsloping moving averages signal that buyers have the upper hand.

The BNB/USDT pair could advance to the upper zone of $669.30 to $691.80 if the price bounces from the current level. To signify a restart of the uptrend, the bulls will have to break through this barrier.

If this occurs, the pair could begin the next leg of the uptrend at $848.30 before attempting a surge to $1,171.90.

Another scenario is that the price rebounds off the 20-week EMA but fails to break through the overhead resistance. The pair may remain range-bound for a few weeks in this instance.

A consolidation near the all-time high is a good sign because it suggests that traders aren’t panicking. This raises the likelihood of the upward trend continuing.

If bears dive and keep the price below the 20-week EMA, that means supply outnumbers the demand. This might cause a drop to the 50-week SMA ($379). If this level is broken and closed below, the bullish premise may be called into question.

AVAX/USDT

The rapid advance in Avalanche‘s (AVAX) stock to a new all-time high of $147 had pushed the RSI near 85, indicating that the uptrend was overextended in the short term. Short-term traders may have profited as a result.

AVAX/USDT weekly chart. Source: TradingView

The bears dragged the price below $81 for three weeks in a row, but as the long tail on the candlesticks shows, they were unable to maintain the lower levels. This means that bulls have turned resistance at $81 into support.

The significant bounce from the 20-EMA ($73) implies that traders are buying on dips and sentiment is still bullish. The bulls will now try to push the price up to $147, the all-time high.

If this barrier is broken and closed above, the following leg of the uptrend could begin. The AVAX/USDT pair could then surge to $213.17, with the rally having the potential to reach $260 if the momentum continues.

If the price breaks below $75.50 and turns down from the current level or the overhead barrier, this bullish view will be invalidated. This indicates that traders are selling on rallies as the mood has shifted negative.

The pair could then drop to $50, which is a strong support level. The start of the second leg of the up-move is likely to be delayed as a result of such a deep collapse.

MATIC/USDT

The MATIC of Polygon has been rising. Bulls failed to drive the price above the all-time high of $2.70. This means that the bears are putting up a strong fight against the overhead resistance.

MATIC/USDT weekly chart. Source: TradingView

Bulls are buying the dips to the 20-week EMA ($1.62), which is a strong indicator. This shows that traders are accumulating on dips as sentiment remains strong.

The rising moving averages and RSI near the overbought zone signal that the route of least resistance is upward. The bulls will try to push the MATIC/USDT pair above $2.70 once more.

If they succeed, the pair might enter the second phase of the uptrend, which could take them to $3.28. If this level is broken and closed above, the surge might continue to $4 and finally to $4.77.

In contrast to this idea, if the price drops below the 20-week EMA after turning down from the current level of overhead resistance, it indicates that supply outnumbers the demand.

If the price remains below the 20-week EMA, selling may gain traction, and the pair might fall to the 50-week SMA ($1.04).

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