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The glam in the crypto market in Q2 2023 is slowly but surely turning to gloom as digital assets give back the accrued gains. As expected, investors bought the rumor of the spot Bitcoin ETFs approval from October to December but then sold the news. CoinGecko reveals a 2.7% dip in market cap to $1.72 trillion, triggered by a sell-off, with BTC testing support at $40,500 and Ethereum sliding under $2,500. Amid this chaos, leaving no stone unturned, some of the best cryptocurrencies to buy range from Bitcoin (BTC), Celestia (TIA), and Stacks (STX).
While the bearish cloud hovering above the crypto market is worrying and creating anxiety and uncertainty, identifying prime entry positions among the best crypto to buy could distinguish successful investors from those who will realize losses.
Recommended: Crypto Price Prediction For January 19: SOL, MANA, TIA
Is Bitcoin (BTC) the crypto to buy today?
The massive rally that saw Bitcoin price elevated to $49,000 needed to cool off despite the BTC ETF green light. In fact, some traders like Rekt Capital had in December projected an incoming significant drop in early 2024.
In a post on X, the widely followed analysts opined that although a 45% slip to $23,000 was unlikely, “the more sensible scenario would be a repeat of an 18% retrace or so, just like in 2016.”
He argues that should this retracement occur, it would be one of the last golden opportunities to buy “Bitcoin (before it) begins its parabolic rally after the halving.”
10.
If #BTC were to retrace -45% early on in 2024, then price would drop to ~$23000
Obviously, in 2020 there was a significant catalyst in the form of the pandemic that prompted such tremendous downside
A -45% retracement scenario in early 2024 is unlikely
The more sensible… pic.twitter.com/BvGzuCrlGN
— Rekt Capital (@rektcapital) December 22, 2023
Michaël van de Poppe, a well-known trader and analyst wrote earlier on X that it is possible the correction is over and that Bitcoin would recover from the current market level.
However, he did not rule out the possibility of more pain below $40,000. He believes the area of concern should be between $36,000 and $40,000, where investors are likely to accumulate more in preparation for the rally.
Perhaps we're there already for #Bitcoin, but it seems likely that we'll test lower before we can have a reversal back up.
My personal interest is between $36-40K to be accumulating more into Bitcoin.
The range remains defined. pic.twitter.com/QADxVCCzUY
— Michaël van de Poppe (@CryptoMichNL) January 19, 2024
The short-term four-hour chart exhibits the first recovery attempt from support at $40,500. Bitcoin price trades at $41,400 at the time of writing and is seeking to be accepted back into the higher range from $42,000 to $44,000.
For now, the dollar-cost average (DCA) method would be most beneficial, allowing investors to buy the dips and different price levels. As Bitcoin starts to cover ground, these positions will turn profitable and also allow investors to take profits at various price points.
Celestia (TIA) price back on the move
Select altcoins like Celestia are among the few tokens to show signs of an immediate comeback after the widespread drawdown this week. Trading slightly above $18 at the time of writing during US business hours on Friday, TIA has rebounded from support around $16.5.
If accepted above the trendline resistance as shown on the chart, Celestia could abandon the rising wedge pattern breakout and reach for gains past $20.
The Moving Average Convergence Divergence (MACD) indicator is likely to flash a sell signal in this session. Such a call to action could make TIA a more attractive investment, especially if resistance at $20 comes out of the way.
However, losing the position above the 20 Exponential Moving Average (EMA) at $17.88 and the 50 EMA at $17.56 would introduce an element of weakness which sellers could exploit for a downturn to retest $16.5 support and if push comes to shove, the 200 EMA at $14,66 would come in handy.
Stacks price about to flash a buy signal
Stack managed to hold above the range low at $1.4, supported by the buyer congestion in the grey band. An underway rebound has lifted the token to $1.48 at the time of writing, but further movement seems uncertain due to several resistance levels.
Traders would want to see Stacks price make a four-hour candle-close above the 200 EMA at $1.5. Such a move could improve investor confidence in STX amid growing optimism for a breakout above $2.
The likelihood of a buy signal from the MACD further reinforces the bullish outlook. Before buying into STK, traders must ensure that the price is above the 200 EMA or $1.5.
Failure to break this level would imply that Stacks consolidates within a narrow range with resistance at $1.5 and support at $1.4. Testing the support multiple times could weaken it resulting in a deeper dive below $1.
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