Bitcoin's (BTC) recent plunge could have been caused due to profit-booking by institutional investors, co-ordinate to a report by crypto fund manager CoinShares. The written report noted a sharp drop in institutional inflows during the first calendar week of the new twelvemonth and weekly outflows from several crypto investment products.

Crypto market information daily view. Source: Coin360

While the recent 28% decline may have scared some new investors, Bitcoin HODLers were likely unfazed every bit they've encountered half dozen larger corrections during Bitcoin's massive bull run in 2017. Therefore, describing a 20% fall as a bear market place may not apply to cryptocurrencies.

Equally Bitcoin attempts to phase a recovery, let's analyze 3 altcoins that may outperform in the brusk term.

IOST/USD

As Ether's cost neared its all-time loftier, traders focused their attention on information technology's competitors, one of them beingness IOST. In a bullish environment, traders usually purchase the rumor of an impending announcement and this appears to take happened with IOST.

IOST co-founder Terrence Wang has been teasing prospective announcements near an IOST-based stablecoin, DeFi integration and large partnerships. Each of these announcements may have played some role in boosting interest from traders.

Recently, XPET's 2D Game "Dream Monster" was launched on IOST blockchain. Players tin can store and trade the game'southward cadre avails such every bit rare pets, equipment, genetic characteristics, attributes, and much more in the course of NFTs on the IOST chain.

IOST'south focus on a decentralized finance ecosystem and NFTs could go on traders plugged in. The project likewise recently received awards for beingness the "2020 Virtually Influential Public Concatenation" and i of the "2020 Height 100 Blockchain Companies" from People's republic of china blockchain media company Jinse. While these are perhaps sentiment boosters, a closer view of IOST'southward technicals will decide whether the rally has room to run further or if a correction is in order.

IOST surged from an intraday low at $0.005734 on January. half dozen to an intraday loftier at $0.013545 on Jan. 9, which is a 136% rally in four days. The breakout and shut above $0.009 completed a bullish ascending triangle pattern, which has a target objective at $0.016.

IOST/USDT daily nautical chart. Source: TradingView

The IOST/USD pair dropped to $0.008 on Jan. eleven but the bulls purchased this dip aggressively, resulting in the formation of a hammer candlestick blueprint.

Today, the bulls tried to resume the up-move only traders seem to be booking profits at college levels, which has resulted in the formation of a long-legged Doji candlestick pattern.

The pair may consolidate betwixt $0.009 and $0.012 for the adjacent few days equally both the bulls and the bears attempt to establish their supremacy. If the bulls succeed in sustaining the price above $0.012, the next leg of the up-move to $0.016 and then to $0.018 may be on the cards.

This bullish view could be invalidated if the toll breaks and sustains below $0.009. Such a move volition suggest that the electric current breakout was a bull trap.

ZEN/USD

In the digital age, data privacy is i of the central factors being sought past individuals and businesses alike. On that front, Horizen (ZEN) appear that information technology will build a dedicated sidechain on its Zendoo platform for LTO networks, to add a layer of security to its daily network transactions while retaining the GDPR compliance side. Horizen also partnered with Dragonchain in society to obfuscate the sensitive information of its users and only share necessary data.

Bitcoin'south halvings have proven to exist bullish for its price, and Horizen appears to exist showing a similar tendency after its first halving occurred on Dec. 1. ZEN token likewise listed on Binance Usa, Binance futures, and Binance loans recently and that could non have come at a ameliorate fourth dimension.

The project's decision to bring together the Messari Registry could heave trust among the community and investors.

ZEN surged from an intraday low at $13.20 on Jan. 8 to an intraday high at $31 today, a 134% rally in five days. The altcoin broke in a higher place the $19.70 overhead resistance on Jan. 10, indicating the possible start of a new uptrend.

ZEN/USDT daily nautical chart. Source: TradingView

Although the bears pulled the cost down to $17.211 on Jan. 11, aggressive buying at lower levels kept the uptrend intact. Today, the bulls are attempting to build upon yesterday's recovery only the long wick on the candlestick suggests profit-booking at $31.

Still, if the bulls do not permit the price to dip below the 38.2% Fibonacci retracement level at $22.329, the uptrend may resume with the adjacent target objective at $37.308 then $46.271.

This bullish view will exist invalidated if the ZEN/USD pair turns downwardly from the current levels and plummets below $xix.seventy. Such a move will suggest rejection at higher levels.

AVAX/USD

Barrage (AVAX) has seen a flurry of activeness since the launch of its full mainnet in September. The platform teamed upward with Securitize, a chief issuance and compliance platform for digital securities, to issue and manage private securities, enabling crypto users to benefit from the private capital markets.

The partnership between Avalanche, Roche Cyrulnik Freedman LLP, and Republic Advisory Services allows investors to benefit from Litigation funding, opening the opportunities of a new asset class for crypto users.

Along with these, Barrage partnered with DEX's, Synthetics, prediction markets, and more than such projects.

While these events have already been completed, the upcoming 'Apricot' mainnet upgrade dubbed may be keenly watched by the market participants. Some other positive evolution underway is the integration of a span for ERC-twenty and ERC-721 assets to motion between Avalanche and Ethereum.

AVAX rose from $iii.2283 on January. 4 to $eight.2356 today, a proceeds of 155% in a short time. In a strong uptrend, the corrections usually exercise non last for more than three days and that can be seen in the current up-move that started on Dec. 31.

AVAX/USDT daily chart. Source: TradingView

The bulls pushed the price in a higher place the $7.50 resistance today, resuming the uptrend that may attain $10.42 then $12.20.

The rally of the past few days has pushed the relative strength index (RSI) into the overbought territory. While this signals excess in a mature rally, in a new uptrend, it indicates strength.

This bullish view will exist invalidated if the AVAX/USD pair turns down and breaks below the Jan. 11 intraday low at $5.72. Such a move could pull the price down to the xx-24-hour interval exponential moving boilerplate ($iv.84).

If that happens, the pair may consolidate for a few days before starting the next trending move.

The views and opinions expressed here are solely those of the author and do not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves run a risk, yous should deport your own enquiry when making a determination.