Bitcoin (B T c) The eight-week winning streak is likely to end as the price is down about 4% this week. The recent weakness suggests profit-booking by traders but it does not change the short-term bullish trend. Pullback will also help reduce foam formation.
After the initial shock, strong hands are likely to re-enter the crypto market as the macro environment remains bullish for risk-assets. A decision by the Federal Reserve to pause rate hikes and possibly lower rates in 2024 could lead to Boosting demand for crypto products,
However, nothing goes up in a straight line. After sharp rallies, traders usually book profits and turn their attention to other coins. As Bitcoin takes a breather, traders’ attention is likely to focus on select altcoins.
Which are the coins that may attract buyers in the short term? Let’s look at the charts of the top five cryptocurrencies that are looking promising.
bitcoin price analysis
Bitcoin is squeezing between the 20-day exponential moving average ($41,370) and the downtrend line. This sets the stage for a sharp breakout within the next few days.
If the price drops below the 20-day EMA, bears will sense an opportunity and will try to pull the BTC/USDT pair to the strong support at $37,980. It is expected that the bulls will defend this level fiercely. If the price surpasses $37,980, it is likely to face selling at the 20-day EMA and then the downtrend line.
Instead, if the price rises and breaks above the downtrend line, it will suggest that the bulls are asserting their dominance. The pair may then test the overhead resistance at $44,700. If this level is extended, the chances of a rally to $48,000 improve.
The moving averages on the 4-hour chart have turned down, and the relative strength index (RSI) is trading in negative territory, indicating that bears have a slight edge in the near term. Bears will need to break the $40,000 support to accelerate the selling and sink the pair to $37,980.
On the positive side, a break above the downtrend line would indicate that the bulls have absorbed the selling. The pair may first rise to $43,500 and then to $44,700. At this level, a tough fight can be seen between the bulls and bears.
universe value analysis
Cosmos (atom) has been bullish for several days. On December 16, bulls dropped to the 20-day EMA ($10.52), indicating solid demand at lower levels.
The bulls are trying to push the price above the immediate resistance at $12.50, but the bears are not relenting. However, the moving moving averages and RSI in positive territory suggest that the path of least resistance is to the upside.
If buyers drive the price above $12.50, the ATOM/USDT pair could rise to $13 and later $15. If the bears want to stop the uptrend, they will have to pull the pair back below the 20-day EMA. After this the pair may drop to the 50-day SMA ($9.40).
The 4-hour chart shows that the bears are offering stiff resistance at $12, but a positive sign is that the bulls have not allowed the price to fall below the 50-SMA. The rising moving averages and RSI near the midpoint give a slight edge to the bulls.
A break above $12 would complete an inverse head and shoulders pattern. The target price for this bullish setup is $13.31. Conversely, if the price turns down and breaks below the 50-SMA, it would pave the way for a decline to $9.50.
filecoin price analysis
Filecoin (Phil) dropped below $5.67 on November 13 but has recovered to the level. This shows that buying is taking place at lower levels.
The FIL/USDT pair is trying to form a cup and handle formation, which will be completed on the break and close above $5.67. If this happens, the pair will signal the beginning of a new uptrend. The pattern target of the reversal setup is $8.41.
However, bears are unlikely to give up easily. They will mount a strong challenge at $6.50 and then at $7.40. This bullish outlook will be invalidated in the near term if the price turns lower and falls below the 50-day SMA ($4.61).
Bulls pushed the price above the overhead resistance at $5.67, but could not sustain higher levels. Taking advantage of the situation, sellers are trying to pull and hold the price below $5.67. If they succeed, the pair could drop to the 20-EMA. This remains an important support to keep an eye on.
If the price rises above the 20-EMA, it will improve the chances of a retest of the overhead resistance at $6.20. A break above this resistance will signal the beginning of the next phase of the uptrend. On the downside, a break below the 20-EMA could open the door for a decline to $4.40.
multiversex price analysis
MultiverseX (EGLD) broke below the overhead resistance at $70 on December 12 and reached the 20-day EMA ($55) on December 16.
The bounce in the 20-day EMA indicates that sentiment remains bullish, and traders are buying on dips. Bulls will try to push the price towards $70, which remains a key resistance worth watching in the near term. If buyers overcome this hurdle, the EGLD/USDT pair could pick up momentum and rally to $90 and then $100.
Meanwhile, sellers likely have other plans. They will try to sell the rallies and take the price below the 20-day EMA. If they succeed in doing so, it would signal the beginning of a deeper correction towards the 50-day SMA ($46).
The pair has recently found support near $57 twice, making it an important level to watch in the near term. A break and close below this level could open the door to a fall to $48.
Conversely, if the price breaks above current levels or strong support at $57 and rises above $64, it will signal profits to bulls. This increases the chances of a rally to $70, which is likely to see a tough battle between the bulls and bears.
algorand price analysis
Buyers are having difficulty pursuing Algorand (algo) above the overhead resistance at $0.22, but a positive sign is that they have not given up much ground. This shows that the bulls anticipate another move higher.
Both moving averages are upward sloping, and the RSI is in positive territory, indicating that bulls remain in control. Buyers are expected to buy on dips to the 20-day EMA ($0.18). If the price returns above the 20-day EMA, the bulls will again try to overcome the $0.22 barrier.
If they do, the ALGO/USDT pair could rise to $0.24 and then $0.28. This positive view will be invalidated in the near term if the pair slips and closes below the 20-day EMA. This would signal the beginning of a deep correction into the 50-day SMA ($0.14).
The pair has been range-bound between $0.18 and $0.22 for some time. The 20-EMA has started to decline, and the RSI has slipped into negative territory, increasing the likelihood of a decline to $0.18.
Buyers are expected to strongly defend the $0.18 level as a break below it would complete a triple-top pattern. The target objective for this bearish setup is $0.14.
If the price bounces back strongly above $0.18, it will signal aggressive buying on dips. The pair may then rise to the 20-EMA and then $0.22. A break and close above $0.22 signals the beginning of the next bullish phase.
This article does not constitute investment advice or recommendations. Every investing and trading move involves risk, and readers should do their own research when making decisions.