Bitcoin’s 8-week winning streak is at stake, but ATOM, FIL, EGLD, and ALGO don’t care.
Bitcoin’s (BTC) eight-week winning streak looks set to end this week with its price falling nearly 4%. The recent weakness suggests traders are booking profits, but it does not alter the near-term upward trend. Pullbacks also help reduce any foam that may have formed.
Strong hands are likely to re-enter the cryptocurrency market as the macro environment remains bullish on risk assets after the initial shake-up. If the Federal Reserve stops raising interest rates and decides to cut rates in 2024, demand for cryptocurrency products could increase further.
But nothing goes up in a straight line. After a sharp rise, traders usually book profits and shift their focus to other coins. As Bitcoin takes a moment to catch its breath, traders are likely to turn their attention to picking altcoins.
Which coins can attract buyers in the short term? Let’s take a look at the chart of the top 5 promising cryptocurrencies.
Bitcoin Price Analysis
Bitcoin is under pressure between the 20-day exponential moving average ($41,370) and the downtrend line. This sets the stage for a sharp breakout in the next few days.
If the price falls below the 20-day EMA, the bears will sense an opportunity and will try to drag the BTC/USDT pair towards the strong support level at $37,980. Bulls are expected to fiercely defend this level. If the price bounces from $37,980, selling will likely occur at the 20-day EMA and again at the downtrend line.
Instead, if the price rises and breaks above the downtrend line, it means the bulls are gaining the upper hand. The pair could then retest overhead resistance at $44,700. An expansion of this level increases the likelihood of a rise to $48,000.
The moving average on the 4-hour chart is trending downward, and the Relative Strength Index (RSI) is trading in negative territory, indicating that bears have a slight advantage in the near term. Bears would need a break from 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 means bulls have absorbed the selling. The pair may initially rise to $43,500 and then to $44,700. In this level, you can witness a tough fight between a bull and a bear.
Cosmos price analysis
Cosmos (ATOM) has been on the rise for several days. The bulls fell to the 20-day EMA ($10.52) on December 16, indicating solid demand at lower levels.
The bulls are trying to push the price above the immediate resistance of $12.50, but the bears are not abating. However, rising moving averages and RSI in positive territory indicate that the path of least resistance is to the upside.
If buyers push the price above $12.50, the ATOM/USDT pair could rise to $13 and later $15. If you want to stop the downtrend, you need to get it below the 20-day EMA. The pair could then fall towards its 50-day SMA ($9.40).
Looking at the 4-hour chart, we can see that the bears are showing strong resistance at $12, but the bulls have not allowed it to fall below the 50-SMA, which is a positive sign. RSI with rising moving averages and near the midpoint gives bulls a slight edge.
A break above $12 completes the inverted head-shoulders pattern. The target price for this bullish setup is $13.31. Conversely, if the price declines and falls below the 50-SMA, it opens the way for a decline to $9.50.
Filecoin price analysis
Filecoin (FIL) fell from $5.67 on November 13th, but has reached that level again. This indicates that low levels of buying are taking place.
The FIL/USDT pair is attempting a cup-and-handle formation, which will complete on the break and close above $5.67. When that happens, the pair will signal the start of a new upward move. The pattern target for the reversal setup is $8.41.
But it seems like the bears won’t give up easily. They will pose a strong challenge at $6.50 and again at $7.40. This bullish outlook will be nullified in the near term if the price declines and plunges below the 50-day SMA ($4.61).
The bulls pushed the price above the indirect resistance of $5.67, but failed to sustain it higher. Sellers are taking advantage of the situation and trying to keep prices below $5.67. If successful, the pair could fall to the 20-EMA. This remains an important support to keep an eye on.
If the price bounces off the 20-EMA, there is a higher chance of retesting the $6.20 overhead resistance. A break above this resistance line signals the start of the next uptrend segment. On the downside, a break below the 20-EMA could open the door for a decline to $4.40.
Related: Bitcoin fees hit a 20-month high as miner profits matched the $69,000 BTC price.
MultiversX Price Analysis
MultiversX (EGLD) broke from the overhead resistance at $70 on December 12th and reached the 20-day EMA ($55) on December 16th.
A bounce in the 20-day EMA indicates that sentiment remains bullish and traders are buying dips. The bulls will try to push the price towards $70, which remains an important resistance to watch out for in the near term. If buyers overcome this hurdle, the EGLD/USDT pair could gain momentum and rise to $90 and then $100.
Meanwhile, sellers likely have other plans. They will try to sell the rally and drive the price below the 20-day EMA. If it does so, it will signal the start of a deeper correction towards the 50-day SMA ($46).
The pair has recently found support near $57 on two occasions, making it an important level to watch out for in the near term. A break and close below this level could open the door for a decline to $48.
Conversely, if the price rises from current levels or strong support at $57 and rises above $64, it would be favorable for the bulls. This increases the chances of a rally to $70, which is likely to witness a tough fight between bulls and bears.
Algorand Price Analysis
Buyers are having a hard time pushing Algorand (ALGO) above the $0.22 resistance level, but a positive sign is that they haven’t given up much ground. This shows that the bull is expecting another leg higher.
Both moving averages are rising and the RSI is in positive territory, indicating that the bulls still have the upper hand. Buyers are expected to push the price down to the 20-day EMA ($0.18). If the price bounces off the 20-day EMA, bulls will again attempt to overcome the $0.22 barrier.
That could cause the ALGO/USDT pair to surge to $0.24 and then to $0.28. This positive view will be nullified in the short term if the pair falls and closes below the 20-day EMA. This signals the beginning of a deeper correction towards the 50-day SMA ($0.14).
For some time now, the pair has been stuck in a range between $0.18 and $0.22. The 20-EMA started to decline and the RSI slipped into negative territory, raising the possibility of a decline to $0.18.
Buyers are expected to actively protect the $0.18 level, as a downward breakout of the $0.18 level would complete the triple top pattern. The target price for this bearish setup is $0.14.
A forced bounce from $0.18 would indicate aggressive buying on the downside. The pair could then rise to the 20-EMA and then $0.22. A breakout and close above $0.22 marks the start of the next upward leg.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
