The S&P 500 Index (SPX) recorded its highest close of the year last week, and Bitcoin (BTC) also achieved a new 52-week high, suggesting that risky assets remain strong going into the last days of 2020.
Some market analysts think that Bitcoin could roll over in the short term. Matthew Hyland, a well-known analyst and social media commentator, posted on X (formerly Twitter) that a drop in Bitcoin’s dominance below 51.81% could indicate that the uptrend has come to an end “along with a likely top put in.”
Typically, the first leg of the rally of a new bull market is driven by the leaders, however, after a significant move, traders tend to book their profits and look for alternative opportunities. Even though Bitcoin has not rolled over yet, some altcoins have started to move up, which may indicate a shift in interest.
Can Bitcoin keep its up-move and reach $48,000 in the upcoming days? Will this boost interest in certain altcoins? Let’s analyze the charts of the top 5 cryptocurrencies that could remain strong in the near future.
Bitcoin price analysis
Bitcoin has been trading in a narrow range near the minor resistance at $44,700, indicating that the bulls are not in a hurry to exit the market as they expect further growth. The uptrend is confirmed by the moving averages and the relative strength index (RSI) located in the overbought zone.
If the price rises above $44,700, it will be a sign of the resumption of the uptrend. The BTC/USDT pair could then reach $48,000. If the price falls below $42,821, the pair could slide to the 20-day exponential moving average ($40,608). This is an important level, since a rebound from it will indicate that the uptrend is still in place, while a drop below it will mean the start of a deeper correction towards the 50-day simple moving average ($37,152).
The 4-hour chart shows that the bulls are trying to keep the price above the 20-EMA. If they manage to do so, the pair may rise above $44,700. The upward movement could then reach $48,000, which is likely to act as a strong resistance.
On the other hand, if the price goes below the 20-EMA, it will mean that short-term traders are taking profits. The pair could then decline to the 38.2% Fibonacci retracement level of $41,993 and later to the 50% retracement level of $41,157.
Uniswap price analysis
Uniswap (UNI) recently broke out above the overhead resistance of $6.70, completing a double bottom pattern.
The bears are trying to push the price back below the $6.70 level to trap the aggressive bulls. If they succeed, the UNI/USDT pair could drop to the 20-day EMA ($6.10), which is a critical level to watch out for.
If the price rebounds off the 20-day EMA, the bulls will attempt to drive the price above $6.70. If they succeed, the pair may jump to $7.70 and eventually reach the pattern target of $9.60.
Conversely, a fall below the 20-day EMA would suggest that the breakout was a bull trap. The pair may then plunge to the 50-day SMA ($5.32).
The pullback is attempting to find support at the 20-EMA. If the price rises and sustains above $6.70, the chances of a rally above $7.13 increases. That may trigger the next leg of the uptrend toward $7.70.
On the other hand, if the 20-EMA fails to hold, the next stop is likely to be $5.80. This is an important support for the bulls to defend because if it is breached, the pair could collapse to $4.80.
Optimism price analysis
After several days of struggle, the bulls managed to push Optimism (OP) above the strong overhead resistance of $1.87 on Dec. 7, which indicates the beginning of a new uptrend.
It is common for the price to retest the breakout level before a new trend begins. The bears will try to push the price back below $1.87, while the bulls will try to turn the level into support. If the price bounces back from $1.87, the OP/USDT pair may rise to $2.30. A break above this resistance could push the price up to $2.60.
This optimistic view may be invalidated in the near future if the price drops and falls below $1.87. The bears will gain more ground if the price drops below $1.60.
The price has risen from the 20-EMA, which indicates that the sentiment is still positive and traders are buying on dips. The bulls will attempt to push the price above the local high of $2.30. If they succeed, the pair may start its next uptrend.
On the other hand, if the price turns down from the current level and breaks below the 20-EMA, it will show that the bulls are taking profits. This could drag the price down to the breakdown level of $1.87, where a tough fight between the bulls and the bears is expected.
Celestia price analysis
The price of Celestia (TIA) has been on a strong uptrend, increasing from $1.90 on Oct. 31 to $11.50 on Dec. 6. This sharp surge could have encouraged short-term traders to take their profits near $11.50, leading to a pullback.
The bulls are attempting to protect the 38.2% Fibonacci retracement level at $9.01. Buyers need to push the price above $10.50 to clear the path for a retest of $11.50. A break and close above this level could launch the next leg of the uptrend. The TIA/USDT pair may then soar to $14 and subsequently to $16.
On the other hand, if the $9.01 level gives way, the pair may drop to the 20-day EMA ($7.75). If the price rebounds off this level, it will indicate that the uptrend is still in effect, but a break below it could signal a trend reversal in the short term.
The bulls are trying to guard the 50-SMA, but the failure to sustain the rebound off it could increase the likelihood of a breakdown. If the 50-SMA gives way, the pair could plunge to the 50% retracement level of $8.25. The flat 20-EMA and the RSI near the midpoint suggest a range-bound action in the near term.
Buyers will have to push the price above the downtrend line to keep the positive momentum. The pair could then attempt a rally to $11.50.
Stacks price analysis
Stacks (STX) is in an uptrend and is currently correcting. Bulls are attempting to keep the pullback from dropping below the 38.2% Fibonacci retracement level of $0.99, which is a positive sign.
The shallow decline indicates that buyers are keen to purchase the dips, likely leading to a retest of the local peak at $1.25. Bears are expected to put up a strong defense in the range between $1.25 and $1.31, but if the buyers push through, the STX/USDT pair could extend its upwards movement to $1.60.
The nearest support on the downside is at $0.96. If this level is breached, the pair may correct to the 20-day EMA ($0.87). Such a drastic fall may delay the start of the next uptrend.
The pair is finding support near the 50-SMA, signifying that lower prices continue to attract buyers. The resistance to look out for on the upside is $1.08. If the bulls break this barrier, the pair may retest the local high at $1.26.
The 20-EMA is gradually sloping downwards and the RSI is close to the midpoint, indicating a slight advantage for the bears. A break and close below $0.96 could open the doors for a further decline to the 50% retracement level at $0.92.
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