Bitcoin (BTC) has been trading within a limited range recently, but it has experienced a remarkable surge of more than 155% in 2023. This has further encouraged investors to believe that the bull run will continue in 2024.
The primary catalyst for this could be the US regulatory decision on the spot Bitcoin exchange-traded fund applications. Greeks.live, a crypto options trading platform, recently tweeted that the market appears to have priced in the approval of the spot Bitcoin ETF, and hence, the markets may not witness a sharp move.
Regardless of the short-term response to the ETF ruling, the crypto space is in a bull phase as Bitcoin and several major altcoins have been making higher highs and higher lows over the past few weeks. In an uptrend, dips are usually seen as a buying opportunity.
Will Bitcoin and altcoins be able to extend their uptrend in the first week of the new year? Let’s check out the charts of the top 5 promising cryptocurrencies.
Bitcoin price analysis
The bears attempted to push Bitcoin below the support line of the ascending triangle pattern on Dec. 29 and 30, but the bulls successfully kept the price above it.
The flat 20-day exponential moving average ($42,484) and the relative strength index (RSI) near the midpoint suggest an equilibrium between buyers and sellers. If the price rises above the 20-day EMA, the bulls will try to take the BTC/USDT pair above $44,700 and complete the bullish setup. If they succeed, the pair may resume the uptrend toward the pattern target of $49,178.
Conversely, if the price turns down and falls below the triangle, it will invalidate the bullish pattern. The breakdown of a positive setup is a negative sign as it may trigger stops of aggressive traders. The pair could first drop to $40,000 and eventually to $37,980.
The bulls managed to push the price above the 20-EMA but are facing difficulty in overcoming the barrier at the 50-simple moving average. If the price turns down sharply from the current level, the bears will attempt to take the pair below the triangle, starting a downward move to $40,000.
However, the bulls are likely to have other plans. The positive divergence on the RSI suggests that the selling pressure is reducing. If buyers drive and maintain the price above the 50-SMA, the pair could rally to $44,000 and later to $44,700.
Uniswap price analysis
Uniswap (UNI) is facing a fierce battle between the bulls and the bears near the overhead resistance at $7.79.
The upsloping moving averages and the RSI near 66 suggest that the path of least resistance is upwards. If buyers can break through the hurdle at $7.79, the UNI/USDT pair could potentially increase its momentum and reach $8.26 and then $9.65.
In contrast, if the price falls from $7.79, it will suggest that the bears are successfully defending the level. The pair could then drop to the crucial support at $6.70, which is likely to attract buyers.
The price bounced off the 50-SMA and rose above the 20-EMA, indicating that the short-term correction could be ending. The price could rise to $7.79, where the bears are expected to put up a strong fight. If buyers are able to push the price above $7.79, the pair may ascend to $8.26.
Alternatively, if the price drops and breaches the 20-EMA, it will indicate an advantage for the bears. The pair may once again dip to the important support of the 50-SMA. If this level gives way, the pair could plunge to $6.70.
Near Protocol price analysis
Near Protocol (NEAR) is attempting to find support between the 38.2% Fibonacci retracement level of $3.64 and the 50% retracement level of $3.34.
The gradually increasing 20-day EMA ($3.30) and the RSI in the positive zone demonstrate that buyers have a slight advantage. The bulls will attempt to push the price towards the Dec. 26 high of $4.62. If this level is broken, the NEAR/USDT pair could potentially surge to $6.
At the same time, the bears are likely to have different plans. They will try to sell the rallies and pull the price below the 20-day EMA. If they are successful, the decline could extend to the 61.8% Fibonacci retracement level of $3.04 and eventually to the 50-day SMA ($2.43).
The pair has been trading below the 20-EMA, indicating that bears have the upper hand in the short term. If the price decreases and slips below $3.52, the next stop is likely to be $3.20. The deeper the fall, the longer it will take for the next leg of the uptrend to start.
The first sign of strength will be a rise above the downtrend line. That will open the doors for a possible rally to $4.32 and eventually to $4.62.
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Optimism price analysis
Optimism (OP) has been trading in an uptrend for the past few days, indicating that bulls are not rushing to the exit and expect the price to go higher.
The 20-day EMA ($3.07) and the RSI in the positive zone indicate that the bulls are in control. Buyers are likely to defend the $3.40 to $3.22 support area. If the price rebounds off this support zone, it will likely lead to further gains towards $4.18 and then $5.
On the other hand, if the bears manage to push the price below the $3.22 breakout level, the pair could drop to $2.75.
The bulls have succeeded in keeping the price above the 50-SMA, but have failed to resume the uptrend. This suggests that the bears are still present and selling on rallies. The flattening 20-EMA and the RSI near the midpoint indicate that the balance between supply and demand is even.
A break and close above $3.95 could be a sign of strength, which could lead to a rally to $4.18. On the other hand, if the price drops below the 50-SMA, the bears may take control and the pair could fall to $3.22.
Injective price analysis
Injective’s (INJ) pullback found support at the 20-day EMA ($34.73) on Dec. 30, indicating that the sentiment remains positive and traders are buying the dips.
The bounce off the 20-day EMA may face resistance at $40, but if bulls manage to push through this barrier, the INJ/USDT pair could retest the overhead resistance at $44.86. A break above this level could start the next leg of the uptrend up to $51.
This bullish outlook will be invalidated in the near term if the price turns down from the overhead resistance and dips below the 20-day EMA. This could trigger a sharp decline to the 50-day SMA ($24.69).
The pair rose back above the 20-EMA, but the bulls are struggling to push the price above the 50-SMA. This suggests that the bears have not given up and are active at higher levels. If the price slips below the 20-EMA, the pair could drop to $34. This is an important level to keep an eye on because a break below it may deepen the correction to $28.
The bulls will have to thrust the price above the 50-SMA to regain control. The pair may then rally to the stiff overhead resistance at $44.86.
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