As the bitcoin price gets stronger and consolidates in a bull pennant, certain altcoins are rising.
The price of Bitcoin (BTC) has been hovering near the $ 19,000 level for the past few days. When the price consolidates near its all-time high, this is a sign of strength.
However, the question that bothers investors is whether Bitcoin will provide enough momentum to move above $ 20,000 or witness a sharp correction in the short term. Right now, analysts are divided over their expectations for the next move.
While maintaining near-term uncertainty, in-chain analyst Willy Woo believes the long-term picture is stronger than ever. According to Woo, Bitcoin is going through the re-accumulation phase, and this is one of the main reasons why the price did not see volatile corrections during the rise to an all-time high. Woo expects Bitcoin to reach $ 200,000 by the end of 2021.
Monero (XMR) has been trading near the $ 135.50 overall resistance for the past four days. The Altcoin formed an inverted head and shoulders pattern that will complete at a break and close above $ 135.50. This bullish pattern has a price target of $ 167.
The 20-day EMA ($ 126) is rising, while the 50-day simple moving average ($ 122) is fixed and the RSI is just above the midpoint suggesting a balance between supply and demand.
After the price stays above $ 135.50, the bulls will dominate and the bears will have an advantage if the price falls below the 50-day SMA.
On the downside, the initial support is located below $ 110 and $ 105. A break below this support could start a new downtrend.
The 4-hour chart shows that the bears continue to sell near the $ 135.50 overall resistance. If the bears pull the price below the 50-SMA, a drop to $ 123.73 is possible. A break below this support could extend the decline to $ 120 and then to $ 112.50.
Conversely, if the price returns from the 50-SMA, the bulls will once again try to push the price from $ 135.50 above the $ 142.80 resistance zone. If they are successful, the next leg of the uptrend can begin.
Bulls are currently trying to push VeChain (VET) above $ 0.01755 overall resistance. If they manage to keep the price above resistance, the altcoin will complete a rolling bottom pattern.
The rising moving averages and the RSI in the positive zone show that the bulls are in command. At close above overall resistance the rally could reach $ 0.02292 and then the pattern target $ 0.02618.
However, bears may have other plans. If they can lower the price below the 20-day EMA ($ 0.0150), the VET / USD rate could drop to $ 0.014 and then to the 50-day SMA ($ 0.0125).
Conversely, if the pair bounces off the 20-day EMA, the bulls will make another attempt to push the price above the general resistance.
The 4-hour chart shows that the bears are aggressively defending the $ 0.01755 resistance and trying to keep the price below the 20-EMA. If this happens, a fall to the trend line is possible.
If the pair returns from the trend line, the bulls will try to push the price again above the $ 0.01755 to $ 0.01861963 overall resistance zone. If they do, the next leg of the upward movement can begin.
Conversely, if the bears lower the price below the trend line and continue, there could be a deeper correction on the cards to $ 0.0145 and then to $ 0.0125.
AAVE is currently in an uptrend because it forms a higher high and a higher low. The rising 20-day EMA ($ 74) and the RSI in the positive zone indicate that the bulls are in control. If they can raise the price above $ 94,875, the altcoin could rise to $ 124,075.
However, the bears have defended the $ 94,875 resistance over the past three days. If they can pull the price below $ 79.20, the AAVE / USD rate may drop to the 20-day EMA. If the price returns from this support, the bulls will try to continue the uptrend again.
Conversely, if the price falls below the 20-day EMA, it will provide an advantage for the bears. The next support on the downside is $ 69, and if this level is broken, the drop could be $ 50.
The 4-hour chart shows that the bulls are buying the uptrend dips, while the bears are selling on the downtrend line.
If the bears break the price below the bullish line, the pair could drop to the 50-SMA and the lower $ 72 level. A break below this support can initiate a deeper correction.
On the contrary, if the price returns from the uptrend, the bulls will try to push the pair above the downtrend line and the $ 94,875 resistance. If they are successful, the pair can continue its uptrend.
Famous investors talked about higher price expectations in Bitcoin. However, it is by no means the only cryptocurrency on institutional investors’ radar. Grayscale CEO Michael Sonnenshein said in a recent interview with Bloomberg that “Ethereum first and in some cases Ethereum only” investors are on the rise.
Money inflow into Ethereum (ETH) shows that institutional investors are adding more cryptocurrencies to their portfolios. This is a positive sign as it shows investors’ increasing confidence in the crypto space.
Let’s examine the charts of the top five cryptocurrencies that could start a trending move this week as sensitivity continues to rise.
Bears have been aggressively defending the $ 19,500 to $ 20,000 territory over the past few days. However, they were unable to pull Bitcoin below the 20-day exponential moving average ($ 18,188). This shows that the bulls are buying at every small drop.
The BTC / USD pair formed a pennant near the overall resistance zone. The moving averages are rising, indicating that the bulls have the upper hand and the least resistance path is up.
If the bulls can push and sustain the price on the pennant, the next leg of the uptrend could begin. On the upside, the initial target is $ 21,140 followed by $ 23,043.
This bullish view will be invalid if the bears pull the price below the pennant. In this case, there is little support in the 20-day EMA and if this level is broken the pair could drop to $ 17,200.
The negative divergence in the RSI is the only improvement in the downward trend. This suggests that momentum may be weakening. However, the advantage will not change in favor of the bears until the price drops below the 20-day EMA.
On the 4-hour chart, the 20-EMA flattened and the RSI fell to the midpoint. This indicates that there is a balance between supply and demand.
Bulls buy bottoms at the pennant support line, while bears sell rallies at the pennant resistance line.
Since neither the bulls nor the bears have a clear advantage, it would be better to wait for the price to break above or below the pennant before considering a new position.
Ethereum strongly bounced back from the 20-day EMA ($ 555) on December 5, which showed that the bulls were accumulating at lower levels. Buyers will now try to increase the price from $ 622,807 to $ 635,456.