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In the short term, Bitcoin (BTC) moved within a certain range but recorded an impressive increase of over 155% in 2023. The rally has boosted sentiment and investors expect the uptrend to continue into 2024.
The first trigger will be the US regulator’s decision on Bitcoin exchange-traded fund (ETF) applications. Crypto options trading platform Greeks.live said in a recent tweet that options data suggests that markets have factored the Bitcoin ETF’s approval into the price. Therefore, the company believes that the markets may not see a strong movement.
Daily view of crypto market data. Spring: Coin360
Regardless of the short-term reaction to the ETF decision, the crypto space is in a bullish phase as Bitcoin and several major altcoins have made higher highs and lower lows in recent weeks. In an uptrend, dips are usually viewed as buying opportunities.
Can Bitcoin and Altcoins Continue Their Uptrend in the First Week of the New Year? Let’s take a look at the charts of the top 5 cryptocurrencies that are promising.
Bitcoin price analysis
The bears attempted to pull Bitcoin below the support line of the ascending triangle pattern on December 29th and 30th, but the bulls held firm.
BTC/USDT daily chart. Source: TradingView
The flat 20-day exponential moving average ($42,484) and the Relative Strength Index (RSI) near the midpoint suggest a balance between buyers and sellers. If the price rises above the 20-day EMA, bulls will attempt to push the BTC/USDT pair above $44,700 and complete the uptrend. If successful, the pair could continue the uptrend towards the pattern target of $49,178.
On the other hand, if the price trends lower and breaks below the triangle, the bullish pattern will be invalidated. Breaking out of a positive setup is a negative signal as it can trigger stop orders from aggressive traders. The pair could initially fall to $40,000 and eventually to $37,980.
BTC/USDT 4-hour chart. Source: TradingView
The bulls pushed the price above the 20-day EMA but are finding it difficult to break the barrier at the 50-day simple moving average. If the price declines sharply from the current level, the bears will attempt to pull the pair below the triangle and initiate a downward move towards $40,000.
However, the bulls probably have other plans. The positive divergence on the RSI suggests that selling pressure is easing. If buyers sustain and hold the price above the 50-day SMA, the pair could rise to $44,000 and then to $44,700.
Uniswap price analysis
Uniswap (UNI) is witnessing a tough battle between bulls and bears near the overhead resistance at $7.79.
UNI/USDT daily chart. Source: TradingView
The ascending moving averages and the RSI near 66 suggest that the path of least resistance is to the upside. If buyers overcome the hurdle at $7.79, the UNI/USDT pair could gain momentum and rise to $8.26 and then to $9.65.
Contrary to this assumption, a decline in the price from $7.79 suggests that the bears are fiercely defending this level. The pair could then fall to crucial support at $6.70, which is likely to attract buyers.
UNI/USDT 4-hour chart. Spring: TradingView
The price bounced off the 50-day SMA and rose above the 20-day EMA, suggesting that the short-term correction may be ending. The price could rise to $7.79, where the bears are expected to mount a strong defense. If buyers push the price above $7.79, the pair could rise to $8.26.
On the other hand, if the price declines and breaks below the 20-day EMA, it will indicate an advantage for the bears. The pair could fall back to the critical support of the 50-day SMA. If this level weakens, the pair could plummet to $6.70.
Near Protocol price analysis
Near Protocol (NEAR) is attempting to find support between the 38.2% Fibonacci retracement level at $3.64 and the 50% retracement level at $3.34.
NEAR/USDT daily chart. Source: TradingView
The gradually rising 20-day EMA ($3.30) and the RSI in positive territory suggest that buyers have a slight advantage. The bulls will attempt to push the price towards the December 26 high of $4.62. If this level is broken, the NEAR/USDT pair could rise to as high as $6.
In the meantime, the Bears likely have other plans. They will try to sell the rallies and push the price below the 20-day EMA. If they succeed, the decline could extend to the 61.8% Fibonacci retracement level at $3.04 and then to the 50-day SMA ($2.43).
NEAR/USDT 4-hour chart. Spring: TradingView
The pair traded below the 20-day EMA, suggesting that bears have the upper hand in the near term. If the price turns lower and breaks below $3.52, the next stop is likely at $3.20. The deeper the decline, the longer it will take for the next leg of the upward move to begin.
The first sign of strength will be a rise above the downtrend line. This will open the doors for a possible rally towards $4.32 and eventually $4.62.
Optimism price analysis
Optimism (OP) has consolidated in an uptrend over the past few days, suggesting that the bulls are not retreating as they expect a further increase.
OP/USDT daily chart. Source: TradingView
The rising 20-day EMA ($3.07) and the RSI in positive territory show that bulls are in control. Buyers are expected to vigorously defend the $3.40-$3.22 support zone. A strong rebound from this support zone suggests that lower levels continue to attract buyers. The OP/USDT pair could then rise to $4.18 and then to $5.
If the bears want to avoid the uptrend, they will need to sink the price back below the breakout level at $3.22. The pair could then fall to $2.75.
OP/USDT 4-hour chart. Spring: TradingView
The bulls managed to keep the pair above the 50-day SMA but failed to extend the advance. This suggests that the bears have not given up and are selling on rallies. The flattening 20-day EMA and the RSI near the middle suggest a balance between supply and demand.
The first sign of strength will be a break and close above $3.95. This could open the door for a rally towards $4.18. On the other hand, a break below the 50-day SMA will shift the short-term advantage in favor of the bears. The pair could then fall to $3.22.
Injective price analysis
The Injective (INJ) correction found support at the 20-day EMA ($34.73) on December 30, indicating that sentiment remains positive and traders are buying on dips.
INJ/USDT daily chart. Source: TradingView
The rebound from the 20-day EMA is likely to face resistance at $40, but if bulls overcome this barrier, the INJ/USDT pair could retest the overhead resistance at $44.86. A break above this level could initiate the next leg of the uptrend towards $51.
This positive view will be invalidated in the near term if the price breaks away from overhead resistance and falls below the 20-day EMA. This could trigger a sharp decline towards the 50-day SMA ($24.69).
INJ/USDT 4-hour chart. Spring: TradingView
The pair climbed back above the 20-day EMA, but bulls are struggling to push the price above the 50-day SMA. This suggests that the bears have not given up and are active at higher levels. If the price breaks below the 20-day EMA, the pair could fall to $34. This is an important level to keep an eye on as a break below could deepen the correction to $28.
The bulls need to push the price above the 50-day SMA to regain control. The pair could then rally towards the overhead resistance at $44.86.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making decisions.
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