Bitcoin (BTC) finally broke above the formidable resistance of $38,000 in the past week and marched closer to $40,000. This move shows that Bitcoin’s trajectory remains up. The bulls will try to maintain the momentum and achieve a strong close to the year, while the bears will try to pull the price down.
The major tailwind for Bitcoin is the expectation that the United States Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund as early as January. Swan Bitcoin CEO Cory Klippsten said in an interview with Bloomberg that the window for the approval for the spot Bitcoin ETF “seems to have been narrowed to January 8th, 9th, or 10th.”
Several analysts expect Bitcoin’s price to soar after one or more spot Bitcoin ETFs are greenlighted. However, traders need to look out for the sell-off after the initial knee-jerk reaction to the upside. The trend of selling into strength after the event has occurred is generally seen in legacy markets, leading to the popular adage “buy the rumor, sell the news.”
Could Bitcoin’s rise near $40,000 boost buying in altcoins? Let’s look at the charts of the top 5 cryptocurrencies that may attract investors.
Bitcoin price analysis
Bitcoin rose and closed above the overhead resistance of $37,980 on Dec. 1, which completed the bullish ascending triangle pattern. This setup has a target objective of $41,160.
Usually, after breaking out from a pattern, the price retests the breakout level. In this case, a drop to $38,000 is possible. If bulls flip this level into support, the prospects of a rally above $41,160 increase. The BTC/USDT pair may then skyrocket to $48,000 as there is no significant resistance in between.
Although the trend favors the bulls, the bears are expected to pose a strong challenge at $40,000. A slide below $38,000 may trigger stops of short-term traders. The pair may then test the uptrend line. The bears will have to pull the pair below this level to gain the upper hand in the near term.
The up-move has pushed the RSI on the 4-hour chart into the overbought zone, suggesting that a correction is possible in the near term. The first support is at the 20-exponential moving average and then at the 50-simple moving average, placed near the breakout level of $38,000.
If the price rebounds off the 20-EMA, it will indicate that traders are buying on minor dips. That will open the doors for a possible rise to $41,160. Conversely, a break below $38,000 could sink the pair to the uptrend line.
Kaspa price analysis
Kaspa (KAS) has been consolidating in an uptrend for the past several days. This is a positive sign, showing that the bulls are not rushing the exit.
Buyers are trying to push the price toward the overhead resistance at $0.16, where the bears are expected to mount a strong defense. If bulls overcome this obstacle, the KAS/USDT pair could resume the uptrend. The pair may then sprint toward the target objective at $0.20.
Instead, if the price turns down from the current level or $0.16, it will suggest that higher levels attract sellers. The pair could decline to the 20-day EMA ($0.12). If this level gives way, it will signal a potential trend change in the short term.
The price action on the 4-hour chart has formed an ascending triangle pattern, which will complete on a break and close above $0.15. If that happens, the pair will indicate the resumption of the uptrend. The pattern target of this bullish setup is $0.19.
This optimistic view will be invalidated on a break and close below the uptrend line. The failure of a bullish pattern is a bearish sign. The pair may then fall to $0.11, where the bulls will again try to arrest the decline.
THORChain price analysis
THORChain (RUNE) has been in a strong uptrend. The bulls asserted their supremacy by pushing the price above the short-term barrier at $6.68 on Dec. 2.
The bulls will try to maintain the price above $6.68, while the bears will attempt to sink the RUNE/USDT pair below the breakout level. If the sellers succeed, the pair may slump to the 20-day EMA ($5.72). The bears will have to yank the price below this level to indicate that the uptrend may be over.
On the other hand, if the price sustains above $6.68, it will signal that every minor dip is being purchased. That will open the doors for the resumption of the uptrend. The pair may first ascend to $8.60 and then to $10.
The pair may continue lower and dip to the breakout level of $6.68, which is likely to act as a strong support. A strong rebound off this level will indicate that the bulls have flipped $6.68 into support. The pair may then attempt a rally to $8.26.
Meanwhile, the bears are likely to have other plans. They will try to tug the price below $6.68. If they can pull it off, it will start a steeper correction to the 50-SMA. The trend will turn negative if bears sink the price below the 50-SMA.
Related: 3 reasons why Chainlink price can rally another 20% by New Year’s
Mantle price analysis
The bulls pushed Mantle (MNT) above the near-term resistance of $0.54 on Nov. 30, indicating that the uptrend remains intact.
Although the upsloping moving averages indicate that the trend is up, the negative divergence on the RSI suggests that the bullish momentum is slowing down. That could cause a dip toward the 20-day EMA ($0.50), which remains the critical level to keep an eye on.
If the price rebounds off this level, it will signal that the uptrend remains intact. The bulls will then try to drive the price to the overhead resistance of $0.60. This positive view will be invalidated if the price turns down and breaks below the 20-day EMA. The MNT/USDT pair could then tumble to $0.46.
The bulls are struggling to sustain the price above the breakout level of $0.54. The bears will try to use this opportunity and pull the price to the 50-SMA. This remains the key level to watch out for in the near term.
If the price rebounds off the 50-SMA, the bulls will again try to resume the up-move. On the contrary, if the bears sink the price below the 50-SMA, it will indicate the start of a deeper correction. The pair may first dip to $0.50 and then to $0.46.
Render price analysis
Render (RNDR) rebounded off the 20-day EMA ($3.21) on Nov. 30, indicating that the sentiment remains positive and traders are buying on dips.
The upsloping moving averages indicate that the path of least resistance is to the upside, but the negative divergence on the RSI suggests that the bullish momentum is weakening. Buyers will have to propel the price above $3.78 to seize control. The RNDR/USDT pair could then climb toward $4.64.
Contrarily, if the price turns down sharply from the current level, it will signal that the bears continue to sell on rallies. The break below the 20-day EMA ($3.23) will be the first indication that the bulls may be losing their grip. The bears will be back in the driver’s seat on a break below $2.96.
The bulls are trying to shove the price above $3.78 but are likely to face stiff resistance from the bears. If the price turns down from the current level and skids below the 20-EMA, it may trigger the stops of several short-term traders. The pair may then slump to the 50-SMA.
A break below this support will suggest that the range-bound action may continue for a while longer. Conversely, if the price rebounds off the 20-EMA, it will suggest solid buying on dips. The pair may then attempt a rally toward $4.64.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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