The S&P 500 Index (SPX) hit its highest close of the year last week and Bitcoin (BTC) also hit a new 52-week high, suggesting risky assets remain strong in the final days of the year.
Some analysts believe that Bitcoin has ended its rally in the short term and may overturn. Popular analyst and social media commentator Matthew Hyland warned in a post
Daily view of crypto market data. Source: Coin360
Typically, the first phase of the rally of a new bull market is driven by market leaders, but after a significant move, profit-taking sets in and traders begin to look for alternative opportunities. Although there has been no rollover in Bitcoin, several altcoins have started to rise, indicating a possible shift in interest.
Could Bitcoin continue its upward trend and reach $48,000 in the next few days? Will this increase interest in select altcoins? Let’s take a look at the charts of the top 5 cryptocurrencies that could remain strong in the near future.
Bitcoin price analysis
Bitcoin has been consolidating in a tight range near minor resistance at $44,700, suggesting bulls are not rushing to exit as they anticipate further increases.
BTC/USDT daily chart. Source: TradingView
The rising moving averages and the relative strength index (RSI) in overbought territory suggest that bulls continue to be in charge. If the price rises from the current level and rises above $44,700, it will signal the resumption of the uptrend. The BTC/USDT pair could then rise to $48,000.
On the other hand, if the price falls below $42,821, the pair could fall to the 20-day exponential moving average ($40,608). This is a crucial level to keep an eye on because a bounce from it suggests the uptrend remains intact, but a break below it signals the start of a deeper correction towards the 50-day simple moving average (37,152 USD).
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that bulls are trying to keep the price above the 20-EMA. If they succeed, the pair could rise above $44,700. The uptrend could then rise to $48,000, which is likely to be a formidable resistance.
Alternatively, if the price breaks below the 20-EMA, it suggests that short-term traders are booking profits. The pair could fall to the 38.2% Fibonacci retracement level at $41,993 and later to the 50% retracement level at $41,157.
Uniswap price analysis
Uniswap (UNI) rose above the upper resistance at $6.70 on December 9, completing a double bottom pattern.
UNI/USDT daily chart. Source: TradingView
The bears are trying to trap the aggressive bulls by pushing the price back below the breakout level of $6.70. If they succeed, the UNI/USDT pair could fall to the 20-day EMA ($6.10), a critical level to watch out for.
If the price bounces off the 20-day EMA, bulls will attempt to push the price above $6.70. If they succeed, the pair could rise to $7.70 and eventually the pattern target of $9.60.
In contrast, a decline below the 20-day EMA suggests that the breakout was a bull trap. The pair could then fall to the 50-day SMA ($5.32).
UNI/USDT 4-hour chart. Source: TradingView
The pullback is trying to find support at the 20-EMA. If the price rises and stays above $6.70, the probability of a recovery above $7.13 increases. This could start the next leg of the uptrend towards $7.70.
However, if the 20-EMA does not hold, the next stop is likely to be at $5.80. This is an essential support that the bulls must defend because if it is broken, the pair could plummet to $4.80.
Optimism price analysis
After struggling for several days, bulls pushed Optimism (OP) above the stiff overhead resistance at $1.87 on December 7, signaling the start of a new uptrend.
OP/USDT daily chart. Source: TradingView
Typically, price retests the breakout level before a new trend begins. The bears will attempt to sink the price back below $1.87 while the bulls will attempt to convert the level into support. If the price bounces back from $1.87, the OP/USDT pair could rise to $2.30. A break above this resistance could push the price to $2.60.
This bullish view could prove invalid in the short term if the price declines and falls below $1.87. A break below $1.60 will see the bears gain further ground.
OP/USDT 4-hour chart. Source: TradingView
The price has risen from the 20-EMA, suggesting that sentiment remains 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 could begin the next leg of the uptrend.
On the other hand, if the price turns down from the current level and breaks below the 20-EMA, it will indicate that the bulls are booking profits. This could push the price towards the breakout level at $1.87. At this level, there is likely to be a tough battle between bulls and bears.
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Celestia price analysis
Celestia (TIA) is in a strong uptrend, rising from $1.90 on October 31st to $11.50 on December 6th. This sharp rise may have enticed short-term traders to book profits near $11.50, leading to a decline.
TIA/USDT daily chart. Source: TradingView
The bulls are attempting to defend the 38.2% Fibonacci retracement level at $9.01. Buyers need to push the price above $10.50 to clear the way for a retest of $11.50. A break and close above this level could initiate the next leg of the uptrend. The TIA/USDT pair could then rise to $14 and then to $16.
On the contrary, if the $9.01 level weakens, the pair could slide to the 20-day EMA ($7.75). If the price recovers from this level, it will indicate that the uptrend remains intact, but a break below could signal a short-term trend reversal.
TIA/USDT 4-hour chart. Source: TradingView
Bulls are trying to protect the 50-SMA, but failure to sustain the recovery from it could increase the chances of a collapse. If the 50-SMA declines, the pair could fall to the 50% retracement level at $8.25. The flat 20-EMA and the RSI near the middle suggest a short-term move within the range.
Buyers need to push the price above the descending trend line to maintain the positive momentum. The pair could then attempt a rise to $11.50.
Stacks price analysis
Stacks (STX) is correcting in an uptrend. The bulls are trying to halt the retreat near the 38.2% Fibonacci retracement level at $0.99, which is a positive sign.
STX/USDT daily chart. Source: TradingView
A shallow pullback suggests that bulls like to buy on downturns. This increases the chances of a retest of the local high at $1.25. The bears are expected to mount a strong defense in the $1.25-$1.31 zone, but if the buyers pull through, the STX/USDT pair could extend its uptrend to $1.60 expand.
Immediate downside support lies at $0.96. If it breaks below this level, the pair could correct to the 20-day EMA ($0.87). Such a deep decline could delay the start of the next phase of the uptrend.
STX/USDT 4-hour chart. Source: TradingView
The pair is finding support near the 50-SMA, suggesting lower levels continue to attract buyers. The resistance to watch out for on the upside is at $1.08. If the bulls overcome this barrier, the pair could retest the local high at $1.26.
The 20-EMA is gradually falling and the RSI is near the middle, indicating a slight advantage for the bears. A break and close below $0.96 could open the door for further downside to the 50% retracement level at $0.92.
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 their decision.
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