If Bitcoin rises from current levels, it could push up the price of MATC, NEAR, ATOM and HNT in the short term.
After staying above $ 50,000 on Christmas Day, Bitcoin (BTC) was under selling pressure on December 26th. One of the reasons for the possible drop in the price of Bitcoin is the increase in inflows into the Binance exchange. Data analytics account Material Scientist said Binance’s inflows could be due to “a new player.”
Although Bitcoin will almost certainly miss PlanB’s floor model price prediction of $ 135,000 for December, the creator of the stock-to-flow pricing model remains optimistic. He said the price of Bitcoin at $ 51,000 remains within one standard deviation of the model, keeping the forecast of $ 135,000 for this halving cycle in play.
Several asset managers added Bitcoin to their portfolios in 2021, but ex-Chancellor Lord Hammond warned private investors to be “extremely cautious” when investing in cryptocurrencies. He said that “it is almost certainly not suitable for retail investors as a mainstream asset class”.
Let’s take a look at the charts of the top 5 cryptocurrencies that could lead the recovery in the crypto sector for the next few days.
BTC / USDT
Bitcoin broke the 20-day exponential moving average ($ 49,832) on December 23, but the rebound hit an obstacle at the 38.2% Fibonacci retracement level at $ 52,314. This suggests that the bears have not given up and will continue to sell on rallies.
The BTC / USDT pair formed a doji candlestick pattern on December 24th, indicating uncertainty between bulls and bears. That indecision broke down on December 25th and the price slid to the 20-day EMA.
The relative strength index (RSI) is just below the midpoint and the 20-day EMA is flat, suggesting a balance between supply and demand.
If price rebounds from current levels and breaks above $ 52,314, it suggests that sentiment has turned positive and traders are viewing the dips as a buying opportunity. The pair could then move to the 50% retracement level at $ 55,500 and later to the 61.8% retracement level at $ 58,686.
Conversely, if bears drag below the 20-day EMA, the pair could fall to the 200-day simple moving average ($ 47,569) and then to $ 45,456. A break and a close below this level could open the doors for a possible decline to $ 42,000.
The pair attempts to form a cup-and-handle formation which will be completed on a breakout and close above the overhead resistance at $ 51,936.33. This reversal setup has a target target of $ 58,313.81.
This positive view will be invalidated if the price drops from current levels and drops below $ 49,600. That could push the price down to $ 47,920.42. Should that support break too, the decline could extend to $ 45,558.85.
MATIC / USDT
Polygon (MATIC) is on a strong uptrend. Although bears were a huge challenge at $ 2.70, the bulls didn’t give up much and pushed the price to a new all-time high today.
If the bulls keep MATIC price above $ 2.70, the MATIC / USDT pair could begin the next leg of the uptrend. The pair could rise to $ 3.41 initially, and if crossed that level, the upside move could hit the psychological mark at $ 5.
The rising 20-day EMA ($ 2.30) and the RSI in positive territory suggest that the bulls are in control. If price turns down and breaks below the 20-day EMA, it suggests that the current breakout was a bull trap. The pair could then drop to $ 2 and later to $ 1.73.
After trying to break out and hold above $ 2.70 three times, the bulls finally managed to break through the resistance. However, it is unlikely that the bears will give up easily and try again to stop the upward move at the resistance line of the ascending channel.
If the price turns down from current levels and breaks below the 20 EMA, the pair could drop to $ 2.42. This is major support for the bulls to be defended because if it cracks the pair could plunge towards the 200-SMA.
On the contrary, if the bulls drive and hold price across the channel, bullish momentum could continue to pick up.
NEAR / USDT
NEAR Protocol’s NEAR token gained momentum after breaking out over the falling wedge pattern on December 23. This moved the price above the strong resistance at $ 13.23, signaling the resumption of the uptrend.
The bears are unwilling to give way to the bulls and are aggressively defending the USD 16 level. The NEAR / USDT pair formed an inside-day candlestick pattern on December 25th, indicating indecision between bulls and bears.
If the price drops below $ 14, the pair could drop to $ 13.23 and then to the 20-day EMA ($ 11.11). A strong rebound from either level suggests sentiment remains positive and traders buy on drops.
If the bulls push the price above $ 15.93, the pair could rise to $ 17.95. That bullish view will be dashed if the bears sink and hold the price below the 20-day EMA.
The 4-hour chart is showing the pair is consolidating between $ 14.20 and $ 15.93, which is a positive sign. The 20-EMA is sloping up and the RSI is in positive territory, suggesting that the bulls have the upper hand.
If buyers push the price above $ 15.93 the pair could continue the uptrend. On the flip side, the pair could drop to $ 13.23 if the price breaks below the 20-EMA. This level should act as strong support, but if it breaks the next stop could be at $ 11.50.
Related: Binance Turkey fined 8 million lira for non-compliance with money laundering
ATOM / USDT
Cosmos (ATOM) broke out on December 25th and closed above the resistance line of the descending channel, suggesting the downtrend may be over.
The 20-day EMA ($ 25.91) has started to move higher and the RSI has moved into positive territory, suggesting that the bulls have the upper hand. If buyers hold the price above the channel, the ATOM / USDT pair could rise to $ 33.60 and then $ 38.
If the price drops from current levels or from overhead resistance and falls below the 20-day EMA, it suggests that traders will continue to sell on rallies. The pair could then fall to the 200-day SMA ($ 24.12).
The 4-hour chart shows that the pair gained momentum after breaking and closing the 200 SMA. The bears tried to stop the upward move at USD 30 and drag the price down, but the bulls successfully defended the 20 EMA.
This suggests that sentiment has turned positive and traders are buying on dips. The pair could rebound into the overhead zone at $ 33.60 to $ 34.15 where the bears could build strong resistance.
When price goes down and falls below the 20 EMA, it indicates that supply is outstripping demand. This could open the doors for a possible decline to $ 26.37 and then to the 200 SMA.
HNT / USDT
Helium’s HNT token bounced off strong support at $ 25, breaking the 20-day EMA ($ 35.38) on December 16. on December 23 at $ 43.40.
The bears are defending the overhead zone between the 50% Fibonacci retracement level at $ 42.14 and the 61.8% retracement level at $ 46.18. This has pulled the price back to the 20-day EMA, which is an important level to watch out for.
If the price recovers from current levels, buyers will seek to push the HNT / USDT pair above the overhead zone. If successful, the pair could rise to $ 51.94.
Conversely, the pair could fall to $ 29.94 if bears let the price dip below the 20-day EMA. A break and close below this level could lower the price to $ 25.
The bears are defending overhead resistance at $ 42. Although the bulls were pushing price above this resistance, they were unable to hold the higher levels. This could have trapped the aggressive bulls and resulted in a correction.
The 20-EMA has flattened and the RSI is near the middle, suggesting an equilibrium between supply and demand.
If bears pull the price below the 200-SMA, the correction could deepen and the pair could slide to $ 30. Alternatively, a breakout and a close above $ 39.50 could push the price down to $ 42. A break and a close above this level suggest a resumption of the uptrend.
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