The United States equities markets shrugged off the hotter-than-expected labor data on Dec. 2 and recovered sharply from their intraday low. This suggests that market observers believe the Federal Reserve may not change its stance of slowing the pace of rate hikes because of the latest jobs data.
Although the FTX crisis broke the positive correlation between the US equities markets and Bitcoin (BTC), the recent strength in the equities markets shows a risk-on sentiment. This could be favorable for the cryptocurrency space and may attract dip buyers.
Let’s look at the charts of Bitcoin and select altcoins that may be getting ready to start an up-move in the near term.
BTC/USDT
Bitcoin has been trading near the 20-day exponential moving average ($16,963) for the past three days. This suggests a tough battle between the bulls and the bears to gain supremacy.
Conversely, if the price turns down from $17,622 and breaks below the 20-day EMA, it will suggest that the bears have not yet given up. The pair could thereafter consolidate in a large range between $15,476 and $17,622.
On the other hand, if the price turns up and breaks above $17,250, the likelihood of a rally to $17,622 increases. This level may again act as a significant resistance but if bulls drive the price above it, the pair could rally to $18,200.
TON/USDT
Toncoin (TON) nudged above the symmetrical triangle pattern on Nov. 30 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. However, the bulls defended the 20-day EMA ($1.73) on the downside, indicating buying on dips.
This positive view could negate in the near term if the price once again turns down from the resistance line and plummets below the 20-day EMA. That could increase the selling pressure and pull the pair to the 50-day simple moving average ($1.62) and later to the support line.
If the price rises above the overhead zone between $1.84 and the downtrend line, it may attract further buying by the bulls. That could start a new up-move to $2. The important level to watch on the downside is $1.68 because a break below it could expedite the drop to the support line.
APE/USDT
ApeCoin (APE) turned down from the downtrend line on Nov. 30 but the bulls have not allowed the price to break below the 20-day EMA ($3.73). This is a positive sign as it signals demand at lower levels.
Instead, if the price turns down and breaks below the 20-day EMA, it will suggest that bears are active at higher levels. The pair could then drop to $3, which is likely to act as a strong support.
If bears want to gain the upper hand, they will have to sink the pair below $3.77. If they manage to do that, the decline could extend to $3.50.
Related: How much is Bitcoin worth today?
TWT/USDT
Trust Wallet Token (TWT) rebounded sharply off the 20-day EMA ($2.07) on Nov. 27 and broke above the resistance at $2.45 on Dec. 2. This suggests that the trend remains bullish and traders are viewing the dips as a buying opportunity.
Contrarily, if the price turns down and breaks below $2.25, the pair could drop to the 20-day EMA. This remains the key level to watch on the downside because a break below it could pull the pair toward $1.81. A bounce off this level could suggest that the pair may consolidate between $1.81 and $2.54 for a few days.
Contrary to this assumption, if the price turns down and breaks below the 20-EMA, the bullish momentum may weaken and the pair could slide to the 50-SMA. The pair could then remain range-bound for some time before starting the next trending move.
AAVE/USDT
Aave (AAVE) recovered sharply from the psychological support at $50 and broke above the 20-day EMA ($63). Buyers are currently striving to strengthen their position by flipping the 20-day EMA into support.
The 20-day EMA has flattened out and the RSI is near the midpoint, indicating that the bears may be losing their grip. If buyers thrust the price above $68, the AAVE/USDT pair could rally to the 50-day SMA ($71) and thereafter to the 61.8% retracement level at $80.
On the contrary, if the price turns down and breaks below the 20-day EMA, the pair could drop to the support line of the channel.
Alternatively, if the price turns up from the current level and breaks above $66, the pair could rally to $71. This level may again act as a resistance but if bulls push the price above it, the rally could extend to $80.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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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