Bitcoin (BTC) has been consolidating above $35,000 for several days, but the bulls have failed to resume the uptrend above $38,000. This suggests hesitation to buy at higher levels. BitGo CEO Mike Belshe said in a recent interview with Bloomberg that there is likely to be another round of rejections of the spot Bitcoin exchange-traded fund applications before they are finally approved.
Multiple analysts believe Bitcoin will enter a correction in the near term, with the worst outcome projecting a drop to $30,000. However, the fall is unlikely to start a bear phase. Look Into Bitcoin creator Philip Swift said that on-chain data suggests that the Bitcoin bull market is still in its early stages as there is “no FOMO yet.”
As Bitcoin takes a breather, several altcoins have witnessed a pullback, but some are showing signs of resuming their uptrends. Fidelity and BlackRock’s applications filed for a spot Ether ETF show strong demand for investment in select altcoins.
Could Bitcoin stay above $35,000 over the next few days? Is it time for altcoins to start the next leg of their up-move? Let’s look at the charts of the top 5 cryptocurrencies that may rise in the short term.
Bitcoin price analysis
Bitcoin is facing stiff resistance near $38,000, but a positive sign is that the bulls have not allowed the price to dip below the 20-day exponential moving average ($35,666).
The upsloping moving averages and the relative strength index (RSI) in the positive zone indicate that bulls have the upper hand. If the price rebounds off the 20-day EMA, the bulls will make one more attempt to overcome the roadblock at $38,000.
If they succeed, the BTC/USDT pair may reach $40,000. This level may witness aggressive selling by the bears, but if buyers bulldoze their way through, the rally could eventually touch $48,000.
The first sign of weakness will be a close below the 20-day EMA. That will indicate the possibility of a range-bound action in the near term. The pair may remain stuck between $34,800 and $38,000 for a while. A break below $34,800 could clear the path for a decline to $32,400.
The 4-hour chart shows that the price is swinging between $38,000 and $34,800. Both moving averages have flattened out, and the RSI is near the midpoint, indicating that the range-bound action may continue for some more time.
A tight consolidation near the 52-week high is a positive sign as it shows that the bulls are not closing their positions in a hurry. That increases the likelihood of an upside breakout. If that happens, the pair may resume the uptrend. The short-term trend will favor the bears on a break below $34,800.
Solana price analysis
Solana (SOL) fell below the breakout level of $59 on Nov. 16, but the bears could not capitalize on this advantage. This indicates that selling dries up at lower levels.
The bulls are again trying to propel the price back above $59. If they do that, it will indicate that the markets have rejected the lower levels. The SOL/USDT pair may then climb to $68.20. If this level is scaled, the pair may resume the uptrend. The next target on the upside is $77 and subsequently $95.
This bullish move will be invalidated if the price turns down and plummets below $48. That could start a steeper correction to the 50-day SMA ($35.47). The deeper the fall, the longer the time it will take for the next leg of the uptrend to begin.
The 20-EMA is flattening out, and the RSI is just above the midpoint, indicating a balance between supply and demand. If buyers shove the price above $64, the pair may challenge the local high at $68.20.
On the other hand, if the price turns down and breaks below $54, it will suggest that the bears are back in the game. The pair may then plunge to $51 and eventually to the strong support at $48. A break below this level will tilt the advantage in favor of the bears.
Chainlink price analysis
Chainlink’s (LINK) pullback is finding support at the 20-day EMA ($13.42), indicating that lower levels continue to attract buyers.
The bulls will next try to push the price to the local high of $16.60. This level may witness a tough battle between the bulls and the bears, but if this barrier is overcome, the LINK/USDT pair could start the next leg of the uptrend to $20.
Instead, if the price turns down from $15.38, it will indicate that bears are selling on rallies. They will then try to sink the price below the 61.8% Fibonacci retracement level of $13.55. If they manage to do that, the pair may tumble to the 50-day SMA ($10.54).
The pair has been declining inside a descending channel pattern for the past few days. Generally, traders sell near the channel’s resistance line, and that is what they are doing. If the…
cointelegraph.com