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
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…
cointelegraph.com
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