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The US stock market shrugged off the better-than-expected labor data on Dec 2 and rebounded sharply from intraday lows. This suggests market players believe the Federal Reserve may stick to slowing rate hikes because of the latest jobs data.
The FTX crisis broke the positive correlation between the US stock market and Bitcoin (BTC), but recent stock market strength points to risk-on sentiment. This is a win-win for the crypto industry and could attract dip buyers.
A broader crypto recovery may gain momentum after the extent of the damage caused by the FTX crisis becomes clearer. Until then, bullish price action may be limited to some cryptocurrencies. there is.
Let’s take a look at the Bitcoin charts and pick an altcoin that might be ready to start rising in the near future.
Bitcoin has been trading near its 20-day exponential moving average ($16,963) for the past three days. This suggests a tough battle between bulls and bears for supremacy.
The main upside obstacle for buyers is $17,622. If the bulls surge the price above this level, it would suggest the downtrend is over and the BTC/USDT pair could race to his $20,000 psychological level. This level could become a resistance again, but if it is crossed, the pair can rally to $21,500.
Conversely, if the price turns down from $17,622 and breaks below the 20-day EMA, it shows that the bears are not giving up yet. After that, the pair is likely to consolidate in a large range between $15,476 and $17,622.
Buyers are defending the 20-EMA on the 4-hour chart, but the failure to achieve a strong rally suggests high levels of depleted demand. The bears may try to make the most of this opportunity and push the price below the moving averages. If it does, the pair could drop to his $16,000 and then $15,476.
On the other hand, if the price rises above $17,250, a move to $17,622 is likely. This level could again act as a major resistance, but if the bulls push the price above it, the pair could rise to $18,200.
The Toncoin (TON) topped a symmetrical triangle pattern on Nov 30, but the bulls were unable to sustain higher levels as evidenced by the long cores of the candlesticks that day. However, the bulls kept his 20-day EMA ($1.73) on the downside, suggesting buying on the downside.
Rising moving averages and the RSI in the positive zone show the favor for buyers. This increases the chances of a breakout of the triangle resistance line. If that happens, buying will accelerate and the TON/USDT pair could surge to his $2.15 and march towards his pattern target of $2.87.
This positive view could be negated in the short term if the price breaks below the resistance line again and breaks below the 20-day EMA. That will increase selling pressure and could push the currency pair to the 50-day simple moving average ($1.62) and then to the support line.
The bears are trying to defend the overhead resistance at $1.84, while the bulls are buying the dip to the 20-EMA. The price has been squeezed between the two levels and may be ripe for a range breakout.
If the price rises above the overhead zone between $1.84 and the downtrend line, it might attract further buying by the bulls. This could start a new rally for him to $2. The key level to watch on the downside is $1.68. A break below this could facilitate a drop to the support line.
Apecoin (APE) turned down from the downtrend line on Nov. 30, but the bulls did not allow the price to break below the 20-day EMA ($3.73). This is a positive sign as it indicates that demand is at a low level.
The 20-day EMA is slowly rising and the RSI is diving into positive territory, indicating that the bulls are attempting a comeback. The APE/USDT pair is likely to pick up momentum after breaking out of the downtrend line. This could lead to a rally to $5 and then to $6.
Instead, if the price falls below the 20-day EMA, it suggests that the bears are operating at higher levels. After that, the pair could be a strong support as he could drop to $3.
The 20-EMA on the 4-hour chart has flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. This uncertainty could turn in the bulls’ favor if they push the price above $4.05. The pair can then move up to the downtrend line.
For the bears to gain the upper hand, the pair needs to sink below $3.77. If it does, the drop could extend to her $3.50.
Related: How much is bitcoin worth today
Trust Wallet Token (TWT) bounced sharply from the 20-day EMA ($2.07) on Nov. 27 and broke above the resistance of $2.45 on Dec. 2. .
The bears could face another strong challenge at $2.73, but the TWT/USDT pair could resume its uptrend if the bulls overcome this barrier. The next stop on the upside could be $3 for him, and if this level is also broken out, the pair could rise to $3.51, which is the target of the pattern.
Conversely, if the price falls below $2.25, the pair can drop to the 20-day EMA. This is an important level to watch on the downside, as a break below it could pull the pair towards $1.81. A rally from this level could suggest that the pair will hold between $1.81 and $2.54 for a few days.
The 20-EMA on the 4-hour chart has risen, indicating that the RSI is in the positive zone and that buyers have the upper hand. The bulls will try to push the price above the overhead resistance zone between $2.54 and $2.73. If they succeed, the pair could start the next leg of the uptrend.
Contrary to this assumption, if the price falls below the 20-EMA, the bullish momentum may weaken and the pair may drop to the 50-SMA. The pair may stay range bound for a while before starting the next trend move.
The Arve (AAVE) sharply recovered from the psychological support at $50 and broke out of the 20-day EMA ($63). The buyer is currently looking to strengthen his position by switching his 20-day EMA to support.
A minor positive is that the bulls are not conceding much, even though the bears are trying to defend the 32.8% Fibonacci retracement level at $68. This indicates that buyers are expecting an increase.
The 20-day EMA has flattened out and the RSI is near the midpoint, indicating that the bears may be losing momentum. If buyers push the price above $68, the AAVE/USDT pair can rise to the 50-day SMA ($71) and then to the 61.8% retracement level at $80.
Conversely, if the price falls below the 20-day EMA, the pair may drop to the channel’s support line.
The pair is facing resistance near $66 and the RSI has formed a negative divergence on the 4-hour chart, suggesting that the bullish momentum may wane in the near term. A break below the 50-SMA can draw the price to the $56-$58 support zone.
Alternatively, if the price rises from the current levels and breaks out of $66, the pair could rise to $71. This level could act as resistance again, but the rally could extend to his $80 level if the bulls push the price above it.
The views, thoughts and opinions expressed herein are those of the author only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
