bitcoin (btc) finally broke through the formidable resistance of $38,000 last week and approached $40,000. This movement shows that bitcoin's trajectory continues upward. The bulls will try to maintain the momentum and achieve a strong close to the year, while the bears will try to drive the price down.
The main 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 approval of the bitcoin spot ETF “appears to have narrowed to January 8, 9 or 10.”
Several analysts expect the price of bitcoin to skyrocket after one or more bitcoin spot ETFs are given the green light. However, traders should watch for sell-offs after the initial knee-jerk reaction to the upside. The tendency to sell hard after the event has occurred is generally observed in traditional markets, leading to the popular saying “buy the rumor, sell the news.”
Could bitcoin's rise near $40,000 drive altcoin buying? Let's look at the charts of the top 5 cryptocurrencies that can attract investors.
bitcoin price analysis
bitcoin rose and closed above the overhead resistance at $37,980 on December 1, completing the bullish ascending triangle pattern. This setup has a target of $41,160.
Typically, after breaking out of a pattern, the price retests the breakout level. In this case, a drop to $38,000 is possible. If the bulls convert this level into support, prospects for a rally above $41,160 increase. The btc/USDT pair may then shoot up 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 drop below $38,000 may trigger short-term stops from traders. The pair could then test the uptrend line. The bears will have to take the pair below this level to gain advantage in the short term.
The bullish 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, located near the breakout level of $38,000.
If the price bounces off the 20 EMA, it will indicate that traders are buying on minor dips. That will open the doors to a possible rise to $41,160. On the contrary, a break below $38,000 could sink the pair to the uptrend line.
Caspian price analysis
Kaspa (KAS) has been consolidating in an uptrend for the past few days. This is a positive sign, showing that the bulls are not rushing out.
Buyers are trying to push the price towards the overhead resistance at $0.16, where the bears are expected to mount a strong defense. If the bulls overcome this hurdle, the KAS/USDT pair could resume the uptrend. The pair may then run towards the target of $0.20.
Instead, if the price declines from the current level or $0.16, it will suggest that higher levels attract sellers. The pair could fall to the 20-day EMA ($0.12). If this level gives way, it will indicate a possible 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 breakout and close above $0.15. If that happens, the pair will signal the resumption of the uptrend. The target pattern of this bullish setup is $0.19.
This optimistic view will be invalidated in the event of a breakout and close below the uptrend line. The failure of a bullish pattern is a bearish signal. The pair may then fall to $0.11, where the bulls will again try to stop the decline.
THORChain Price Analysis
THORChain (RUNE) has been in a strong bullish trend. The bulls asserted their supremacy by pushing the price above the short-term barrier of $6.68 on December 2.
The bulls will try to maintain the price above $6.68, while the bears will try to sink the RUNE/USDT pair below the breakout level. If the sellers are successful, the pair may fall to the 20-day EMA ($5.72). The bears will have to pull the price below this level to signal that the uptrend may be over.
On the other hand, if the price stays above $6.68, it will indicate that every small dip is being bought. That will open the doors for the resumption of the uptrend. The pair may rise first to $8.60 and then to $10.
The pair may continue lower and fall towards the breakout level of $6.68, which will likely act as strong support. A strong rebound from this level will indicate that the bulls have turned $6.68 into support. Then, the pair could try to rise to $8.26.
Meanwhile, the bears likely have other plans. They will try to lower the price below $6.68. If they can achieve this, a steeper correction towards the 50-SMA will begin. The trend will turn negative if the bears sink the price below the 50-SMA.
Related: Three reasons why Chainlink price may rise another 20% for the New Year
Mantle price analysis.
The bulls pushed Mantle (MNT) above the short-term resistance of $0.54 on November 30, indicating that the uptrend remains intact.
Although the ascending moving averages indicate that the trend is bullish, the negative divergence on the RSI suggests that the bullish momentum is slowing. That could lead to a drop towards the 20-day EMA ($0.50), which remains the critical level to pay attention to.
If the price bounces off this level, it will indicate that the uptrend remains intact. Next, the bulls will try to push the price towards the overhead resistance of $0.60. This positive view will be invalidated if the price declines and falls below the 20-day EMA. The MNT/USDT pair could fall to $0.46.
The bulls are struggling to keep the price above the breakout level of $0.54. The bears will try to take advantage of this opportunity and push the price to the 50-SMA. This remains the key level to watch in the short term.
If the price bounces off the 50-SMA, the bulls will once again try to resume the upward movement. On the contrary, if the bears sink the price below the 50 SMA, it will indicate the beginning of a deeper correction. The pair may fall first to $0.50 and then to $0.46.
Render Price Analysis
Render (RNDR) rebounded from the 20-day EMA ($3.21) on November 30, indicating that sentiment remains positive and traders are buying the dips.
The ascending moving averages indicate that the path of least resistance is to the upside, but the negative divergence on the RSI suggests that the bullish momentum is weakening. Buyers will have to push the price above $3.78 to take control. The RNDR/USDT pair could rise towards $4.64.
On the contrary, if the price falls sharply from the current level, it will indicate that the bears continue to sell on rallies. The break below the 20-day EMA ($3.23) will be the first indication that the bulls may be losing control. The bears will take control again in the event of a break below $2.96.
The bulls are trying to push the price above $3.78, but are likely to face stiff resistance from the bears. If the price turns down from the current level and slides below the 20 EMA, it may trigger stops for several traders in the short term. Then, the pair may fall to the 50-SMA.
A break below this support will suggest that range-bound action may continue for a while longer. On the contrary, if the price bounces off the 20 EMA, it will suggest solid buying on dips. Then, the pair could attempt a rally towards $4.64.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
