The S&P 500 Index (SPX) achieved its highest close of the year last week, and bitcoin (btc) also hit a new 52-week high, indicating that risk assets remain strong in the final days of the year.
Some analysts believe that bitcoin has ended its rally in the short term and may fall. Popular social media analyst and commentator Matthew Hyland warned in a post on “.
Typically, the first stage of a new bull market rally is driven by the leaders, but after a significant move, profit-booking begins and traders begin to look for alternative opportunities. Although bitcoin has not reversed, several altcoins have started to rise, indicating a possible change in interest.
Could bitcoin continue its upward movement and reach $48,000 in the coming days? Will that increase interest in select altcoins? Let's take a look at the charts of the top 5 cryptocurrencies that may remain strong in the short term.
bitcoin price analysis
bitcoin has been consolidating in a tight range near the minor resistance at $44,700, indicating that the bulls are not rushing towards the exit as they anticipate another leg higher.
The ascending moving averages and the relative strength index (RSI) in the overbought zone indicate that the bulls remain in control. If the price rises from the current level and surpasses $44,700, it will indicate the resumption of the uptrend. The btc/USDT pair could then rise to $48,000.
On the contrary, if the price falls below $42,821, the pair may fall to the 20-day exponential moving average ($40,608). This is a crucial level to watch because a bounce will suggest that the uptrend remains intact, but a drop below it will signal the start of a deeper correction towards the 50-day simple moving average ($37,152).
The 4-hour chart shows that the bulls are trying to keep the price above the 20-day EMA. If they can achieve this, the pair could surpass $44,700. The bullish move could then rise to $48,000, which will likely act as a formidable resistance.
Alternatively, if the price falls below the 20 EMA, it will suggest short-term traders to book profits. The pair could fall to the 38.2% Fibonacci retracement level of $41,993 and later to the 50% retracement level of $41,157.
Uniswap Price Analysis
Uniswap (UNI) broke above the overhead resistance at $6.70 on December 9, completing a double bottom pattern.
The bears are trying to catch the aggressive bulls by driving the price back below the breakout level of $6.70. If they manage to do so, the UNI/USDT pair could fall to the 20-day EMA ($6.10), a critical level to pay attention to.
If the price bounces off the 20-day EMA, the bulls will try to push the price above $6.70. If they are successful, the pair may jump to $7.70 and eventually the pattern target of $9.60.
Conversely, a drop below the 20-day EMA will suggest that the breakout was a bullish trap. Then, the pair may fall to the 50-day SMA ($5.32).
The pullback is trying to find support at the 20-EMA. If the price rises and sustains above $6.70, the probability of a rally above $7.13 increases. That may start the next leg of the uptrend towards $7.70.
Instead, if the 20-day EMA does not hold, the next stop is likely to be $5.80. This is essential support that the bulls must defend because if it is broken, the pair could collapse to $4.80.
Optimism price analysis.
After struggling for several days, the bulls pushed Optimism (OP) above the stiff overhead resistance of $1.87 on December 7, signaling the start of a new uptrend.
Typically, the price retests the breakout level before a new trend begins. The bears will try to push the price back below $1.87, while the bulls will try to turn the level into support. If the price rises again from $1.87, the OP/USDT pair could rise to $2.30. A break above this resistance could push the price to $2.60.
This optimistic view could be invalidated in the short term if the price declines and falls below $1.87. The bears will gain more ground if they fall below $1.60.
The price rose from the 20 EMA, indicating that sentiment remains positive and traders are buying the dips. The bulls will try to push the price above the local high of $2.30. If they are successful, the pair may begin the next leg of the uptrend.
On the contrary, if the price turns down from the current level and falls below the 20 EMA, it will suggest that the bulls are booking profits. That may drag the price to the breakout level of $1.87. This level is likely to witness a tough battle between bulls and bears.
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Celestia Price Analysis
Celestia (TIA) has been in a strong uptrend, having risen from $1.90 on October 31 to $11.50 on December 6. This sharp rise may have tempted short-term traders to book profits near $11.50, resulting in a pullback.
The bulls are trying to defend the 38.2% Fibonacci retracement level at $9.01. Buyers will have to lift the price above $10.50 to clear the way for a retest of $11.50. A break and close above this level could start the next leg of the uptrend. The TIA/USDT pair could then shoot up to $14 and subsequently to $16.
On the contrary, if the $9.01 level gives way, the pair may slide towards the 20-day EMA ($7.75). If the price bounces off this level, it will suggest that the uptrend remains intact, but a break below it could signal a trend reversal in the short term.
The bulls are trying to protect the 50-SMA, but failure to sustain the bounce could increase the likelihood of a breakout. If the 50-SMA gives way, the pair could fall to the 50% retracement level of $8.25. The flat 20 EMA and the RSI near the midpoint suggest range-bound action in the near term.
Buyers will have to push the price above the downtrend line to maintain the positive momentum. The pair could then try to rise to $11.50.
Battery price analysis
Stacks (STX) is correcting in an uptrend. The bulls are trying to stop the pullback near the 38.2% Fibonacci retracement level of $0.99, which is a positive sign.
A shallow pullback indicates that the bulls are eager to buy the dips. That increases the likelihood of a retest of the local high of $1.25. The bears are expected to mount a strong defense in the zone between $1.25 and $1.31, but if buyers overcome it, the STX/USDT pair could extend its bullish move to $1.60.
Immediate support on the downside is at $0.96. If this level is broken, the pair may correct up to the 20-day EMA ($0.87). Such a deep decline may delay the start of the next leg of the uptrend.
The pair finds support near the 50 SMA, indicating that lower levels continue to attract buyers. The resistance to watch on the upside is $1.08. If the bulls break this barrier, the pair may retest the local high of $1.26.
The 20-day EMA is gradually descending and the RSI is near the midpoint, indicating a slight advantage for the bears. A break and close below $0.96 could open the doors for a further decline to the 50% retracement level at $0.92.
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.
