Bitcoin (BTC) is up nearly 40% so far in January, which is the best start to the year since 2013. The strong move higher has turned several on-chain signals bullish, according to on-chain analyst Cole Garner.
Usually, a strong rally from the market lows, driven by the leader, is a sign that strong hands may be buying aggressively. That could be because traders believe selling may have been overdone in the short term or because they found the valuation attractive.
After the initial run, a quick correction could be expected, which will shake up weak hands. This coming fall will also confirm whether or not Bitcoin has bottomed out. If the bottom is confirmed, several altcoins may start to outperform Bitcoin in the near term.
Which altcoins are showing promise in the near term? Let’s study the Bitcoin charts and select altcoins to see which ones could extend their upward movement in the coming days.
USDT/BTC
Bitcoin has been trading above $22,800 since January 25, which suggests that the bulls are trying to turn the level into support.
The rising 20-day exponential moving average ($21,558) indicates that the bulls are in command, but the RSI in overbought territory suggests that the rally may extend too far in the near term.
If the buyers push the price above $23,816, the BTC/USDT pair could start its march north towards $25,211. This level can act as formidable resistance.
On the downside, the 20 day EMA is an important level for bulls to defend because if it is broken, the pair can drop to the psychological support of $20,000.
The RSI on the 4-hour chart is forming a negative divergence indicating that buyers may be losing control. If the bulls want to assert their dominance, they will have to push the price above the resistance at $23.816. That could start the next leg of the up move.
Conversely, if the price turns down from the overhead resistance, the bears will try to pull the pair below the moving averages. There is minor support at $22,715, but if this level breaks down, the pair could retest $21,480.
USDT/USDT
Litecoin (LTC) has been in a strong uptrend for the past few days. After a brief consolidation, the buyers pushed the price above the overhead resistance of $92, indicating that the bullish move remains intact.
The LTC/USDT pair could rally to the psychological $100 level, where the bears may again attempt to erect a hurdle. If the bulls do not give up too much ground from this level, the pair can extend its trip to $107. The rising 20-day EMA ($86) and the RSI near the overbought territory indicate an advantage for the buyers.
This positive view could be invalidated if the price turns down and breaks below the 20 day EMA. Then the pair could fall to $81 and then to $75.
The break and close above the $92 level suggests that the consolidation has been resolved in favor of the buyers. If the bulls hold the price above $92, the pair could rally towards the pattern target of $98.
The bears probably have other plans. They will try to drag the price below the breakout level of $92 and trap the aggressive bulls. If they manage to do that, the pair could drop to $86. This is an important level for the bulls to defend because a break below it could shift the advantage in favor of the bears.
AVAX/USDT
Avalanche (AVAX) surged above the resistance line on Jan 27 and reached the above $22 barrier on Jan 28.
The bears are trying to stop the rally at $22, but the bulls do not seem to be in a rush to book profits. This increases the probability of a break above the upper hurdle. If that happens, the AVAX/USDT pair could accelerate towards $30. There is minor resistance at $24, but it is likely to scale.
Another possibility is that the price goes down and retests the resistance line. If the price bounces off this level, it will suggest that the bulls have turned it into support. That could improve the prospects for a break above $22. The bears can gain an advantage if the price dips below the 20-day EMA ($17).
The 4-hour chart shows that the pair pulled back close to the 20-day EMA. If the price jumps from the current level, the bulls will try again to push the pair above the upper hurdle at $22. If this level is scaled, the pair could rally to $24.
The first sign of weakness will be a break and close below the 20 day EMA. That could present an opportunity for the bears to return. The sellers could gain advantage if they pull and hold the pair below the resistance line.
Related: South Korea to implement a cryptocurrency tracking system in 2023
APT/USDT
Aptos (APT) has had a dream race in recent days. Typically, when an asset gains momentum, it continues to move in the same direction for some time.
The APT/USDT pair turned down from $20.40 on Jan 26, but the bulls are trying to stop the pullback at $16.62. The shallow correction shows that the bulls are buying every minor dip. The buyers will try to push the price above $20.40 and start the next leg of the uptrend. The pair could skyrocket to $24.
The risk of this assumption is that the RSI has been in overbought territory for the past few days. This increases the risk of a short-term correction. If the price turns down and falls below $16.60, the pair could drop to $14.57 and then the 20-day EMA ($12.23).
The 4-hour chart shows the formation of a negative divergence on the RSI. If the price falls below the 20-EMA, the pair could test the 50-SMA. This is important support to monitor because if broken, the pair could drop to $12.
Conversely, if the price rises above $20.40, it will indicate that the bulls have reasserted their supremacy. That may invalidate the developing negative divergence on the RSI and resume the uptrend.
FTM/USDT
Fantom (FTM) has been on a great run since breaking above the downtrend line. The strong rally of the last few days suggests aggressive buying by the bulls.
Indicators are signaling that the bulls are firmly in control. During strong bullish moves, corrections are short-lived as bulls buy every minor dip. The bears are trying to stop the bullish move near the psychological resistance of $0.50, but if the bulls break through this level, the FTM/USDT pair could skyrocket to $0.56 and then $0.63.
Sometimes vertical rallies are followed by sharp declines. Therefore, traders should be careful as a break and close below $0.43 could sink the pair down to the 20-day EMA ($0.37). This is the key level to watch on the downside because a break below could indicate that the uptrend may be over any time soon.
The pair turned down above resistance at $0.50 but found support at the 20-day EMA. This indicates that sentiment remains positive and traders are buying dips. The bulls will once again try to clear the upper hurdle at $0.50 and resume the up move.
The bears may have other plans as they will try to push the price below the 20 day EMA. This is an important level to watch for in the short term, as a break below could open the doors for a possible drop to the 50 SMA. If this level is also broken, the next stop could be $0.36 .
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