Bitcoin (BTC) price has hovered near the $19,000 level in the past few days. Anytime the price consolidates near the all-time high, it is an indication of strength.
However, the question that worries investors is whether Bitcoin will provide enough momentum to pull above $20,000 or whether there will be a sharp correction in the short term. Analysts are currently in disagreement about their expectations for the next step.
While the short-term situation remains uncertain, on-chain analyst Willy Woo believes the long-term picture is more optimistic than ever. According to Woo, Bitcoin is in a period of re-accumulation. This is one of the main reasons why the price has not seen volatile corrections during its current move up to its all-time high. Woo expects Bitcoin to hit $200,000 by the end of 2021.
Many famous investors voiced their voices about higher prices on Bitcoin. However, it is by no means the only cryptocurrency on institutional investors’ radar. Greyscale CEO Michael Sonnenshein said in a recent interview with Bloomberg that “Ethereum first and in some cases only Ethereum” investors are on the rise.
The inflow of funds into Ether (ETH) shows that institutional investors are adding more cryptocurrencies to their portfolio. This is a positive sign as it increases investor confidence in the crypto space.
With sentiment remaining bullish, let’s take a look at the charts of the top five cryptocurrencies that could start a trend move this week.
BTC / USD
The bears have been aggressively defending the $19,500-$20,000 zone for the past few days but have failed to bring Bitcoin below the 20-day exponential moving average ($18,188). This suggests that the bulls buy on every small dip.
The BTC / USD pair has penned near the overhead resistance zone. Both moving averages are falling, suggesting the bulls have the upper hand and the path of least resistance is up.
If the bulls can push and hold the price above the pennant, the next leg of the uptrend could begin. The first target on the upside is $21,140 and then $23,043.
This bullish view will be invalidated if the bears cut the price below the pennant. In this case, there is some support from the 20-day EMA and if that doesn’t work the pair could fall to $17,200.
The negative divergence in the RSI is the only bearish move, suggesting that momentum is weakening. However, until the price drops below the 20-day EMA, the benefit will not shift in favor of the bears.
The 20 EMA on the 4 hour chart has flattened and the RSI has fallen to the midpoint. This suggests a balance between supply and demand.
The bulls buy the dips on the pennant’s support line, while the bears sell the rallies on the pennant’s resistance line.
Since neither the bulls nor the bears have a clear advantage, it is better to wait for the price to break above or below the pennant before considering a new position.
ETH / USD
Ether rebounded strongly from the 20-day EMA ($555) on December 5th, which was showing accumulation by the bulls at lower levels. Buyers will now seek to push the price above the overhead resistance zone of $622.807 to $635.456.
If successful, the ETH / USD pair could resume the next leg of the uptrend, which can hit USD 800. The rising moving averages suggest that the bulls have the upper hand.
However, the bears are unlikely to give up without a fight. They have aggressively defended the USD 622.807 resistance since Nov. 24 and will try again to pull the price away from that resistance.
If sellers can pull the price below the 20-day EMA and maintain it, the pair could fall to $488.134. The RSI has formed a bearish divergence, suggesting that momentum has weakened.
The 4 hour chart shows the formation of a bullish ascending triangle that will complete on a breakout and close above USD 622.807. This setup has a goal of $763.61.
The bears are currently trying to bring the price down to the triangle’s trendline. When this support shows cracks, the bullish setup becomes invalid.
However, if price rebounds from the trendline, the bulls will try again to drive price above the overhead resistance. If they are successful, the next stage of promotion could begin.
XMR / USD
Monero (XMR) has been trading near the overhead resistance of $135.50 for the past four days. The altcoin has formed an inverted head and shoulders pattern that will complete on a breakout and close above $135.50. This bullish setup has a target of $167.
While the 20-day EMA ($126) is rising, the 50-day simple moving average ($122) is flat and the RSI is just above midpoint, suggesting a balance between supply and demand.
The bulls will gain the upper hand after the price holds above $135.50 and the bears will have the advantage if the price falls below the 50-day SMA.
On the flip side, initial support is at $110 and below that at $105. A break in this support could trigger a new downtrend.
The 4-hour chart shows that the bears are continuing to sell near the overhead resistance of $135.50. If the bears pull the price below the 50-SMA, it is likely to drop to $123.73. A break below this support could extend the decline to $120 and then to $112.50.
Conversely, the bulls will try again to push the price above the $135.50 to $142.80 resistance zone if the price rebounds from the 50-SMA. If successful, the next leg of the uptrend could begin.
Vocational Education / USD
The bulls are currently trying to get VeChain (VET) above the overhead resistance of $0.01755. If they manage to keep the price above the resistance, the altcoin will complete a rounded basic pattern.
The rising moving averages and the RSI in the positive zone suggest that the bulls are in command. With a close above the overhead resistance, the rally could hit $0.02292 and then hit the pattern target of $0.02618.
However, the bears may have other plans. If they can get the price below the 20-day EMA ($0.0150), the VET / USD pair could fall to $0.014 and then to the 50-day SMA ($0.0125).
On the contrary, if the pair recovers from the 20-day EMA, the bulls will make another attempt to push the price above the overhead resistance.
The 4-hour chart shows that the bears are aggressively defending the USD 0.01755 resistance, trying to keep the price below the 20 EMA level. In this case a drop in the trend line is possible.
If the pair recovers from the trendline, the bulls will again attempt to push the price above the overhead resistance zone of $0.01755 to $0.01861963. When they do that, the next stage of ascension could begin.
Conversely, if the bears sink and hold the price below the trendline, a lower correction to $0.0145 and then to $0.0125 could be on the horizon.
AAVE / USD
AAVE is currently in an uptrend as it has a higher high and a higher low. The rising 20-day EMA ($74) and the RSI in positive territory suggest that the bulls are in control. If they can push the price above $94.875, the altcoin could rise to $124.075.
However, the bears have been defending the $94.875 resistance for the past three days. If they can get the price below $79.20, the AAVE / USD pair could hit the 20-day EMA. When the price recovers from this support, the bulls will try again to resume the uptrend.
Conversely, if the price falls below the 20-day EMA, it indicates an advantage for the bears. The next downside support is at $69, and if that level breaks too, the decline could extend to $50.
The 4-hour chart shows that the bulls are buying the dips on the uptrend line while the bears sell rallies on the downtrend line.
If the bears pull the price below the uptrendline, the pair may drop to 50 SMA and below $72. A break below this support could trigger a deeper correction.
On the contrary, if price bounces off the uptrend line, the bulls will attempt to push the pair above the downtrend line and the USD 94.875 resistance. If they are successful, the pair can continue the uptrend.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.