Bitcoin (BTC) price pushed back above the $ 19,000 level over the weekend as traders showed up and provided enough volume to support the surge.
At the time of writing, BTC price was above a pennant, but the $ 19,300-19,500 range continues to show significant resistance. According to Cointelegraph employee Rakesh Upadhyay:
“If the bulls can push the price above $ 19,500 into the overhead resistance zone of $ 20,000, an ascending triangle pattern with a target of $ 22,808.98 will be completed.”
As Bitcoin bulls attempt to push the price down to the $ 19,500 resistance, a handful of altcoins have benefited from BTC’s range-linked price action by rebounding to key resistance levels.
Yearn.finance’s (YFI) governance token is currently showing an inverted head-and-shoulders formation within the 1-hour time frame. If price pushes the cutout, traders will look for a breakout to the USD 27,750-27,850 level.
Risk averse traders will likely wait an hour above the cut-out at USD 26,276 before opening a position.
The 4-hour chart is also showing a VPVR gap between $ 26,115 and $ 27,851, and the RSI has hit bullish territory above 50. In the event of a pullback, the 20-MA can offer support as it is just below that at $ 25,468.
AAVE is also showing a similar construction to YFI, except that it recently broke across the neckline of its inverse head and shoulders pattern to hit a 5-day high at $ 91.78.
This move and the accompanying high volume spike sparked some profit taking, but traders who take a quick look at the AAVE chart will find that often lower support retests occur after rallies like the one seen today.
Profit taking caused the price to retest the $ 85.50 support. If that level can hold and Bitcoin doesn’t break off its pennant, AAVE price will likely reclaim $ 88.30. A daily close above USD 91.78 opens the door for AAVE and secures a new all-time high above USD 94.90.
Another altcoin that is quietly making strong moves is Elrond (EGLD), which is up 75% since closing a rounding low on December 7th. Currently, the EGLD is up 10.5% today, and after replenishing at $ 20.12, the altcoin is pulling back to retest underlying support levels.
There is support at $ 17.42 and below at $ 16.80 where the 20 MA is and the visible area of the volume profile is showing support.
While the 4-hour chart suggests the bullish move has ended, the daily timeframe shows that the EGLD is about to overtake the September 4th high of $ 20.50. After that there is no overhead resistance and the possibility of a new all-time high above $ 35.
If bitcoin price successfully moves above $ 19,500 and flips levels in support, it is likely that YFI, AAVE and Elrond will follow together.
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