Bitcoin price consolidation could give way to gains in TON, APE, TWT and AAVE

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The Unit­ed States equi­ties mar­kets shrugged off the hot­ter-than-expect­ed labor data on Dec. 2 and recov­ered sharply from their intra­day low. This sug­gests that mar­ket observers believe the Fed­er­al Reserve may not change its stance of slow­ing the pace of rate hikes because of the lat­est jobs data.

Although the FTX cri­sis broke the pos­i­tive cor­re­la­tion between the US equi­ties mar­kets and Bit­coin (BTC), the recent strength in the equi­ties mar­kets shows a risk-on sen­ti­ment. This could be favor­able for the cryp­tocur­ren­cy space and may attract dip buyers. 

Cryp­to mar­ket data dai­ly view. Source: Coin360

The broad­er cryp­to recov­ery may pick up steam after more clar­i­ty emerges on the extent of dam­age caused due to the FTX cri­sis. Until then, bull­ish price action may be lim­it­ed to select cryptocurrencies.

Let’s look at the charts of Bit­coin and select alt­coins that may be get­ting ready to start an up-move in the near term.

BTC/USDT

Bit­coin has been trad­ing near the 20-day expo­nen­tial mov­ing aver­age ($16,963) for the past three days. This sug­gests a tough bat­tle between the bulls and the bears to gain supremacy.

BTC/USDT dai­ly chart. Source: TradingView

The major road­block for the buy­ers on the upside is $17,622. If bulls cat­a­pult the price above this lev­el, it will sug­gest that the down­trend could be over, The BTC/USDT pair could then race to the psy­cho­log­i­cal lev­el of $20,000. This lev­el may again act as a resis­tance but if crossed, the pair could ral­ly to $21,500.

Con­verse­ly, if the price turns down from $17,622 and breaks below the 20-day EMA, it will sug­gest that the bears have not yet giv­en up. The pair could there­after con­sol­i­date in a large range between $15,476 and $17,622.

BTC/USDT 4‑hour chart. Source: TradingView

Buy­ers are defend­ing the 20-EMA on the 4‑hour chart but the fail­ure to achieve a strong bounce indi­cates that demand dries up at high­er lev­els. The bears may try to make the most of this oppor­tu­ni­ty and pull the price below the mov­ing aver­ages. If they man­age to do that, the pair could drop to $16,000 and then to $15,476.

On the oth­er hand, if the price turns up and breaks above $17,250, the like­li­hood of a ral­ly to $17,622 increas­es. This lev­el may again act as a sig­nif­i­cant resis­tance but if bulls dri­ve the price above it, the pair could ral­ly to $18,200.

TON/USDT

Ton­coin (TON) nudged above the sym­met­ri­cal tri­an­gle pat­tern on Nov. 30 but the bulls could not sus­tain the high­er lev­els as seen from the long wick on the day’s can­dle­stick. How­ev­er, the bulls defend­ed the 20-day EMA ($1.73) on the down­side, indi­cat­ing buy­ing on dips. 

TON/USDT dai­ly chart. Source: TradingView

The upslop­ing mov­ing aver­ages and the RSI in the pos­i­tive zone indi­cate advan­tage to buy­ers. This improves the prospects of a break above the resis­tance line of the tri­an­gle. If that hap­pens, buy­ing could accel­er­ate and the TON/USDT pair could soar to $2.15 and then march toward the pat­tern tar­get of $2.87.

This pos­i­tive view could negate in the near term if the price once again turns down from the resis­tance line and plum­mets below the 20-day EMA. That could increase the sell­ing pres­sure and pull the pair to the 50-day sim­ple mov­ing aver­age ($1.62) and lat­er to the sup­port line.

TON/USDT 4‑hour chart. Source: TradingView

The bears are try­ing to defend the over­head resis­tance at $1.84 while the bulls are buy­ing the dips to the 20-EMA. The price is get­ting squeezed between the two lev­els and may be ripe for a range breakout.

If the price ris­es above the over­head zone between $1.84 and the down­trend line, it may attract fur­ther buy­ing by the bulls. That could start a new up-move to $2. The impor­tant lev­el to watch on the down­side is $1.68 because a break below it could expe­dite the drop to the sup­port line.

APE/USDT

ApeCoin (APE) turned down from the down­trend line on Nov. 30 but the bulls have not allowed the price to break below the 20-day EMA ($3.73). This is a pos­i­tive sign as it sig­nals demand at low­er levels.

APE/USDT dai­ly chart. Source: TradingView

The 20-day EMA is grad­u­al­ly turn­ing up and the RSI has jumped into the pos­i­tive ter­ri­to­ry, indi­cat­ing that bulls are attempt­ing a come­back. The APE/USDT pair could pick up momen­tum on a break above the down­trend line. This could open the doors for a pos­si­ble ral­ly to $5 and there­after to $6.

Instead, if the price turns down and breaks below the 20-day EMA, it will sug­gest that bears are active at high­er lev­els. The pair could then drop to $3, which is like­ly to act as a strong support.

APE/USDT 4‑hour chart. Source: TradingView

The 20-EMA on the 4‑hour chart has flat­tened out and the RSI is near the mid­point, indi­cat­ing a bal­ance between sup­ply and demand. This uncer­tain­ty could shift in favor of the bulls if they push the price above $4.05. The pair could then ral­ly to the down­trend line.

If bears want to gain the upper hand, they will have to sink the pair below $3.77. If they man­age to do that, the decline could extend to $3.50.

Relat­ed: How much is Bit­coin worth today?

TWT/USDT

Trust Wal­let Token (TWT) rebound­ed sharply off the 20-day EMA ($2.07) on Nov. 27 and broke above the resis­tance at $2.45 on Dec. 2. This sug­gests that the trend remains bull­ish and traders are view­ing the dips as a buy­ing opportunity.

TWT/USDT dai­ly chart. Source: TradingView

The bears may again pose a strong chal­lenge at $2.73 but if bulls over­come this bar­ri­er, the TWT/USDT pair could resume the uptrend. The next stop on the upside could be $3 and if this lev­el is also tak­en out, the pair could soar to the pat­tern tar­get of $3.51.

Con­trar­i­ly, if the price turns down and breaks below $2.25, the pair could drop to the 20-day EMA. This remains the key lev­el to watch on the down­side because a break below it could pull the pair toward $1.81. A bounce off this lev­el could sug­gest that the pair may con­sol­i­date between $1.81 and $2.54 for a few days.

TWT/USDT 4‑hour chart. Source: TradingView

The 20-EMA on the 4‑hour chart has turned up and the RSI is in the pos­i­tive zone, indi­cat­ing that buy­ers have an edge. The bulls will attempt to dri­ve the price above the over­head resis­tance zone between $2.54 and $2.73. If they suc­ceed, the pair could start the next leg of the uptrend.

Con­trary to this assump­tion, if the price turns down and breaks below the 20-EMA, the bull­ish momen­tum may weak­en and the pair could slide to the 50-SMA. The pair could then remain range-bound for some time before start­ing the next trend­ing move.

AAVE/USDT

Aave (AAVE) recov­ered sharply from the psy­cho­log­i­cal sup­port at $50 and broke above the 20-day EMA ($63). Buy­ers are cur­rent­ly striv­ing to strength­en their posi­tion by flip­ping the 20-day EMA into support.

AAVE/USDT dai­ly chart. Source: TradingView

The bears are try­ing to defend the 32.8% Fibonac­ci retrace­ment lev­el of $68 but a minor pos­i­tive is that the bulls have not giv­en up much ground. This indi­cates that buy­ers antic­i­pate a move higher.

The 20-day EMA has flat­tened out and the RSI is near the mid­point, indi­cat­ing that the bears may be los­ing their grip. If buy­ers thrust the price above $68, the AAVE/USDT pair could ral­ly to the 50-day SMA ($71) and there­after to the 61.8% retrace­ment lev­el at $80.

On the con­trary, if the price turns down and breaks below the 20-day EMA, the pair could drop to the sup­port line of the channel.

AAVE/USDT 4‑hour chart. Source: TradingView

The pair is fac­ing resis­tance near $66 and the RSI has formed a neg­a­tive diver­gence on the 4‑hour chart, sug­gest­ing that the bull­ish momen­tum could be weak­en­ing in the near term. A break below the 50-SMA could pull the price to the $56 to $58 sup­port zone.

Alter­na­tive­ly, if the price turns up from the cur­rent lev­el and breaks above $66, the pair could ral­ly to $71. This lev­el may again act as a resis­tance but if bulls push the price above it, the ral­ly could extend to $80.

The views, thoughts and opin­ions expressed here are the authors’ alone and do not nec­es­sar­i­ly reflect or rep­re­sent the views and opin­ions of Cointelegraph. 

This arti­cle does not con­tain invest­ment advice or rec­om­men­da­tions. Every invest­ment and trad­ing move involves risk, and read­ers should con­duct their own research when mak­ing a decision. 

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