These 4 altcoins can attract buyers while Bitcoin stagnates

Bitcoin (BTC) volatility remained subdued for the last few days of last year, indicating that investors were in no hurry to enter the markets.

Bitcoin ended 2022 at $16,500, and the first day of the new year also failed to ignite the markets. This suggests that traders remain cautious and are looking for a catalyst to start the next trend move.

Several analysts remain bearish on near-term Bitcoin price action. David Marcus, CEO and founder of Bitcoin firm Lightspark, said in a December 30 blog post that he doesn’t see the crypto winter ending in 2023 or even 2024. He expects it will take time to restore consumer confidence, but is of the opinion that believes the current reset could be good for legitimate businesses in the long run.

The bearish calls are an indication that sentiment remains negative, but there is also a silver lining. Usually bear markets end after the last bull turns bearish. With no sellers left, the price action stabilizes and new buyers enter the market. That usually causes a reversal and starts a new upward move.

While Bitcoin remains limited, select altcoins are showing signs of strength. Let’s look at the charts and find the important levels to watch.

BTC/USDT

The failure of the bulls to push Bitcoin above the 20-day exponential moving average (EMA) of $16,778 has further strengthened bears that are trying to sink the price below the immediate support of $16,256.

The 20-day EMA is tapering off and the Relative Strength Index (RSI) is near 43, indicating a slight upside for sellers. If bears sink the price below USD 16,256, the BTC/Tether (USDT) pair could drop to USD 16,000 and then to the vital USD 15,476 support. A break below this support could indicate a resumption of the downtrend.

This negative opinion will soon become invalid if buyers push the price above $17,100. Such a move indicates aggressive buying on dips. The pair could then pick up momentum and sprint to $18,388. Sellers are again expected to put up strong defenses at this level.

The pair has been stuck between $16,256 and $17,061 for some time. Bounce off support faces selling near the moving averages. This suggests that bears continue to sell on rallies.

On a small positive note, however, the bulls have not lost much ground and the pair remains close to the 20-EMA. This increases the chance of a break above the moving averages. If that happens, the pair could rise to $16,800 and then $17,061.

On the downside, bears will need to pull the price below the immediate $16,429 support to set up a retest at $16,256.

LTC/USDT

Several major cryptocurrencies are still searching for a bottom, but Litecoin (LTC) is well above its June low. This indicates strong demand at lower levels.

The 20-day EMA at $69 has leveled off and the RSI is just above the midpoint, suggesting a balance between supply and demand.

The upside will tip in favor of the buyers if they push and hold the price above the moving averages. The LTC/USDT pair could then rise towards the above resistance at USD 75. This is an important level to watch in the near term, as a break above it could open the doors for a rally to $85.

If, on the other hand, the price drops from its current level and moves below the 20-day EMA, the pair could slide towards $65.

The moving averages on the 4-hour chart are slowly moving up and the RSI is in the positive area, indicating that bulls have the upper hand. There is a small resistance at $72, but if this level is breached, the upward move could reach $75.

Sellers are likely to mount strong defenses in the $72 to $75 zone, but if bulldozers push their way in, the rally could accelerate and reach $80. On the downside, a break below USD 65 could open the doors for a decline towards USD 61.

APE/USDT

ApeCoin (APE) has been trading in a wide range between $3 and $7.80 for the past few months. The moving averages have leveled off and the RSI is near the midpoint, indicating that selling pressure could be easing.

The bears have not allowed the price to rise above the moving averages, but an encouraging sign is that the bulls have maintained the buying pressure and have not let the price fall. This increases the chance of a break above the moving averages. If that happens, the APE/USDT pair could rise to USD 4.58 and then to USD 5.25.

Alternatively, if the bears fail to allow the price to pierce the overlying resistance, the pair could again drop to the vital support at $3. A shift below the support zone from $3 to $2.61 could signal the start of the next leg.

The pair has formed a symmetrical triangle on the 4-hour chart. This indicates indecision between the bulls and the bears. While the moving averages are flat, the RSI has moved into the positive zone, indicating that bulls have a slight edge. If buyers clear the minor hurdle at $3.71, the pair could rise to the triangle’s resistance line.

Conversely, if the price drops and breaks below the uptrend line, it will suggest that the bears are back in play. The pair could then tumble towards USD 3.20 and later the key USD 3 support.

Related: Rewind 2022: A crypto overview of the year and steps into 2023

ICP/USDT

Internet Computer (ICP) continues to trade below the $4.61 breakout level, but the RSI is forming a positive divergence, indicating selling pressure could ease.

Buyers pushed the price above the downtrend line on Dec. 30, but the bulls couldn’t sustain the breakout. The bulls attempted to break the barrier again on Jan. 1, but the long wick on the candlestick shows bears selling during intraday rallies.

If the price falls and stays below the 20-day EMA of $3.91, the bears will try to pull the price to $3.60 and then to $3.40.

On the contrary, if the price rebounds from the moving averages, the bulls will again try to push the price above $4.21. If they pull it off, the ICP/USDT pair could rise to $4.61 where the bears may try to stall the recovery.

The bulls have succeeded in defending the 50-SMA, but they have failed to hold the price above the 20-EMA. This indicates that bears are active at higher levels. If the price drops and drops below USD 3.90, the pair could drop to USD 3.76 and then USD 3.60.

Alternatively, if bulls break through the upper resistance zone from $4.10 to $4.21, momentum could build and the pair could rise to $4.46. This level may act like a minor hurdle, but is likely to be exceeded. The pair could then reach $4.61.

BIT/USDT

BitDAO (BIT) has been consolidating between $0.25 and $0.35 for the past few days, but the price action is showing signs of a potential breakout.

The moving averages have completed a bullish crossover, indicating a possible trend reversal. If buyers catapult the price above $0.35, the BIT/USDT pair could start a new uptrend. The pair could then attempt a rally to the target for $0.45.

On the other hand, if the price drops from $0.35, it suggests that bears are guarding this level vigorously. The price could then drop to the 20-day EMA of USD 0.30.

If the price bounces back from this level, it suggests that sentiment may have shifted from selling on rallies to buying on dips. That could boost prospects for a break above $0.35.

The bears will have to pull the price below the moving averages to invalidate the bullish view. The pair could then remain in range for a while.

The price dropped sharply from the overhead resistance at $0.35, but the bulls are trying to stop the pullback on the 20-EMA. If the price rebounds strongly from the 20-EMA, it suggests aggressive buying on dips. The pair could then scale overhead resistance and begin its march north to $0.40 and then to $0.42.

Instead, if the price drops and falls below the 20-EMA, several short-term bulls can post profits. That could pull the price towards the 50-SMA. Such a move suggests that the pair can spend a little more time within the range.

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