These altcoins could be attractive to buyers as Bitcoin stagnates
Bitcoin is still stuck in a tight range, but LTC and APE, ICP and BIT are showing signs that they are starting a new up-move. Price Analysis Ho-hoo-ho! Limited Holiday Trait The Bitcoin price ended 2022 at $16,500. The first day of the new year failed to ignite the markets. This suggests that traders are still cautious and looking for a catalyst to ignite the next trending move. David Marcus, founder and CEO of Bitcoin firm Lightspark, stated in a Dec. 30 blog post that he doesn’t see the crypto winter ending in 2023 or even 2024. Although he expects it to take time to rebuild consumer confidence, he believes that the current reset may be beneficial for legitimate businesses over the long-term. Crypto market data daily view. Source:Coin360 While bearish calls indicate that sentiment is still negative, there is also a silver lining. Bear markets usually end after the last bull turns bearish. Once there are no more sellers, the price action stabilizes and new buyers come into the market. This usually causes a reversal, which then starts a new up-move. While Bitcoin is still rangebound, some altcoins are showing signs that they are gaining strength. Let’s take a look at the charts to see the key levels to watch. BTC/USDTThe inability of the bulls push Bitcoin above its 20-day exponential moving mean ($16,778) has strengthened bears who are trying to lower the price below $16,256. BTC/USDT daily charts. Source: TradingViewThe 20 day EMA is slowly sloping downward and the relative strength indicator (RSI) nears 43, which indicates a minor advantage for sellers. The BTC/USDT price could fall to $16,000 if bears drop below $16,256. Then, it could fall to $15,476. If the price falls below $16,256, this could signal a resumption in the downtrend. Buyers will push the price above $17,000. This would indicate that buyers are buying aggressively on dips. The pair could then gain momentum and accelerate towards $18,388. The sellers are expected to continue their strong defense at this level. BTC/USDT 4-hour chart. Source: TradingViewThe pair has remained between $16,256 & $17,061 for some while. The bounce from the support is now facing selling near the moving ranges. This means that bears are continuing to sell rallies. However, a minor plus is that bulls have not lost much ground and the pair still remains close to the 20-EMA. This increases the chances of the pair breaking above the moving averages. The pair could rise to $16,800, then $17,061. Bears will need to pull the price below $16,429 in order to set up a retest at $16,256. LTC/USDT Although many major cryptocurrencies are still looking for a bottom, Litecoin (LTC), is well above its June low. This shows strong demand at lower levels. LTC/USDT daily charts. Source: TradingViewThe 20 day EMA ($69), has flattened and the RSI just above the midpoint suggests a balance between supply/demand. The advantage will tilt in the favor of buyers if they push the price higher than the moving averages. The overhead resistance at $75 could then be reached by the LTC/USDT pair. This is a crucial level to monitor in the near-term as a break above it could lead to a rally to $85. The opposite is true. If the price drops below the current level, and falls below the 20-day EMA (20-day EMA), the pair could slide to $65.LTC/USDT on the 4-hour chart. Source: TradingViewThe 4-hour chart’s moving averages are slowly rising and the RSI is in positive territory, indicating that bulls have the upper hand. The $72 resistance level is holding but sellers are likely to put up a strong defense. However, if bulls bulldoze their rally through, it could accelerate to $80. A break below $65 could lead to a drop to $61. APE/USDTApeCoin has traded in a wide range between $3.80 and $7.80 over the past few months. The moving averages have risen and the RSI is close to the midpoint, indicating that selling pressure may be decreasing. APE/USDT daily chart. Source: TradingView Although the bears have not allowed prices to rise above their moving averages, it is encouraging that the bulls have kept the buying pressure up and not let the price drop. This increases the likelihood of the price breaking above the moving averages. If this happens, the APE/USDT price could rise to $4.58, and then to $5.25. Alternatively, bears could prevent the price from piercing the overhead resistance. The pair could fall to $3. A dip below the $3-$2.61 support zone could signal the beginning of the next leg. Source: TradingViewThe 4-hour chart shows a symmetrical triangle. This is a sign of indecision between bulls and bears. The RSI has risen to the positive zone despite the fact that the moving averages remain flattish. This indicates that bulls have a slight advantage. The pair could reach the resistance line at $3.71 if buyers overcome the minor hurdle. In the opposite, a price drop below the uptrend line will indicate that bears are back in play. The pair could fall to $3.20, and then to the support at $3.20. Source: TradingViewBuyers pushed the price above the downtrendline on Dec. 30, but the bulls couldn’t sustain the breakout. The bulls tried again to overcome the barrier Jan. 1, but the candlestick’s long wick shows that bears are selling intraday rallies. If the price falls below the 20-day EMA ($3.91) then the bears will attempt to pull it to $3.60, and then $3.40. If they are able to pull it off, the ICP/USDT pairs could soar to $4.61. Bears may attempt to stall the recovery. ICP/USDT 4-hour chart. Source: TradingViewThe bulls managed to defend the 50 SMA, but they failed to maintain the price above 20 EMA. This suggests that bears are active at higher levels. If the price drops below $3.90, it could drop to $3.76, and then to $3.60. Alternatively, if bulls break the overhead resistance zone between $4.10 and $4.21, momentum could pick up, and the pair could surge as high as $4.46. Although this level may be a minor hindrance, it is likely to be overcome. The pair could then reach $4.61. BIT/USDTBitDAO has been consolidating between $0.25- $0.35 over the past few days, but price action is showing signs that it could breakout. BIT/USDT daily charts. Source: TradingViewThe bullish crossover of the moving averages has indicated a potential trend shift. The BIT/USDT currency pair could begin a new uptrend if buyers push the price higher than $0.35. The pair could attempt to rally to $0.45 as the target price. However, if the price falls below $0.35 it will indicate that bears are defending this level with great vigor. The price could drop to the 20-day EMA ($0.30). If the price recovers from this level, it could indicate that sentiment has shifted from buying on dips to selling on rallies. This could increase the chances of the price breaking above $0.35. However, the bears will need to pull the price below the moving Averages to discredit the bullish view. The pair could remain within the range for a while. BIT/USDT 4-hour chart. Source: TradingViewThe price fell sharply from $0.35 overhead resistance, but the bulls are trying stop the pullback at 20-EMA. If the price rebounds from the 20-EMA with strength it will encourage aggressive buying on dips. The overhead resistance could be climbed and the pair could begin its northward march to $0.40, then $0.42. This could push the price to the 50 SMA. This could indicate that the pair might spend more time within the range. Every trade and investment decision involves risk. Readers should do their own research before making a decision.