US stock markets shrugged off better-than-expected labor data on December 2 and rallied sharply from their intraday low. This suggests that market watchers believe the Federal Reserve may not change its stance to slow the pace of rate hikes due to the latest jobs data.
Although the FTX crisis broke the positive correlation between the US equity markets and Bitcoin (BTC), recent strength in equity markets shows risk sentiment. This could be favorable for the cryptocurrency space and may attract dip buyers.
The broader crypto recovery may gather steam after more clarity emerges about the extent of the damage caused by the FTX crisis. Until then, bullish price action may be limited to select cryptocurrencies.
Let's look at the Bitcoin charts and select altcoins that may be preparing to start an upward move any time soon.
USDT/BTC
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 win supremacy.
The main hurdle for buyers to the upside is $17,622. If the bulls catapult the price above this level, it will suggest that the downtrend may be over. The BTC/USDT pair could run to the psychological level of $20,000. This level can again act as resistance, but if crossed, the pair could rally to $21,500.
Conversely, if the price turns down below $17,622 and breaks below the 20-day EMA, it will suggest that the bears have not given up yet. Thereafter, the pair could consolidate in a wide range between $15,476 and $17,622.
Buyers are defending the 20 EMA on the 4 hour chart, but the failure to get a strong bounce indicates that demand is drying up at higher levels. The bears may try to take full advantage 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 $15,476.
On the other hand, if the price rises above $17,250, the probability of a rally to $17,622 increases. This level can again act as significant resistance, but if the bulls push the price above it, the pair could rally to $18,200.
TONS/USDT
Toncoin (TON) rallied above the symmetrical triangle pattern on Nov. 30, but the bulls were unable to hold the higher levels as seen from the long wick on the day's candle. However, the bulls defended the 20-day EMA ($1.73) to the downside, indicating buying on dips.
The rising moving averages and the RSI in the positive zone indicate an advantage for buyers. This improves the prospects for a break above the resistance line of the triangle. If that happens, the buying could accelerate and the TON/USDT pair could shoot up to $2.15 and then move towards the pattern target of $2.87.
This positive view could be reversed in the short term if the price turns back from the resistance line again and dives below the 20 day EMA. That could add to the selling pressure and take the pair to the 50-day simple moving average ($1.62) and then to the support line.
The bears are trying to defend the overhead resistance at $1.84 while the bulls are buying the dips to the 20-day EMA. Price is compressing between the two levels and may be ripe for a range breakout.
If the price rises above the upper zone between $1.84 and the downtrend line, it may attract more buying by the bulls. That could start a new move up to $2. The important level to watch on the downside is $1.68 because a break below could accelerate the decline to the support line.
APE/USDT
ApeCoin (BOW) rejected the downtrend line on Nov. 30, but the bulls have not allowed the price to dip below the 20-day EMA ($3.73). This is a positive sign as it indicates that demand is at lower levels.
The 20 day EMA is gradually turning up, and the RSI has jumped into the positive territory, indicating that the bulls are trying to come back. The APE/USDT pair could gain momentum on a break above the downtrend line. This could open the doors for a potential rally to $5 and then $6.
Instead, if the price turns down and falls below the 20 day EMA, it will suggest that the bears are active at higher levels. The pair could then drop to $3 which is likely to act as strong support.
The 20-EMA on the 4-hour chart has flattened out and the RSI is close to 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 rally to the downtrend line.
If the bears want to take the lead, 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) rallied sharply from the 20-day EMA ($2.07) on Nov. 27 and broke above resistance at $2.45 on Dec. 2. This suggests that the trend is still up and traders view dips as a buying opportunity. .
The bears can once again pose a strong challenge at $2.73, but if the bulls break through this barrier, the TWT/USDT pair could resume the uptrend. The next stop to the upside could be at $3 and if this level is cleared as well, the pair could shoot up to the pattern target of $3.51.
Conversely, if the price turns down and falls 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 could send the pair looking towards $1.81. A bounce at this level could suggest that the pair could consolidate between $1.81 and $2.54 for a few days.
The 20-EMA on the 4-hour chart has turned up and the RSI is in the positive zone, indicating that the buyers have an advantage. The bulls will try to push the price above the upper resistance zone between $2.54 and $2.73. If successful, 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 EMA. The pair could then remain range bound for some time before breaking out. start the next trend move.
AAVE/USDT
Ghost (GHOST) has rallied sharply from the psychological support at $50 and broke above the 20-day EMA ($63). The buyers are currently trying to strengthen their position by turning the 20 day EMA towards support.
The bears are trying to defend the 32.8% Fibonacci retracement level of $68, but one minor positive is that the bulls have not given up much ground. This indicates that buyers are anticipating a bullish move.
The 20 day EMA has flattened out and the RSI is near the midpoint, indicating that the bears may be losing control. If the buyers push the price above $68, the AAVE/USDT pair could rally to the 50-day SMA ($71) and then the 61.8% retracement level at $80.
Conversely, if the price turns down and breaks below the 20-day EMA, the pair could drop to the support line of the channel.
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 weaken in the near term. A break below the 50-SMA could take the price to the $56 to $58 support zone.
Alternatively, if the price rises from the current level and breaks above $66, the pair could rally to $71. This level can again act as resistance, but if the bulls push the price above it, the rally could extend to $80.
The views, thoughts and opinions expressed here are those of 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 do their own research when making a decision.
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