Bitcoin continues to be stuck in a tight range. However, according to crypto analyst Rakesh Upadhyay, Litecoin (LTC), ApeCoin (APE), Internet Computer (ICP) and BitDAO (BIT) are showing signs of starting a new upward move. The analyst expects these 4 altcoin projects to attract buyers with the Bitcoin recession.
An overview of the bitcoin and altcoin market
cryptocoin.com As you follow, Bitcoin’s volatility has remained calm in the last few days of last year. This shows that investors are in no rush to enter the market. Bitcoin ended 2022 around $16,500. Also, the first day of the new year failed to ignite the markets. This shows that traders remain cautious and are looking for a catalyst to start the next trend move.
A few analysts remain bearish on Bitcoin’s near-term price action. David Marcus, CEO and founder of bitcoin firm Lightspark, says in a blog post published Dec. 30 that he does not foresee the end of the crypto winter in 2023, or even 2024. He states that rebuilding consumer confidence will take time. But he believes the current reset could be good for legitimate firms in the long run.
Bearish calls are an indication that sentiment is negative. But there is also a glimmer of hope in this. Bear markets usually end after the last bullish downtrend. When there are no more sellers left, the price action stabilizes and new buyers enter the market. This usually causes a reversal and starts a new upward move. While Bitcoin remains in range, certain altcoin projects are showing signs of strength. Now it’s time to analyze
Let’s first look at the leading crypto Bitcoin (BTC)
The failure of the bulls to push Bitcoin above the 20-day exponential moving average (EMA) of $16,778 further strengthened the bears who tried to push the price below the close support of $16,256.
The 20-day EMA is gradually descending and the relative strength index (RSI) is close to 43. This points to a small advantage for sellers. If the bears pull the price below $16,256, a drop to $16,000 and then vital support at $15,476 is possible. A break below this support could signal a resumption of the downtrend. This negative view will be invalidated in the near term if buyers push the price above $17,100. Such a move will indicate aggressive buying on the dips. BTC is likely to gain momentum later and bounce back towards $18,388. It is possible for sellers to make a strong defense at this level again.
BTC has been stuck between $16,256 and $17,061 for a while. The bounce of support faces selling near the moving averages. This shows that the bears continue to sell in the rallies. A minor positive point, however, is that the bulls are not leaving much ground and BTC remains near the 20-EMA. This increases the probability of a break above the moving averages. If this happens, BTC is likely to rally to $16,800 and then to $17,061. On the downside, the bears will have to push the price below the $16,429 support to set up a retest of $16,256.
4 altcoins that attract buyers
A few major cryptocurrencies are still looking for a bottom. However, LTC is well above the June low. This indicates strong demand at lower levels.
The 20-day EMA of $69 has flattened and the RSI is just above the midpoint. This shows that there is a balance between supply and demand. If they push the price above the moving averages and sustain them, the advantage will turn in favor of the buyers. It is possible for LTC to move up to the overhead resistance at $75 later. This is an important level to watch out for in the near term. Because a break above this could open the doors for a rise to $85. On the contrary, if the price drops from the current level and sinks below the 20-day EMA, a drop to $65 is possible for LTC.
The moving averages on the 4-hour chart are slowly rising and the RSI is in the positive territory. This signals that the bulls have the upper hand. There is a minor resistance at $72. However, if this level is exceeded, the up move is likely to reach $75. Sellers will likely put up a strong defense in the $72-$75 region. But if the bulls bulldoze the road, the rally could accelerate and reach $80. On the downside, a break below $65 could open the doors for a drop to $61.
APE has been trading in a wide range between $3 and $7.80 for the past few months. The moving averages have flattened out and the RSI is near the midpoint. This suggests that selling pressure is likely to have eased.
The bears did not allow the price to rise above the moving averages. However, an encouraging sign is that the bulls continue the buying pressure and do not let the price slide. This increases the probability of a break above the moving averages. If this happens, the APE could rally to $4.58 and then $5.25. Alternatively, if the bears do not allow the price to break through the overhead resistance, APE is likely to drop back to the vital support at $3. Besides, a drop below the $3 and $2.61 support zone marks the start of the next leg.
APE has formed a symmetrical triangle on the 4-hour chart. This indicates the indecision between the bulls and bears. While the moving averages are flat, the RSI has rallied into the positive territory. This shows that the bulls have a slight advantage. If the buyers clear the minor hurdle at $3.71, a rise to the resistance line of the triangle is possible for the APE. Conversely, if the price drops and dips below the uptrend line, it indicates that the bears are back in the game. APE is likely to drop to $3.20 and then the key support at $3.20.
Internet Computer (ICP)
ICP continues to trade below the $4.61 breakout level. However, the RSI is forming a positive divergence. This probably indicates that the selling pressure is easing.
Buyers pushed the price above the downtrend line on December 30. However, the bulls failed to sustain the breakout. The bulls tried to break through the barrier again on January 1. However, the long wick on the candlestick indicates that the bears are selling on intraday rallies. If the price breaks below the 20-day EMA ($3.91) and continues, the bears will try to pull the price towards $3.60 and then $3.40. Conversely, if the price bounces back from the moving averages, the bulls will try to push the price back above $4.21. If they manage to do so, it is possible for ICP to rise to $4.61. However, here the bears may try to stop the recovery.
The bulls managed to defend the 50-SMA. However, they failed to keep the altcoin price above the 20-EMA. This indicates that the bears are active at higher levels. If the price declines and dips below $3.90, a drop to $3.76 and then $3.60 is possible for ICP. Alternatively, if the bulls break through the overhead resistance area of $4.10 to $4.21, momentum is likely to increase and the ICP to surge to $4.46. This level can act as a minor obstacle. However, the bulls are likely to pass. It is possible for ICP to reach $4.61 later.
BIT has been consolidating between $0.25 and $0.35 for the past few days. However, price action is showing signs of a possible breakout.
The moving averages have completed a bullish crossover, signaling a potential trend change. If buyers push the price above $0.35, it is possible for BIT to start a new bull trend. The altcoin could then attempt a rally to its target target at $0.45.
On the other hand, if the price drops from $0.35, it will show that the bears are zealously holding this level. The price is likely to drop to the 20-day EMA (0.30) later. If the price bounces back from this level, it will show that the sentiment has shifted from selling on rallies to buying on dips. This increases the probability of a break above $0.35. The bears will have to push the price below the moving averages to invalidate the bullish outlook. It’s possible that the BIT will then be stuck in the range for a while.
The price declined sharply from the overhead resistance of $0.35. However, the bulls are trying to stop the pullback at the 20-EMA. If the price bounces back strongly from the 20-EMA, it will suggest aggressive buying on dips. The altcoin could then scale the overhead resistance and start its northern march towards $0.40 and then $0.42. Instead, if the price drops and dips below the 20-EMA, it is possible that a few short-term bulls will choose to take profits. This is likely to push the price towards the 50-SMA. Such a move probably indicates that BIT will spend some more time in range.