Bitcoin (BTC) finally broke through the formidable resistance of $38,000 last week and approached $40,000. These movements show that Bitcoin’s trajectory is still holding up. Bulls will try to maintain momentum and achieve a strong rally this year, while bears will try to push prices lower.
A major tailwind for Bitcoin is the expectation that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund as early as January. Swan Bitcoin CEO Cory Klippsten told Bloomberg that the approval window for spot Bitcoin ETFs “looks like it’s narrowed to January 8th, 9th or 10th.”
Several analysts expect the price of Bitcoin to surge after one or more spot Bitcoin ETFs are approved. However, traders should watch out for a selloff after the initial merciless reaction to the bulls. Bullish selling trends following an event are commonly seen in established markets, leading to the saying, “Buy on the rumor, sell on the news.”
Could altcoin purchases increase if Bitcoin rises near $40,000? Let’s take a look at the chart of the top 5 cryptocurrencies that can attract investors.
Bitcoin Price Analysis
Bitcoin closed higher above the indirect resistance level at $37,980 on December 1, completing a bullish ascending triangle pattern. The target goal for this setup is $41,160.
Typically, after breaking out of a pattern, price retests the breakout level. In this case, it could fall to $38,000. If the bulls turn this level into support, the prospects for a rally above $41,160 increase. The BTC/USDT pair could surge to $48,000 as there is no significant resistance in between.
The trend is in favor of the bulls, but the bears are expected to present a strong challenge at $40,000. A decline below $38,000 could cause short-term traders to be halted. You can then test the uptrend line. Bears would need to break below this level to gain the upper hand in the near term.
The uptrend has pushed the RSI on the 4-hour chart into overbought territory, suggesting a correction is possible in the near term. The first support is the 20 exponential moving average, followed by the 50 simple moving average, near the breakout level of $38,000.
If the price bounces off the 20-EMA, it indicates that traders are buying on some dips. That would open the door for a rise to $41,160. Conversely, a break below $38,000 could lead to a decline to the upward trend line.
Caspian Sea Price Analysis
Kaspa (KAS) has been on an upward trend for the past few days. This is a positive sign that the uptrend is not being rushed.
Buyers are trying to push the price towards the overhead resistance of $0.16, where bears are expected to put up a strong defense. If the bulls overcome this hurdle, the KAS/USDT pair could resume its upward trend. The pair could then sprint towards its target of $0.20.
Instead, if the price falls from its current level of $0.16, it means that higher levels will attract sellers. The pair may fall towards the 20-day EMA ($0.12). A breakdown of this level signals a possible short-term trend change.
The price action on the 4-hour chart formed an ascending triangle pattern, which completed on the break and closed above $0.15. When that happens, the pair signals a resumption of an uptrend. The pattern target for this bullish setup is $0.19.
This optimistic outlook is nullified upon a breakout and a close below the uptrend line. Failure of a bullish pattern is a bearish signal. The pair could then fall to $0.11, where bulls will again try to stem the decline.
THORChain Price Analysis
THORChain (RUNE) is showing a strong upward trend. The bulls asserted their supremacy on December 2 by driving the price above the short-term barrier of $6.68.
Bulls will try to keep the price above $6.68, while bears will try to take the RUNE/USDT pair below the breakout level. If the sellers are successful, the pair could fall towards the 20-day EMA ($5.72). A bearish trend would require the price to fall below this level to signal the end of the uptrend.
On the other hand, if the price stays above $6.68, every small drop is a sign that there is buying. This will open the door for a resumption of the upward trend. The pair may rise first to $8.60 and then to $10.
The pair could continue to decline and reach the breakout level of $6.68, which would likely act as strong support. A strong bounce from this level would mean that the bulls have turned $6.68 into support. The pair could then attempt a rally up to $8.26.
Meanwhile, the bears likely have other plans. They will try to bring the price down to $6.68. If they can pull it off, a steeper correction to the 50-SMA will begin. If the bears drop the price below the 50-SMA, the trend will turn negative.
Related: 3 reasons Chainlink prices could rise another 20% by the new year
Mantle Price Analysis
Bulls pushed Mantle (MNT) above the near-term resistance level of $0.54 on November 30, indicating that the uptrend remains intact.
A rising moving average indicates that the trend is upward, but a negative divergence in the RSI indicates that the upward momentum is slowing. This could lead to a decline in the 20-day EMA ($0.50), which is an important level to keep an eye on.
If the price bounces from this level, it is a sign that the uptrend is here to stay. Bulls will then attempt to push the price up to the overhead resistance of $0.60. This positive view will be invalidated if the price declines and falls below the 20-day EMA. The MNT/USDT pair may fall to $0.46.
Bulls are struggling to keep the price above the $0.54 breakout level. The bears will use this opportunity to try to push the price down to the 50-SMA. This remains a key level to watch in the near term.
If the price bounces off the 50-SMA, the bulls will try to resume the upward movement again. Conversely, if the bears fall below the 50-SMA, it means a deeper correction is starting. The pair may fall first to $0.50 and then to $0.46.
Render Pricing Analysis
Render (RNDR) bounced from the 20-day EMA ($3.21) on November 30, indicating that sentiment remains positive and traders are buying on dips.
A rising moving average indicates that the path of least resistance is upward. However, a negative divergence in RSI indicates that the bullish momentum is waning. Buyers will need to drive the price above $3.78 to take control. The RNDR/USDT pair could then rise to $4.64.
Conversely, if the price falls sharply from its current level, it would be a sign that the downtrend is continuing its upward trend. A break below the 20-day EMA ($3.23) would be the first sign that the bulls could be losing steam. The Bears will be back in the driver’s seat at the break under $2.96.
The bulls are trying to push the price above $3.78, but they are likely to face strong resistance from the bears. If the price declines from current levels and slides below the 20-EMA, several short-term traders may be stopped. The pair may then fall towards the 50-SMA.
A break below this support suggests that the range-limiting action could continue for some more time. Conversely, if the price bounces off the 20-EMA, it would suggest a solid buy on the dip. The pair could then attempt an upward move towards $4.64.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.