The supply and demand equation determines the price of an asset. In the past few months, the institutional demand for Bitcoin has increased (BTC) Led to a strong spike in height. This upward trend may continue until demand exceeds supply.
The data appear on series two Withdrawals More than 12,000 Bitcoins per Coinbase Pro this week, which is just under the 28,000 Bitcoins mined in November. This indicates that the demand from institutional investors continues to exist even after Bitcoin’s recent rally as they are optimistic about the long-term.
Meanwhile, the second richest man in Mexico, Ricardo Salinas Plego, He said In an interview with Cointelegraph, Bitcoin was his “best investment ever.” Salinas owns about 10% of his liquid Bitcoin portfolio and is in no hurry to sell because he wants to “sit for another five or ten years”.
Strong demand and HODLing from institutional investors drove Bitcoin’s market value higher $ 500 billion for the first time. It also cemented Bitcoin’s market dominance to over 70.5%, indicating that the money flow was largely in Bitcoin.
However, at some point, new money will stop flowing into Bitcoin and this may lead to a correction or consolidation. Traders may then turn their attention to altcoins, which could gain momentum.
Let’s look at the charts of the top five cryptocurrencies that could rise in the next few days.
Bitcoin / USD
Bitcoin price Break above $ 24,302.50 Top resistance on Dec 25th and resumed uptrend. This breach has a target of $ 28,664.04 and price It reached its highest level during the day at $ 28419.94 Today.
The continued rally in the BTC / USD pair attracted traders who were waiting on the sidelines to enter. Institutional investors, momentum traders and speculators also joined the party that kept the upside intact.
However, the current pace of rise is not sustainable. The long wick in the candlestick today indicates profit taking at higher levels. Even if the uptrend continues, the pair may again face selling near the $ 30,000 mark.
If the uptrend stops, short-term traders may be pushed out and this could pull the price back into the 20-day exponential moving average ($ 22.613). If this support continues, the pair may once again attempt to resume the uptrend.
On the other hand, a break below the 20-day moving average could pull the price back to critical support at $ 20,000. Therefore, traders may avoid chasing the prices higher.
The 4 hour chart is showing a doji candlestick formation, indicating hesitation between the bulls and bears. Although the uncertainty has been resolved to the downside, the long tail on the candle shows buying at lower levels. This indicates that traders are buying on every slight dip.
However, if the bulls fail to push the price above $ 28,419.94, the selling may continue and this could bring the price down to the 20-EMA at $ 25,446. The overbought levels on the RSI also indicate a possible correction.
A break below the 20-EMA and support at $ 24302.50 will indicate weak momentum.
LTC / USD
In a strong uptrend, traders usually buy dips to the 20-day exponential moving average ($ 105) and this happened on December 23rd.LTCIt bounced sharply on Dec 24th and gained momentum after the bulls pushed the price over the upper resistance zone of $ 118.64 to $ 124.12.
The immediate target is $ 145, but if the bears don’t allow the price to fall and continue below $ 124.1278, the rally may extend to $ 180. Bullish moving averages and RSI are in the overbought zone indicating bulls are in control.
This bullish sentiment will be invalidated if LTC / USD turns around from current levels or upper resistance and falls below the 20 day moving average. Such a move would suggest that traders are not buying the dips.
The 4 hour chart is also in an uptrend, with the moving averages sloping up and the RSI in positive territory. However, momentum has weakened as the bulls face resistance near $ 136.
If bulls do not allow the price to maintain below the 20-EMA, the pair might be on target to reach $ 145. But if the price falls below current levels and breaks below the $ 118.6497 and the $ 50 SMA, that would indicate the start of a deeper correction.
BCH / USD
Bitcoin Cash (BCH) Repeatedly tried to breach the upper resistance level of $ 353 over the past few days. Although the bulls pushed the price above $ 353 on two occasions, and were marked with an ellipse on the chart, they were unable to sustain the higher levels.
This indicates that traders are selling aggressively on any rallies above $ 353. However, the positive thing is that the bulls have built up on dips below $ 280 and are currently trying to push the price above $ 353.
If they succeed, the BCH / USD could start its journey towards $ 500. It might not be a direct rush towards the target as the bears will once again try to stop the rally at $ 409 and $ 430. But if these two levels are scaled, the pair might gain momentum.
The bullish moving averages and the RSI above 61 indicate that bulls have the upper hand.
The 4 hours chart shows that the pair is currently trading within a large range between $ 255 and $ 370. The bulls are currently trying to push the price above the general resistance of $ 353 to $ 370.
If successful, the pair may initiate an uptrend with the target of $ 485. The moving averages have completed a bullish cross and the RSI indicator is in positive territory, indicating that bulls have the upper hand.
However, if the price falls again from the current level or $ 370, the pair may extend its stay inside the range for a few more days.
XMR / USD
The long wick of the December 23 candlestick shows that traders have booked profits after Monero (XMR) Hit $ 167, which was the target for a breakout from the inverted head and shoulders pattern.
However, the positive thing was that the bulls bought the decline to the 20-day moving average ($ 151) on December 24th. The bullish moving averages and the RSI are in positive territory indicating that sentiment remains positive.
The long tail of the candlestick today shows that the bulls are buying on dips. If they manage to push the price and keep it above $ 170, the XMR / USD pair could rise to the next target target of $ 197, below the psychological resistance of $ 200.
This positive outlook will be invalidated if the price drops below current levels and breaks below the 20 day EMA. Such a move could signal a deeper correction to $ 135.50.
The 4 hour chart shows that the pair was trading within an upward channel but the bulls failed to push the price and keep it in the upper half of the channel. Usually the pair descends from the middle of the channel.
This indicates that short-term traders are making profits at choppy levels. However, if the bulls manage to push the price and keep it above the midpoint of the channel, the pair might rise to the channel’s resistance line, indicating a recovery in momentum.
On the other hand, a break below the support line of the channel may indicate a possible change in the short term trend.
Theta / dollars
THETA has risen vertically in the past few days, pushing the RSI deeper into the overbought zone. This correction started as seen from the sharp drop today.
However, if the price does not fall and continues below the 38.2% Fibonacci retracement level at $ 1.31994, this will indicate that traders are continuing to buy on dips as they expect the rally to extend further.
If the bulls manage to push the price above $ 1.742, the theta / USD could rise to the psychological $ 2 level and then to $ 2.40.
Contrary to this bullish assumption, if the price bears sink below the 50% Fibonacci retracement level of $ 1.18957, it will indicate weak momentum.
The 4 hour chart is showing that the bulls are currently trying to defend the 20-EMA. If the pair bounces away from this level, the bulls will attempt to resume the bullish trend. Bullish moving averages and RSI in positive territory indicate that bulls are in control.
Contrary to this assumption, if the pair breaks below the 20-EMA, it will indicate weakening momentum in the short term. This may pull the price down to the next support level at the 50-SMA.
The opinions and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risks, you must do your research when making a decision.