This week’s US stock market rally of relief took a breather as all major averages closed in the red. Traders appear to have booked profits ahead of next week’s busy economic calendar.
The S&P 500 Index fell 3.37%, while Bitcoin (Bitcoin) has not followed the decline in the stock market. This suggests that crypto traders are not panicking or abandoning their positions every time stocks fall.
Bitcoin’s range-bound action suggests traders are avoiding big bets ahead of the Federal Reserve’s rate hike decision on Dec. 14.
Let’s take a look at the Bitcoin charts, choose an altcoin, and find the key levels to watch out for in the short term.
BTC/USDT
Bitcoin has been hovering around the 20-day exponential moving average (EMA) at $17,031 for the past few days. A flat 20-day EMA and a Relative Strength Index (RSI) close to 50 give neither bulls nor bears a clear advantage.
The key level to watch on the upside is $17,622. If buyers push the price above this level, the BTC/USDT pair could start a stronger recovery and take it to the downtrend line. We expect the bears to defend this level aggressively.
If the price is reversing from the downtrend line but not below $17,622, it suggests that the bulls are looking to turn the level into support. may increase. The pair could then climb to his $21,500 mark.
On the downside, the bears are likely to intensify if the price breaks down of $16,678. After that, the pair could drop to $15,995.
The pair is trading inside an ascending channel on the 4-hour chart. The bears are holding the price in the lower half of the channel, indicating a rally selling. A break below the moving averages can cause the price to gravitate toward the channel’s support line. If this level is not sustained, the pair could fall to $16,678 in the near future.
If the price rises from the current levels or the channel’s support line, it indicates that the bulls are continuing to buy even when it falls. The pair may then try to rally towards the overhead resistance at $17,622. If this level is taken out, the pair could move up to the channel’s resistance line.
XMR/USDT
Monero (XMR) has been trading inside a descending wedge pattern for the past few days. The rising 20-day EMA ($143) and the RSI in the positive zone show the bulls in favor.
The XMR/USDT pair can rise to a wedge of resistance where the bulls are likely to encounter strong selling by the bears. If the price breaks below the resistance line and breaks below the moving averages, it suggests the pair may stay inside the wedge.
Instead, if the bulls move the price above the resistance line, it will signal a short-term trend change. The pair could then attempt a rally to $174, which could prove to be a stumbling block. A breakout of this level could indicate the end of the downtrend.
The pair is rising within a rising channel pattern on the 4-hour chart. This shows that short-term sentiment remains positive and traders are buying dips. The pair continues to move higher and could reach the resistance line near $156.If this level scales, the rally could reach $162.
The first sign of weakness is a breakout and close of the moving averages. The pair can then drop to the channel’s support line. A breakout of the channel is likely to drop to $133.
ton/USDT
The bulls pushed Toncoin (TON) above the symmetrical triangle resistance on Dec. 11, indicating that uncertainty has resolved in favor of buyers. A symmetrical triangle usually acts as a continuation pattern, increasing the likelihood of an uptrend resuming.
If buyers can sustain the price above the triangle, the TON/USDT pair can attempt a breakout of the overhead resistance zone between $2 and $2.15. If it does, the pair will gain momentum and the target of the pattern could rise to $2.87.
Conversely, if the price fails to sustain above the triangle, it suggests that the bears are continuing to move higher. A break below the 50-day Simple Moving Average (SMA) of $1.70 could trap the aggressive bulls and pull the pair towards the triangle support line.
The moving averages on the 4-hour chart are trending upwards and the RSI is in the overbought zone, indicating that the bulls are in control. The rally could be hindered near $2, but the rally could accelerate if the bulls can sustain the price above this level.
If the price turns down from the current levels and breaks below the 50-SMA, selling will accelerate and the pair could drop to $1.70. This is an important level to watch as a break below it could indicate the bears are back.
Related: SBF ‘didn’t like’ decentralized Bitcoin — ARK Invest CEO Kathy Wood
TWT/USDT
Trust Wallet Token (TWT) continues to move north suggesting traders are buying at higher levels and are not in a hurry to book profits. This increases the chances of an extension of the uptrend.
The bulls will try to push the price above the overhead resistance of $2.73. If they succeed, the TWT/USDT pair could rally to $3 psychological levels, which could prompt the bears to try to halt the move up.
If the buyers push past this obstacle, the uptrend could reach the pattern’s target of $3.51.
The bears are likely to have other plans as they attempt to defend the overhead resistance of $2.73. To gain an edge, the price needs to drop below his 20-day EMA ($2.30).
The 4-hour chart shows that the bulls are buying a drop to the moving averages. While the moving averages are trending upwards, the RSI is showing a negative divergence, suggesting the bullish momentum may be waning. This could change as the bulls could push the price above $2.73, which could attract further buying.
The moving averages are important supports to watch on a downtrend. If the 50-SMA support collapses, multiple short-term traders could book profits, driving the pair down to $2.25 and then to $2.
AXS/USDT
Axie Infinity (AXS) is in a strong downtrend but shows the first signs of a potential trend change. Buyers he pushed the price above the downtrend line on Dec. 5 but failed to sustain higher levels as evidenced by the long core of the candlestick that day.
A minor positive is that the bulls do not break below the moving averages. This shows that buyers are trying to turn the moving averages into support.
The moving averages are on the brink of a bullish crossover and the RSI is in positive territory, indicating that momentum may be shifting in the bulls’ favor. If the price sustains above the downtrend line, a rally to $11.85 is likely. This level is expected to act as a major hurdle upwards.
Our bullish view may be invalidated in the short term if the price falls below the moving averages. After that, the AXS/USDT pair can drop to $6.57.
The 4-hour chart shows that the bears are vigorously defending the downtrend line and the bulls are buying the drop to the 50-SMA. The 20-EMA has flattened out and the RSI is near 47, indicating that demand and supply are in balance.
A breakout of $8.70 and a close can give the bulls an advantage. The pair can then move up to $9.28 and then to $10. Alternatively, a break below $7.86 could suggest the bears are back in the driver’s seat. After that, the pair may drop to $6.87.
The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views or opinions of Cointelegraph.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
