The relief rally in the US stock market took a breather this week 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%, but a minor positive for cryptocurrency markets is that Bitcoin (BTC) did not follow the stock market lower. This suggests that crypto traders do not panic and dump their positions with every downtick in stocks.
The fixed action in Bitcoin suggests that traders are avoiding big bets before the decision of the Federal Reserve to increase rates on December 14. However, this has not stopped the action of selected altcoins, which show promise in the near term.
Let’s look at the Bitcoin charts and select altcoins and see the critical levels to watch out for in the short term.
BTC/USDT
Bitcoin has hovered around its 20-day exponential moving average (EMA) at $17,031 for the past few days. The flat 20-day EMA and relative strength index (RSI) near 50 do not give a clear advantage to either the bulls or the bears.
The critical level to watch on top is $17,622. If buyers kick the price above this level, the pair BTC / USDT could start a stronger recovery that could bring it to the downtrend line. The Bears are expected to defend this level of aggression.
If the price reverses direction from the down line but does not fall below $17,622, it will suggest that the bulls are trying to flip the level of support. This could improve the prospects of a break above the downtrend line. Then the pair could gather at $21,500.
On the downside, bears may gain strength if the price breaks below $16,678. Then the pair could go down to $15,995.
The pair was trading inside an ascending channel on the four-hour chart. The bears kept the price in the lower half of the channel, indicating selling on rally. A break below the moving averages could pull the price to the support line of the channel. If this level fails to hold, the pair could start a downward movement to $16,678 in the near term.
If the price turns from the current level or the support line of the channel, it will indicate that bulls continue to buy on dips. Then the pair could try a rally to the upper resistance at $17,622. If this level gets out, the pair could rise to the resistance line of the channel.
XMR/USDT
Monero (XMR) has been trading inside a falling edge pattern for the past several days. Upsloping 20-day EMA ($143) and RSI in the positive zone indicate that bulls have an edge.
The XMR / USDT pair could rise to the resistance line of the wedge, where the bulls are likely to meet strong selling by the bears. If the price turns down from the resistance line and breaks below the moving averages, it will suggest that the pair can extend its stay inside the corner.
Instead, if the bull drives the price above the resistance line, it will suggest a change in the short-term trend. Then the pair could try a rally to $174 which could act as a barrier. A break above this level could signal that the downtrend could be over.
The pair climbed inside a rising channel pattern on the four-hour chart. This shows that short-term sentiment remains positive and traders are buying the dips. The pair could continue its upward movement and reach the resistance line near $156. If this level rises, the rally can reach $162.
The first sign of weakness will be a break and close below the moving averages. Then the pair could decline in the support line of the channel. A break below the channel could start a move below $133.
TONS/USDT
The bulls pushed Toncoin (TON) above the resistance of the symmetrical triangle on December 11, indicating that the uncertainty has been resolved in favor of buyers. The symmetrical triangle usually acts as a continuation pattern, which increases the likelihood of resuming the uptrend.
If the buyers keep the price above the triangle, the TON/USDT pair could try to break above the upper resistance zone between $2 and $2.15. If they manage to do this, the pair could gather momentum and soar to the pattern target of $2.87.
Conversely, if the price fails to hold above the triangle, it will suggest that bears continue to sell on rallies. A break below the 50-day simple moving average (SMA) of $1.70 could trap the aggressive bulls, pulling the pair to the support line of the triangle.
The moving average on the four-hour chart is rising and the RSI is in the overbought zone, indicating that the bulls are in order. The movement may face obstacles near $2 but if bulls hold the price above this level, the rally could gain speed.
If the price turns down from the current level and breaks below the 50-SMA, the sell could accelerate and the pair could slide to $1.70. This is an important level to keep an eye on because a break below it could signal that the bears are back in charge.
Related: SBF ‘didn’t like’ decentralizing Bitcoin – ARK Invest CEO Cathie Wood
TWT/USDT
Trust Wallet Token (TWT) continued its northward march, suggesting that traders are buying at higher levels and not booking profits in a hurry. This increases the possibility of extension in the uptrend.
The bulls will try to drive the price above the upper resistance at $2.73. If successful, the TWT/USDT pair could rally to the psychological level of $3 where the bears may try to block the move.
If the buyers make their way through this obstacle, the uptrend could reach the target pattern at $3.51.
The bears are likely to have other plans as they will try to defend the overhead resistance at $2.73. They will have to pull the price below the 20-day EMA ($2.30) to gain the upper hand.
The four-hour chart shows that the bulls bought the dips in the moving averages. Although the moving averages are rising, the RSI shows a negative divergence, indicating that the bullish momentum may be weakening. This may change if bulls push the price above $2.73 as that could attract more buying.
Moving averages are critical support to look at the downside. If the 50-SMA support falls, several short-term traders can book profits and this can pull the pair down to $2.25 and then $2.
AXS/USDT
Axie Infinity (AXS) has been in a major downtrend but is showing the first signs of a potential upside change. Buyers pushed the price above the downward trend line on December 5 but could not hold the higher levels, as seen in the long wick on the candlestick of the day.
A minor positive is that the bulls have not allowed the price to break below the moving averages. This shows that the buyers are trying to flip the moving averages into support.
The moving averages are on the way to a bullish crossover and the RSI is in the positive territory, indicating that the momentum may shift in favor of the bulls. If the price breaks and holds above the downtrend line, a rally to $11.85 is likely. This level is expected to act as a large obstacle on the top.
The optimistic view can be canceled in the near term if the price turns down and breaks below the moving averages. Then the AXS/USDT pair can slide to $6.57.
The four-hour chart shows that the bears are strongly defending the downtrend line and the bulls are buying the dips in the 50-SMA. The 20-EMA has flattened and the RSI is near 47, indicating a balance between supply and demand.
A break and close above $8.70 could change the advantage in favor of the bulls. The pair could then rally to $9.28 and later to $10. Alternatively, a break below $7.86 could suggest that the bears are back in the driver’s seat. Then the pair can slide to $6.87.
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.
