These 4 altcoins may attract buyers with Bitcoin stagnating

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The volatility of Bitcoin (BTC) remained subdued in the last days of the last year, indicating that investors were in no rush to enter the markets.

Bitcoin ended 2022 near $16,500, and the first day of the new year also failed to ignite the markets. This suggests that traders remain cautious and look for a catalyst to initiate the next trend move.

Several analysts remain bearish on Bitcoin’s near-term price action. David Marcus, CEO and founder of Bitcoin firm Lightspark, said in a blog post published on December 30 that he does not see the crypto winter ending in 2023 and not even in 2024. He expects it will take time to rebuild consumer confidence but believes the current recovery may be good for legitimate firms in the long run.

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Crypto market data daily view. Source: Coin360

The bearish calls are an indication that the sentiment remains negative, but there is also a silver lining to it. Usually, bear markets end after the last bull has turned bearish. With no more sellers, the price action stabilizes and new buyers enter the market. This usually causes a reversal and starts a new up move.

While Bitcoin remains range-bound, select altcoins are showing signs of strength. Let’s take a look at the charts and take a look at the important levels to watch.

BTC/USDT

The failure of the bulls to push Bitcoin above the 20-day exponential moving average (EMA) of $16,778 has strengthened the bears, who are trying to sink the price below the immediate support at $16,256.

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BTC/USDT daily chart. Source: TradingView

The 20-day EMA is gradually sloping down and the relative strength index (RSI) is near 43, indicating a slight advantage to sellers. If bears sink the price below $16,256, the BTC/Tether (USDT) pair could fall to $16,000 and then to the key support at $15,476. A break below this support could signal the resumption of the downtrend.

This negative view will be canceled soon if buyers push the price above $17,100. Such a move will indicate aggressive buying on dips. The pair could then gain momentum and make a run to $18,388. Sellers are again expected to mount a strong defense at this level.

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BTC / USDT 4 hour chart. Source: TradingView

The pair was stuck between $16,256 and $17,061 for some time. The rebound from the support faces selling near the moving averages. This suggests that bears continue to sell in rallies.

However, a minor positive is that the bulls have not given up much ground and the pair remains near the 20-EMA. This increases the likelihood of a breakout above the moving averages. If that happens, the pair could rise to $16,800 and then $17,061.

On the downside, bears will need to pull the price below the immediate support of $16,429 to set up a retest of $16,256.

LTC/USDT

Several major cryptocurrencies are still looking for a bottom, but Litecoin (LTC) is well above its June low. This indicates strong demand at lower levels.

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LTC/USDT daily chart. Source: TradingView

The 20-day EMA of $69 has flattened and the RSI is just above the midpoint, suggesting a balance between supply and demand.

The advantage will tilt in favor of the buyers if they push and support the price above the moving averages. The LTC/USDT pair could then climb to the upper resistance at $75. This is an important level to watch out for in the near term as a break above it could open the doors for a rally to $85.

Conversely, if the price declines from the current level and breaks below the 20-day EMA, the pair could slide to $65.

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LTC/USDT 4-hour chart. Source: TradingView

The moving averages on the 4-hour chart are moving up slowly and the RSI is in the positive territory, signaling that bulls have the upper hand. There is a small resistance at $72, but if this level is crossed, the upward move could reach $75.

Sellers are likely to mount a strong defense in the $72 to $75 zone, but if bulls bulldoze their way, the rally could accelerate and reach $80. On the downside, a break below $65 could open the doors for a decline to $61.

APE/USDT

ApeCoin (APE) has traded in a large range between $3 and $7.80 over the past several months. The moving averages have leveled off, and the RSI is near the midpoint, indicating that the selling pressure could be easing.

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APE/USDT daily chart. Source: TradingView

The bears did not allow the price to rise above the moving averages, but an encouraging sign is that the bulls maintained the buying pressure and did not let the price slide. This increases the possibility of a break above the moving averages. If this happens, the APE / USDT pair could go up to $4.58 and then to $5.25.

Alternatively, if the bears do not allow the price to pierce the upper resistance, the pair could again drop to the key support at $3. A slide below the support zone from $3 to $2.61 could indicate the beginning of the next leg down .

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APE / USDT 4 hour chart. Source: TradingView

The pair formed a symmetrical triangle on the 4-hour chart. This indicates indecision between the bulls and the bears. Although the moving averages are flat, the RSI has risen into the positive zone, indicating that bulls have a slight edge. If buyers clear the small obstacle at $3.71, the pair could rise to the resistance line of the triangle.

Conversely, if the price drops and breaks below the uptrend line, it will suggest that the bears are back in the game. The pair could then fall to $3.20 and then to the important support at $3.

Related: Rewind 2022: A cryptic recap of the year and step into 2023

ICP/USDT

Internet Computer (ICP) continues to trade below the breakout level of $4.61, but the RSI is forming a positive divergence, indicating that the selling pressure could ease.

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ICP/USDT daily chart. Source: TradingView

Buyers drove the price above the downtrend line on December 30, but the bulls could not sustain the breakout. The bulls tried to break the barrier again on January 1, but the long wick on the candlestick shows that bears are selling in intraday rallies.

If the price slips and supports below the 20-day EMA of $3.91, the bears will try to pull the price to $3.60 and then to $3.40.

Conversely, if the price rebounds from the moving averages, the bulls will again try to move the price above $4.21. If they can pull it off, the ICP/USDT pair could soar to $4.61, where the bears might try to stall the recovery.

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ICP / USDT 4 hour chart. Source: TradingView

The bulls managed to defend the 50-SMA but they failed to support the price above the 20-EMA. This indicates that bears are active at higher levels. If the price lowers and falls below $3.90, the pair could fall to $3.76 and then $3.60.

Alternatively, if bulls pierce the upper resistance zone from $4.10 to $4.21, the momentum could pick up and the pair could rise to $4.46. This level may behave as a minor obstacle but it will probably be crossed. The pair could then reach $4.61.

BIT/USDT

BitDAO (BIT) has been consolidating between $0.25 and $0.35 over the past few days, but the price action is showing signs of a potential breakout.

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BIT/USDT daily chart. Source: TradingView

The moving averages completed a bullish crossover, indicating a possible trend change. If buyers catapult the price above $0.35, the BIT/USDT pair could start a new uptrend. The pair could then attempt a rally to the target target at $0.45.

On the other hand, if the price goes down from $0.35, it will suggest that bears are guarding this level with vigor. The price could then dip towards the 20-day EMA of $0.30.

If the price rebounds from this level, it will suggest that sentiment may have shifted from selling rallies to buying dips. That could improve the prospects of a break above $0.35.

The bears will need to nudge the price below the moving averages to invalidate the bullish view. The pair could then remain stuck within the range for a moment longer.

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BIT/USDT 4 hour chart. Source: TradingView

The price has dropped sharply from the upper resistance at $0.35 but the bulls are trying to arrest the pullback at the 20-EMA. If the price bounces off the 20-EMA with strength, it will suggest aggressive buying on dips. The pair could then climb the upper resistance and begin its northern march to $0.40 and then $0.42.

Instead, if the price drops and breaks below the 20-EMA, several short-term bulls can book profits. That could pull the price to the 50-SMA. Such a move will suggest that the couple can spend a little more time in the interval.

This article does not contain investment advice or recommendations. Every investment and business move involves risk, and readers should do their own research when making a decision.