The supply and demand equation determines the price of an asset. In recent months, the increase in institutional demand for Bitcoin (BTC) has resulted in a strong bullish run. This upward trend may continue until demand exceeds supply.
The on-chain data shows two withdrawals of more than 12,000 Bitcoin each from Coinbase Pro this week, which is just under the 28,000 Bitcoin extracted in November. This suggests that the demand for institutional investors remains intact even after Bitcoin’s recent surge, because they are optimistic in the long run.
Meanwhile, the second richest man in Mexico, Ricardo Salinas Pliego, said in an interview with Cointelegraph that Bitcoin has been his “best investment ever.” Salinas has about 10% of his net portfolio in Bitcoin and he is in no hurry to sell, as he wants to “sit for another five or ten years”.
Strong demand and HODLing by institutional investors drove Bitcoin’s market capitalization to over $ 500 billion for the first time. It also increased Bitcoin’s dominance in the market to more than 70.5%, suggesting that the inflow of money was largely for Bitcoin.
However, at some point, new money will stop flowing into Bitcoin and this could result in a correction or consolidation. Traders can then shift their attention to selecting altcoins, which can gain momentum.
Let’s look at the charts of the top five cryptocurrencies that may rise in the coming days.
BTC / USD
Bitcoin’s price broke above the $ 24,302.50 air resistance on December 25 and resumed the bullish trend. This breakout is targeting $ 28,664.04 and the price has reached an intraday high of $ 28,419.94 today.
The BTC / USD pair’s steady increase attracted investors who were waiting on the sidelines for a fall to enter. Institutional investors, momentum brokers and speculators also joined the party that kept the upward trend intact.
However, the current rate of increase is not sustainable. The long wick in today’s chandelier suggests a profit reserve at higher levels. Even if the bullish trend continues, the pair may again sell close to the $ 30,000 mark.
If the upward trend stops, short-term traders may run for the exit and this could pull the price back to the 20-day exponential moving average ($ 22,613). If this support continues, the pair may again try to resume the upward trend.
On the other hand, a break below the 20-day EMA could drag the price to $ 20,000 critical support. Therefore, traders can avoid chasing higher prices.
The 4-hour chart shows the formation of a Doji candle pattern, which suggests indecision between bulls and bears. Although the uncertainty has resolved on the downside, the long tail of the candle shows buying at lower levels. This suggests that traders are buying with every small drop.
However, if the bulls are unable to drive the price above $ 28,419.94, the sale may continue and this could pull the price up to the 20-EMA by $ 25,446. The overbought levels in the relative strength index also point to a possible correction.
A break below 20-EMA and support at $ 24,302.50 will suggest that momentum has weakened.
LTC / USD
In a strong upward trend, traders generally buy the falls for the 20-day MME ($ 105) and that’s what happened on December 23. Litecoin (LTC) rebounded sharply on December 24 and momentum increased after bulls pushed the price above the $ 118.64 to $ 124.12 air resistance zone.
The immediate target is $ 145, but if bulls do not allow the price to fall and stay below $ 124.1278, the rise could extend to $ 180. The rising moving averages and RSI in the overbought zone suggest that bulls are in control.
This optimistic view will be invalidated if the LTC / USD pair changes from the current levels or the overload resistance and falls below the 20-day EMA. Such a move will suggest that traders are not buying the falls.
The 4-hour chart is also in an upward trend, with moving averages rising and the RSI in positive territory. However, the momentum weakened as the bulls faced resistance near $ 136.
If bulls do not allow the price to remain below the 20-EMA, the pair could reach $ 145. But if the price drops from current levels and breaks below $ 118.6497 and the simple moving average of 50, this will suggest the beginning of a deeper correction.
BCH / USD
Bitcoin Cash (BCH) has repeatedly tried to break above the general resistance of $ 353 in the past few days. Although the bulls pushed the price above $ 353 on two occasions, marked by an ellipse on the chart, they were unable to sustain the higher levels.
This suggests that traders are selling aggressively on any high above $ 353. However, the bright side is that bulls have accumulated in drops below $ 280 and are currently trying to push the price above $ 353.
If successful, the BCH / USD pair can start their journey towards $ 500. It may not be a direct race towards the target goal, because the bears will again try to halt the $ 409 and $ 430 high. escalated, the pair may gain momentum.
Rising moving averages and RSI above 61 suggest that bulls are at an advantage.
The 4-hour chart shows that the pair is currently trading within a large range between $ 255 and $ 370. The bulls are currently trying to drive the price above air resistance from $ 353 to $ 370.
If they are successful, the pair could start a bullish trend with a target target of $ 485. Moving averages have completed a bullish cross and the RSI is in the positive territory, suggesting that bulls are at an advantage.
However, if the price drops again from its current level or $ 370, the pair may extend its stay within the range for a few more days.
XMR / USD
The long wick on the December 23 chandelier shows that traders posted profits after Monero (XMR) hit $ 167, the target goal of breaking the reverse head and shoulders pattern.
However, the positive aspect was that the bulls bought the drop to the 20-day EMA ($ 151) on December 24th. The upward moving averages and the RSI in the positive zone suggest that sentiment remains positive.
The long tail on today’s candle shows that bulls are buying low. If they manage to push and keep the price above $ 170, the XMR / USD pair could rise to the next target target at $ 197, just below the $ 200 psychological resistance.
This positive view will be invalidated if the price falls from current levels and falls below the 20-day EMA. Such a move could signal a deeper correction to $ 135.50.
The 4-hour chart shows that the pair has been trading within an upward channel, but the bulls have failed to push and hold the price in the upper half of the channel. The pair generally descends from the midpoint of the channel.
This suggests that short-term traders are making profits at intermittent levels. However, if bulls can push and sustain the price above the channel’s midpoint, the pair may rise to the channel’s resistance line, indicating an acceleration in momentum.
On the other hand, a break below the channel’s support line may signal a possible change in the short-term trend.
THETA / USD
THETA has risen vertically in the past few days, which has pushed the RSI deeply into overbought territory. This started a correction seen from today’s sharp drop.
However, if the price does not fall and remains below the 38.2% Fibonacci retracement level at $ 1.31994, it will suggest that traders continue to buy in drops, as they anticipate the high to extend. further.
If bulls manage to push the price above $ 1,742, the THETA / USD pair could rise to the psychological level of $ 2 and then to $ 2.40.
Contrary to this bullish assumption, if the bears sink the price below the 50% Fibonacci retracement level at $ 1.18957, this will suggest that the momentum has weakened.
The 4-hour chart shows that the bulls are currently trying to defend the 20-EMA. If the pair recovers from this level, the bulls will try to resume the upward trend. Rising moving averages and positive territory RSI suggest that bulls are in control.
Contrary to this assumption, if the pair breaks below the 20-EMA, it will suggest that short-term momentum has weakened. This could pull the price for the next support on the 50-SMA.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you must conduct your own research when making a decision.