The comparison of supply and demand determines the price of an asset. In recent months, the increase in institutional demand for Bitcoin (BTC) has resulted in a strong bull run. This upward trend can continue until demand exceeds supply.
Data on the chain shows two recordings of over 12,000 Bitcoin each from Coinbase Pro this week, that’s just less than the 28,000 Bitcoin mined in November. This suggests that institutional investor demand remains intact even after Bitcoin’s recent rally as they are bullish in the long run.
Meanwhile, Mexico’s second richest man, Ricardo Salinas Pliego, said in an interview with Cointelegraph that Bitcoin has been his “best investment ever”. Salinas has about 10% of his liquid portfolio in Bitcoin and he is in no rush to sell because he “wants to stay put for another five or ten years.”
Strong demand and HODLing by institutional investors have pushed Bitcoin’s market cap upward $ 500 billion For the first time. It has also boosted Bitcoin’s market dominance to over 70.5%, suggesting that the inflow of money has largely been in Bitcoin.
However, at some point, fresh money will stop flowing into Bitcoin and that can result in a correction or consolidation. Traders can then divert their attention to select altcoins, which could attract momentum.
Let’s take a look at the charts of the top five cryptocurrencies that could rise in the coming days.
BTC / USD
The incessant gains of the BTC / USD pair have attracted traders who had been waiting on the sidelines for a dip. Institutional investors, momentum traders and speculators have also joined the party that has kept the upward trend intact.
However, the current rate of increase is not sustainable. The long wick on today’s candlestick suggests higher levels of profit posting. Even if the uptrend continues, the pair could again face sales near USD 30,000.
If the uptrend kicks off, the short term traders could rush to the exit and that could pull the price back to the 20-day exponential moving average ($ 22,613). If this support continues, the couple could try to resume the uptrend.
On the other hand, a break below the 20-day EMA could drag the price towards the critical support of USD 20,000. Hence, traders can avoid chasing higher prices.
The 4-hour chart shows the formation of a Doji candlestick pattern, indicating indecision in the bulls and bears. While the uncertainty was gone the other way, the long tail on the candlestick shows buying at lower levels. This suggests that traders are buying with every little dip.
However, if the bulls fail to bring the price above $ 28,419.94, the sale could continue and that could bring the price down to the 20 EMA at $ 25,446. Overbought levels on the relative strength index also point to a possible correction.
A break below the 20 EMA and the USD 24,302.50 support suggest that momentum has weakened.
LTC / USD
In a strong uptrend, traders usually buy the dips from the 20-day EMA ($ 105) and that’s what happened on December 23rd. Litecoin (LTC) rebounded strongly on December 24, and momentum picked up as the bulls pushed the price above $ 118.64 to the $ 124.12 above-ground resistance zone.
The immediate target is at USD 145, but if the bulls don’t allow the price to fall and remain below USD 124,1278, the rally could reach USD 180. Rising moving averages and RSI in the overbought zone suggest bulls are pulling the strings. have in your hands.
This optimistic view will be invalidated if the LTC / USD pair reverses from current levels or overhead resistance and falls below the 20-day EMA. Such a move would suggest that traders are not buying the dips.
The 4-hour chart is also on an upward trend, with both the moving averages sloping and the RSI into positive territory. However, momentum has weakened as bulls face resistance near USD 136.
If the bulls don’t allow the price to stay below the 20 EMA, the pair could be on track to hit $ 145. But if the price moves down from current levels and falls below USD 118.6497 and the 50-easy moving average, it will suggest the start of a deeper correction.
BCH / USD
Bitcoin Cash (BCH) has repeatedly tried to move above the $ 353 overhead resistance over the past few days. Although the bulls had pushed the price above USD 353 twice, marked by an ellipse on the chart, they were unable to sustain the higher levels.
This suggests that traders are selling aggressively on any rise above USD 353. On the upside, however, the bulls have rallied on declines below USD 280 and are currently trying to push the price above USD 353.
If they pass, the BCH / USD pair can start its journey towards $ 500. It may not be a straight line to its intended target as the bears will try again to stop the rally at $ 409 and $ 430. But if both tiers are scaled up, the pair could gain momentum.
The ascending moving averages and RSI above 61 suggest that bulls have the upper hand.
The 4-hour chart shows that the pair is currently trading in a wide range between USD 255 and USD 370. The bulls are currently seeking to push the price above USD 353 to USD 370 overhead.
If they succeed, the pair could start an uptrend with a target target of $ 485. The moving averages have completed a bullish crossover and the RSI is in the positive area, suggesting bulls are predominant.
However, if the price moves back down from the current level or USD 370, the pair may extend its stay within the range for a few more days.
XMR / USD
The long wick on December 23 candlestick shows that traders made a profit after Monero (XMR) $ 167, which is the intended target of the reverse head and shoulders pattern breakout.
On the upside, however, the bulls bought the dip to the 20-day EMA ($ 151) on Dec. 24. The rising moving averages and the RSI in the positive zone suggest sentiment remains positive.
The long tail on today’s candlestick shows that bulls buy on dips. If they can push and hold the price above USD 170, the XMR / USD pair could move towards the next target target at USD 197, just below the psychological resistance of USD 200.
This positive view will be invalidated if the price falls below current levels and breaks below the 20-day EMA. Such a move could mean a deeper correction to $ 135.50.
The 4-hour chart shows the pair trading in a bullish channel, but the bulls have failed to push and hold the price towards the top half of the channel. The pair is usually knocked off from the center of the canal.
This suggests that in the short term, traders are taking profits at intervals. However, if the bulls can push and hold price above the center of the channel, the pair could rally towards the channel’s resistance line, signaling a rebound in momentum.
On the other hand, an interruption below the channel’s support line could signal a possible change in the short-term trend.
THETA / USD
THETA has been rallying vertically in recent days, pushing the RSI deep into overbought territory. This has started to correct, as seen from today’s sharp decline.
However, if the price does not fall and remains below the 38.2% Fibonacci retracement level at $ 1.31994, this will suggest that traders will continue to buy on dips as they expect the rally to expand further.
If the bulls can push the price above USD 1.742, the THETA / USD pair could move up towards the USD 2 psychological level and then towards USD 2.40.
Contrary to this optimistic assumption, if the bears drop the price below the 50% Fibonacci retracement level at $ 1.18957, it would suggest that momentum has weakened.
The 4-hour chart shows that the bulls are currently trying to defend the 20 EMA. If the pair bounces off this level, the bulls will attempt to resume the uptrend. The ascending moving averages and the RSI in the positive area suggest that bulls are in control.
Contrary to this assumption, if the pair breaks below the 20 EMA, it will suggest that the momentum has weakened in the near term. That could bring the price down to the next support with 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 trade move carries risks, you should do your own research when making a decision.