Bitcoin price stalls as UNI, NEAR, OP and INJ project bullish price action in 2024
Bitcoin (BTC) has been range-bound in the near term, but it has recorded an impressive run of more than 155% in 2023. The rally has boosted sentiment, with investors expecting the bull run to continue in 2024.
The earliest trigger will be from the decision on the spot Bitcoin exchange-traded fund (ETF) applications by the United States Securities and Exchange Commission. Crypto options trading platform Greeks.live said in a recent tweet that options data suggests the markets have priced in the approval of a spot Bitcoin ETF. As a result, the firm believes that the markets may not witness a sharp move.
Irrespective of the short-term reaction to the ETF ruling, the crypto space is in a bull phase, as Bitcoin and several major altcoins have been making higher highs and higher lows over the past several weeks. In an uptrend, dips are generally viewed as a buying opportunity.
Could Bitcoin and altcoins extend their uptrend in the first week of the new year? Let’s look at the charts of the top five cryptocurrencies showing promise.
Bitcoin price analysis
The bears tried to tug Bitcoin below the support line of the ascending triangle pattern on Dec. 29 and 30, but the bulls held their ground.
The flat 20-day exponential moving average (EMA) ($42,484) and the relative strength index (RSI) near the midpoint suggest an equilibrium between buyers and sellers. If the price rises above the 20-day EMA, the bulls will try to drive the BTC/USDT pair above $44,700 and complete the bullish setup. If they succeed, the pair may resume the uptrend toward the pattern target of $49,178.
Conversely, if the price turns down and plunges below the triangle, it will invalidate the bullish pattern. The breakdown of a positive setup is a negative sign, as it may trigger stops of aggressive traders. The pair could first drop to $40,000 and eventually to $37,980.
The bulls pushed the price above the 20-EMA but are finding it difficult to overcome the barrier at the 50-simple moving average. If the price turns down sharply from the current level, the bears will attempt to pull the pair below the triangle, starting a downward move to $40,000.
However, the bulls are likely to have other plans. The positive divergence on the RSI suggests that the selling pressure is reducing. If buyers drive and maintain the price above the 50-SMA, the pair could rally to $44,000 and later to $44,700.
Uniswap price analysis
Uniswap’s UNI (UNI) is witnessing a tough battle between the bulls and the bears near the overhead resistance at $7.79.
The upsloping moving averages and the RSI near 66 suggest that the path of least resistance is to the upside. If buyers clear the hurdle at $7.79, the UNI/USDT pair could pick up momentum and soar to $8.26 and thereafter to $9.65.
Contrary to this assumption, if the price turns down from $7.79, it will suggest that the bears are fiercely defending the level. The pair could then plummet to the crucial support at $6.70, which is likely to attract buyers.
The price rebounded off the 50-SMA and rose above the 20-EMA, indicating that the short-term correction could be ending. The price could rise to $7.79, where the bears are expected to mount a strong defense. If buyers catapult the price above $7.79, the pair may climb to $8.26.
Alternatively, if the price turns down and breaks below the 20-EMA, it will suggest an advantage to the bears. The pair may once again slip to the critical support of the 50-SMA. If this level gives way, the pair could collapse to $6.70.
Near Protocol price analysis
Near Protocol’s NEAR (NEAR) is trying to find support between the 38.2% Fibonacci retracement level of $3.64 and the 50% retracement level of $3.34.
The gradually upsloping 20-day EMA ($3.30) and the RSI in the positive zone indicate that buyers have a slight edge. The bulls will try to propel the price toward the Dec. 26 high of $4.62. If this level is taken out, the NEAR/USDT pair could surge to $6.
Meanwhile, the bears are likely to have other plans. They will try to sell the rallies and yank the price below the 20-day EMA. If they do that, the decline could extend to the 61.8% Fibonacci retracement level of $3.04 and subsequently to the 50-day SMA ($2.43).
The pair has been trading below the 20-EMA, indicating that bears have the upper hand in the short term. If the price turns down and slips below $3.52, the next stop is likely to be $3.20. The deeper the fall, the greater the time it will take for the next leg of the up move to begin.
The first sign of strength will be a rise above the downtrend line. That will open the doors for a possible rally to $4.32 and eventually to $4.62.
Related: BTC price targets $42K 2023 close as Bitcoin OG says ETF 'not priced in'
Optimism price analysis
Optimism’s OP (OP) has been consolidating in an uptrend for the past few days, indicating that the bulls are not rushing to the exit, as they anticipate another leg higher.
The upsloping 20-day EMA ($3.07) and the RSI in the positive territory show that bulls are in command. Buyers are expected to vigorously defend the $3.40 to $3.22 support zone. A strong rebound off this support zone will suggest that lower levels continue to attract buyers. The OP/USDT pair could then rise to $4.18 and later to $5.
If bears want to prevent the upside, they will have to sink the price back below the breakout level of $3.22. The pair may then slump to $2.75.
The bulls have managed to keep the pair above the 50-SMA, but they failed to resume the up-move. This suggests that the bears have not given up and are selling the rallies. The flattening 20-EMA and the RSI near the midpoint indicate a balance between supply and demand.
The first sign of strength will be a break and close above $3.95. That could open the doors for a rally to $4.18. On the other hand, a slide below the 50-SMA will tilt the short-term advantage in favor of the bears. The pair may then descend to $3.22.
Injective price analysis
The pullback in Injective’s INJ took support at the 20-day EMA ($34.73) on Dec. 30, indicating that the sentiment remains positive and traders are buying the dips.
The bounce off the 20-day EMA is likely to face resistance at $40, but if bulls overcome this barrier, the INJ/USDT pair could retest the overhead resistance at $44.86. A break above this level could start the next leg of the uptrend to $51.
This positive view will be invalidated in the near term if the price turns down from the overhead resistance and breaks below the 20-day EMA. That could start a sharp decline to the 50-day SMA ($24.69).
The pair rose back above the 20-EMA, but the bulls are struggling to shove the price above the 50-SMA. This suggests that the bears have not given up and are active at higher levels. If the price skids below the 20-EMA, the pair could drop to $34. This is an important level to keep an eye on because a break below it may deepen the correction to $28.
The bulls will have to kick the price above the 50-SMA to regain control. The pair may then rally to the stiff overhead resistance at $44.86.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.