Bitcoin's Winning Streak Ends, Spotlight Shines on Rising Altcoins Amid Market Turbulence
Summary:
An eight-week Bitcoin (BTC) winning streak seems likely to end as this week's price has dropped nearly 4%. Despite this, the short-term uptrend remains intact. Other promising cryptocurrencies gaining investor attention include Cosmos (ATOM), Filecoin (FIL), MultiversX (EGLD), and Algorand (ALGO), as traders look for potential profit among these altcoins amid Bitcoin's pause. The Federal Reserve's decision on rate hikes could further influence the demand for crypto products.
The price of Bitcoin (BTC) has fallen nearly 4% this week, signalling an end to its eight-week winning streak. This downturn suggests traders are taking profits but doesn't disrupt the short-term bullish trend. It may also temper the speculative exuberance that was beginning to build. After an initial shake-up, seasoned investors are expected to navigate back to the crypto market given the favourable macroeconomic conditions. The Federal Reserve's decision to halt rate hikes and possible rate cuts in 2024 could further fuel crypto product demand.
However, it’s rare for investments to exponentially grow without dips. After considerable rallies, traders generally secure profits and switch to alternative cryptocurrencies. With Bitcoin taking a pause, investor attention may shift to a selection of altcoins. Which cryptocurrencies are set to lure buyers in the short term? Let’s examine the top-five promising cryptocurrencies.
BTC, Bitcoin’s trading symbol, appears to be teetering between the 20-day exponential moving average ($41,370) and a declining trendline, indicating a potential severe breakout in the coming days. If it falls below the 20-day EMA, traders may see an opportunity and drag the BTC/USDT pair to a staunch support level at $37,980. Bulls are expected to aggressively defend this level.
Meanwhile, Cosmos (ATOM) has been ascending for the past few days, with the dip to 20-day EMA ($10.52) on Dec. 16 indicating strong demand at lower levels. Traders are struggling to push the price beyond the immediate barrier of $12.50.
Filecoin (FIL) has been bought at lower levels and is trying to form a cup and handle formation which will conclude on a break above $5.67. This would indicate the beginning of a brand-new surge. If Filecoin can break above $5.67, it may topple $8.41.
MultiversX (EGLD) returned from an overhead resistance of $70 on Dec. 12 and hit the 20-day EMA ($55) on Dec. 16. The bounce back from the 20-day EMA symbolizes that the market stays bullish and investors continue to buy on dips.
Finally, Algorand (ALGO) has struggled to break past the overhead wall of $0.22, but the minimal gain suggests that investors believe another rally is imminent. They are expected to buy the dip to the 20-day EMA ($0.18).
This news article is not investment advice or a recommendation. Every investment carries risk. Readers should conduct their own research and make their own decisions.
Published At
12/17/2023 6:52:15 PM
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