5 Cryptocurrencies to Follow This Week
Bitcoin's return to $ 19,000 could increase market sentiment and push certain altcoins higher this week.
5 Cryptocurrencies to Follow This Week
Bitcoin’s return to $ 19,000 could increase market sentiment and push certain altcoins higher this week.As the flow of institutional investors injecting funds into Bitcoin continues to increase, December was another blockbuster month for Bitcoin.
Business intelligence firm MicroStrategy announced that it increased convertible bonds worth $ 650 million by 0.75% in 2025. The company is currently planning to invest its net income in Bitcoin after identifying its “working capital needs and other general corporate purposes.”
With institutional investors showing such an appetite to buy Bitcoin (BTC) near its all-time high, it’s no surprise that corrections are shallow.
In a recent interview with CNBC, Tyler Winklevoss said that institutional investors are worried about the “inflation trouble with impending inflation and all currency printing and the incentive of COVID pandemic lockdowns”. So they are investing money in Bitcoin.
Today, the Bitcoin price has risen above the $ 19,000 level and can challenge the psychological resistance of $ 20,000.If money from retail investors also starts to rise, Bitcoin could gain momentum and begin the next leg of the uptrend.Along with bitcoin, there are several altcoins that may take the bullish next week. Let’s examine the charts of the top 5 cryptocurrencies to identify critical support and resistance levels to watch out for.
BTC / USD
Bitcoin closed below the 20-day exponential moving average ($ 18,435) on December 10 and 11. However, the long tail on the December 11 candlestick indicates that the bulls are buying the bearish rather than panicking and lowering their positions.
The price climbed above the 20-day EMA on December 12, which may have trapped some aggressive bears that went on sale expecting a sharp decline in the past few days. The bulls’ purchases pushed the price above the decreasing channel today.The price again reached the general resistance zone of $ 19,500 to $ 20,000. If the bulls can push the price above this zone, the next leg of the uptrend could begin.
Conversely, if the price drops sharply from current levels again and goes below $ 17,500, it could signal a short-term peak is in place. Such a move could push the price to the next support at $ 16,191.02.The 20-day EMA started to rise and the relative strength index (RSI) returned from the 50 level. This shows that the bulls have the upper hand.
The 4-hour chart shows a rising triangle formation that will complete at a breakout and close above the peak resistance zone. The target for this setup is $ 23,576.However, the bears are currently trying to stop the rise at the $ 19,500 resistance. If the price falls from the current levels, the bulls are likely to buy any drop to the 20-EMA. A strong recovery of this support will increase the likelihood of a break above $ 19,500.
If the BTC / USD pair falls from current levels and goes below the trend line of the triangle, this bullish view will be invalid.Disruption of the ascension pattern can trap several aggressive bulls, and this panic can result in selling. In such a case, the cards may drop to $ 16,191.02.
ETH / USD
Ethereum (ETH) broke off from the descending channel, giving the bulls an advantage. The price could now rise to the general resistance zone from $ 622,807 to $ 635,456.
The RSI bounced off the midpoint and broke off the bearish trend line, indicating that the bulls have the upper hand.If the bulls can push the price above the resistance zone, the next leg of the uptrend could begin. While there are some stops in between, the next target is $ 800.
On the other hand, if the ETH / USD pair returns from general resistance but doesn’t give much ground, this will be a positive sign and increase the likelihood of a breakout of the resistance zone.This bullish outlook will become invalid if the price falls from the current levels and re-enters the channel. Such a move will show that the current breakout is a bull trap.
The 4-hour chart is showing an ascending triangle formation, which will complete with a breakout and close above $ 622,807. The moving averages and the RSI on the verge of the bullish transition show that the bulls have the upper hand in the positive zone.This positive view will be invalid if the price breaks down from current levels or general resistance and falls below the triangle. Such a move could lower the price to $ 488,134.
XMR / USD
Monero (XMR) completed an inverted head and shoulders formation on December 7, but the bears quickly pulled the price below the neckline on December 9. However, the bulls again bought the decline at the 20-day EMA ($ 133). On December 11, the price rose again above $ 135.50. This indicates aggressive purchases at lower levels.
The upward moving averages and RSI above 66 give the bulls an advantage. The price target for breaking off from the bullish setup is $ 167.
However, bears may have other plans. They are likely to defend the psychological level at $ 150. If the price breaks down from this resistance but comes back from the $ 135.50 support, it will indicate the bulls are accumulating lower.
On the contrary, if the price drops below the $ 135.50 support and the 50-day SMA ($ 124), it will show that the bears are back in the driver’s seat.
The 4-hour chart shows the formation of an ascending triangle pattern completing with a breakout and closing above $ 142.50. However, the XMR / USD pair did not gain momentum and the price remained in the $ 142.50 to 150 range.
If the bulls can push the price above $ 150, the uptrend could continue with the next target of $ 162.50. The upward moving averages and the RSI in the positive zone indicate that the path of lowest resistance is up.
VIEW / USD
NEM (XEM) rose on December 12 and the price reached the overall resistance of $ 0.27688 today. The bears are currently trying to stop the upward movement at this resistance.
However, if the bulls do not give up too much from the current levels, this will indicate that traders are not taking profits in a hurry. This may keep the price range close to the general resistance.
The rising 20-day EMA ($ 0.209) and the RSI near the overall resistance indicate that the path of least resistance is up. If the bulls can push the price above $ 0.27688, the XEM / USD pair could move up to $ 0.3564607.
Bears aggressively defend overall resistance. If the price bounces back from the 20-EMA, it will increase the probability of a $ 0.27688 breakout. The upward sloping 20-EMA and the RSI in the positive zone indicate the bulls are gaining the upper hand.
Contrary to this assumption, if the price falls below the moving averages, a fall to the trend line is possible. A break below this support will indicate that the bulls have lost control.
AAVE / USD
AAVE is trading on an ascending channel. The price fell from the overall resistance of $ 95 on Dec. 8, but the positive sign is that the bulls have bought the decline at the 20-day EMA ($ 77).
The RSI once again bounced off the midpoint and the 20-day EMA began to emerge. This indicates that the correction may be over and the bulls are back in control. The first target on the upside is to retest $ 95.
If the bulls can push the price above $ 95, the next leg of the upward move could begin. The $ 100 psychological level could act as a resistance, but if the bulls can push the price above it, the AAVE / USD pair could rise to the channel’s $ 112 resistance line.
If the price falls from the current levels and goes below the support line of the channel, this bullish view will be invalid. Such a move will show that the trend is turning in the bears’ favor.
The price broke out at $ 70,564 just above the ascending channel’s support line, but the bears are trying to stop the rise from $ 86.14.
If the bulls can push the price above this resistance, the pair could rise to $ 95. A break above $ 95 could start the next leg of the uptrend.
On the other hand, if the price drops from $ 86.14, the pair could form the right shoulder of a possible reverse head and shoulders pattern. This view will be rejected if the price breaks below the $ 70.50 support.