Bitcoin and these 4 altcoins are showing bullish signs

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Cryptocurrency markets are showing no signs of volatility heading into the holiday season. This suggests that bulls and bears are playing it safe and not making big bets due to uncertainty regarding the next directional move. This phase of indecision should not last long as periods of low volatility are usually followed by increased volatility.

Willy Woo, creator of on-chain analysis resource Woobull, predicts that the duration of the current bear market could be longer than 2018 but shorter than 2015.

Daily view of crypto market data. Source: Coin360

The crypto winter resulted in a loss of more than $116 billion in equity for 17 investors and founders in the cryptocurrency space, according to Forbes estimates. The carnage was so severe that the names of 10 investors were removed from the list of crypto billionaires.

Could the bear market deepen further or is it showing signs of incipient recovery? Let’s look at Bitcoin (BTC) charts and select altcoins to find out.

BTC/USDT

Bitcoin has been trading in a tight range near the 20-day exponential moving average (EMA) of $16,929 for the past few days. This indicates that the bears are defending the level, but the bulls have not given up yet.

BTC/USDT daily chart. Source: Trading View

This period of calm is unlikely to continue for long, and the BTC/Tether (USDT) pair could see a range expansion soon. Generally, it is difficult to predict the direction of the breakout, so it is best to wait for the pair to make a decisive move before initiating directional bets.

If the price breaks above the moving averages, the likelihood of a rally towards the overhead resistance at $18,388 increases. This level can again act as a major hurdle, but if the bulls break through, the momentum could pick up and the pair could rally back to $20,000.

On the downside, a break below $16,256 could signal that the bears are in control. The sellers will then attempt to sink the pair towards vital support at $15,476.

BTC/USDT 4 hour chart. Source: Trading View

Both moving averages on the 4-hour chart have flattened out and the Relative Strength Index (RSI) is just below the center. This suggests limited short-term action. The limits of the range could be $17,061 on the upside and $16,256 on the downside.

A break above $17,061 will signal that the bulls have emerged victorious and this could trigger a short-term upside. On the other hand, a drop below $16,256 will suggest that the bears have tightened their grip.

ETH/USDT

Ether (ETH) has been holding onto the 20-day EMA of $1,228 for the past few days. This suggests that traders are expecting a break above this general resistance.

ETH/USDT daily chart. Source: Trading View

The 20-day EMA is flattening out and the RSI is just below the midpoint, suggesting a balance between buyers and sellers. If the bulls push the price above the moving averages, the ETH/USDT pair could attract further buying. The pair might then rally to $1,352 and later to the downtrend line. This level could again act as a formidable resistance.

On the contrary, if the price does not break above the moving averages, several short-term traders can sell aggressively. This could pull the price towards the strong support at $1,150. If this level breaks, a head and shoulders pattern may be complete. This could pave the way for a potential decline to $1,075 and then to $948.

ETH/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the rally is facing resistance in the area between the 38.2% Fibonacci retracement level of $1,227 and the 50% retracement level of $1,251. If the price declines and breaks below $1180, the pair could retest the important support at $1150.

Conversely, if the price moves higher and breaks above $1,251, the rally could hit the 61.8% retracement level of $1,275. If the bulls manage to clear this hurdle, the pair could perform a 100% retracement and rise to $1,352.

TON/USDT

Toncoin (TON) has been consolidating in an uptrend for the past few days. Although the bears blocked the upside move at $2.90, a small silver lining is that the bulls didn’t give up much ground. This suggests buying on dips.

TON/USDT daily chart. Source: Trading View

The rising 20-day EMA of $2.25 and the RSI in positive territory indicate that the bulls have the upper hand. If the buyers push the price above $2.50, the TON/USDT pair could rise to $2.65 and then retest at $2.90.

The bears probably have other plans as they will try to drive the price down below the 20-day EMA and strengthen their position. There is minor support at $2.15, but if that doesn’t hold, the pair could drop to the 50-day simple moving average (SMA) of $1.91.

TON/USDT 4 hour chart. Source: Trading View

The pair formed a symmetrical triangle on the 4-hour chart. This indicates indecision between bulls and bears. The flat moving averages and the RSI close to the midpoint also do not give anyone a clear advantage.

The first sign of strength will be a breakout and a close above the resistance line of the triangle. This could trigger a rally to $2.90. If this level is scaled, the move up could hit the pattern target of $3.24.

If the price is falling from the 50-SMA or the resistance line of the triangle, it will suggest that the pair may extend its stay inside the triangle. A break below the support line could indicate that the bears have regained control.

Related: The 5 Most Important Regulatory Developments For Crypto In 2022

XMR/USDT

Monero (XMR) has failed to break above the falling wedge pattern resistance line over the past few days, but a positive sign is that the bulls are trying to hold the price above the $140 50 SMA. days.

XMR/USDT daily chart. Source: Trading View

The moving averages have flattened out and the RSI is near the center. This indicates a balance between supply and demand. If the price breaks above the $144 20-day EMA, the buyers will try to gain the upper hand by pushing the XMR/USDT pair above the wedge. If that happens, the pair could rally to $174. A break above this level could signal a potential trend change.

On the other hand, if the price drops below $138, the advantage could tip in favor of the bears. The pair could then drop to $125.

XMR/USDT 4 hour chart. Source: Trading View

The pair has bounced off the strong support at $138.50 and the bulls are trying to push the price above the moving averages. If successful, the pair could rally back to the downtrend line, where the bears could once again mount a strong defense.

If the price drops from the downtrend line, the bears will try to pull the pair to $138.50. This is an important level to watch in the short term, as a break below could complete a descending triangle pattern. The pair could then drop to $132 and then to the pattern target of $124.

On the upside, a break above the downtrend line could invalidate the bearish setup and pave the way for an eventual rally to $153.

OKB/USDT

Centralized cryptocurrency exchanges have been in the eye of the storm since the collapse of FTX, but OKB (OKB) is about to complete a bullish reversal pattern. This is the reason for his selection on the list.

OKB/USDT daily chart. Source: Trading View

The OKB/USDT pair has formed a large reverse head and shoulders pattern, which will end on a break and close above $23.22. Both moving averages are up and the RSI is in positive territory, indicating that the path of least resistance is on the upside.

If the price breaks above the psychological level of $25, the pair could start a further rise to $28 and then to $31. The pattern target of the reversal formation is $36. This positive view could be invalidated if the price declines from the current level and drops below the moving averages. The pair could then fall to $17.

OKB/USDT 4 hour chart. Source: Trading View

The pair formed an ascending triangle on the 4-hour chart. This bullish setup will end on a break and close above $24.15. If that happens, the pair could start a fresh rise towards the $31 pattern target.

Alternatively, if the price declines and falls below the triangle, it will invalidate the bullish setup. This could trigger stops from aggressive buyers who may have gone long in anticipation of a breakout. The pair could then slide to $20.

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.

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