5 altcoins that could explode if the price of Bitcoin stays on the rise


Cryptocurrency markets have made a strong comeback in the past few days. This brought the total capitalization of the cryptocurrency market to $995 billion on January 14, according to data from CoinMarketCap. Bitcoin (BTC) led the recovery from the front, breaking above $21,000 on January 14.

After the sharp rally, the big question is whether the recovery is a dead cat bounce, a selling opportunity, or the start of a new uptrend. It is difficult to predict with certainty whether a macro bottom will be formed or not, but the charts indicate that the bottoming process has begun.

A daily view of cryptocurrency market data. Source: Coin 360

HornHairs, an independent market analyst, pointed out that from 2017 to 2018, the bear market lasted 364 days, and from 2021 to the current market low, the period was again 364 days. Another interesting similarity is that the 2015-2017 bull market and the 2018-2021 bull phase lasted 1,064 days. If history repeats itself, then Bitcoin could rise to the next peak in about 1000 days.

Bitcoin’s short-term price action has been exciting for the bulls, but are there any altcoins showing similar near-term strength?

Let’s study the graphs to find out.

BTC/USDT

Bitcoin rose to $21,258 on January 13, pushing the relative strength index (RSI) above 89, indicating that the rally is overheated in the short term. Bears are expected to mount a strong defense at $21,500.

BTC/USDT daily chart. Source: TradingView

Sometimes when a trend reversal occurs, the RSI can stay in overbought territory for a long time. If the BTC/USDT pair does not pull back much from the current level, it will indicate that traders are not in a rush to take profits as they are waiting for a higher leg.

If buyers push the price above $21,500, the pair could rise to $22,800. This level can again act as a major obstacle.

On the downside, the bears will need to pull the price below the $20,000 psychological level to slow the bullish momentum. The pair could then fall to the $18,388 breakout.

BTC/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the bears are holding the $21,250 level, but a positive sign is that the bulls are not letting the price fall below $20,000. Buyers can again try to break the upper barrier at $21,258 and continue the uptrend.

Conversely, if the price breaks below $21,250 again, it could prompt short-term traders to take profits. This could push the pair below the 20-EMA. Bears may try to take advantage of this situation and pull the pair up to $18,388.

LTC/USDT

Litecoin (LTC) broke above the overhead resistance at $85 on January 12, signaling the start of a new uptrend. There is no major barrier until the price reaches $107.

LTC/USDT daily chart. Source: TradingView

On the downside, bulls will try to fiercely defend the zone between $85 and the 20-day EMA ($79). If the price bounces back from this zone, the LTC/USDT pair may continue its uptrend and reach $107.

Rising moving averages favor the bulls, but an RSI above 77 indicates the possibility of a minor pullback or consolidation.

If the bears want to gain an advantage, they will have to lower the price below $75. This could pave the way for a collapse to $61.

LTC/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the pair is in an uptrend and the bulls are fiercely protecting the 20-EMA. If buyers push the price above $92, the pair may gather momentum and move towards the psychological level of $100.

Conversely, if the price breaks down and breaks below the 20-EMA, it will suggest that short-term traders can take profits. This could pull the price up to the 50-SMA. This is an important level for bulls to defend, as a break below it could increase the risk of a fall to $80 and then $75.

OCD/USDT

While several cryptocurrencies tried to hit bottom, OKB (OCB) started a new uptrend. Usually, it is a good strategy to buy dips in an uptrend while maintaining an appropriate stop loss.

OCD/USDT daily chart. Source: TradingView

Rising moving averages and RSI in overbought territory indicate that bulls are in command, but a short-term consolidation or correction cannot be ruled out. The OKB/USDT pair may fall to the 20-day EMA ($27.64), which will act as a strong support.

If the price breaks back from this level, the pair may touch a strong overhead barrier at $34.18. Breaking this level may be a difficult task, but if the bulls manage to do so, the pair could rise to $42.

If the bears want to stop the rise, they will need to pull the price below the 20-day EMA. If they succeed, the pair could fall to the 50-day SMA ($24.05).

OCD/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the uptrend has encountered strong selling near $33 and the pair may correct to the 20-EMA. If the price breaks back from this support, it will indicate that the bulls are buying on every minor dip. This could bring the price to $34.18.

Conversely, if the price breaks below the 20-EMA, the correction may deepen to the 50-SMA. If the price breaks back from this level, the bulls will try to continue the uptrend again, but may face resistance near $31 and again near $33.

Related: Bitcoin fails to convince that a bottom is “still likely” at $12k

BIT/USDT

BitDAO (BIT) rose sharply from $0.26 on December 27th to $0.53 on January 14th, indicating strong bullish momentum. Furthermore, the shallow pullback on January 15 shows that traders are not in a hurry to exit their positions as they expect the uptrend to continue.

BIT/USDT daily chart. Source: TradingView

If the bulls push the price above the upper resistance at $0.54, the BIT/USDT pair may continue to rise. The next resistance on the upside is $0.68. Bears could pose a strong challenge at this level, as a break and close above it could open the door for a possible rally to $0.80.

On the downside, the first support is at $0.46, followed by the 20-day EMA ($0.42). A strong breakout from either support would indicate that traders are buying on the decline. This could result in a retest of $0.54. Bears may take control if the price breaks below the 20-day EMA.

BIT/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the pair is facing resistance near $0.54, but the bulls are likely to defend a drop to the 20-EMA. A strong rebound from this level would indicate that bulls are buying on shallow declines. This could improve the prospects of a break above $0.54.

Alternatively, a few short-term traders can take profits if the price breaks down and breaks below the 20-EMA. This could pull the pair to the 50-SMA. If this level is also cracked, the pair can fall to $0.41.

FTM/USDT

Fantom (FTM) broke above the bearish trend line on January 9, indicating a potential trend reversal. The breakout was followed by a sharp rally that took the RSI to overbought levels.

FTM/USDT daily chart. Source: TradingView

Vertical rallies are not sustainable, so a pullback was expected. The FTM/USDT pair may fall to the 38.2% Fibonacci retracement level of $0.30 and then the 50% retracement level of $0.28.

If the price breaks out of this zone, it will suggest a change in sentiment from selling on rallies to buying on dips. The bulls will then look to continue the recovery and push the pair above $0.36. If they do, the pair could rise to $0.42.

Conversely, a break and close below $0.28 could bring the pair down to the 61.8% retracement level at $0.26. A deeper dip can disrupt the upward momentum and increase the likelihood of a range formation.

FTM/USDT 4 hour chart. Source: TradingView

Both moving averages are rising and the RSI is in positive territory, indicating upside for buyers. The pair may slide towards the 20-EMA, which is likely to act as a strong support. If the price breaks back from this level, the bulls will try to continue the rise.

Conversely, if the price breaks below the 20-EMA, it will suggest that traders aggressively take profits after the recent rally. The pair can then extend its correction to the 50-SMA.