Bitcoin price consolidation may give way to gains in TON, APE, TWT and AAVE


US stock markets shrugged off warmer-than-expected jobs data on December 2 and rebounded sharply from intraday lows. This suggests that market watchers believe the Federal Reserve may not change its stance on slowing the pace of interest rate hikes due to recent jobs data.

While the FTX crisis has broken the positive correlation between US equity markets and Bitcoin (BTC), the stock’s recent strength indicates risk-on sentiment. This could be favorable for the cryptocurrency space and attract dip buyers.

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

A broader cryptocurrency recovery could gain steam once the extent of the damage caused by the FTX meltdown becomes more clear. Until then, bullish price action may be limited to select cryptocurrencies.

Let’s take a look at Bitcoin’s charts and pick the altcoins that are poised to start an uptrend in the near term.

BTC/USDT

Bitcoin has been trading close to its 20-day exponential moving average, or EMA, at $16,963 over the past three days. This suggests an uphill battle between the bulls and the bears to gain the upper hand.

BTC/USDT daily chart. Source: TradingView

On the upside, the main hurdle for buyers is $17,622. If the bulls push the price above this level, it will signal the end of the downtrend. The BTC/USDT pair may then reach the psychological level of $20,000. This level may again act as resistance, but if it is broken, the pair may rise to $21,500.

Conversely, if the price breaks below $17,622 and falls below the 20-day EMA, it will indicate that the bears have not yet given up. The pair could then consolidate in a wide range between $15,476 and $17,622.

BTC/USDT 4 hour chart. Source: TradingView

Buyers are defending the 20-day EMA on the four-hour chart, but the failure to make a strong bounce suggests that demand has dried up at higher levels. Bears may try to make the most of this opportunity and push the price below the moving averages. If they do, the pair could drop to $16,000 and then $15,476.

On the other hand, if the price rises above $17,250, the probability of a rally to $17,622 increases. This level could again act as a significant resistance, but if the bulls push the price above it, the pair could rise to $18,200.

TON/USDT

On November 30, Tonkoin (TON) broke above a symmetrical triangle pattern, but the bulls failed to sustain higher levels as seen by the long wick on the day’s candlestick. However, the bulls defended the 20-day EMA ($1.73) on the downside, indicating a buy on the downside.

TON/USDT daily chart. Source: TradingView

Moving averages and relative strength index (RSI) rising in the positive zone indicate an advantage for buyers. This improves the prospects of a break above the triangle resistance line. If this happens, buying could accelerate and the TON/USDT pair could rise to $2.15 and then move towards the $2.87 target.

This bullish outlook may be negated in the near term if the price breaks below the resistance line again and falls below the 20-day EMA. This could increase selling pressure and pull the pair to the 50-day simple moving average ($1.62) and further to the support line.

TON/USDT 4 hour chart. Source: TradingView

While the bulls are buying dips to the 20-day EMA, the bears are trying to defend the overhead resistance at $1.84. Price is squeezed between two levels and may be ripe for a series breakout.

If the price breaks above the overhead zone between $1.84 and the bearish trend line, it could attract more bull buying. It could start a new rally up to $2. An important level to watch on the downside is $1.68, as a break below it could accelerate the descent to the support line.

APE/USDT

ApeCoin (APE) bounced back from the downtrend line on November 30, but the bulls did not allow the price to break below the 20-day EMA ($3.73). This is a positive sign as it indicates low levels of demand.

APE/USDT daily chart. Source: TradingView

The 20-day EMA is gradually rising and the RSI is jumping into positive territory, indicating that the bulls are attempting a comeback. The APE/USDT pair may gain momentum on a break above the downtrend line. This could open the door for a possible rally to $5 and then $6.

Instead, if the price breaks down and breaks below the 20-day EMA, it would suggest that the bears are active at higher levels. The pair could then fall to $3, which would act as a strong support.

APE/USDT 4 hour chart. Source: TradingView

On the four-hour chart, the 20-EMA has flattened and the RSI is near the midpoint, indicating a balance between supply and demand. This uncertainty could change in favor of the bulls if they push the price above $4.05. The pair may then approach the bearish trend line.

Bears will need to push the pair below $3.77 if they want to take advantage. If they succeed, the decline could extend to $3.50.

Related: How much is Bitcoin today?

TWT/USDT

Trust Wallet Token (TWT) bounced back sharply from the 20-day EMA ($2.07) on November 27 and broke the resistance at $2.45 on December 2. This indicates that the trend remains up and traders see the dips as a buying opportunity. .

TWT/USDT daily chart. Source: TradingView

Bears may again pose a strong challenge at $2.73, but if bulls clear this barrier, the TWT/USDT pair may continue its uptrend. The next stop on the upside could be $3, and if this level is also removed, the pair can advance to the $3.51 target.

Conversely, if the price breaks down and breaks below $2.25, the pair may fall to the 20-day EMA. This remains a key level to watch on the downside, as a break below it could pull the pair towards $1.81. A break below this level could indicate that the pair could consolidate between $1.81 and $2.54 for several days.

TWT/USDT 4 hour chart. Source: TradingView

On the four-hour chart, the 20-EMA is up and the RSI is in the positive zone, indicating that buyers have an advantage. The bulls will try to push the price above the overhead resistance zone between $2.54 and $2.73. If they succeed, the pair could start the next phase of the uptrend.

Contrary to this hypothesis, if the price breaks down and falls below the 20-EMA, the bullish momentum may weaken and the pair may slide towards the 50-day simple moving average (SMA). Then the pair may stay in the range for a while before starting the next trend move.

AAVE/USDT

Aave (AAVE) recovered sharply from the psychological support at $50 and broke above the 20-day EMA ($63). Buyers are currently trying to strengthen their positions by turning the 20-day EMA into support.

AAVE/USDT daily chart. Source: TradingView

Bears are trying to defend the 32.8% Fibonacci retracement level at $68, but a small upside is that bulls are not giving up much ground. This indicates that buyers are expecting a move higher.

The 20-day EMA has flattened and the RSI is near the midpoint, indicating that the bears may be losing their grip. If buyers push the price above $68, the AAVE/USDT pair could rise to the 50-day SMA ($71) and then the 61.8% retracement level at $80.

Conversely, if the price breaks down and falls below the 20-day EMA, the pair may fall into the support line of the channel.

AAVE/USDT 4 hour chart. Source: TradingView

The pair faces resistance near $66, and the RSI has formed a negative divergence on the four-hour chart, indicating that the bullish momentum will weaken in the near term. A break below the 50-SMA could pull the price to the $56-58 support zone.

Alternatively, if the price rises from the current level and crosses $66, the pair may rise to $71. This level could act as resistance again, but if the bulls push the price above it, the rally could extend to $80.