The FTX collapse continues to create a “contagion” fear in the cryptocurrency space. One of the important names that fell under the circle of suspicion was the Grayscale Bitcoin Trust (GBTC), which trades with a discount of about 50 percent. So, which cryptocurrencies should be watched in such an uncertain environment? Here are analyst Rakesh Upadhyay’s expectations for Bitcoin and the four altcoins…
What are the prospects for Bitcoin (BTC)?
Bitcoin continues to trade in the narrow gap between $16,229 and $17,190. As we have also reported as Kriptokoin.com, periods of tight consolidation are usually followed by an increase in volatility. The downward sloping moving averages and the relative strength index (RSI) in the negative territory indicate that the path of least resistance is to the downside. If the price dips below $16,229, the intraday low of $15,588 from November 9 could be under threat. A break and close below this support could signal a resumption of the downtrend. The next support on the downside is $12,200.
If the bulls want to avoid further declines, they will have to push and sustain the price above the $17,622 breakout level. Such a move would mean strong demand at lower levels. The pair could then climb to the psychological level of $20,000. The BTC/USDT pair is trading near the flattening moving averages. This indicates that the pair has entered an equilibrium state as both buyers and sellers are undecided about the next directional move.
However, this uncertainty is not expected to continue for long. If the price dips below $16,229, the selling pressure will gain momentum and the pair will drop to $15,588. If this support is broken, the pair can start the next leg of the downtrend. Conversely, if the price rises and rises above $17,190, this will indicate that the current narrow gap is being used by the bulls to accumulate. The pair could later rally to $18,200 and later to $18,730
Next up for the recently rebounded altcoin TON
Toncoin (TON) has rebounded sharply from its June low. He managed to retain most of the winnings. This shows that traders are in no rush to empty their positions at higher levels. The TON/USDT pair formed a symmetrical triangle that often acts as a continuation pattern. Both moving averages are gradually rising and the RSI is in the positive zone, pointing to a slight advantage for the bulls.
If the price rises above the 20-day exponential moving average ($1.65), the bulls will try to push the price above the triangle. If they succeed, the pair could rally to $2.15 and then climb back to the $2.87 target target. Alternatively, if the price breaks below the 20-day EMA, the pair could drop to the 50-day simple moving average ($1.50) and then to the support line.
The pair is facing a stiff resistance at $1.80. The repeated failure to keep the price above this level may have encouraged short-term traders to record profits. The bears are trying to take advantage of this situation and push the price below the 50-SMA. If this support is broken, the pair could drop to $1.55. Conversely, if the price bounces back from the current level, the bulls will again try to scale the wall at $1.80. Repeated testing of a resistance level tends to weaken it. A close above this resistance could open the doors for a possible rally to $2.
Chiliz (CHZ) could start a new uptrend
Chiliz (CHZ) is trying to create an inverted head and shoulders pattern that will be completed together and closed above the neckline. If this happens, it could signal the start of a new uptrend. The reversal pattern’s pattern target is $0.54, but the bears are unlikely to give up easily. According to the analyst, the bears are aggressively defending the neckline. If the price breaks below the 50-day SMA ($0.21), the CHZ/USDT pair could drop to $0.18 and then $0.14. Alternatively, if the price bounces off the current level, buyers will again try to push the pair above the neckline and gain control.
The flattening moving averages and the RSI just below the midpoint give neither the bulls nor the bears a clear advantage. Therefore, it is better to wait for the price to break out before creating new positions. The pair declined sharply from $0.27 and the bears dragged the price below the moving averages. If the price stays below the 50-SMA, the pair could decline to $0.20. This could put bears in the driver’s seat.
On the other hand, if the price rises from the current level and rises above the 20-EMA, it will indicate that traders see the dips as a buying opportunity. The pair could rally to $0.26 later and then to $0.28. Buyers will have to push the price above this level to challenge the $0.30 resistance.
Quant tries to hop off the hotline
Although Quant (QNT) has corrected sharply over the past few days, it has been trying to gain support and bounce off the support line. According to the analyst, this indicates that demand is at lower levels. The falling 20-day EMA ($128) points to the advantage for the bears. But the RSI is trying to form a positive divergence. This indicates that the selling pressure may ease.
Buyers will have to push and hold the price above the 20-day EMA to indicate that the correction phase may have ended. The QNT/USDT pair could then rally to the 50-day SMA ($151) and then to $180. This positive view may be invalidated in the near term if the price continues to decline and breaks below the bullish trend line. The pair could decline further to $87 and then to $79.
The rebound in the pair faces selling near the downtrend line. This indicates that the bears are active at higher levels. According to the analyst, the bears pulled the altcoin price below the moving averages. It will try to extend the decline to $105 and then to $94. To invalidate this negative view, the bulls will need to hold the price above the downtrend line. The pair then rallies to $125 where the bears can make a strong defense. If the buyers break this hurdle, the up move could reach $136.
What’s next for the popular altcoin project TWT?
Most major cryptocurrencies have been expanding their downtrend over the past few days. Meanwhile, the Trust Wallet Token (TWT) has moved in the opposite direction. It rose sharply. This indicates performance in the near term. The TWT/USDT pair rose from $1.03 on November 10 to $2.73 on November 14. It rallyed 165 percent in a short time. This has pushed the RSI deep into the overbought zone. He suggested a minor correction or consolidation in the near term.
The pair is finding support near $1.88, the 50 percent Fibonacci retracement level. However, the bulls are struggling to push the price above $2.45. This indicates that the pair could consolidate between $1.81 and $2.45 for a few days. Both moving averages are rising and the RSI is staying in the positive territory. This shows that the bulls have the advantage.
The pair could resume its uptrend if buyers push the price above the $2.45 to $2.73 resistance zone. This positive sentiment could be invalidated in the event of a “breakout” and close below the 20-day EMA ($1.70). A break above this level could clear the way for a possible rally to $2.45. This remains the top hurdle for the bulls to overcome. If they manage to break it, the pair could retest $2.73. On the downside, a drop below $1.92 could result in a drop to $1.81.
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