Crypto analyst Rakesh Upadhyay shares 4 altcoins that could explode if Bitcoin continues to rise. Bitcoin is on the rise, but is it a dead cat bounce? According to the analyst, Litecoin (LTC), Okb (OKB), BitDAO (BIT), and Phantom (FTM) could see strong rises if BTC bulls keep up with it.
An overview of the cryptocurrency market
Cryptocurrency markets have made a strong comeback over the past few days. This brings the total crypto market capitalization to $995 billion on Jan. 14, according to CoinMarketCap data. cryptocoin.comAs you follow, Bitcoin led the recovery and skyrocketed above $21,000 on January 14. After the sharp rally, the real question is whether the rebound 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 has been made. However, the charts show that a bottoming process has begun.
Independent market analyst HornHairs highlighted that the bear market lasted 364 days from 2017 to 2018, and the period from 2021 to the current market low was again 364 days. Another interesting similarity is that the 2015-2017 bull market and the 2018-2021 bull phase both lasted 1,064 days. If history repeats itself, Bitcoin could make the next peak in about 1,000 days. Now it’s time for analysis…
Let’s first look at the leading cryptocurrency Bitcoin (BTC)
Bitcoin surged to $21,258 on January 13. This pushed the relative strength index (RSI) above 89, signaling that the rally is overheating in the short term. The bears are expected to make a strong defense at $21,500.
Sometimes when there is a trend change, the RSI can stay in the overbought zone for a long time. If the coin does not pull back too much from the current level, it will show that traders are not in a hurry to take profits as they are expecting another step higher. If buyers push the price above $21,500, BTC could climb to $22,800. This level can again act as a major roadblock. On the downside, the bears will have to push the price below the psychological $20,000 to break the bullish momentum. BTC could then decline to the $18,388 breakout level.
The 4-hour chart shows the bears holding the $21,250 level. A positive sign, however, is that the bulls have not allowed the price to drop below $20,000. Buyers could try again to break the overhead barrier at $21,258 and resume the uptrend. On the contrary, if the price drops from $21,250 once again, it may encourage short-term traders to take profits. This could push BTC below the 20-EMA. The bears can try to take advantage of this situation and pull BTC to $18,388.
We continue with the explosive Litecoin (LTC)
Litecoin broke the overhead resistance at $85 on January 12, signaling the start of a new uptrend. There is no major hurdle until the price hits $107.
On the downside, the bulls will try to fiercely defend the zone between $85 and the 20-day EMA ($79). If the price bounces back from this zone, LTC could resume its uptrend and reach $107. The upward sloping moving averages are signaling the advantage for the bulls. However, the RSI above 77 suggests a minor pullback or consolidation is likely. If the bears want to gain the upper hand, they will need to push the price below the breakout level of $75. This could lead to a drop to $61.
The 4-hour chart shows that LTC is in an uptrend and the bulls are fiercely holding the 20-EMA. If buyers push the price above $92, LTC could gain momentum and rise towards the psychological level of $100. Conversely, if the price drops and dips below the 20-EMA, it suggests that short-term traders can take profits. This could push the price towards the 50-SMA. This is an important level for the bulls to defend. Because a break below this could increase the risk of a drop to $80 and then to $75.
Third cryptocurrency Okb (OKB)
While several cryptocurrencies are trying to bottom out, OCD (OKB) has started a new uptrend. Generally, it is a good strategy to buy the dips in an uptrend by holding a suitable stop-loss.
The upward sloping moving averages and the RSI in the overbought zone suggest that the bulls dominate but a short-term consolidation or correction cannot be ruled out. OCD could drop to the 20-day EMA ($27.64), which is likely to act as a strong support. If the price bounces back from this level, OKB could touch the strong overall barrier at $34.18. Passing this level can be a difficult task. However, if the bulls can make it through, OKB could skyrocket to $42. If the bears want to stop the up move, they will have to push the price below the 20-day EMA. If they are successful, OKB could drop to the 50-day SMA ($24.05).
The 4-hour chart shows that the uptrend meets strong selling around $33 and the OKB may correct to the 20-EMA. If the price bounces back from this support, it will show that the bulls are buying on every small dip. This could push the price up to $34.18. Conversely, if the price breaks below the 20-EMA, the correction could deepen to the 50-SMA. If the price bounces back from this level, the bulls will try to continue the upward move again. However, it may face resistance near $31 and again around $33.
Another crypto with potential is BitDAO (ICT)
BitDAO marked strong bullish momentum, rising sharply from $0.26 on December 27 to $0.53 on January 14. Additionally, the shallow retracement on January 15 shows that traders are not rushing out of their positions as they anticipate the upward movement will continue.
If the bulls propel the price above the overhead resistance of $0.54, BIT may resume its upward move. The next resistance on the upside is at $0.68. Bears can pose a strong challenge at this level. Because a break and close above this could open the doors for a possible rally to $0.80. On the downside, initial support is $0.46 followed by the 20-day EMA ($0.42). A strong bounce from both supports indicates that traders are buying on the dips. This could result in a retest of $0.54. The bears can take control if they sink the price below the 20-day EMA.
The 4-hour chart shows OKB facing resistance near $0.54. However, the bulls will likely defend the drop to the 20-EMA. A strong rebound from this level will indicate that the bulls are buying from shallow dips. This could increase the probability of a break above $0.54. Alternatively, a few short-term traders can take profits if the price drops and dips below the 20-EMA. This can pull the OCD to the 50-SMA. If this level is also broken, OKB could drop to $0.41.
Latest cryptocurrency Phantom (FTM)
The Phantom broke above the downtrend line on January 9, signaling a potential trend change. The exit was followed by a sharp rally pushing the RSI to overbought levels.
Vertical upswings are unsustainable, so a pullback could be expected. FTM could decline to $0.30, the 38.2% Fibonacci retracement level, and then to $0.28, the 50% retracement level. If the price moves higher from this zone, it will suggest a change in sentiment from selling on rallies to buying on declines. The bulls will then try to continue the recovery and push FTM above $0.36. If they do, FTM could rise to $0.42. Conversely, a break and close below $0.28 could push FTM to the 61.8% retracement level to $0.26. A deeper dip could break the bullish momentum and increase the likelihood of a gap formation.
Both moving averages are rising and the RSI is in the positive territory. This points to an advantage for buyers. FTM could slide to the 20-EMA, which is likely to act as a strong support. If the price bounces back from this level, the bulls will try to continue the upward move. On the contrary, if the price dips below the 20-EMA, it will indicate that traders are aggressively taking profits after the last rally. FTM can then extend its correction up to the 50-SMA.
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