If Bitcoin remains positive, certain altcoins are likely to continue their uptrend. According to crypto analyst Rakesh Upadhyay, the SEC’s decision on spot Bitcoin ETF applications could positively impact some altcoin prices. The analyst examines Bitcoin and 4 altcoins that have the potential to outperform in the near term.
Bitcoin (BTC) price analysis
Bitcoin formed a Doji candlestick pattern on January 5th and an intraday candlestick pattern on January 6th, indicating indecision between bulls and bears. However, it is a positive sign that the price remains inside the ascending triangle formation. This bullish formation will be completed with a break and close above $44,700. If this happens, it could start the next leg of BTC’s uptrend towards $49,178 and then the $52,000 pattern target.
The support line of the triangle is an important level to pay attention to on the downside. If it surpasses this level, it is possible for BTC to drop to $40,000 and eventually to $37,980. Buyers are likely to defend this level fiercely.
Internet Computer (ICP) price analysis
Internet Computer has been experiencing a sharp pullback for several days. This shows that the bulls are in a hurry to exit. The bulls will try to stop the correction at the 20-day EMA ($11.18). If the price rebounds strongly from the 20-day EMA, it would indicate that sentiment remains positive and traders are buying on dips. The bulls will then make another attempt to push the altcoin price to $14.40 and eventually to $16.
The risk with this assumption is that the RSI has formed a negative divergence, indicating weakening momentum. A breakout and a close below the 20-day EMA would signal that the ICP uptrend may end in the near term.
Altcoin Arbitrum (ARB) price analysis
Arbitrum (ARB) failed to stay above $2. This encouraged short-term investors to book profits. Therefore, this pushed the price to the breakout level of $1.75. ARB is likely to witness a tough fight between buyers and sellers near the $1.75 level. A sharp rise in the price from $1.75 would indicate that the bulls have turned this level into support. This would increase the likelihood of a retest of the January 4 high of $2.11. A break above this level could start the next leg of the uptrend to $2.50.
Instead, if it breaks the $1.75 level, it is possible that the altcoin price could drop to the 20-day EMA ($1.59). ARB bulls will need to defend this level fiercely. Because it is possible that a drop below this level will start a decline to $1.35.
Stacks (STX) price analysis
STX price turned down from the overhead resistance of $1.78 on January 5. However, the retreat was short-lived. The altcoin price turned up from the 20-day EMA ($1.47) on January 6. This shows that the bulls continue to buy on dips. The bulls pushed the price towards the $1.78 resistance, where it may face strong selling from the bears. If buyers break this barrier, it is possible for STX to rise to $2.20 and then to $2.50.
Conversely, if the price drops sharply from the current level, STX may oscillate between the 20-day EMA and $1.78 for a while. The bears will have to sink the price below the 20-day EMA to initiate a deeper correction towards $1.20.
Altcoin Maker (MKR) price analysis
Maker pulled back in an uptrend. However, the bulls did not allow the price to fall below the $1,651 breakout level. This is a small positive for MKR. The 20-day EMA ($1,615) is sloping upwards. Also, the RSI is close to the overbought zone. This points to an advantage for buyers. If the recovery towards $1,651 continues, it would indicate that the bulls have turned this level into support. It is possible that MKR may later attempt a rally towards the $2,000 overhead resistance.
The 20-day EMA is an important support to watch out for on the downside. A breakout and close below this level is likely to pull MKR towards the 50-day SMA ($1,483).
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