The range bound action in Bitcoin indicates that traders are avoiding big bets ahead of the Federal Reserve’s decision to raise interest rates on December 14th. However, that didn’t stop the action in select altcoins, which bode well in the near term.
Let’s take a look at Bitcoin charts, identify altcoins, and identify critical levels to watch out for in the short term.
Bitcoin has been hovering around the 20-day exponential moving average (EMA) of $17,031 for the past few days. A flat 20-day exponential moving average and a relative strength index (RSI) near 50 do not give a clear advantage to either the bulls or the bears.
BTC/USDT daily chart. Source: TradingView
The critical level to watch on the upside is $17,622. If buyers push the price above this level, the BTC/USDT pair may start a stronger recovery that may take it to the downtrend line. The bears are expected to defend this level aggressively.
If the price reverses from the downtrend line but does not fall below $17,622, this would indicate that the bulls are trying to turn the level into support. This could boost the odds of a breakout above the downtrend line. The pair could then rise to $21,500.
On the downside, the bears may gain strength if the price drops below $16,678. The pair could then drop to $15,995.
Four hour BTC/USDT chart. Source: TradingView
The pair is trading inside a bullish channel on the 4-hour chart. The bears kept the price in the lower half of the channel, which indicates selling on rallies. A breakout below the moving averages could pull the price to the channel support line. If this level fails to hold, the pair could start a downward movement to $16,678 in the near term.
If the price rises from the current level or support line of the channel, it will indicate that the bulls continue to buy on dips. The pair could then try to rise to the general resistance at $17,622. If this level is broken, the pair may climb to the channel resistance line.
It has been trading inside a falling wedge pattern for the past several days. A bullish 20-day EMA ($143) and the RSI in positive territory indicate that the bulls have an advantage.
XMR/USDT daily chart. Source: TradingView
XMR/USDT could rally to the wedge resistance line, where the bulls are likely to face a strong sell-off by the bears. If the price falls from the resistance line and breaks below the moving averages, this will indicate that the pair may extend its stay inside the wedge.
Alternatively, if the bulls push the price above the resistance line, it would indicate a change in the short-term trend. The pair could then try to rally to $174 which could act as a roadblock. A break above this level may indicate that the downtrend may be over.
XMR/USDT 4-hour chart. Source: TradingView
The pair is rising within an ascending channel formation on the 4-hour chart. This shows that the short-term sentiment remains positive and that traders are buying on dips. The pair could continue its upward movement and reach the resistance line near $156. If this level is measured, the rally could touch $162.
The first sign of weakness will be a breakout and close below the moving averages. The pair could then retreat to the channel’s support line. A break below the channel could start a move down to $133.