Bitcoin Price Reclaims $35K – Will ATOM, UNI, NEAR, and AXS Rally Next?
The S&P 500 Index had a strong performance last week, rising 5.85%. This surge was fueled by expectations that the Federal Reserve will not hike rates anymore. In comparison, Bitcoin (BTC) had a more muted performance, with a rise of approximately 2%. However, there is a positive sign for cryptocurrency investors as a risk-on sentiment is likely to benefit the crypto space.
Bitcoin’s rise has attracted investments in several beaten-down altcoins that are rising from their long-term slumber. If Bitcoin maintains its current performance, the recovery may spread to coins that have not yet participated in the rise.
Even as Bitcoin enters a range, select altcoins are showing signs of moving higher. Let’s take a look at the charts of the top 5 cryptocurrencies that may extend their rally in the next few days.
Bitcoin Price Analysis
Bitcoin continues to trade near the $35,000 resistance and the price action of the past few days has formed an ascending channel pattern. After a sharp rally, a tight ascending channel is generally considered a negative sign.
If the price turns down and skids below the channel, it may tempt several aggressive traders to book profits. That may pull the price to the 20-day exponential moving average ($33,033). A strong rebound off this level will suggest that the bulls remain in command. They will then again try to thrust the price above $36,000 and resume the uptrend.
On the contrary, if the price turns down and breaks below the 20-day EMA, the BTC/USDT pair could plunge to the strong support zone between $32,400 and $31,000. The bulls are expected to defend this zone with all their might because a break below it will tilt the advantage in favor of the bears.
The pair has been gradually rising inside the ascending channel pattern, but the negative divergence on the relative strength index (RSI) suggests that the bullish momentum may be weakening. If bulls want to retain control, they will have to kick the price above the channel. If they manage to do that, the pair may rally to $40,000.
Meanwhile, the bears are likely to have other plans. They will try to sink the price below the channel and gain the upper hand. If they are successful, the pair may tumble to $32,400.
Cosmos Price Analysis
Cosmos (ATOM) rose above the $7.60 resistance on Oct. 30, completing a double bottom pattern. The bulls successfully defended the breakout level between Nov. 1-3.
Buyers propelled the price above $8.25 on Nov. 5, indicating the resumption of the uptrend. The pattern target from the breakout of the bullish setup is $8.91. This level may act as a barrier, but if crossed, the ATOM/USDT pair could run up to $10.
The important support to watch on the downside is $7.60. If bears pull the price below this level, it will suggest aggressive selling at higher levels. The pair may then dump to the 50-day SMA ($7.07).
The 4-hour chart shows that the price rose above the nearby resistance of $8.20, signaling a minor advantage to the buyers. If bulls maintain the price above $8.20, the pair is likely to start the next leg of the up-move to $8.91.
Contrarily, if the price turns down and breaks below the 20-EMA, it will suggest that the markets have rejected the higher levels. That may lead to long liquidation and pull the price to the strong support at $7.60.
Uniswap Price Analysis
Uniswap (UNI) reached the overhead resistance of $5 on Nov. 2, but the bulls could not overcome the obstacle.
A minor positive in favor of the bulls is that they have not ceded ground to the bears. The moving averages have completed a bullish crossover, and the RSI is in the positive zone, indicating that the bulls have the upper hand. If buyers propel the price above $5, the UNI/USDT pair could rise to $6 and thereafter to $6.40.
Contrary to this assumption, if the price turns down from $5, it will suggest that the bears continue to defend the level with vigor. That may pull the price down to the 20-day EMA ($4.36), which remains the key level for the bulls to defend if they want to