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Bitcoin’s dull price action allows XMR, TON, TWT, and AXS to gather strength

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The comfortable rally in US stock markets took a breather this week as all major averages closed in the red. It appears that traders are taking profits ahead of the busy economic calendar next week.

The S&P 500 is down 3.37%, but one small positive for the cryptocurrency markets is that Bitcoin (BTC) did not follow stock markets lower. This indicates that cryptocurrency traders do not panic and dump their positions with every drop in the stocks.

View daily crypto market data. source: Coin 360

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, it has not stopped the action in specific altcoins, which bodes well in the near term.

Let’s take a look at Bitcoin charts, pick altcoins, and find out what critical levels to watch out for in the short term.

BTC/USDT

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, it 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.

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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.

XMR/USDT

Monero (XMR) 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.

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tons/USDT

The bulls pushed Toncoin (TON) above the symmetrical triangle resistance on December 11, indicating that the uncertainty has resolved in favor of the buyers. The symmetrical triangle usually acts as a continuation pattern, which increases the likelihood of an uptrend resuming.

TON/USDT daily chart. Source: TradingView

If the buyers maintain the price above the triangle, the TON/USDT pair may try to break above the upper resistance area between $2 and $2.15. If they can do so, the pair can gain momentum and rise to the pattern target at $2.87.

Conversely, if the price fails to sustain above the triangle, it will indicate that the bears will continue to sell on rallies. A break below the 50-day simple moving average (SMA) at $1.70 could trap aggressive bulls, and drag the pair to the triangle support line.

TON/USDT 4-hour chart. Source: TradingView

The moving averages on the 4-hour chart are sloped higher and the RSI is in the overbought territory, indicating that the bulls are in control. The upward move could face a hurdle near $2, but if the bulls keep the price above this level, the rally could move higher quickly.

If the price declines from the current level and breaks below the 50-SMA, the selling could accelerate and the pair could drop to $1.70. This is an important level to watch because a break below it could signal that the bears are back in control.

Related: SBF ‘Didn’t Like’ Decentralized Bitcoin – Cathy Wood, CEO of ARK Invest

TWT/USDT

Trust Wallet Token (TWT) continued its northward march, indicating that traders are buying at higher levels and not booking profits in a hurry. This increases the possibility of an uptrend extension.

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TWT/USDT daily chart. Source: TradingView

The bulls will try to push the price above the general resistance at $2.73. If they succeed, TWT/USDT could rise to the psychological $3 level as the bears may try to halt the upward move.

If buyers bully their way through this hurdle, the upside could reach the pattern target at $3.51.

The bears are likely to have other plans as they will try to defend the general resistance at $2.73. They would have to pull the price below the 20-day moving average ($2.30) to gain the upper hand.

4 hour chart TWT/USDT. Source: TradingView

The four hour chart shows that the bulls have been buying dips into the moving averages. Although the moving averages are declining, the RSI is showing negative divergence, which indicates that the bullish momentum may be weakening. This may change if the bulls push the price above $2.73 as that could attract more buying.

Moving averages are the important support to watch on the downside. If the 50-SMA support breaks down, many short-term traders may take profits and this could send the pair down to $2.25 and later to $2.

AXS/USDT

Acci Infinity (AXS) was in a strong downtrend but is showing the first signs of a possible trend change. Buyers pushed the price above the downtrend line on December 5 but were unable to sustain higher levels, as evidenced by the long wick on today’s candle.

AXS/USDT daily chart. Source: TradingView

The slight positive is that the bulls did not allow the price to break below the moving averages. This shows that the buyers are trying to turn the moving averages into support.

The moving averages are about to cross bullish and the RSI is in positive territory, indicating that momentum may shift in favor of the bulls. If the price breaks and holds above the downtrend line, the price is likely to rise to $11.85. This level is expected to act as a major obstacle to the upside move.

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The bullish view could be invalidated in the near term if the price falls and breaks below the moving averages. AXS/USDT could then slide to $6.57.

AXS/USDT 4-hour chart. Source: TradingView

The four hours chart shows that the bears are aggressively defending a downward trend line and the bulls are buying dips to the 50-SMA. The 20-EMA flattened and the RSI approached 47, indicating a balance between supply and demand.

A break and close above $8.70 could turn the advantage in favor of the bulls. The pair may then rise to $9.28 and later to $10. Alternatively, a break below $7.86 could signal that the bears are back in the driving seat. The pair could then slide to $6.87.