Bitcoin, spot ETFs and a bull market — Why ETH, SOL, OKB and INJ could thrive in 2024
The cryptocurrency markets have made a strong comeback in 2023. Bitcoin ( BTC ) and most altcoins have risen sharply from their 52-week lows, but are still languishing well below their respective all-time highs. This suggests the start of a bullish move, which still has a long way to go.
One of the most important triggers for the crypto bull market in 2024 is the approval for a spot Bitcoin exchange-traded fund by the United States Securities and Exchange Commission. If one or more Bitcoin ETFs get greenlighted in January, then it is bound to boost sentiment and set the stage for the start of a bull move.
In a bullish environment, market participants do not pay much attention to the negative news, but every positive development is cheered by pushing the price higher. Additionally, the bullish sentiment is likely to spread to altcoins as well. Hence, if Bitcoin rises, several altcoins are likely to march higher.
It is always tricky to predict which coins will outperform in the next bull phase because every bull market has its own set of leaders. However, it is sometimes seen that coins leading the markets out of the bear phase and holding on to their gains are the ones that are likely to do well.
The tokens chosen have risen sharply from their 52-week lows, indicating solid demand from the bulls. Let’s look at their possible target objectives on the upside and the critical support levels on the downside.
Bitcoin price analysis
Bitcoin has risen sharply from its November 2022 low of $15,460, signaling the start of a new uptrend. The momentum picked up after buyers propelled the price above $32,000.
Both moving averages are sloping up, and the relative strength index (RSI) is in the overbought zone, indicating that the bulls remain in command. Buyers will try to push the price to $48,000 and then to $52,100. This zone is likely to act as a formidable resistance in the near term, but if the bulls do not allow the price to dip below the 20-week exponential moving average ($34,000), the uptrend may continue.
A rally above $52,100 will complete a rounding bottom pattern. This setup has a target objective of $88,740. However, before the BTC/USD pair reaches this level, the bears will mount a vigorous defense at the current all-time high of $69,000.
On the downside, the 20-week EMA is the vital support to watch out for. If this level gives way, the pair may drop to the 50-week simple moving average ($28,566).
Both moving averages are sloping up, and the RSI is in the positive territory, indicating that bulls are in the driver’s seat. Buyers will try to drive the price above $45,000 and start the next leg of the up-move. If they do that, the pair may climb to $48,000 and then to $52,100.
Instead, if the price turns down and breaks below the 20-day EMA ($41,306), it will suggest the start of a pullback. The pair may drop to the 50-day SMA ($38,079) and later to the crucial support at $32,000. The deeper the retreat, the greater the time needed to start the next leg of the uptrend.
Ether price analysis
Ether ( ETH ) has been gradually trying to recover after the sharp fall during the last bear market. The price has risen sharply from the June 2022 low of $880, indicating that bulls are making a comeback.
The price action of the past few days has formed an ascending triangle pattern, which completed when bulls pushed the price above the overhead resistance at $2,143. The pattern target of this bullish setup is $3,406. Sellers may fiercely protect the zone between $3,406 and $3,582, but if the bulls prevail, the ETH/USD pair could rise to $4,000 and later to $4,868.
The first sign of weakness will be a break below the moving averages. That will indicate aggressive selling by the bears at higher levels. The trend will favor the bears if the pair plunges below the uptrend line of the triangle. The failure of a bullish pattern is a negative sign and may result in further downside.
The rebound off the breakout level of $2,143 shows the bulls are trying to flip the level into support. A break and close above $2,403 will signal the resumption of the uptrend. The pair may then climb to $3,000.
Meanwhile, sellers are likely to have other plans. They will try to yank the price back below $2,143. If that happens, it will suggest that higher levels are being viewed as a selling opportunity. The pair may then plummet to the strong support at $1,900. That may keep the pair stuck inside the triangle for some more time.
Solana price analysis
Solana ( SOL ) has been a huge outperformer in the past few months. It has skyrocketed from its low of $8 in December 2022 to the current levels.
The 20-week EMA ($43) has started to turn up, and the RSI is in the overbought territory, indicating a potential trend change. Although the risk of a fall to the 20-week EMA remains high, the dips are likely to be purchased.
The SOL/USD pair has a minor resistance at $95, but if this level is crossed, the next stop is likely to be $143. This level could attract strong selling by the bears because if bulls overcome the $143 resistance, the rally may extend to $200.
If bears want to prevent the upside, they will have to drag the price below the 20-week EMA. That may start a range-bound action for some time.
The pair has been rising steadily for the past few days, and the pullbacks are finding support at the 20-day EMA ($66). This suggests a positive sentiment where the traders view the dips as a buying opportunity.
A minor risk to the continuation of the rally in the near term is that the RSI is showing a negative divergence, suggesting weakening momentum.
If the price turns down and breaks below the 20-day EMA, it will indicate that the bulls are losing their grip. The pair may dip to the 50-day SMA ($55) and later to the psychologically important level at $50.
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OKB price analysis
OKB (OKB) is one of the few tokens that has broken above its 2021 highs, indicating that the coin is in a long-term uptrend.
The bulls are trying to propel the price above the resistance of the $59 to $38 range. If they manage to do that, the OKB/USDT pair is likely to start the next leg of the up move. The pair could rise to $80 and subsequently to $100. The upsloping moving averages and the RSI near the overbought zone indicate that bulls remain in command.
Sellers are likely to have other plans. They will try to pull the price below $54 and keep the pair stuck inside the range for some more time. A break below $38 will signal that the bears are back in the game.
The bulls and the bears are witnessing a tough battle at the $59 level. If bears come out on top and sink the price below $54, the pair could gradually dip toward the support at $38. That could keep the pair range-bound for a while longer.
However, the 20-day EMA ($58) is sloping up, and the RSI is in the positive territory. This suggests that the path of least resistance is to the upside. If buyers overcome the obstacle at $65, the pair may start the next leg of the uptrend.
Injective price analysis
Injective (INJ) broke above the April 2021 high of $25.30, indicating the resumption of the uptrend. The breakout of a previous major high signals strength and attracts buyers.
The up-move of the past few weeks has pushed the RSI into deeply overbought territory, indicating that the rally may be getting over-extended in the near term. That could start a corrective phase or a consolidation.
The first strong support on the downside is at $25.30. If buyers flip this level into support, it will signal the start of the next leg of the uptrend. The INJ/USDT pair could surge to $43 and thereafter to the psychological level of $50.
Alternatively, if the price dips and sustains below $25.30, it will suggest aggressive profit booking by the bulls. That may sink the price to the 20-week EMA ($14).
The long wick on the Dec. 12 candlestick shows that the bulls tried to halt the rally at $25.30, but the bulls persisted. They continued their purchase on Dec. 13 and pushed the price higher. That has sent the RSI into deeply overbought levels, warning of an impending correction in the near term.
The pair is likely to retest the breakout level of $25.30. If this level holds, it will increase the likelihood of the resumption of the uptrend. On the contrary, if bears tug the price below $25,30, the pair could drop to the 20-day EMA ($22). This remains the key level for the bulls to defend because a break below it may start the decline to $14.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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