Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

After nearly a 20% rally last week, Bitcoin (

AAVE/USDT

Aave (AAVE) broke and closed above the downtrend line on Jan. 17 signaling a potential trend change. The bears tried to yank the price back below the downtrend line on Jan. 18 but the bulls held their ground.

The upsloping 20-day EMA ($74) and the RSI in the overbought region suggest that bulls have the edge. This advantage could strengthen further with a break above $92. The AAVE/USDT pair could then rally to the psychologically crucial level of $100.

This level may again pose a strong challenge to buyers but if they overcome this obstacle, the pair could skyrocket toward $115.

Contrary to this assumption, if the price turns down and dives below the downtrend line, it will signal that bears are active at higher levels. The advantage may tilt in favor of the bears on a slide below the 20-day EMA.

The four-hour chart shows that the bears are defending the zone between $88 and $91 but they haven’t been able to pull the price below the moving averages. This indicates a bullish sentiment where traders are buying the dips.

The bulls will make one more attempt to clear the overhead zone. If they can pull it off, the pair could resume the uptrend.

Instead, if the bulls fail to push the price above $91, the bears will try to tug the pair below the moving averages. The pair could then fall to $78 and later to $73.

FIL/USDT

Filecoin (FIL) broke above the downtrend line on Jan. 14 and held the retest of the breakout level on Jan. 18. This suggests that the bulls have flipped the downtrend line into support.

The moving averages have completed a bullish crossover and the RSI is in the overbought space, signaling that bulls are in control. The FIL/USDT pair could rally to $6.50 where the bears may again mount a strong defense. If bulls kick the price above this level, the up-move could reach $9 with a brief halt near $7.

The 20-day EMA ($4.24) is the important support to watch out for on the downside because a drop below it could tilt the advantage in favor of the bears.

The bears tried to stall the relief rally at $5 but the bulls pierced this resistance and started the next leg of the recovery. The upsloping moving averages and the RSI in the overbought zone indicate that bulls are firmly in the driver’s seat. Buyers will try to nudge the pair toward $6.50 and then $7.

On the downside, the 20-EMA is the critical support to pay attention to. If the price rebounds off this level, it will indicate that the uptrend remains intact. On the other hand, if bears drag the price below the moving averages, the pair could collapse to $4.20.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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