5 Altcoins That Could Break Out If Bitcoin Price Remains Bullish

Cryptocurrency markets have made a strong comeback in recent days. This brought the total crypto market capitalization to $995 billion on January 1. 14, according to data from CoinMarketCap. Bitcoin (BTC) led the rally from the front and soared above $21,000 on January 1. 14.

After the strong rally, the big question is whether the rally is a bounce off the dead cat which is a selling opportunity, or is it the start of a new uptrend. It is difficult to predict with certainty whether a macro bottom has been reached, but the charts suggest that a bottoming process has begun.

Daily view of crypto market data. Source: Coin360

Independent market analyst HornHairs pointed out that the bear market from 2017 to 2018 lasted 364 days and from 2021 to the current market low, the duration is again 364 days. Another interesting similarity is that the bull market from 2015 to 2017 and the bull phase from 2018 to 2021 both lasted 1,064 days. If history repeats itself, Bitcoin could hit the next high in around 1,000 days.

Bitcoin’s near-term price action has been exciting for bulls, but are there any altcoins showing similar near-term strength?

Let’s study the charts to find out.

BTC/USDT

Bitcoin soared to $21,258 on January 1. 13 and which propelled the Relative Strength Index (RSI) above 89, signaling that the rally has been overheated in the short term. The bears should mount a strong defense at $21,500.

BTC/USDT daily chart. Source: Trading View

Sometimes, when a trend change occurs, the RSI can stay in the overbought territory for a long time. If the BTC/USDT pair is not giving up much ground from the current level, it will suggest that traders are in no rush to take profits as they anticipate another leg higher.

If the buyers drive the price above $21,500, the pair could rise to $22,800. This level can again act as a major obstacle.

Moving down, the bears will need to drag the price below the psychological $20,000 level to dent the bullish momentum. The pair could then crash to the breakout level of $18,388.

BTC/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows the bears holding the $21,250 level, but a positive sign is that the bulls have not allowed the price to drop back below $20,000. Buyers can once again attempt to breach the overhead hurdle at $21,258 and resume the uptrend.

On the contrary, if the price falls again from $21,250, it may encourage short-term traders to take profits. This could cause the pair to drop below the 20-EMA. The bears could try to capitalize on this situation and pull the pair to $18,388.

LTC/USDT

Litecoin (LTC) broke above air resistance at $85 on January 1. 12, indicating the start of a new uptrend. There is no major hurdle until the price hits $107.

LTC/USDT daily chart. Source: Trading View

On the downside, the bulls will try to fiercely defend the area between $85 and the 20-day EMA ($79). If the price breaks out of this zone, the LTC/USDT pair could continue its uptrend and hit $107.

The rising moving averages signal an advantage for the bulls, but the RSI above 77 suggests that a minor pullback or consolidation is likely.

If the bears want to gain the upper hand, they will have to pull the price below the breakout level of $75. This could make way for a collapse to $61.

LTC/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the pair is in an uptrend and the bulls are fiercely protecting the 20-EMA. If the buyers push the price above $92, the pair could gain momentum and rally towards the psychological level of $100.

Conversely, if the price declines and dips below the 20-EMA, it will suggest that short-term traders may be taking profits. This could pull the price towards the 50-SMA. This is an important level for the bulls to defend as a break below could increase the risk of a drop to $80 and then to $75.

OKB/USDT

As several cryptocurrencies attempt to bottom out, OKB (OKB) has started a new uptrend. Usually it is a good strategy to buy the lows of an uptrend while keeping an appropriate stop loss.

OKB/USDT daily chart. Source: Trading View

The ascending moving averages and the RSI in the overbought territory indicate that the bulls are in control, but a consolidation or a correction in the short term cannot be ruled out. The OKB/USDT pair could slide towards the 20-day EMA ($27.64), which is likely to act as strong support.

If the price rebounds from this level, the pair could touch the strong overhead barrier at $34.18. Breaking through this level can be a difficult task, but if the bulls manage to reach it, the pair could soar to $42.

If the bears want to block the upward move, they will have to pull the price below the 20-day EMA. If they succeed, the pair could drop to the 50-day SMA ($24.05).

OKB/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the uptrend has encountered strong selling near $33 and the pair may correct to the 20-EMA. If the price bounces off this support, it will suggest that the bulls are buying on every minor dip. This could push the price up to $34.18.

Conversely, if the price dips below the 20-EMA, the correction could deepen to the 50-SMA. If the price bounces off this level, the bulls will again try to resume the bullish move but may face resistance at $31 and again near $33.

Related: Bitcoin fails to convince bottom is with $12,000 “still likely”

BIT/USDT

BitDAO (BIT) rebounded strongly from $0.26 on December 21. 27 to $0.53 on Jan 14, indicating strong bullish momentum. Additionally, the weak pullback on Jan. 15 suggests that traders are not exiting their positions in a hurry as they anticipate the bullish move to continue.

BIT/USDT daily chart. Source: Trading View

If the bulls push the price above the broad resistance at $0.54, the BIT/USDT pair could resume its rise. The next upside resistance is at $0.68. The bears can pose a big challenge at this level as a break and close above could open the doors for a possible rally to $0.80.

On the downside, the first support is at $0.46 and then the 20-day EMA ($0.42). A strong bounce off either support will suggest traders are buying on the downside. This could lead to a retest of $0.54. The bears can take control if they drive the price below the 20-day EMA.

BIT/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the pair is facing resistance near $0.54, but the bulls are likely to defend the falling 20-EMA. A strong rebound from this level will suggest that the bulls are buying on weak declines. This could improve the outlook for a break above $0.54.

Alternatively, if the price declines and falls below the 20-EMA, several short-term traders may register profits. This could pull the pair towards the 50-SMA. If this level also cracks, the pair could drop to $0.41.

FTM/USDT

Fantom (FTM) broke above the downtrend line on January 1st. 9, indicating a potential trend change. The breakout was followed by a strong rally that pushed the RSI to deeply overbought levels.

FTM/USDT daily chart. Source: Trading View

Vertical rallies are not sustainable, so a pullback was to be expected. The FTM/USDT pair could dip to the 38.2% Fibonacci retracement level of $0.30 and then to the 50% retracement level of $0.28.

If the price rises from this area, it will suggest a shift in sentiment from selling on the rallies to buying on the declines. The bulls will then attempt to resume the rally and push the pair above $0.36. If they do, the pair could hit $0.42.

Conversely, a breakout and close below $0.28 could drop the pair to the 61.8% retracement level of $0.26. A deeper drop could break the bullish momentum and increase the possibility of range formation.

FTM/USDT 4 hour chart. Source: Trading View

Both moving averages are up and the RSI is in positive territory, indicating an advantage for buyers. The pair could slide towards the 20-EMA, which is likely to act as strong support. If the price rebounds from this level, the bulls will try to resume the bullish move.

On the contrary, if the price breaks below the 20-EMA, it will suggest that traders are aggressively booking profits after the recent rally. The pair could then extend its correction to the 50-SMA.