S&P 500 Index and Bitcoin Hit New Highs
The S&P 500 Index (SPX) achieved its highest close of the year last week, and Bitcoin (BTC) also hit a new 52-week high, indicating that risky assets remain strong going into the final few days of the year. Some analysts believe Bitcoin is done with its rally in the short term and may roll over. Popular analyst and social media commentator Matthew Hyland cautioned in a post on X (formerly Twitter) that a drop in Bitcoin’s dominance below 51.81% could signal that the uptrend has ended “along with a likely top put in.” Usually, the first leg of the rally of a new bull market is driven by the leaders, but after a significant move, profit-booking sets in and traders start to look at alternative opportunities. Although Bitcoin has not rolled over, several altcoins have started to move higher, signaling a potential shift in interest.
Bitcoin Price Analysis
Bitcoin has been consolidating near the minor resistance at $44,700, suggesting that the bulls are not rushing to exit as they anticipate another leg higher. The moving averages and the relative strength index (RSI) indicate that bulls remain in command. If the price rises above $44,700, it will signal the resumption of the uptrend with a potential climb to $48,000. However, if the price falls below $42,821, it may slump further to the 20-day exponential moving average ($40,608). The 4-hour chart shows that if the bulls sustain the price above the 20-EMA, an up-move toward $44,700 is possible. Conversely, if the price slides below the 20-EMA, it suggests profit-booking by short-term traders.
Uniswap Price Analysis
Uniswap (UNI) broke above the resistance of $6.70, completing a double bottom pattern. The bears are attempting to pull the price back below $6.70, which could lead to a drop to the 20-day EMA ($6.10). However, if the price rebounds off the 20-day EMA, the bulls may push it above $6.70, leading to a potential jump to $7.70 and eventually $9.60. On the other hand, a fall below the 20-day EMA would suggest that the breakout was a bull trap, with a possible plunge to the 50-day SMA ($5.32).
Optimism Price Analysis
Optimism (OP) broke above the resistance of $1.87, indicating the start of a new uptrend. If the price holds above $1.87 and rallies to $2.30, it could further surge to $2.60. However, a drop below $1.87 would invalidate this optimistic view and give advantage to the bears.
Celestia Price Analysis
Celestia (TIA) experienced a strong uptrend but faced profit-booking near $11.50, resulting in a pullback. The bulls are defending the 38.2% Fibonacci retracement level at $9.01 and aim for a retest of $11.50. A break above this level could continue the uptrend towards $14 and then $16.
Stacks Price Analysis
Stacks (STX) is correcting in an uptrend and finding support near the 38.2% Fibonacci retracement level at $0.99. A shallow pullback suggests buyers are eager to buy on dips, with a potential retest of the local high at $1.25. The immediate support is at $0.96, and a break below this level may correct to the 20-day EMA ($0.87).
Hot Take: Potential Shift in Interest Among Cryptocurrencies
The recent highs in the S&P 500 Index and Bitcoin indicate the strength of risky assets. While some analysts believe Bitcoin’s rally may be short-term, altcoins are starting to gain momentum, suggesting a potential shift in interest. Bitcoin’s price analysis shows that bulls remain in command, with a possible uptrend continuation towards $48,000. Uniswap, Optimism, Celestia, and Stacks also show positive price movements, but face key levels to watch out for. Overall, the cryptocurrency market presents opportunities for traders as various coins exhibit strength in the near term.
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