SUI, BGB, ENA and VIRTUAL show strength as Bitcoin looks for direction
2024.12.22 16:22
Bitcoin (BTC) is down roughly 8% for the week, but a positive sign is that the bulls aggressively purchased the weekly lows. After the recovery, analysts remain divided on the next directional move. Some expect the correction to deepen, while others anticipate the uptrend to resume.
Bitcoin’s rebound on Dec. 20 failed to attract investors to the United States spot Bitcoin exchange-traded funds. Farside Investors data shows outflows of $617.9 million on Dec. 19 and $277 million on Dec. 20 from the ETFs, suggesting profit booking by traders.
Crypto market data daily view. Source: Coin360
The next few days are likely to witness a tough battle between the bulls and the bears near the $100,000 level. If Bitcoin stays above $100,000, the crypto sentiment is expected to improve, pulling select altcoins higher.
On the other hand, Bitcoin’s failure to rise and maintain above $100,000 could tempt short-term buyers to book profits. That may start a deeper correction in Bitcoin, triggering a sell-off in select altcoins.
Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin bounced off the 50-day simple moving average ($92,901) on Dec. 20, but the recovery is facing selling at the 20-day exponential moving average ($98,758).
BTC/USDT daily chart. Source: Cointelegraph/TradingView
The BTC/USDT pair could consolidate between the moving averages as both the bulls and the bears try to gain the upper hand. If the price breaks above the 20-day EMA, it will suggest that the correction may be over. The pair may then retest the all-time high at $108,353. A break and close above this resistance could start the next leg of the uptrend to $113,331 and, after that, to $125,000.
On the contrary, a break and close below the 50-day SMA could start a deeper correction toward $85,000. This is an important level for the bulls to defend because a break below it may open the doors for a drop to $73,777.
BTC/USDT 4-hour chart. Source: Cointelegraph/TradingView
Both moving averages are sloping down on the 4-hour chart, and the RSI is in the negative territory, indicating advantage to sellers. A break and close below the $90,000 support could signal the start of a deeper correction to $85,000.
The first sign of strength will be a break and close above $100,000. The pair may climb to $105,000 and later to $108,353. Sellers are expected to defend this level with all their might because if they fail in their endeavor, the pair may resume its uptrend.
Sui price analysis
Sui (SUI) dipped below the 20-day EMA ($4.22) on Dec. 19, but the bears could not break the 50-day SMA ($3.61) support on Dec. 20.
SUI/USDT daily chart. Source: Cointelegraph/TradingView
The strong bounce off the 50-day SMA signals aggressive buying at lower levels. The bulls tried to resume the uptrend on Dec. 21, but the bears held their ground. Although the rising moving averages indicate advantage to buyers, the negative divergence on the RSI suggests a weakening momentum.
If the price turns up from the current level, the bulls will again try to resume the uptrend. If the $5 level is crossed, the SUI/USDT pair may rise to $5.50 and then to $6.50.
On the other hand, a break and close below the 20-day EMA will suggest that the bulls are booking profits. The selling could accelerate if the 50-day SMA gives way. The pair may dip to $3.
SUI/USDT 4-hour chart. Source: Cointelegraph/TradingView
The moving averages on the 4-hour chart are gradually sloping down, and the RSI is just below the midpoint, suggesting a possible range-bound action in the near term. If the price sustains below $4.20, the pair may decline to $4 and later to $3.50. Buyers are expected to vigorously defend the $3.50 level.
If buyers drive and maintain the price above the 50-SMA, the pair could rise to $5. This remains the key resistance to watch out for because a break above it may propel the pair to $5.50.
Bitget Token price analysis
Bitget Token (BGB) turned down from $4.90 on Dec. 19 and fell near the 20-day EMA ($3.29) on Dec. 20, but the long tail on the day’s candlestick shows solid buying at lower levels.
BGB/USDT daily chart. Source: Cointelegraph/TradingView
After the volatility of the past few days, the BGB/USDT pair may consolidate between $4.90 and the 20-day EMA for some time. If buyers drive the price above $4.90, the pair could rally to $5.38 and later to $6.
On the downside, a break below $4.05 could pull the pair to $3.83 and subsequently to the 20-day EMA. Buyers are expected to defend the 20-day EMA because a break below it will suggest that the pair has topped out in the short term.
BGB/USDT 4-hour chart. Source: Cointelegraph/TradingView
The bulls are trying to push the price back above the 20-EMA, indicating demand at lower levels. The pair could reach the downtrend line, which is likely to act as a strong resistance. If bulls pierce the downtrend line, the pair may rise to $4.90.
On the downside, the bears will have to sink and sustain the price below the 50-SMA to signal the start of a deeper pullback. The pair could drop to $3.38 and thereafter to $2.90.
Related: Bitcoin social sentiment drops to yearly low, signaling BTC breakout
Ethena price analysis
Ethena (ENA) fell below the 20-day EMA ($1.00) on Dec. 19, but the bulls quickly reclaimed the level on Dec. 20.
ENA/USDT daily chart. Source: Cointelegraph/TradingView
The upsloping 20-day EMA and the RSI just above the midpoint signal a slight advantage to the buyers. The bulls will try to push the price to $1.23 and later to $1.33. Sellers are expected to defend this zone with all their might, but if the bulls prevail, the ENA/USDT pair may rally to $1.52.
This positive view will be invalidated in the near term if the price turns down and breaks below the 20-day EMA. The pair may then tumble to the 50-day SMA ($0.76).
ENA/USDT 4-hour chart. Source: Cointelegraph/TradingView
The flattening moving averages and the RSI near the midpoint on the 4-hour chart suggest a balance between supply and demand. The pair may oscillate between $1.23 and $1 for some time.
Buyers will have to drive the price above $1.23 to be back in the driver’s seat. The pair may rise to $1.33 and then to $1.52.
Contrarily, a slide below $1 could sink the pair to $0.84. This is a crucial near-term support to keep an eye on because a break below it will signal a short-term trend change.
Virtuals Protocol price analysis
Virtuals Protocol (VIRTUAL) is correcting in an uptrend, but a minor positive is that it is finding support at the 20-day EMA ($2.14).
VIRTUAL/USDT daily chart. Source: Cointelegraph/TradingView
The upsloping 20-day EMA and the RSI in the positive zone signal that buyers have the edge. If the price rises above $2.85, the VIRTUAL/USDT pair could rally to $3.32. A break and close above this resistance could push the pair to $4.
Contrary to this assumption, if the price continues lower and breaks below the 20-day EMA, it will suggest that the bulls are booking profits. There is another solid support at $2, but if the level cracks, the pair may enter a deeper pullback to $1.50.
VIRTUAL/USDT 4-hour chart. Source: Cointelegraph/TradingView
The pair has dipped below the moving averages, but the bears are finding it difficult to pull the price to $2. This suggests that selling dries up at lower levels. Buyers will try to push the price above the moving averages, opening the gates for a rally to $3 and then to $3.32.
Conversely, if the price turns down from the moving averages, it will signal that the bears are selling on rallies. That could sink the pair to the solid support at $2. If this support cracks, the pair may drop to $1.50.
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.
