Top 4 cryptocurrencies to watch this week: BTC, MATIC, NEAR, ATOM

Bitcoin (BTC) suffered selling pressure on Dec. 26 after remaining above $50,000 on Christmas Day.

Despite the fact that Bitcoin is virtually guaranteed to fall short of PlanB’s December floor model price estimate of $135,000, the inventor of the stock-to-flow pricing model remains hopeful. He claims that Bitcoin’s current price of $51,000 is within one standard deviation of the model’s prediction of $135,000 for this halving cycle.

In 2021, a number of asset managers will add Bitcoin to their portfolios, but Lord Hammond, the former UK chancellor, has cautioned regular investors to be “very careful” when investing in cryptocurrencies. “As a mainstream investment category, it’s almost likely not fit for retail investors,” he added.

Let’s have a look at the charts of the top five cryptocurrencies that might bring the crypto industry back to life in the next few days.

In 2021, a number of asset managers will add Bitcoin to their portfolios, but Lord Hammond, the former UK chancellor, has cautioned regular investors to be “very careful” when investing in cryptocurrencies. “As a mainstream investment category, it’s almost likely not fit for retail investors,” he added.

Let’s have a look at the charts of the top four cryptocurrencies that might bring the crypto industry back to life in the next few days.

Bitcoin(BTC)

On Dec. 23, Bitcoin surpassed the 20-day exponential moving average ($49,832), but the rally stalled around the 38.2 percent Fibonacci retracement level of $52,314. This suggests that bears haven’t given up and are still selling on rallies.

On December 24, the BTC/USDT pair produced a Doji candlestick pattern, suggesting that bulls and bears are split. On December 25, this hesitation turned to the downside, and the price dropped to the 20-day EMA.

The relative strength index (RSI) is slightly below the midpoint, and the 20-day exponential moving average (EMA) is flattish, indicating a supply-demand equilibrium.

If the price rises from its present low and breaks over $52,314, it indicates that the market has turned bullish and traders are looking for opportunities to purchase on dips. The pair may then move to $55,500, the 50% retracement level, and subsequently to $58,686, the 61.8 percent retracement level.

If bears push the price below the 20-day EMA, the pair may fall to the 200-day simple moving average ($47,569) and then to $45,456. If the market breaks and closes below this level, it may lead to a plunge to $42,000.

If the price rises from its present low and breaks over $52,314, it indicates that the market has turned bullish and traders are looking for opportunities to purchase on dips. The pair may then move to $55,500, the 50% retracement level, and subsequently to $58,686, the 61.8 percent retracement level.

If bears push the price below the 20-day EMA, the pair may fall to the 200-day simple moving average ($47,569) and then to $45,456. If the market breaks and closes below this level, it may lead to a plunge to $42,000.

The pair is aiming to construct a cup and handle pattern, which will be completed on a breakout and close above the overhead resistance at $51,936.33 if it succeeds. The aim for this reversal setup is $58,313.81.

If the price drops from its present level and breaks below $49,600, this bullish outlook will be invalidated. The price might drop to $47,920.42 as a result. If this support also gives way, the drop might reach $45,558.85.

MATIC/USDT

Polygon (MATIC) has been steadily rising. Despite a vigorous fight from bears around $2.70, bulls did not give up much ground, pushing the price to a new all-time high today.

Pol The MATIC/USDT pair might start the second phase of the rise if bulls keep MATIC price over $2.70. The pair may initially climb to $3.41, and if this level is breached, the uptrend could continue to the psychological threshold of $5.

Bulls are in control, as seen by the upsloping 20-day EMA ($2.30) and the RSI in the positive zone. If the price drops and breaks below the 20-day EMA, the latest breakout may have been a bull trap. After that, the pair may decline to $2 and eventually to $1.73.

The bulls have finally broken through the barrier after three failed attempts to break out and sustain over $2.70. The bears, on the other hand, are unwilling to give up lightly and will attempt to halt the uptrend at the ascending channel’s resistance line.

The pair might drop to $2.42 if the price drops from its present level and breaks below the 20-EMA. The bulls must defend this level of support because if it breaks, the pair might fall below the 200-SMA.

On the other hand, if bulls push the price above the channel and keep it there, the bullish momentum might ramp up even further.

NEAR/USDT

The NEAR token of the NEAR Protocol gained traction after breaking over the falling wedge formation on December 23. This sent the price above the significant resistance level of $13.23, indicating that the uptrend had resumed.

The bears are defending the $16 level vigorously, refusing to let the bulls have their way. On December 25, the NEAR/USDT pair created an inside-day candlestick pattern, suggesting that bulls and bears were undecided.

The pair may drop to $13.23 and subsequently to the 20-day EMA ($11.11) if the price breaks below $14. A strong comeback from either level indicates that traders are buying on dips and sentiment is still optimistic.

The pair might advance to $17.95 if bulls push the price over $15.93. If bears descend and hold the price below the 20-day EMA, this bullish outlook will be invalidated.

The pair is stabilizing between $14.20 and $15.93 on the 4-hour chart, which is a favorable indicator. The 20-EMA is rising upwards, and the RSI is positive, indicating that bulls are in control.

The pair might restart its ascent if buyers push the price over $15.93. The pair, on the other hand, might drop to $13.23 if the price breaks below the 20-EMA. This level is expected to function as solid support, but if it breaks, $11.50 might be the next stop.

ATOM/USDT

On Dec. 25, Cosmos (ATOM) broke out and closed above the falling channel’s resistance line, indicating that the downtrend may be finished.

The 20-day exponential moving average ($25.91) has begun to climb, and the RSI has entered positive territory, indicating that bulls have the upper hand. The ATOM/USDT pair might increase to $33.60 and then to $38 if buyers keep the price above the channel.

If the price falls below the 20-day EMA and breaks below the present level or above resistance, it indicates that traders are continuing to sell rallies. After that, the pair might fall below the 200-day SMA ($24.12).

The pair gained momentum after breaking and closing above the 200-SMA on the 4-hour chart. The bears attempted to halt the uptrend at $30 by lowering the price, but the bulls successfully defended the 20-EMA.

This indicates that traders are buying on dips since sentiment has shifted to the positive. The pair might rally to the overhead resistance zone of $33.60 to $34.15 where the bears could put up a strong fight.

If the price falls below the 20-EMA, this indicates that supply outnumbers the demand. This might pave the way for a drop to $26.37 and subsequently to the 200-day moving average.