Bitcoin’s eight-week winning streak faces potential interruption, while ATOM, FIL, EGLD, and ALGO remain unaffected.

Bitcoin’s (BTC) eight-week streak of gains is poised to conclude as the price has decreased by nearly 4% this week. This recent decline suggests that traders are taking profits, yet it does not alter the short-term upward trend. The pullback may also assist in alleviating any excess that might have developed.

Following the initial sell-off, strong investors are expected to re-enter the cryptocurrency market, as the macroeconomic landscape remains favorable for risk assets. The Federal Reserve’s choice to halt interest rate increases and potentially lower rates in 2024 could further enhance the demand for cryptocurrency products.

Crypto market data daily view. Source:Coin360

However, price movements are rarely linear. After significant rallies, traders typically realize profits and shift their focus to alternative coins. As Bitcoin pauses, traders are likely to redirect their attention to select altcoins.

Which coins might attract buyers in the near term? Let’s examine the charts of the top five cryptocurrencies that are displaying potential.

Bitcoin price analysis

Bitcoin is currently caught between the 20-day exponential moving average ($41,370) and the downtrend line, setting the stage for a potential breakout in the coming days.

BTC/USDT daily chart. Source: TradingView

If the price falls below the 20-day EMA, bears may see an opportunity to pull the BTC/USDT pair down to the strong support level at $37,980. Bulls are anticipated to defend this level vigorously. Should the price bounce back from $37,980, it is likely to encounter selling pressure at the 20-day EMA and again at the downtrend line.

Conversely, if the price rises and breaks above the downtrend line, it will indicate that bulls are regaining control. The pair could then retest the resistance at $44,700. If this level is surpassed, the chances of a rally to $48,000 will increase.

BTC/USDT 4-hour chart. Source: TradingView

The moving averages on the 4-hour chart have started to decline, and the relative strength index (RSI) is positioned in negative territory, suggesting that bears hold a slight advantage in the short term. Bears will need to breach the $40,000 support to intensify selling and drive the pair down to $37,980.

On the upside, a break above the downtrend line will indicate that bulls have absorbed the selling pressure. The pair may initially rise to $43,500 and subsequently rally to $44,700, where a significant contest between bulls and bears is expected.

Cosmos price analysis

Cosmos (ATOM) has been on an upward trajectory for several days. The bulls bought the dip to the 20-day EMA ($10.52) on Dec. 16, signaling strong demand at lower price levels.

ATOM/USDT daily chart. Source: TradingView

The bulls are attempting to push the price above the immediate resistance at $12.50, but bears are resisting. Nonetheless, the upward-sloping moving averages and the RSI in positive territory indicate that the path of least resistance is upward.

If buyers manage to elevate the price above $12.50, the ATOM/USDT pair may climb to $13 and then to $15. To prevent this upward movement, bears will need to pull the pair back below the 20-day EMA, which could lead to a drop to the 50-day SMA ($9.40).

ATOM/USDT 4-hour chart. Source: TradingView

The 4-hour chart indicates that bears are providing strong resistance at $12, but a positive sign is that bulls have kept the price above the 50-SMA. The rising moving averages and the RSI near the midpoint give a slight advantage to the bulls.

A break above $12 will complete an inverse head-and-shoulders pattern, with a bullish target of $13.31. Conversely, if the price declines and falls below the 50-SMA, it will pave the way for a drop to $9.50.

Filecoin price analysis

Filecoin (FIL) declined from $5.67 on Nov. 13 but has returned to that level, indicating that lower prices are being purchased.

FIL/USDT daily chart. Source: TradingView

The FIL/USDT pair is attempting to form a cup and handle pattern, which will be confirmed with a break and close above $5.67. If this occurs, it will signal the beginning of a new upward movement, with a target of $8.41 for the reversal setup.

However, bears are unlikely to relent easily. They will present strong resistance at $6.50 and again at $7.40. This bullish outlook will be invalidated in the near term if the price declines and falls below the 50-day SMA ($4.61).

FIL/USDT 4-hour chart. Source: TradingView

The bulls managed to push the price above the resistance at $5.67 but could not maintain those higher levels. Taking advantage of this, sellers are attempting to pull the price back below $5.67. If they succeed, the pair may decline to the 20-EMA, which is a crucial support level to monitor.

If the price rebounds from the 20-EMA, it will enhance the chances of retesting the overhead resistance at $6.20. A break above this resistance will indicate the start of the next phase of the uptrend. On the downside, a break below the 20-EMA may lead to a drop to $4.40.

Related: Bitcoin fees hit 20-month high as miner revenues match $69K BTC price

MultiversX price analysis

MultiversX (EGLD) declined from the overhead resistance of $70 on Dec. 12 and reached the 20-day EMA ($55) on Dec. 16.

EGLD/USDT daily chart. Source: TradingView

The rebound from the 20-day EMA suggests that market sentiment remains positive, with traders buying on dips. The bulls will aim to push the price to $70, which is a key resistance level to monitor in the near term. If buyers overcome this hurdle, the EGLD/USDT pair could gain momentum and rise to $90 and then to $100.

Meanwhile, sellers are likely to have alternative plans. They will attempt to sell into rallies and pull the price back below the 20-day EMA. If they succeed, it will indicate the onset of a deeper correction towards the 50-day SMA ($46).

EGLD/USDT 4-hour chart. Source: TradingView

The pair has found support near $57 on two recent occasions, making this a critical level to watch in the near term. A break and close below this level could lead to a decline to $48.

On the other hand, if the price rises from the current level or the strong support at $57 and exceeds $64, it will indicate an advantage for the bulls. This increases the likelihood of a rally to $70, where a significant confrontation between bulls and bears is anticipated.

Algorand price analysis

Buyers are struggling to push Algorand (ALGO) above the overhead resistance at $0.22, but a positive sign is that they have not surrendered much ground. This indicates that bulls are expecting another upward movement.

ALGO/USDT daily chart. Source: TradingView

Both moving averages are trending upward, and the RSI is in positive territory, suggesting that bulls are still in control. Buyers are anticipated to purchase the dip to the 20-day EMA ($0.18). If the price rebounds from the 20-day EMA, bulls will once again attempt to overcome the resistance at $0.22.

If successful, the ALGO/USDT pair could surge to $0.24 and then to $0.28. This optimistic outlook will be invalidated in the near term if the pair declines and closes below the 20-day EMA, signaling the start of a deeper correction towards the 50-day SMA ($0.14).

ALGO/USDT 4-hour chart. Source: TradingView

The pair has been trading within a range between $0.18 and $0.22 for some time. The 20-EMA has begun to decline, and the RSI has dipped into negative territory, raising the likelihood of a drop to $0.18.

Buyers are expected to defend the $0.18 level vigorously, as a break below it would complete a triple-top pattern. This bearish setup has a target objective of $0.14.

If the price rebounds from $0.18 with strength, it will indicate aggressive buying on dips. The pair could then rise to the 20-EMA and subsequently to $0.22. A break and close above $0.22 would suggest the beginning of the next phase of the upward movement.

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.