Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to go higher

After rallying almost 20% last week, Bitcoin (BTC) is on track to end this week with gains of around 10%. Bitcoin’s rally improved sentiment and attracted buying for several altcoins. This sent the total crypto market capitalization firmly above the $1 trillion mark.

Bitcoin’s strong recovery surprised several analysts who remain skeptical of the rally. Some believe the current rally is a dead cat bounce that will abruptly reverse direction while others see similarities between the current rally and the bear market rally of 2018.

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Daily view of crypto market data. Source: Coin360

Although traders should be prepared for any eventuality, the pace of Bitcoin’s rise indicates a possible major bottom. There will likely be bumps in the road, but the dips will likely be bought aggressively by traders.

Bitcoin’s sustained recovery may encourage the buying of some altcoins.

Let’s study Bitcoin’s charts and select altcoins that show short-term strength.

BTC/USDT

Bitcoin climbed above the overhead resistance of $21,650 on January 20, indicating the resumption of upward movement. This shows that demand remains strong at higher levels.

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BTC/USDT daily chart. Source: Trading View

The bulls pushed the price above the $22,800 resistance on January 21, but failed to take advantage of the breakout, as seen by the long wick of the day’s candlestick.

While the ascending moving averages signal that the bulls are in charge, the Relative Strength Index (RSI) in overbought territory warrants caution. This suggests that a few days of consolidation or minor correction are possible.

However, when a new uptrend starts, the RSI sometimes tends to stay in the overbought zone and frustrates the bears. If that happens, the uptrend could continue without a major pullback and the pair could hit $25,211.

On the downside, first support is at $21,480. If the price bounces off this level, it will suggest that the bulls are buying on every minor dip. This could increase the likelihood of a rally to $25,211.

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BTC/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the bulls are trying to turn the $22,800 level into support. If the price continues higher and rises above $23,271, the bullish momentum could pick up and the pair could surge towards $25,211.

If the price declines and falls below $22,600, the pair could slide towards the exponential moving average at 20. This level can act as support, but if the bears manage to pull the price below, the next stop could be $21,480.

APE/USDT

ApeCoin (APE) has been hovering between $7.80 and $3 for several months. After the bears fail to drive the price down below the range, the bulls attempt a comeback. They will attempt to propel the price towards the range resistance.

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APE/USDT daily chart. Source: Trading View

The ascending moving averages and the RSI in the overbought zone suggest that the buyers have the upper hand. There is minor resistance near $6.40, but if the buyers bulldoze their way, the APE/USDT pair could rise to $7.80. This level may witness aggressive selling by the bears.

The positive view could be invalidated in the short term if the price declines and falls below the 20-day EMA ($4.80). This could push the price down to the 50-day simple moving average ($4.17).

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APE/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the pair is in a strong uptrend. The bears are trying to block the bullish move at $6, but a positive sign is that the bulls haven’t given much ground. This indicates that every minor drop is bought. The bulls will now try to propel the price above $6 and resume the uptrend.

On the contrary, the bears will try to pull the price below the 20-EMA. If successful, the pair could attract profits from short-term bulls. The pair could then drop to $5.

MANA/USDT

Decentraland (MANA) rose sharply from $0.28 on Dec. 30 to $0.78 on Jan. 21, showing strong momentum in favor of the bulls.

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MANA/USDT daily chart. Source: Trading View

The bears sold the break above $0.74 on January 17, but the bulls stepped in and bought the decline to $0.61. This shows that sentiment remains positive and that traders view the dips as a buying opportunity.

The bulls will need to hold the price above $0.74 to signal the start of the next leg of the recovery. The MANA/USDT pair could climb to $0.87 and then reach the psychological barrier at $1.

If the bears want to gain the upper hand, they will have to drive the price down below $0.61. If they do, the pair could initiate a deeper correction to $0.53.

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MANA/USDT 4 hour chart. Source: Trading View

The 4 hour chart shows the formation of an inverse head and shoulders pattern. If the buyers push the price above the neckline of the pattern, the setup will end and the pair could surge towards the target objective at $0.93.

On the contrary, if the price declines from the current level and breaks below the moving averages, it will suggest that the bears are fiercely guarding the $0.74 resistance. The pair could then dip into the $0.61-$0.55 support zone.

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AAVE/USDT

Aave (AAVE) broke and closed above the downtrend line on January 17, signaling a potential trend change. The bears tried to pull the price back below the downtrend line on January 18, but the bulls held on.

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AAVE/USDT daily chart. Source: Trading View

The upward sloping 20-day EMA ($74) and the RSI in the overbought region suggest that the bulls have the advantage. This edge could strengthen further with a break above $92. The AAVE/USDT pair could then rally to the psychologically crucial $100 level.

This level may again pose a significant challenge for buyers, but if they overcome this hurdle, the pair could soar towards $115.

Contrary to this assumption, if the price declines and dips below the downtrend line, it will signal that the bears are active at higher levels. The advantage may tip in favor of the bears on a slide below the 20-day EMA.

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AAVE/USDT 4 hour chart. Source: Trading View

The 4-hour chart shows that the bears are defending the area between $88 and $91 but they were unable to pull the price below the moving averages. This indicates a bullish sentiment where traders are buying the dips.

The bulls will make another attempt to clear the air zone. If they can achieve this, the pair could resume the uptrend.

Instead, if the bulls fail to push the price above $91, the bears will try to pull the pair below the moving averages. The pair could then fall to $78 and later to $73.

FIL/USDT

Filecoin (FIL) broke above the downtrend line on January 14 and retested the breakout level on January 18. This suggests that the bulls have reversed the downtrend line into support.

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FIL/USDT daily chart. Source: Trading View

The moving averages have completed a bullish crossover and the RSI is in the overbought space, signaling that the bulls are in control. The FIL/USDT pair could rally to $6.50 where the bears could once again mount a strong defense. If the bulls drive the price above this level, the upside could reach $9 with a brief stop near $7.

The 20-day EMA ($4.24) is the important support to watch on the downside, as a drop below could tip the edge in favor of the bears.

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FIL/USDT 4 hour chart. Source: Trading View

The bears tried to block the rescue rally to $5, but the bulls broke through that resistance and started the next leg of the recovery. The upward sloping moving averages and the RSI in the overbought zone indicate that the bulls are firmly in control. Buyers will try to push the pair towards $6.50 and then $7.

On the other hand, the 20-EMA is the essential support to pay attention to. If the price bounces off this level, it will indicate that the uptrend remains intact. On the other hand, if the bears pull the price below the moving averages, the pair could crash to $4.20.