5 altcoins that could breakout if Bitcoin price remains bullish

The cryptocurrency markets have made a strong comeback in recent days. That brought the total crypto market cap to $995 billion on Jan. 14, according to data from CoinMarketCap. Bitcoin (BTC) led the recovery from the front and rocketed above $21,000 on Jan. 14.

After the sharp rally, the big question is whether the recovery is a dead cat bounce that is a selling opportunity, or whether it is the start of a new uptrend. It is difficult to predict with certainty whether a macro bottom has been reached, but the charts suggest that a low has begun.

Daily view of crypto market data. Source: Coin360

Independent market analyst HornHairs highlighted that the bear market lasted 364 days from 2017 to 2018, and from 2021 to the current market low, the duration is again 364 days. Another interesting similarity is that the bull market from 2015 to 2017 and the bull phase from 2018 to 2021 both lasted 1,064 days. If history repeats itself, Bitcoin could reach the next top in about 1,000 days.

Bitcoin’s short-term price action has been exciting for bulls, but are there altcoins showing similar strength in the short term?

Let’s study the charts to find out.

BTC/USDT

Bitcoin rocketed to $21,258 on Jan. 13, propelling its relative strength index (RSI) above 89, indicating that the short-term rally was overheated. The bears are expected to mount a strong defense at $21,500.

BTC/USDT daily chart. Source: TradingView

Sometimes, when a trend change occurs, the RSI can stay in the overbought territory for a long time. If the BTC/USDT pair does not give much ground from its current level, it will suggest that traders are in no rush to take profits as they expect another step higher.

If buyers kick the price above $21,500, the pair could rise to $22,800. This level can again act as a major roadblock.

On the way down, the bears will need to drag the price below the USD 20,000 psychological level to make a dent in the bullish momentum. The pair could then drop to the $18,388 breakout level.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bears are guarding the USD 21,250 level, but a positive sign is that the bulls have failed to sink the price below USD 20,000. Buyers can try again to overcome the $21,258 overhead hurdle and resume the uptrend.

On the contrary, if the price falls again from $21,250, it may entice short-term traders to take profits. That could drop the pair below the 20-EMA. The bears might try to take advantage of this situation and pull the pair towards $18,388.

LTC/USDT

Litecoin (LTC) broke above the overhead resistance at $85 on Jan. 12, signaling the start of a new uptrend. There is no major hurdle until the price hits $107.

LTC/USDT daily chart. Source: TradingView

On the other hand, the bulls will try to fiercely defend the zone between $85 and the 20-day EMA ($79). If the price bounces back from this zone, the LTC/USDT pair could continue its uptrend and reach $107.

The rising moving averages indicate an upside for bulls, but the RSI above 77 suggests a small pullback or consolidation is likely.

If bears want to gain the upper hand, they will have to pull the price below the $75 breakout level. That could give way to a collapse to USD 61.

LTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair is in an uptrend with the bulls fiercely protecting the 20-EMA. If buyers push the price above $92, the pair could pick up momentum and move towards the $100 psychological level.

Conversely, if the price falls and dips below the 20-EMA, it will suggest that short-term traders may be making profits. That could pull the price towards the 50-SMA. This is an important level for the bulls to defend, as a break below it could increase the risk of a decline to $80 and then $75.

OKB/USDT

As several cryptocurrencies try to bottom out, OKB (OKB) has started a new upward trend. Usually it is a good strategy to buy the dips in an uptrend by holding an appropriate stop loss.

OKB/USDT daily chart. Source: TradingView

The rising moving averages and the RSI in overbought territory indicate that the bulls are in the lead, but a near-term consolidation or correction cannot be ruled out. The OKB/USDT pair could slide into the 20-day EMA ($27.64) which is likely to act as strong support.

If the price bounces off this level, the pair could hit the strong above-ground barrier at USD 34.18. Crossing this level can be a difficult task, but if the bulls manage to make it, the pair could skyrocket to $42.

If bears want to slow the upward movement, they will have to pull the price below the 20-day EMA. If they succeed, the pair could drop to the 50-day SMA ($24.05).

OKB/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the uptrend encountered a strong sell near USD 33 and the pair might correct towards the 20-EMA. If the price bounces back from this support, it will suggest that bulls are buying at every small dip. That could push the price up to $34.18.

If, on the other hand, the price dips below the 20-SMA, the correction could deepen towards the 50-SMA. If the price bounces off this level, the bulls will try again to resume the upward movement, but may encounter resistance at $31 and again near $33.

Related: Bitcoin Fails To Convince Bottom Is In With $12K ‘Still Probable’

BIT/USDT

BitDAO (BIT) rose sharply from $0.26 on December 27 to $0.53 on January 14, indicating strong bullish momentum. In addition, the slight pullback on January 15 suggests that traders are not rushing out of their positions as they expect the upward movement to continue.

BIT/USDT daily chart. Source: TradingView

If bulls pushed the price above the $0.54 overhead resistance, the BIT/USDT pair could resume its upward movement. The next positive resistance is $0.68. The bears could present a major challenge at this level as a break and close above could open the doors for a possible rally to $0.80.

On the downside, the first support is $0.46 and then the 20-day EMA ($0.42). A strong bounce off either support suggests traders are buying on declines. That could result in a $0.54 retest. The bears can take control if they drop the price below the 20-day EMA.

BIT/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair is facing resistance near USD 0.54, but the bulls are likely to defend the drop towards the 20-EMA. A strong recovery from this level suggests that bulls are buying on shallow declines. That could improve prospects for a break above $0.54.

If the price falls and goes below the 20-EMA, several short-term traders can make a profit. That could pull the pair towards the 50-SMA. If this level also breaks, the pair could tumble towards USD 0.41.

FTM/USDT

Fantom (FTM) broke above the downtrend line on Jan. 9, indicating a possible trend change. The breakout was followed by a sharp rally that pushed the RSI to deeply overbought levels.

FTM/USDT daily chart. Source: TradingView

Vertical rallies are unsustainable, so a pullback was to be expected. The FTM/USDT pair could drop to the 38.2% Fibonacci retracement level of $0.30 and then to the 50% retracement level of $0.28.

If the price moves up from this zone, it suggests a change in sentiment from selling on rallies to buying on dips. The bulls will then attempt to resume the recovery and drive the pair above $0.36. If they do, the pair could rise to $0.42.

On the contrary, a break and close below USD 0.28 could push the pair back towards the 61.8% retracement level of USD 0.26. A deeper drop could break the bullish momentum and increase the likelihood of a range formation.

FTM/USDT 4-hour chart. Source: TradingView

Both moving averages are slanting upwards and the RSI is in positive territory, indicating an upside for buyers. The pair could slide into the 20-EMA, which will likely act as strong support. If the price bounces off this level, the bulls will try to resume the upward movement.

On the contrary, if the price moves below the 20-EMA, it will suggest that traders are aggressively profiting after the recent rally. The pair could then extend its correction to the 50-SMA.