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…
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