Bitcoin’s bullish move above $19,300 is pulling select altcoins closer to their key overhead resistance levels.
Over the weekend Bitcoin (BTC) price made a push back above the $19,000 level as traders showed up and provided enough volume to support the surge.
At the time of writing, BTC price breaking above a pennant but the $19,300 to $19,500 range continues to present significant resistance. According to Cointelegraph contributor, Rakesh Upadhyay:
“If the bulls can push the price above the $19,500 to the $20,000 overhead resistance zone, it will complete an ascending triangle pattern that has a target objective of $22,808.98.”
As Bitcoin bulls attempt topush the price to the $19,500 resistance, a handful of altcoins have capitalized on BTC’s range-bound price action by rallying higher to key resistance levels.
Yearn.finance’s (YFI) governance token is currently showing an inverse head and shoulders formation on the 1-hour timeframe and as the price pushes at the neckline traders will look for a breakout to the $27,750 to $27,850 level.
Risk-averse traders will likely wait for a 1-hour close above the neckline at $26,276 before opening a position.
The 4-hour chart also shows a VPVR gap extending from $26,115 to $27,851 and the RSI has entered bullish territory above 50. In the event of a pullback, the 20-MA may provide support as it sits closely below at $25,468.
AAVE is also showing a similar construction to YFI except that it recently broke above the neckline of its inverse head and shoulders pattern to surge to a 5-day high at $91.78.
This move and the accompanying high volume surge triggered a bit of profit-taking but traders who take a quick glance at AAVE’s chart will notice that lower support retests frequently occur after the rallies like the one seen today.
Profit-taking led to the price retesting the $85.50 support and if this level can hold and Bitcoin doesn’t breakdown from its pennant, AAVE price will likely reclaim $88.30. A daily close above $91.78 will open the door to AAVE securing a new all-time high above $94.90.
Another altcoin quietly making strong moves is Elrond (EGLD) which has rallied 75% since completing a rounding bottom on Dec. 7. Currently, EGLD is up 10.5% today and after topping out at $20.12 the altcoin is pulling back to retest underlying support levels.
There is support at $17.42, and below this at $16.80 where the 20-MA resides and the volume profile visible range shows support.
While the 4-hour chart suggests that the bullish move has ended, the daily timeframe shows EGLD on the verge of overtaking the Sept. 4 high at $20.50, after which there is no overhead resistance and the possibility of a new all-time high above $35.
If Bitcoin price successfully breaks above $19,500 and flips the level to support it’s likely that YFI, AAVE and Elrond will follow in tandem.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
