These 3 Altcoins Can Outshine BTC | Credit: Hameem Sarwar
Key Takeaways
- Ethereum’s (ETH) price has reached a long-term support level.
- SEI bounced at a long-term support and created a higher low.
- Chainlink (LINK) created a bullish engulfing candlestick.
November was an extremely bullish month in the cryptocurrency market, as evidenced by Bitcoin’s (BTC) and numerous altcoins’ new all-time highs.
This continued a positive trend that had been ongoing since August. However, it was the first month that altcoins showed signs of life against Bitcoin, as evidenced by the decline in the Bitcoin Dominance Rate (BTCD).
This article will analyze three altcoins with positive charts against Bitcoin that can cause them to outperform in December.
Ethereum Reaches Support
The ETH/BTC pair has been one of the most notorious bearish charts in the current market cycle. Since September 2022, Ethereum has been on a downtrend against Bitcoin, losing 56% of its value in 812 days. However, this could all change soon.
Last week, the ETH price briefly declined below the ₿0.037 horizontal support, a key area that acted as resistance in the previous market cycle. Once ETH broke out above it in April, it started the upward movement, leading to the cycle high of ₿0.088 in December 2021.
In addition, ETH fell below the support trend line of a descending parallel channel that has contained the trend since the aforementioned high.
However, depending on the weekly close, ETH is in the process of reclaiming both support levels this week.
If Ethereum closes above ₿0.0398, it will complete a morning star pattern, a bullish candlestick pattern that often leads to trend reversals. This would make an eventual breakout more likely.
A simple mean reversion for ETH/BTC that takes it back to ₿0.065 would put the ETH price at $6,500, causing a new all-time high.
Historically, ETH/BTC has outperformed in December and in Q1. The ETH/BTC chart suggests this will likely occur in the current market cycle.
Technical indicators support this increase. After two touches of its oversold region, the weekly Relative Strength Index (RSI) has created a bullish divergence. The previous time the RSI fell to oversold territory twice was in 2018/2019, triggering a two-year upward movement.
If ETH breaks out from the long-term channel, it could increase rapidly because of its lengthy duration.
While resistance is at ₿0.056, Ethereum could move to its cycle high of ₿0.080 and possibly break out.
SEI Price Bounces
The SEI price has trended downward against Bitcoin since its all-time high in December 2023. However, the decline may have ended in August. At the time, the SEI price seemed to break down from the long-term horizontal area of ₿0.0000056.
However, the SEI price has increased since, creating a higher low and validating a long-term ascending support trend line that has existed for 385 days. Last week, SEI bounced and created a large bullish candlestick, reclaiming the horizontal support area.
This means the previous breakdown was just a deviation, often leading to bullish trend reversals.
If SEI continues to increase, the next resistance will be at ₿0.000130, an increase of 95% from the current price.
While the RSI and MACD do not confirm the bullish trend reversal, both trend upward. A MACD cross above 0 will confirm that SEI has moved upward toward the ₿0.000130 resistance area.
LINK Price Breaks Out
Out of the three altcoins analyzed, LINK is the only one that has not reclaimed its main resistance area against Bitcoin. However, LINK broke out from a descending resistance trend line and created a bullish engulfing candlestick last week (white icon).
The trend line existed for 280 days before the breakout. Thus, the LINK price downtrend has likely ended. The weekly time frame indicators support this outlook.
The RSI and MACD have generated bullish divergences (green) and are increasing. The divergences preceded the breakout, legitimizing it.
LINK has to close above the ₿0.00190 horizontal resistance area to confirm the bullish trend reversal. This would cause the RSI and MACD to increase above 50 and 0, respectively, and pave the way for a 55% increase to the next resistance at ₿0.00300.
Three Bullish Altcoins
Ethereum, SEI, and Chainlink are three bullish altcoins that can outperform Bitcoin in December. Because of the price action, indicator readings, or both, all three could begin rallies that retrace a large portion of their downtrends.
Ethereum and SEI have reclaimed long-term horizontal levels, while LINK has broken out from a long-term resistance but has yet to reclaim its main horizontal level.
Ethereum (ETH) Hits $3,600 Mark as Market Dominance and Betas Climb
Chainlink (LINK) Breaks Out From Resistance — Pattern Points to 80% Price Increase