Bitcoin (BTC) has taken a breather over the last week but its amazing performance in 2023 is still strong. The recent drawback indicated profit-taking by traders but it does not deter the optimism among the analysts for the crypto space in 2023.
Solana (SOL), Injective (INJ) and Internet Computer (ICP) seem to be unbothered by the recent shakeout as they continue their "impressive decouplings from the #altcoin pack", according to market intelligence firm Santiment.
As Bitcoin seeks to establish a directional bias, traders will likely turn their attention to these altcoins. Let's look at the charts of these four cryptocurrencies and see where they may be headed next.
Bitcoin has been consolidating in a descending triangle defined by the downtrend line and the support level at $40,800. This set the big crypto up for a sharp breakout within the next few days.
This happened during the early Asian trading hours on Tuesday when the BTC price climbed to an intraday high of $43,456. At the time of publication, Bitcoin was exchanging hands at $$42,912, up 4.3% over the last 24 hours.
The moving averages on the daily chart are still turning up, and the relative strength index (RSI) is trading in the positive region, indicating that the bulls still have an edge over the bears. The bulls will have to break the $44,000 resistance to accelerate selling and push the pair to $45,000.
BTC/USD Daily Chart
Conversely, if the price turns down and breaks below the $40,800 support line, it will suggest that the bears have not given up on pulling the price lower. The Bitcoin price could then retest the major support at $40,00. If this level is breached, the prospects of a free-fall to $35.500 increase.
Solana has been in an uptrend since the beginning of the year, climbing more than 650% in 2023 . The bulls purchased the dip to the $65 psychological level on Dec. 13, indicating solid demand at lower levels.
The bulls are trying to propel the price above the immediate resistance of $80, but the bears are not relenting. However, the upsloping moving averages and the RSI in the positive area suggest that the path of least resistance is to the upside.
SOL/USD Daily Chart
If buyers drive the price above $80, the SOL/USD pair may rally to $190 and later to $100.
On the other hand, if bears want to prevent the up-move, they will have to drag the pair back below the $70 psychological level. The smart contracts token could then plunge to the 50-day EMA at $58.
Injective price turned up from $18.5 on Dec. 10 rallying 122% to reach a high of $41.25 on Dec. 19. This shows the strength amongst the bulls to sustain the higher levels. The up-facing moving averages and the position of the RSI in the overbought region validate this.
The INJ/USDT pair is trying to flip $40 into support. If that happens, the pair will continue the up-move with the first line of resistance arising from the multi-year high at $41.25. Higher than that, the bulls may push the price to tag the 27.2% Fibonacci retracement level at $47.5.
INJ/USD Daily Chart
On the other hand, the RSI at 87 showed that INJ was massively overbought suggesting that the correction may take place in the near term. If this happens, the bullish view will be invalidated with the price plummeting below the 23.6% retracement level near $35.
The ICP/USD turned down from the overhead resistance of $16 on Dec. 12 and reached the support level at $9 on Dec. 18.
The rebound off the $9 level indicates that the sentiment remains bullish, and traders are buying on dips. The bulls will try to push the price to $10.5, which remains the crucial resistance to watch out for in the near term. If buyers overcome this obstacle, the ICT/USD pair could pick up momentum and rally to $15 and thereafter to $20.
ICP/USD Daily Chart
Meanwhile, sellers are likely to have other plans as shown by the overbought RSI. They will try to sell the rallies and sink the price back below $9. If they manage to do that, it will signal the start of a deeper correction to the 50-day SMA at $5.5.
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