The sharp correction in Bitcoin (BTC) may have rattled many leveraged traders, but the data shows whales and institutions aggressively bought the downside and now the bulls have shown they are determined to push back the Bitcoin price above $ 40,000. The total crypto market cap also recovered and climbed back above $ 1 trillion.
Pantera Capital founder and CEO Dan Morehead has said he is sticking to his earlier prediction of $ 115,000 for Bitcoin by August of this year. Morehead believes developments in the digital yuan in China could boost crypto adoption and prove to be a bullish trigger.
Several altcoins have also turned positive and follow Bitcoin higher. Let’s take a look at the fundamental reasons for their rise to determine if there are any possible upside targets.
ZEC / USD
European Central Bank President Christine Lagarde recently reiterated her view that Bitcoin should be regulated compared to Bitcoin. Regulation can be a double-edged sword, and those who oppose it have argued that it has repeatedly failed in mainstream finance. Therefore, as voices in favor of regulation grow, some investors may prefer privacy coins such as Zcash (ZEC).
The Zcash Foundation wants the community to increase adoption of the protection and for apps to allow transactions using protected Zcash. To do this, the foundation plans to accelerate the development of Zebra, a Zcash node client compatible with the consensus written in Rust.
Zcash also completed its third major network upgrade called Blossom on December 11. The upgrade cut block times in half, enabled faster transaction confirmations, reduced fees, and doubled network throughput.
As Zcash takes the necessary steps to improve user adoption, the project continues to face the heat due to its privacy label. Recently, the crypto exchange Bittrex announced that it was removing the ZEC from the list along with two more privacy coins starting January 15. Let’s see if any of these developments work in favor of the ZEC.
The ZEC went from an intraday low of $ 54.3150 on Jan 1 to an intraday high of $ 120.7119 on Jan 13, up 122% in two weeks. This rally invalidated a bearish descending triangle pattern and it is a strong bullish sign.
However, the bears are unlikely to give up easily and they are currently trying to defend the resistance at $ 125.3626. ZEC / USD may now retest the recent breakout level at $ 102.6824.
If the pair bounces off that support it will suggest that the level has shifted into support and this can be used as a launching pad for a break above $ 125.3626.
If buyers are successful in hitting this target, the pair could climb back up to $ 140 and then back to $ 160. A breakout of this resistance could pave the way for a rally to $ 220.
Contrary to this assumption, if the bears move down and hold the price below $ 102.6824, the decline could extend to $ 84. Such a drop will suggest that momentum has weakened.
KSM / USD
The recent crypto bull run has not only increased the price of Bitcoin, it has also rewarded altcoins that offer solutions to the problems that are bogging down existing projects. Polkadot (DOT) aims to address interoperability and scalability issues and recently traders have pushed its price into the top five cryptocurrencies by market cap. It also benefited his cousin, Kusama (KSM).
The next version of Substrate 3.0 will bring Ethereum compatibility and is expected to launch in the first half of this year. The upgrade could further boost Polkadot’s popularity. During this time, the Plasm network became the first parachain of Polkadot’s testnet parachain, Rococo V1. The same code will work on Kusama, and a growing number of projects to win the Polkadot Parachain Slots auction could try Kusama first.
Although Kusama is his own unique network, his fortune will closely follow Polkadot’s path.
Charts show KSM in an uptrend and its price has moved from a Jan 11 intraday low of $ 57.877 to an intraday high of $ 85.239 today. This represents an impressive rally of 47.27% in four days. Both moving averages are on an upward slope and the Relative Strength Index (RSI) is in the positive zone, indicating that the bulls are in control.
The bears had attempted to initiate a correction on January 11, but the bulls aggressively defended the 50-day simple moving average ($ 58). This suggests strong demand at lower levels. The KSM / USD pair can go up to $ 88 and then to $ 100.
However, the long wick of today’s candlestick suggests selling at higher levels. If bears pull the price below $ 76, the pair may drop to the 20-day exponential moving average ($ 67). A strong rebound will keep the bullish targets intact.
In contrast, a break below the 20-day EMA could cause the 50-day EMA to drop. If this support cracks, it may signal a change in trend.
HGET / USD
Traders use leverage through derivatives in high trending markets to maximize their gains. However, crypto markets can become volatile, leading to the rapid liquidation of futures positions. Therefore, professional traders use options to limit their risk and participate in the rally while hedging their futures positions. In fast-moving markets, demand for options is expected to remain high and this has benefited Hedget (HGET), the decentralized options trading protocol.
When trading options, pricing is an important factor for both the buyer and the seller to consider. Hedget recently announced that a partnership with Umbrella Network will provide volatility metrics of Genesis volatility to effectively assess DeFi option contracts. As more and more crypto traders understand and use options to hedge their risk, Hedget can continue to do well.
HGET rose from $ 1.675 on Jan 11 to an intraday high of $ 3.20 today, up 91% in no time. This rally pushed the price above the downtrend line, indicating a possible trend change.
If the bulls can keep the price above the downtrend line, the HGET / USD could move up to $ 3.945 where it may face strong resistance from the bears. If the price drops from this level but does not fall back below the downtrend line, it will suggest the start of a new uptrend.
A break above $ 3.945 can push the price up to $ 5. This level can act as a stiff resistance but if the bulls don’t give up a lot of ground, the ascent can resume. There are no significant resistance levels once $ 5 is broken, so momentum can build up.
The 20-day EMA ($ 2.23) has risen and the RSI is in overbought territory, suggesting that the path of least resistance is on the upside. This positive opinion will become invalid if the price drops below $ 2.75.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN. Every investment and trading move comes with risk, you should do your own research when making a decision.