AAVE, YFI, and Elrond Rise as Bitcoin Price Surpasses $19,300
Over the weekend, the price of Bitcoin surged above $19,000, as traders provided enough volume to support the surge.
According to Rakesh Upadhyay, a professional trader, if the bulls can propel a price above $19,500 to the $20,000 resistance zone, it will complete an ascending triangle pattern with a target of $22,808.98.
As Bitcoin bulls try to break above the $19,500 resistance price, a handful of altcoins have taken advantage of the BTC price surge to climb to crucial resistance levels.
The yearn.finance (YFI) governance token is currently showing a reverse head and shoulders formation within an hour. As the price propels towards the neckline, traders will seek a breakout to the $27,750 to $27,850 level.
Risk-averse traders will likely wait to close for an hour above the neckline of $26,276 before opening a position.
The four-hour chart also shows a VPVR gap that runs from $26,115 to $27,851. The RSI has entered bullish territory above 50. If a pullback happens, the 20-MA may provide support as it hovers well below $25,468.
AAVE also shows a similar build to YFI. Thus, expect a break above the neckline of its inverse head and shoulders pattern to hit a 5-day high at $91.78.
Altcoins are likely to follow the Bitcoin price movement
This movement and the consequent increase in sales volume triggered a bit of profit-taking, but traders glancing at the AAVE chart will note that after rallies like the one seen today, more support retests frequently occur low.
The profit-taking led the price to retest the support at $85.50. If this level holds and Bitcoin does not break out of its pennant, the price of AAVE will likely rebound to $88.30. A daily close above $91.78 will create an opportunity for AAVE to secure a new all-time high above $94.90.
Another strong moving altcoin is Elrond (EGLD). It is up 75% since it completed a rounding bottom on December 7. Currently, EGLD increased 10.5% and after hitting $20.12. The altcoin is in retracement to retest the underlying support levels.
There is support at $17.42. Below this, at $16.80 the 20-MA resides and the visible volume profile shows support.
The 4-hour chart shows that the bullish move is over. Meanwhile, the daily time frame suggests the EGLD is about to break above the September 4 high of $20.50. After that, there is no overhead resistance. Thus, there is a possibility of a new all-time high above $35.
If the price of Bitcoin successfully breaks above $19,500 and turns that level into support, the YFI, AAVE, and Elrond are likely to follow in tandem.
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