Market Watches as BTC and AVAX Hover at Certain Points
Scroll DownThe holiday travel and shopping seasons are all set to begin this coming week. It is right around this time when market analysts begin to evaluate the likelihood of widespread bullish sentiment ahead of a potential Santa Claus rally. There is a good chance that holiday cheer will influence the cryptocurrency markets this year, so let's take a look at the tokens that may get an early boost this week:
Bitcoin
Quite a few analysts believe that the recent BTC/USD pullback will motivate traders to formulate a push over $60K. The bulls will look to add momentum and extend their win streak. The first hurdle will come in the form of a key resistance area around $65K. At the same time, BTC/USD will likely be affected by the general US stock market trends. The S&P 500 will decline to near record lows on November 29, while the Dow Jones is expected to close at a near 10-month low. However, the outlook of the crypto markets will heavily depend on whether or not the US stock market is able to sustain a positive trend.
Traders are watching the US stock market for clues, and there are some good reasons to be bullish. Currently, the S&P 500 has a 14-month uptrend in progress, and the recent sell-off has been quite mild. This is a healthy development and makes a rebound by January more likely than before. There is also a good chance that global economic data has some positive trends.
Avalanche
Fans of technical analysis are hoping for a Fibonacci extension that will push AVAX closer to $150 before the end of September. If this does happen, expect the AVAX rally to pick up pace and even surpass $200 as more traders get onboard. A Fibonacci extension has been previously identified by active AVAX traders, and the most likely upside target will be above $160. However, with the current setup, it’s possible that the extension never happens because it has only been seen a couple of times this year. If the technical analysis enthusiasts are wrong, then the AVAX surge will be limited to $150 and then fail to extend higher.
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