bitcoin (B T c) The price has remained range bound between $30,000 and $40,000 for the past few days, which is not necessarily a bearish signal.
Generally, after a sharp decline, the price strengthens as the asset moves from weaker hands to stronger hands. After the transition is complete, the asset breaks out and a new uptrend begins. Generally, the longer the price has consolidated in a range, the stronger the next trending move will be.
Mike McGlone, senior commodity strategist at Bloomberg Intelligence, said on Saturday that bitcoin’s dwindling supply Affirmative The signal, which can act as a “bullish ace” for higher levels of “previous patterns hold”.
eToro CEO Yoni Assia also told Cointelegraph that bitcoin could see fast Growth “in the next three to five years, because there are still 5 billion people in the world who basically don’t have a good local currency.”
Therefore, investors should not be disheartened by the softening of prices in the short term. Bitcoin fundamentals remain strong and this could result in a new uptrend in the future.
As the crypto markets consolidate, let’s analyze the chart of the top-5 cryptocurrencies that are likely to outperform in the coming days.
Bitcoin broke below the resistance line of the descending triangle on January 12 and broke below the 20-day exponential moving average ($36,586). This shows that the bears are aggressively defending the resistance line.
The longer the price stays below the 20-day EMA, the more likely it is to fall to lower levels. If the bears drop below $34,600, the BTC/USDT pair could drop to $33,400 and then to $31,000.
A break and close below $31,000 would complete a descending triangle pattern with a target target of $19,549. However, it is unlikely that there will be a straight lower level as the bulls will attempt to halt the decline below the $31,000 to $28,000 support area.
This negative view will be invalidated if the price continues to rise and rises above the resistance line of the triangle. Such a move could open the door for a move up to the 50-day simple moving average ($44,709), which is likely to act as a stiff resistance again.
A break above the 50-day SMA would indicate that a correction may be over and the bulls would gradually attempt to initiate a fresh up-move.
The moving averages are crossing each other on the 4-hours chart and the relative strength index (RSI) is just above the midpoint, which indicates that the bulls are attempting a bounce back.
A breakout and a triangle above the resistance line would indicate that demand is exceeding supply. If the bulls maintain the price above the triangle, a new up-move could be triggered.
Alternatively, if the price drops below the resistance line and breaks below $34,000, it could signal a minor gain for the bears. This could drag the price down towards the crucial support level of $31,000. A bounce off this support would suggest accumulation at lower levels and this could keep the pair inside the triangle for some more time.
come Has been trading in a broad range for the past few months between $280 and $581.67. The bulls have successfully defended the range support on the last five occasions, so buyers are likely to buy dips once again.
If the price rebounds strongly from the current levels, it would indicate that the bulls will continue to accumulate on the dips. Buyers will then attempt to push the price above the 20-day EMA ($344). If they succeed, the AAVE/USDT pair could rise to the 50-day SMA ($414), which could act as a tough barrier.
If the price breaks below the 50-day moving average, the pair may consolidate between $280 and $414 for a few days. Conversely, a breakout of the 50-day EMA would clear the way for a move north towards $581.67.
This positive outlook will be invalidated if the price declines from the 20-day SMA and falls below the $280 support. This would encourage the bears who would then try to pull the price down to $208.09 and then to $160.
The 4-hours chart is showing that the bears pulled down the price below $280 but it is struggling to maintain a lower level. However, the moving average is trending down and the RSI is in the negative zone, indicating gains for the bears.
If the price breaks below the current level and breaks below $266.68, the pair can start its downward journey. This downside view will be invalidated if the bulls push the price above the downtrend line. Such a move suggests that the correction has ended and the pair can rise to $500 again.
Kusama (KSM) has been witnessing ups and downs for the past few days. Although the bulls pushed the price above the overhead resistance of $480 on June 9, they could not sustain the higher levels and the price dropped below the level on June 10. This shows that the bears are selling on the rallies.
However, buyers did not allow the price to drop below the 20-day EMA ($388). This suggests that the sentiment is turning positive as the bulls are buying a downside break from the 20-day EMA.
A rise in the 20-days EMA and the RSI near the midpoint is indicating minor gains for the bulls. Buyers will now make another attempt to push the price above $480. If they succeed, the KSM/USD pair could rally to $537 and then reclaim the all-time high at 625.
This positive outlook will be invalidated if the price falls from the current level or upper resistance and falls below $360. This could pull the price up to $280.
The 4-hours chart is showing that the bulls are attempting to defend the trendline support. However, the 20-EMA has turned down and the RSI is in the negative zone, indicating that the bears have the upper hand.
If the sellers push the price below $380, the pair could decline to $342. A break below this support could lead to a drop to $280.
This downside outlook will be invalidated if the bulls can push the price above $429. This could attract a buy pushing the pair towards $480.
algorand (algo) bounced off the trendline on June 12 and rose above the 20-day EMA ($0.97), which suggests that the bulls are buying on the downside. The 20-day EMA and the RSI near the midpoint suggest that the selling pressure has eased.
The price trend over the past few days has formed an ascending triangle pattern, which will complete on a breakout and close above $1.15. If the bulls manage to maintain the price above $1.15, the ALGO/USDT pair could rally to the target target at $1.63.
Contrary to this assumption, if the price falls below $1.15, the pair can extend its stay inside the triangle for a few more days. A breakdown and close below the trendline would void the bullish view and open the doors for a decline to $0.80 and then $0.67.
The 4-hours chart is showing that the bulls are attempting to push the price above the declining trend line. If they can sustain the breakout, the pair can move up to $1.15. A breakout and close above this resistance could start a new uptrend.
Conversely, if the price drops below the current level and breaks below the moving average, the bears will make another attempt to lower the price below the trendline. If they succeed, it would signal the start of a deeper correction.
Theta Fuel (TFUEL) reached a new all-time high of $0.679 on June 9, but the bulls could not sustain the higher as seen from the longer wick on the day’s candlestick. This was followed by a sharp decline in the 20-day EMA ($0.41) on June 12.
A strong rally from the 20-day EMA suggests that sentiment is positive and traders are aggressively buying on the dips. The bulls will now try to push the price higher to an all-time high where they may face stiff resistance from the bears.
If the price breaks below the all-time high, the bears will make another attempt to pull the price below the 20-day EMA. If they are successful, it would suggest the beginning of a deeper reform.
Alternatively, if buyers push the price above the all-time high, the TFUEL/USDT pair could resume the uptrend, with the next target objective at $0.85 and then $1.
The 4-hour chart shows that the pair made a strong rebound from the support level of $0.40, which suggests accumulation at lower levels. However, a relief rally is facing resistance just below the 61.8% Fibonacci retracement level at $0.57.
This shows that the bears have not given up yet and are selling in the rallies. If the price breaks below the 20-EMA, the bears will try to pull the price down towards $0.40. If this happens, the pair may consolidate between these two levels for a few days.
Alternatively, if the price breaks out from the 20-EMA, it would indicate that the sentiment is positive and the bulls are not waiting for a deeper downside to buy. This will increase the chances of a breakout above $0.57. The pair could then rise to reclaim the all-time high.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, so you should do your own research when making a decision.