When market sentiment turns bearish, every little negative news, though insignificant, pulls prices down as traders panic. This comes after China’s social media giant Weibo suspended several crypto-related accounts and fears that there could be widespread action.
In other news, a note from Goldman Sachs stated that bitcoin was discovered in his meeting with 25 chief investment officers of long-only and hedge funds (B T c) In form of at least Preferred property for investment.
While the news may turn negative in the short term, it is unlikely to change the long-term story of bitcoin. As the price improves, many institutional investors may consider crypto investments to hedge their portfolios against a potential surge in inflation in the United States.
From the point of view of most traders, the current decline in bitcoin represents a buying opportunity for the long term.
Let us analyze the chart of top-5 cryptocurrencies that are likely to outperform in the coming days.
Bitcoin fell below the 20-day exponential moving average ($39,127) on June 3, but is finding support near the trendline of the triangle. This suggests that the bulls are buying on the downside, and the bears selling on the rallies.
The next trending move is likely to begin when the price escapes the triangle. If the bulls push and sustain the price above the resistance line, the BTC/USDT pair could rally against the 50-day simple moving average ($47,198) and then the pattern target at $52,622.90.
Conversely, if the price turns down and breaks below the triangle trend line, it would indicate that supply is exceeding demand. This could result in a decline to the $30,000 to $28,000 support area.
If this area is broken, selling could be bullish as many traders who bought recently could exit their positions. This could drag the price towards $20,000.
The moving averages on the 4-hours chart have flattened out, and the relative strength index (RSI) is oscillating between around 40 and 60, indicating a balance between buyers and sellers.
However, this uncertainty is unlikely to continue for long and the price is likely to break above or below the triangle in the coming days. If the price breaks out and stays above the triangle, it would suggest that the setup is acting as a reversal pattern.
Conversely, if the price breaks below the triangle, it would indicate that the current consolidation was a temporary halt in a strong downtrend. The direction of the breakout is difficult to predict, so traders can wait for the break to occur before considering new positions.
ether (ETH) fell below the 50-day SMA ($2.908) on June 4 and re-entered the symmetrical triangle. However, on the positive side, the bulls have not given up much ground, which is indicating a strong buy near $2,550.
If buyers push the price above the resistance line of the triangle, the ETH/USDT pair may again challenge the 50-day EMA. A breakout above this resistance and the 61.8% Fib retracement level of the move could clear the way for a move to $3,362.72.
Contrary to this assumption, if the price falls below the 50-day SMA once again, it would suggest that the bears are aggressively defending the resistance. A break below $2,550 could drag the price towards the support line of the triangle. A break below the triangle will be the first sign that the bears are back in the driver’s seat.
The 4-hours chart is showing a formation of an ascending triangle pattern that will complete with a breakout and close above $2,906. If this happens, the pair can rebound to $3,600 and then to the paradigm target of $4,083.26.
This bullish view will be invalidated if the price turns down and breaks below the trend line of the triangle. The bears will then try to pull the price towards $2,200 and then the crucial support at $1,728.74.
cardano (ada) has been stuck in a large range between $1.94 and $1 for the past few days. The altcoin broke below the resistance at the range on June 4 and fell to the moving average.
The bulls are currently attempting to defend the area between the 20-day EMA ($1.66) and the 50-day SMA ($1.55). If the price rebounds from the current levels, it would indicate that sentiment is turning positive and traders are buying dips on the moving averages.
A breakout and a close above $1.94 indicate that the bulls are back in the driver’s seat. If price sustains above this level, the ADA/USDT pair may retest the all-time high of $2.47. A break above this resistance would signal the start of the next leg of the uptrend.
This positive outlook will be invalidated if the pair breaks down and breaks below the 50-day SMA. The bears will then try to pull the price towards the $1.33 to $1.22 support area.
The 4-hours chart is showing a formation of an ascending triangle pattern that will complete with a breakout and close above $1.94. The target target of this bullish setup is $2.88. However, this is unlikely to be a direct dash to the target as the bears may mount a stiff resistance at the current all-time high of $2.47.
The 20-EMA has started to move down and the RSI is just below the midpoint, which suggests a possible downside break in the trend line of the triangle. A break below this support would invalidate the bullish setup and could result in a drop to $1.36 and then to $1.
The bears are trying to stop Solana (p) relief rally at the 61.8% Fibonacci retracement level at $43.38. However, sellers were unable to push the price below the 20-day EMA ($36.39), which indicates that the sentiment has turned positive.
VORTECS™ data Cointelegraph Bazaar Pro The rally began tracing a bullish outlook for SOL on 1 June before gaining momentum.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions, derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen from the chart above, the VORTECS™ score for SOL turned green on June 1 when price was near $32.10.
The VORTECS™ score has remained consistently in the green since then and the SOL price has risen to $43.33 today, registering a 35% gain in five days. It shows how the VORTECS™ score gave an early signal of a counter trend rally while other instruments would have been bearish.
The SOL/USDT pair bounced back from the 20-day EMA on June 4 and today bounced off the 50-day SMA ($39.42). This suggests that the bulls are not waiting for a deep correction to buy.
If buyers push the price above $43.38, it would signal that the downtrend is over. The pair is likely to rally again to the 78.6% retracement level of $49.97 and then to the all-time high of $58.38. The 20-day EMA has started turning up and the RSI is in positive territory, suggesting that buyers have the upper hand.
This positive outlook will be invalidated if the price moves down and falls below the trendline. The pair is likely to decline again to $25.58 and later to $21.
The moving averages are up and the RSI is trading in a positive zone on the 4-hours chart, which indicates that the bulls are making a comeback. If buyers insist on the price above $43.38, an upward move is likely.
Conversely, if the price turns down and breaks the 20-EMA, it would suggest that the supply is exceeding the demand. The pair can then fall to the 50-SMA and then to the trendline. A break below the trendline would indicate that the bears are back in play.
Theta is trading inside a descending channel. The bulls attempted to push and maintain the price above the resistance line of the channel on June 4 and 5, but were unsuccessful. This suggests that the bears are aggressively defending this resistance.
However, the 20-days EMA ($8.19) has started to move up and the RSI is in positive territory, indicating that the bulls have a slight advantage. If the Theta/USDT pair bounces off the 20-day EMA, buyers will make another attempt to push the price above the channel.
If they succeed, it would signal that the downtrend may be over. The pair can then start an upward move towards $13 and later reach an all-time high of $15.88. This bullish view will be invalidated if the bears decline and maintain the price below the 20-day EMA. Such a move could result in a drop to $6.
The 4-hour chart shows that the pair has broken below the resistance line of the channel on two occasions. However, the bears were not able to close and sustain the price below the 20-EMA, which indicates demand at lower levels.
If the pair rebounds from the current level, the bulls will make another attempt to push the price above the channel. If they manage to do so, the next phase of the uptrend could begin.
On the other hand, if the price breaks below the 20-EMA, the pair can slide down to the 50-SMA. A break below this support would suggest the start of a deeper correction.
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.