Bitcoin (B T c) Is struggling to maintain any price level during the current pullback, reflecting a lack of demand at higher levels. Does this mean that the bull trend is over and institutional investors are leaving the crypto markets?
No! It is the other way around. Glasnod’s weekly newspaper Told That the Grayscale Bitcoin Trust (GBTC) premium is rising indicates that institutional investors are accumulating at lower levels.
GBTC is not alone, another popular vehicle for institutional investors, the Canadian Purpose Bitcoin exchange-traded fund, has also seen strong capital inflows. According to Glasnod analysts, it shows “early signs of new institutional interest”.
Another metric that can be Notation One possible bottom in bitcoin is its dominance chart, which looks similar to the early part of 2017. If the dominance of bitcoin follows the same trajectory as in 2017, it would indicate that bitcoin is still at some distance from its peak and altcoin is still in place in the season. Daud.
Now that the monthly options and futures expiry have passed, investors may be wondering whether bitcoin can start a faster recovery next week and which altcoins will rally when that happens.
Let’s take a look at 5 cryptocurrencies that can start trending moves this week.
BTC / USDT
Bitcoin’s brief breakout could not overcome the 200-day simple moving average ($ 41,014) barrier on May 26 and 27, indicating that the Bears are aggressively defending this level. The downsloping 20-day exponential moving average ($ 41,327) and the Relative Strength Index (RSI) near the oversold zone suggest bears are under control.
If the BTC/USDT pair breaks the $33,000 support, the next stop could be the $30,000 to $28,000 support area. If this area also gives way, the pair may see nervous sales and a possible fall of up to $ 20,000.
The higher the price remains below the 200-day SMA, the more difficult it is for the bull to begin the next phase of the uptrend.
However, if the price rises above the current level and rises above the 200-day SMA, it would suggest strong buying at lower levels. This could pave the way for a possible rebound to the 61.8% Fibonacci retracement level at $ 48,231.
The 4-hour chart shows the formation of a symmetrical triangle, which usually acts as a continuation pattern. If bears lower the price below the triangle, the pair may fall to $ 30,000 and then the pattern target comes to $ 20,316.
On the other hand, if the bulls push and maintain the price above the triangle’s resistance line, the setup can act as a reversal pattern. Such a move indicates that the downtrend is over and the pair can rebound to the target goal at $ 51,951.
Matic / USDT
Polygon (MATIC) has bounced from the 20-day EMA ($ 1.58) today, indicating that bulls are buying on the decline for this support. The upward 20-day EMA and RSI in the positive region indicate that the path of least resistance is upward.
However, the MATIC / USDT pair has formed a symmetrical triangle pattern, indicating indecision between bulls and bears. If the bulls push the price above the resistance line of the triangle, the pair could rise to $2.70 and then begin its journey towards the pattern target at $4.20.
Contrary to this assumption, if the price falls below the resistance line of the triangle, the pair may increase its migration within the triangle. A break and stop at the bottom of the triangle would indicate weakness and could result in a drop of $ 0.80.
The 4-hour chart shows that the relief rally is facing resistance on the downtrend line. If bears lower the price below the $ 1.51 support, the pair will meet a bearish head and shoulders pattern that could result in a fall to $ 0.68.
Conversely, if buyers move the price above the downtrend line, the uptrend may increase and the pair may challenge resistance of $ 2.43. A break above this level can rebound to $ 2.70.
EOS Attempted a recovery, which fizzled at 38.2% Fibonacci Retracement level on May 27 at $ 7.89. However, the positive sign is that the bull has not allowed the price to fall below the $ 5.60 support. This indicates that traders are not waiting for further downside to buy.
If bulls can push and close the price above the 20-day EMA ($ 6.95), it would suggest that supply exceeds demand. This could open the door to rebound at the 50% retracement level at $ 9.23 and then the 61.8% retracement level at $ 10.57.
If the Bears stop the 20-day EMA or the next pullback attempt at $ 7.89, this bullish view will be invalidated. Such a move would increase the likelihood of a breakdown below $ 5.60. If this happens, the EOS / USDT pair may fall to the 200-day SMA ($ 4.52) and then to $ 3.57.
The 4-hours chart is showing that the bulls are defending the $5.60 support level, which shows that selling pressure has eased. The flat 20-EMA and RSI just below the midpoint suggest a balance between supply and demand.
If bulls push the price above $ 6.81, the pair may rebound to 200-SMA and then to $ 8.69. A breakout and closing above this resistance would indicate that the bulls are back in the game. Alternatively, if the bears reduce the price below the $ 5.60 to $ 5 support area, the pair may fall to $ 3.57.
Repeated attempts by the bear to submerge Monero (Xmr) Have failed below the 200-day SMA ($ 222) in the last few days. This suggests that bulls are accumulating at current levels.
Buyers attempted to push the price above the 20-day EMA ($ 294) on May 29, but the long wick on the candlestick showed strong sales at higher levels. However, the bulls may again attempt to overcome the obstacle on the 20-day moving average.
If they succeed, the XMR/USDT pair could start a relief rally reaching the 61.8% Fibonacci retracement level at $368.45. This level can act as a tight resistance because traders who had shopped at higher levels may close their positions.
If the price falls and falls below the 200-day SMA, this positive outlook will be reduced to zero. In such a situation, the pair may fall to $ 175 and then to $ 124.69.
The 4-hours chart is showing a symmetrical triangle formation, indicating indecision between bulls and bears regarding the next directional move. The flat 20-EMA and RSI near the midpoint also suggest a balance between supply and demand.
If they can push and maintain the price above the triangle, this advantage will tilt in favor of the bulls. The price may then reverse to 200-SMA, which can act as a tight resistance.
Conversely, if the price falls down and breaks under the triangle, the pair may fall to $ 175 and then to $ 124.69.
AAVE / USDT
AAVE Trying to regain the strong support of $ 280. Since January 26, this level has not been broken on the basis of closure, so bulls are likely to defend it aggressively. There is an additional benefit just above the 200-day SMA ($ 290) level.
However, the 20-day EMA ($ 398) and the RSI below 43 indicate that the short-term trend is in favor of bears. Sellers will try to stop any relief rally in the 20-day EMA. If they succeed, the AAVE/USDT pair may again correct to $280.
A break and close below this support can initiate a downtrend and the fall may increase to $ 160. Conversely, if bulls raise the price above the 20-day moving average, the pair may rise to $ 489, which is likely to act as a stiff resistance.
The 4-hours chart is showing that the bulls have bought a downside break to $280. The 20-EMA is leveling off, indicating that selling pressure is decreasing. If buyers push and hold the price above the downtrend line, the pair may rebound to $ 418. Breaking and closing this resistance level can cause a rebound of up to $ 480.
If the price falls below the 20-EMA or downtrend line and falls below $ 280, this positive outlook will be invalidated. If this happens, the bears will try to pull the price below $ 208.09 on the May 23 low and start the downtrend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointegraph. Every investment and business move involves risk, you must do your own research when making decisions.