Bitcoin (Bitcoin) The price has continued to fluctuate between USD 30,000 and USD 40,000 in the past few days, which is not necessarily a bearish signal.
Generally speaking, after a sharp drop, the price tends to consolidate as the asset shifts from weak to strong. After the transition is complete, the asset breaks through and starts a new upward trend. Generally, the longer the price consolidates within a range, the stronger the next trend.
Mike McGlong, senior commodity strategist at Bloomberg Intelligence, said on Saturday that the decline in the supply of Bitcoin is due to positive It is a sign that if the past pattern remains the same, it may become its “bullish trump card” to move higher.
Yoni Assia, CEO of eToro, also told Cointelegraph that Bitcoin might see sharp “It will rise 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 discouraged by mild price movements in the short term. Bitcoin’s fundamentals are still strong, and a new upward trend may appear in the future.
With the integration of the cryptocurrency market, let us analyze the charts of the top 5 cryptocurrencies that may outperform the market in the next few days.
Bitcoin retreated from the resistance line of the descending triangle and broke below the 20-day exponential moving average (36,586 USD) on January 12. This shows that the bears are actively defending the resistance line.
The longer the price stays below the 20-day moving average, the more likely it is to fall to a lower level. If the shorts push the price below 34,600 USD, the BTC/USDT currency pair may fall to 33,400 USD and then to 31,000 USD.
Breaking through and closing below US$31,000 will complete the descending triangle pattern with a target target of US$19,549. However, it is unlikely to fall directly to a lower level as the bulls will try to prevent the decline in the USD 31,000 to USD 28,000 support zone.
If the price continues to rise and rises above the resistance line of the triangle, this negative perception will be invalid. Such a move may open the door to the 50-day simple moving average (44,709 USD), which may once again become a strong resistance.
A break of the 50-day moving average will indicate that the correction may end, and the bulls will gradually try to start a new rise.
The moving averages on the 4-hour chart cross each other, and the relative strength index (RSI) is slightly above the midpoint, indicating that the bulls are trying to make a comeback.
A break and close above the triangle resistance line will indicate that demand exceeds supply. If the bulls maintain the price above the triangle, they may start a new rise.
Or, if the price drops from the resistance line and breaks below $34,000, it may indicate that the bears have a slight advantage. This may pull the price down to the key support level of $31,000. A rebound from this support level will indicate accumulation at a lower level, which may keep the currency pair within the triangle for a period of time.
AAVE / USDT
Aave In the past few months, it has traded in a wide range between US$280 and US$581.67. The bulls have successfully defended the support of this range in the previous five times, so buyers may buy on dips again.
If the price rebounds strongly from the current level, it indicates that the bulls continue to accumulate on dips. The buyer will then try to push the price above the 20-day moving average ($344). If they succeed, the AAVE/USDT currency pair may rise to the 50-day moving average (414 USD), which may become a rigid obstacle.
If the price retreats from the 50-day moving average, the currency pair may consolidate between US$280 and US$414 for a few days. On the contrary, breaking the 50-day moving average will clear the way to move north towards $581.67.
If the price drops from the 20-day EMA and breaks below the $280 support level, this positive view will be invalidated. This will encourage bears, who will try to lower the price to $208.09 and then to $160.
The 4-hour chart shows that the bears have pulled the price below $280, but they are trying to maintain a low level. However, the moving average is sloping downward and the RSI is in the negative zone, indicating that the bears are dominant.
If the price falls from the current level and breaks below 266.68 USD, the currency pair may begin a downward journey. If the bulls push the price above the downtrend line, this negative view will be invalid. Such a move will indicate that the correction has ended, and then the currency pair may rise to $500.
Kusama (KSM) has been witnessing volatility in the past few days. Although the bulls pushed the price above the $480 resistance level on June 9th, they were unable to maintain a higher level and the price fell below that level on June 10. This shows that the bears are selling on rallies.
However, buyers do not allow the price to fall below the 20-day moving average (USD 388). This shows that as the bulls buy the 20-day moving average on dips, market sentiment is turning positive.
The rising 20-day EMA and the RSI near the midpoint indicate that the bulls have a slight advantage. Buyers will now try again to push the price above $480. If they succeed, the KSM/USD currency pair may rebound to $537 and then retest the all-time high of 625.
If the price falls from the current level or above the resistance and breaks below $360, this positive view will be invalid. This may bring the price down to $280.
The 4-hour chart shows that the bulls are trying to defend the trend line support. However, the 20-EMA has turned lower and the RSI is in the negative zone, indicating that the bears have the upper hand.
If the seller drops the price below 380 US dollars, the currency pair may fall to 342 US dollars. A break of this support level may result in a drop to $280.
If the bulls can push the price above $429, this negative view will be invalid. This may attract buying and push the currency pair up to $480.
Algoran (something) Rebounded from the trend line on June 12 and rose above the 20-day moving average ($0.97), which indicates that the bulls are buying on dips. The flat 20-day EMA and RSI near the midpoint indicate that selling pressure has eased.
The price movement of the past few days has formed an ascending triangle pattern, which will complete at the breakout and close above $1.15. If the bulls manage to maintain the price above $1.15, the ALGO/USDT pair may rebound to the target target of $1.63.
Contrary to this assumption, if the price drops from $1.15, the currency pair may stay in the triangle for a few more days. Breaking the trend line and closing below the trend line will invalidate the bullish view and open the door to a drop to $0.80 and then $0.67.
The 4-hour chart shows that the bulls are trying to push the price above the downtrend line. If they can sustain the breakout, the currency pair may rise to $1.15. Breaking and closing above this resistance level may start a new uptrend.
Conversely, if the price falls from the current level and breaks below the moving average, the bears will try again to push the price below the trend line. If they succeed, this will mark the beginning of a deeper correction.
Theta Fuel (TFUEL) surged to a record high of $0.679 on June 9, but judging from the long wick on the candlestick that day, the bulls could not maintain a higher level. Then it fell sharply to the 20-day moving average ($0.41) on June 12.
The strong rebound from the 20-day moving average indicates positive market sentiment and traders are actively buying on dips. The bulls will now try to push prices to historical highs, where they may encounter strong resistance from the bears.
If the price retreats from the all-time high, the bears will try again to pull the price below the 20-day moving average. If they succeed, it means that a deeper correction has begun.
Or, if the buyer pushes the price above the all-time high, the TFUEL/USDT currency pair may resume its upward trend, with the next target target of 0.85 USD and then 1 USD.
The 4-hour chart shows that the currency pair rebounded strongly from the USD 0.40 support level, which indicates accumulation at a lower level. However, the relief rebound is facing resistance below the 61.8% Fibonacci retracement level of $0.57.
This shows that the bears have not given up and are selling on rallies. If the price falls below the 20-EMA, the bears will try to pull the price down to $0.40. If this happens, the currency pair may consolidate between these two levels for a few days.
Or, if the price rebounds from the 20-EMA, it indicates that market sentiment is positive and the bulls will not wait for a deeper decline to buy. This will increase the possibility of a breakthrough of $0.57. Then the currency pair may rise to retest the all-time high.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, and you should conduct your own research when making a decision.