US Core Personal Consumption Expenditure (PCE) Price Index increase It was 0.5% in May, which was lower than market expectations of 0.6%. However, compared with the same period last year, the PCE index soared to 3.4%, the largest increase since 1991.
Although the Fed expects inflation to be temporary, the estimates of Bank of America analysts are different.bank expected US inflation will remain at a high level of 2% to 4% in the next two to four years, and it is believed that the Fed will raise interest rates in the next six months unless the financial market collapses.
If inflation remains high, investors may pay attention to Bitcoin again (Bitcoin) To hedge their portfolio. CoinShares released a report on June 21 stating that it is not sure about the inflation situation in the next five years, but believes that “increasing Bitcoin and other physical assets is a prudent measure to protect the portfolio from the tail risk of uncontrolled inflation .”
Although short-term risks still exist, selected cryptocurrencies can provide traders with short-term trading opportunities. During a bear market, traders may focus on making regular profits instead of waiting for an unexpected rebound. Let’s study the charts of the top 5 cryptocurrencies that may turn bullish in the next few days.
Bitcoin fell to the support zone of US$28,000 to US$31,000 on June 26, but the positive sign is that the bulls once again bought this decline. This shows that buyers are accumulating at a lower level.
The bulls will now try to push the price above the 20-day exponential moving average ($35,148). If they manage to do this, it indicates that selling pressure may be reducing. The positive divergence of the relative strength index (RSI) also indicates that a easing rebound may occur.
A break of the 20-day EMA may open the door to the rigid upper resistance zone rising to $40,000 to $42,451.67. The 200-day simple moving average ($43,505) is just above this area, so bulls may find it difficult to break through this area.
This indicates that it may consolidate between US$28,000 and US$42,451.67 in the next few days. The longer the price trades within this range, the stronger the next breakout. If the shorts can fall and maintain the price below $28,000, the trend will favor the shorts.
The 4-hour chart shows that the bulls are trying to form a higher bottom at $30,000. The 20-EMA is flattening out and the RSI is close to the midpoint, indicating that sellers are losing control.
If the bulls maintain the price above the 20-EMA, the BTC/USDT pair may rebound to 200-SMA. Breaking this resistance may attract further buying, which will push the price to $40,527. If the bears push the price below $30,000, this bullish view will be invalidated.
Cardano (Have) The rebound from the USD 1 support level on June 22 indicates strong accumulation near this level. However, the bulls were unable to push the price above the 20-day moving average ($1.39) from June 24 to 25, which indicates that the bears are defending resistance.
The gradually downward sloping 20-day EMA and negative zone RSI indicate that bears have the upper hand. If the short position falls and the price remains below $1, the ADA/USDT pair may undergo long-term liquidation. This may pull the price down to $0.68 and then to $0.40.
Conversely, if the bulls can push the price above the 20-day moving average, it indicates that the short-term trend has tilted towards the bulls. The currency pair may then rise to 1.60 USD and then to the overhead resistance of 1.94 USD.
The moving average on the 4-hour chart has flattened out, and the RSI is close to the midpoint, indicating that selling pressure is easing. If the bulls push the price above $1.40, it indicates the possibility of a short-term bottom. The currency pair may then try to rebound to $1.60 and then rise to $1.88.
Contrary to this assumption, if the price falls from the current level or $1.40 and breaks below $1.20, it indicates a lack of buyers at a higher level. The currency pair may then fall to the key support level of 1 USD.
Solana’s Long Tail (Sol) The candlestick on June 22 shows that traders are actively defending the 200-day moving average ($20). However, the rescue rebound was unable to break the 20-day moving average ($33), indicating that the bears are selling on rallies.
Buyers are currently trying to form a higher low at $26.65. If they can push the price higher and maintain it above the 20-day moving average, the SOL/USDT pair may gain momentum and move up to the downtrend line and then to $44.
However, the downward sloping 20-day EMA and RSI in the negative zone indicate that the bears will have other plans. They will try to defend the 20-day moving average and push the price below $26.65. If the support breaks, the currency pair may fall to $21.10.
A strong rebound from this support level will indicate that the bulls are accumulating on dips. In the next few days, the currency pair may consolidate between US$21.10 and US$44.
The 20 EMA on the 4-hour chart is flat, and the RSI is close to the midpoint, indicating that buyers and sellers are in equilibrium. If they push the price higher and maintain it above $33, this balance may benefit the bulls.
Such a move may clear the way for a decline to the downtrend line and then to $42. On the other hand, if the price falls from the current level or $33, the bears will try to break the support level of $26.65. If this happens, the advantage may tilt towards the bears.
Polygon (MATIC) has been trading below the 20-day moving average ($1.29) in the past few days, but the positive sign is that the bulls will not allow the price to fall to the May 23 low of $0.74. This indicates a lack of sellers at the current level.
If the bulls regroup and push prices above the downtrend line, it indicates that the correction may be over. The MATIC/USDT currency pair may then rise to 1.71 US dollars, and then rise to the psychological resistance of 2 US dollars.
However, the bears may have other plans. The downward sloping 20-day EMA and negative zone RSI indicate that sellers have the upper hand. If they push the price below $0.92, the currency pair may fall to the support zone of $0.74 to $0.68.
The bulls may actively defend the area. A strong rebound will indicate accumulation at a lower level, and then the bulls may try to push the price above the downtrend line.
The 4-hour chart shows that the bears are actively defending the downtrend line. The declining 20-EMA and the RSI in the negative zone indicate the advantage of the bears. If they push the price below $1, the currency pair may fall to $0.92.
Conversely, if the price rebounds from $1, the bulls will try again to push the price above the downtrend line. If they succeed, it means that the bulls are trying to make a comeback. The currency pair may gain momentum on the breakout and close above $1.25.
Klaytn (KLAY) has been trading below the 20-day moving average ($1.02) for the past few days, but the RSI has shown a positive divergence. This indicates that the seller may lose control.
If the bulls push the price higher and maintain it above the 20-day moving average, it indicates that the trend may change. However, bears are unlikely to give up easily. They will try to stop the recovery in the $1.24 to $1.29 area.
If the price falls from the upper zone but does not break below the 20-day moving average, it indicates that the bulls are trying to make a comeback. Breaking the resistance zone may attract buyers, who then may challenge the 200-day moving average ($1.51).
Breaking and closing above the 200-day moving average will indicate that the downtrend may end in the short term. If the bears push the price below $0.72, this positive view will be invalidated.
The 4-hour chart shows that the KLAY/USDT pair is trading in a descending channel. The bulls pushed the price above the channel and 200-SMA, but were unable to maintain a higher level.
If the bulls push the price higher and maintain it above the 20 moving average, the currency pair may try to rise above the channel and 200 moving average again. If this happens, the currency pair may start a new upward trend, which may reach $1.62.
Contrary to this assumption, if the currency pair falls below 0.86 US dollars, the decline may extend to 0.72 US dollars.
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.