Bitcoin (Bitcoin) Efforts are being made to maintain any price level during the current pullback, which indicates insufficient demand at higher levels. Does this mean that the bull market trend is over, and institutional investors are abandoning the cryptocurrency market?
Do not! in contrast. Glassnode’s weekly news Point out The Grayscale Bitcoin Trust (GBTC) premium is rising, which indicates that the accumulation level of institutional investors is low.
Not only GBTC, it is another popular tool for institutional investors. Canadian Purpose Bitcoin exchange-traded funds have also witnessed strong capital inflows. According to Glassnode analysts, this is an “early sign of the re-emergence of institutional interest”.
Another indicator might be Send signal Bitcoin’s dominance may bottom out, which looks similar to early 2017. If Bitcoin’s dominance follows a similar trajectory to 2017, it indicates that Bitcoin is still some distance from its peak and there is still room to run during the altcoin season.
Now that the monthly options and futures expire, investors may want to know whether Bitcoin can start a sharp recovery next week, and if this happens, which altcoins will rebound.
Let’s take a look at 5 cryptocurrencies that may start to trend changes this week.
BTC / USDT
Bitcoin’s brief breakout was unable to clear the barrier of the 200-day simple moving average ($41,014) from May 26-27, indicating that the bears are actively defending this level. The declining 20-day exponential moving average ($41,327) and the relative strength index (RSI) near the oversold zone indicate that bears are in control.
If the BTC/USDT currency pair breaks through the USD 33,000 support level, the next stop may be the USD 30,000 to USD 28,000 support zone. If this area also gives way, the currency pair may undergo panic selling and may fall to $20,000.
The longer the price stays below the 200-day moving average, the more difficult it is for the bulls to start the next uptrend.
However, if the price rises from the current level and rises above the 200-day moving average, it indicates strong buying at a lower level. This may clear the way for a possible rebound to the 61.8% Fibonacci retracement level of $48,231.
The 4-hour chart shows the formation of a symmetrical triangle, which is often used as a continuation pattern. If the shorts make the price break the triangle, the currency pair may fall to $30,000 and then to the target price of $20,316.
On the other hand, if the bulls push the price higher and maintain it above the resistance line of the triangle, the setting may act as a reversal pattern. Such a trend will indicate that the downtrend has ended and the currency pair may rebound to the target price of US$51,951.
MATIC / USDT
Polygon (MATIC) rebounded from the 20-day moving average ($1.58) today, indicating that the bulls are buying when the support level drops. The upward sloping 20-day EMA and RSI are in the positive zone, indicating that the path of least resistance is upward.
However, the MATIC/USDT pair has formed a symmetrical triangular pattern, indicating the indecision between the bulls and the bears. If the bulls push the price above the resistance line of the triangle, the currency pair may rise to $2.70 and then begin to move towards the target price of $4.20.
Contrary to this assumption, if the price drops from the resistance line of the triangle, the currency pair may extend its stay within the triangle. A break and close below the triangle will indicate a weak signal and may lead to a drop to $0.80.
The 4-hour chart shows that the relief rally is facing resistance at the downtrend line. If the shorts cause the price to fall below the $1.51 support level, the currency pair will complete a bearish head and shoulders pattern and may fall to $0.68.
Conversely, if buyers push the price above the downtrend line, the bullish momentum may increase and the currency pair may challenge the $2.43 resistance level. Breaking this level may lead to a rebound to $2.70.
EOS / USDT
EOS Attempts to recover, failed at the 38.2% Fibonacci retracement level ($7.89) on May 27th. However, the positive sign is that the bulls will not allow the price to fall below the $5.60 support level. This shows that traders are not waiting for a bigger drop to buy.
If the bulls can push the price higher and close above the 20-day moving average ($6.95), it indicates an oversupply. This may open the door for a rebound to the 50% retracement level of $9.23 and then to the 61.8% retracement level of $10.57.
If the bears attempt to stall at the 20-day moving average or the next pullback of $7.89, this bullish view will be invalid. Such a move will increase the possibility of falling below $5.60. If this happens, the EOS/USDT pair may fall to the 200-day moving average ($4.52) and then to $3.57.
The 4-hour chart shows that the bulls are defending the $5.60 support level, indicating a reduction in selling pressure. Flat at 20-EMA and RSI just below the midpoint, indicating that supply and demand are in balance.
If the bulls push the price above $6.81, the currency pair may rebound to 200-SMA and then rise to $8.69. A break and close above this resistance level will indicate that the bulls are back in the game. Or, if the bears drop the price below the $5.60 support zone of $5, the currency pair may fall to $3.57.
XMR / USDT
Bear people tried to sink Monero repeatedly (XMR) Broke below the 200-day moving average ($222) in the past few days. This shows that the bulls are accumulating at current levels.
Buyers tried to push the price above the 20-day moving average ($294) on May 29, but the long wick on the candlestick showed strong selling at a higher level. However, the bulls are likely to try again to clear the obstacles of the 20-day moving average.
If they can succeed, the XMR/USDT pair may start a relief rally and may reach the 61.8% Fibonacci retracement level, which is $368.45. This level may be a strong resistance because traders who buy at higher levels may close their positions.
If the price falls and breaks below the 200-day moving average, this positive view will be invalidated. In this case, the currency pair may fall to US$175 and then to US$124.69.
The 4-hour chart shows a symmetrical triangle pattern, indicating the indecision between bulls and bears regarding the next move. The 20-EMA and RSI are flat near the midpoint, which also indicates that there is a balance between supply and demand.
If the bulls can push the price higher and maintain it above the triangle, then this advantage will benefit the bulls. The price may then rebound to 200-SMA, which may be a firm resistance.
Conversely, if the price falls and breaks through the triangle, the currency pair may fall to $175 and then to $124.69.
AAVE / USDT
store It is trying to rebound from the strong support level of $280. Since January 26, this level has not been broken above the closing price, so the bulls may actively defend it. The 200-day moving average ($290) slightly above that level is an added advantage.
However, the declining 20-day moving average ($398) and the relative strength index (RSI) below 43 indicate that the short-term trend is favorable for the bears. The seller will try to stop any relief gatherings on the 20-day EMA. If they succeed, the AAVE/USDT pair may be corrected again to $280.
Breaking the support level and breaking through the closing price may start a downward trend, and the decline may extend to $160. Conversely, if the bulls push the price above the 20-day moving average, the currency pair may rise to $489, which may become a firm resistance level.
The 4-hour chart shows that the bulls have reduced the buying price to $280. The 20-EMA is flattening, indicating that selling pressure is decreasing. If buyers push the price higher and maintain it above the downtrend line, the currency pair may rebound to $418. Breaking and closing above this resistance level may lead to a rebound to $480.
If the price drops from the 20-EMA or downtrend line and plunges below $280, this positive view will be invalidated. If this happens, the bears will try to pull the price down to the May 23 low of $208.09 and begin a downward trend.
The views and opinions expressed here are only those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, so you should conduct your own research when making a decision.