194 Interactions, 2 today
Bitcoin is on the cusp of a trend-defining rise, and if bulls succeed, ETH, ADA, SOL, and THETA may follow suit.
When market sentiment goes bearish, every piece of negative news, no matter how tiny, drags the price down as traders panic sell. This is what happened when China’s social media behemoth, Weibo, terminated a number of crypto-related accounts, sparking worries of a larger crackdown.
In other news, a note from Goldman Sachs said their meetings with 25 chief investment officers of long-only and hedge funds revealed Bitcoin (BTC) as the least favorite asset for investment.
While the news may be bad in the short term, it is unlikely to impact Bitcoin’s long-term story. As the price corrects, some institutional investors are expected to investigate crypto investments to hedge their portfolio against a projected increase in US inflation.
From the view of most traders, Bitcoin’s recent drop represents a long-term buying opportunity.
Let’s have a look at the charts of the top five cryptocurrencies that might outperform in the next days.
Bitcoin turned down from the 20-day exponential moving average ($39,127) on June 3 but is finding support near the trendline of the triangle. This shows that bulls are buying on dips, and bears are selling on rallies.
After the price breaks out of the triangle, the next trending move is expected to begin. If the bulls can push the price above the resistance line and keep it there, the BTC/USDT pair might advance to the 50-day simple moving average ($47,198) and then to the pattern goal of $52,622.90.
On the other hand, if the price falls and breaks below the triangle’s trendline, it indicates that supply outweighs demand. This might lead to a dip to the $30,000 to $28,000 support range.
If this zone fractures, the selling might get more intense as some traders who purchased recently quit their positions. This might bring the price down to $20,000.
The moving averages on the 4-hour chart have flattened down, and the relative strength index (RSI) is bouncing between 40 and 60, suggesting a buyer-seller equilibrium.
This condition of uncertainty, however, is unlikely to last long, and the price is expected to break above or below the triangle in the next days. If the price breaks out and stays above the triangle, it indicates that the setup served as a reversal pattern.
Conversely, if the price breaks below the triangle, it will suggest that the current consolidation was a temporary halt in a strong downtrend. It is difficult to predict the direction of the breakout, hence traders may wait for the break to happen before considering fresh positions.
Ether (ETH) turned down from the 50-day SMA ($2.908) on June 4 and re-entered the symmetrical triangle. However, the positive thing is that bulls did not give up much ground, indicating strong buying near $2,550.
If buyers push the price over the triangle’s resistance line, the ETH/USDT pair might challenge the 50-day SMA once more. A break and closing above this barrier might pave the way for a move to the 61.8 percent Fibonacci retracement level at $3,362.72.
In contrast to this idea, if the price falls below the 50-day SMA again, it will indicate that bears are defending the barrier strongly. A break below $2,550 may cause the price to fall below the triangle’s support line. A breach below the triangle will be the first sign that the bears have retaken control.
The 4-hour chart reveals the creation of an ascending triangle pattern, which will be completed on a breakout and close above $2,906 on a breakthrough. If this occurs, the pair might rebound to $3,600 before reaching the pattern goal of $4,083.26.
This bullish perspective will be rendered worthless if the price falls and breaks below the triangle’s trendline. The bears will then attempt to lower the price to $2,200, and subsequently to the important support level of $1,728.74.
Cardano (ADA) has been stuck in a large range between $1.94 and $1 for the past few days. The altcoin turned down from the resistance on the range on June 4 and has dropped to the moving averages.
The bulls are currently attempting to defend the zone between the 20-day EMA ($1.66) and the 50-day SMA ($1.55). If the price rebounds off the current levels, it will suggest the sentiment is turning positive and traders are buying the dips to the moving averages.
A breakthrough and closing above $1.94 will suggest that the bulls are back in control. If the price remains above this level, the ADA/USDT pair may retest its all-time high of $2.47. A break above this barrier marks the beginning of the second leg of the uptrend.
This bullish outlook will be rendered null and void if the pair falls and breaks below the 50-day SMA. The bears will next attempt to lower the price to the $1.33 to $1.22 support zone.
On the 4-hour chart, an ascending triangle pattern is forming, which will be completed on a breakthrough and closing above $1.94. The target price for this bullish setup is $2.88. However, a clean run to the objective is improbable since the bears may pose firm resistance above the present all-time high of $2.47.
The 20-EMA has begun to fall, and the RSI is just below the midpoint, indicating a likely drop to the triangle’s trendline. A break below this support will render the bullish setup useless, perhaps leading to a decline to $1.36 and eventually to $1.
The bears are seeking to halt Solana (SOL(SOL) )’s relief bounce around the 61.8 percent Fibonacci retracement level of $43.38. However, sellers have been unable to lower the price below the 20-day EMA ($36.39), indicating that sentiment has shifted to the positive.
On June 4, the SOL/USDT pair rallied off the 20-day EMA, and now it has rallied off the 50-day SMA ($39.42). This indicates that the bulls are not waiting for a deeper decline before buying.
If buyers move the price over $43.38, the downturn will be over. The pair may then rebound to the 78.6 percent retracement level at $49.97 before reaching an all-time high at $58.38. The 20-day EMA has begun to rise, and the RSI is in positive territory, indicating that buyers have the upper hand.
This optimistic viewpoint will be rendered null and void if the price falls below the trendline. The pair may next fall to $25.58 and then to $21.
The 4-hour chart’s moving averages have moved higher, and the RSI is in positive zone, indicating that the bulls are making a comeback. If buyers push the price over $43.38, the uptrend may gain traction.
If the price falls and breaches the 20-EMA, it indicates that supply outweighs demand. The pair might potentially fall to the 50-day simple moving average (SMA) and subsequently to the trendline. A break below the trendline indicates that the bears have re-entered the picture.
THETA is trading inside a descending channel. The bulls attempted to push and sustain the price above the resistance line of the channel on June 4 and 5 but failed. This suggests the bears are defending this resistance aggressively.
However, the 20-day EMA ($8.19) has begun to rise and the RSI is in positive zone, indicating a modest edge for the bulls. If the THETA/USDT pair bounces off the 20-day EMA, buyers will seek to push the price above the channel once more.
If they are successful, it suggests that the slump may be coming to a conclusion. The pair may then begin an upward trend to $13, and ultimately to the all-time high of $15.88. This optimistic outlook will be rendered null and void if the bears drop and keep the price below the 20-day EMA. A drop to $6 may occur from such a move.
On the 4-hour chart, the pair has twice turned down from the channel’s resistance line. However, the bears have been unable to drop and keep the price below the 20-EMA, indicating lesser levels of demand.
If the pair bounces from its present level, the bulls will aim to push the price above the channel once more. If they succeed, the next leg of the upswing may commence.
However, if the price falls below the 20-EMA, the pair may fall below the 50-SMA. A breach below this support indicates the beginning of a deeper downturn.