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Bitcoin seems to be aiming for a leap beyond $60,000, while KLAY, VET, SOL, and KSM seek bullish momentum.
Selling a position at the right time is almost as critical as buying it at the right time of investing. As a result, the major question that traders may be wondering is if the Bitcoin (BTC) market will reach a bearish period or whether the bull run will proceed following this week’s pullback.
PlanB, the developer of the famous Bitcoin stock-to-flow model, recently tweeted that the crypto bull run has only just begun and is “nowhere near over.”
PlanB is not the only one who is very bullish on Bitcoin. According to Mike McGlone, senior commodity analyst at Bloomberg Intelligence, if recent behaviour is taken into account, Bitcoin’s 2021 peak may be closer to $400,000.
One of the key factors why institutional investors might be drawn to cryptocurrencies is the future weakening of the US dollar. In an interview with Bloomberg, Soros Fund Management chief information officer Dawn Fitzpatrick reported that the 25% growth in the United States’ money supply over the last year has meant that Bitcoin is no longer a niche commodity.
The fund recently took part in a $200 million financing round led by NYDIG and also made an investment in the crypto accounting company Lukka. This demonstrates that institutional investors are broadening their horizons and searching for investment options other than Bitcoin.
Let’s have a look at the charts of the top five cryptocurrencies and see whether they will continue their upward trajectory in the near future.
Bitcoin is currently in a corrective phase and trading inside a descending channel. The strong rebound off the 50-day simple moving average ($52,000) on March 26 shows the bulls continue to accumulate at lower levels.
The bears can mount strong resistance near the channel’s resistance line, but if the bulls can force the price above it, the BTC/USDT pair could threaten the $60,000 to $61,825.84 resistance zone once more.
A break through this zone could herald the start of the next leg of the uptrend, with a goal of $71,112.06. The 20-day exponential moving average ($54,820) has begun to rise, and the relative strength index (RSI) has remained in the positive range, indicating that the bulls are attempting to reassert their dominance.
In comparison to this theory, if the price slips from the channel’s resistance line, the bears would seek to drive the pair below the 50-day SMA. If they are successful, the pair will drop to the support line, and a fall below it may trigger a deeper correction to $43,006.77.
According to the 4-hour map, the relief rally is meeting strong resistance around $56,500. If the price fell from its current stage, it might hit the 20-EMA and then $54,000.
A quick bounce off this support level could contribute to the development of an inverse head and shoulders trend, which will culminate in a breakout and close above $56,618. The target goal for this setup is $63,339.98.
A break below $54,000, on the other hand, indicates fatigue and a shortage of investors at higher prices.
Since mid-February, Klaytn (KLAY) has been on a solid uptrend. The altcoin recently finished a minor reversal after bulls bought the fall to the 20-day EMA ($2.76) on March 26, signalling that sentiment remains positive.
Bulls are now attempting to re-establish the uptrend by raising the market past the all-time high of $3.50. If they are successful, the KLAY/USD pair could grow to $4.86. The upward sloping moving averages and an RSI in the overbought region indicate that the direction of least resistance is to the upside.
This viewpoint would be made null and void if the price falls and breaks below the 20-day EMA. Such a transition would indicate a potential shift in opinion. The first support level is at $2.58, and a break below this level may signify the start of a deeper correction.
The moving averages have achieved a bullish convergence on the 4-hour scale, and the RSI has entered the overbought category, indicating that bulls have the upper hand. If the bulls would drive and hold the market above the overhead resistance at $3.50, the momentum will build up even more.
And if the price slips from $3.50 but seeks support at the 20-EMA, this suggests that momentum stays bullish. A quick bounce from this help raises the prospect of the uptrend resuming.
A break below the moving averages, on the other hand, might push the price down to the crucial support level of $2.60.
VeChain (VET) is on an upward trajectory. On March 25, the altcoin bounced off the 20-day EMA ($0.078), showing that momentum is bullish and that bulls see falls as a buying opportunity.
Both moving averages are sloping upward, and the RSI is entering overbought area, signalling that the direction of least resistance is to the upside. The long wick on the March 27 candlestick indicates that the bears are attempting to protect the overhead resistance level of $0.098.
The bulls, on the other hand, have not allowed the bears to develop their dominance. If buyers can push the price above $0.098, the VET/USDT pair can resume its upward trend. On the upside, the next goal amount is $0.136.
This bullish outlook will be made null and void if the market slips from current levels or the overhead resistance and breaches the 20-day EMA. Such a move could push the price down to the 50-day simple moving average ($0.059).
The bears are defending the $0.095 mark on the 4-hour scale, while the bulls are buying on dips to the moving averages. If the bulls will push the market beyond $0.095, they would have completed an inverse head and shoulders trend with a goal of $0.114.
If the bears manage to sink and keep the price below the moving averages, a decline to $0.076 is likely. A fall below this support level may herald the start of a more serious correction.
Solana (SOL) had developed a bearish falling triangle pattern, which would have ended if the stock broke and closed below $11.90. Who, however, did not occur. On March 26, the bulls vigorously bought the fall to the $11.90 support and moved the market above the downtrend line on March 27, invalidating the bearish setup.
A bearish pattern collapse is a bullish indicator since it traps many violent bears that start short positions in expectation of the pattern’s completion. As the pattern becomes invalid, the bears scramble to cover their places, resulting in a brief pinch.
Sustained bullish buying has pushed the market to a new all-time high today. If the bulls will keep the market over $18.20, the SOL/USDT pair could reach $24.84.
In the other hand, if the price falls from its current amount, it might reach the 20-day EMA ($14.60). A quick recovery from this help suggests that the bulls are accumulating at lower levels, which may increase the odds of the uptrend resuming.
The 4-hour chart shows a fast increase from $12.30 to a peak of $19.26. This has driven the RSI into overbought territory, indicating that the pair could be vulnerable to a short-term pullback.
If the bulls can keep the price above $18.20, it would mean that the resistance has turned into support and the uptrend can restart.
This bullish outlook would be made null and void if the price sinks below the 20-EMA. A step like this might keep the pair range-bound for a few days.
Kusama (KSM) is on an upward trajectory. The latest dip to the 20-day EMA ($381) on March 25 was vigorously bought, as indicated by the long tail on the day’s candlestick. This indicates solid support for any small dip as traders expect the rally to begin.
The KSM/USDT pair reached a new all-time high on March 27, but the bulls are seeing tough opposition at higher levels, as shown by the day’s candlestick’s long wick. Today, the pair established an inside day candlestick pattern, signalling traders’ indecision.
If the bulls would drive and hold the price above $505.33, the pair will continue to rise to $583.
Since January 14, the pair has not split and has held below the 20-day EMA. As a result, traders should keep a close eye on this stage since a split and close below it implies that the bullish trend has diminished.
The bears are fiercely protecting the $490 to $505.33 support zone on the 4-hour map, as the market has consistently turned down from it. The bulls haven’t given up any territory, which is a good thing. A break and close over $505.33 could indicate that the uptrend has resumed.
If the bears drive the market below the moving averages, it indicates that traders are taking profits. This may drive the price down to $370, where investors could re-enter the market.