The price of Bitcoin (BTC) continues within a range of between $ 30,000 and $ 40,000 for the last few days, which is not necessarily a bearish sign.
Generally, after a sharp drop, the price tends to consolidate as the asset is transferred from weaker hands to stronger hands. Once the transition is complete, the asset breaks down and a new uptrend begins. Generally, the more the price consolidates in a range, the stronger the next trend move will be.
Bloomberg Intelligence senior commodities strategist Mike McGlone said on Saturday that Bitcoin’s declining supply was a positive sign, which could act as a ‘bull ace’ for its bullish move ‘if past patterns catch up. keep “.
Yoni Assia, CEO of eToro, also told Cointelegraph that Bitcoin could see a sharp rise “in the next three to five years as there are still 5 billion people in the world who basically don’t have a good local currency.”
Related: Bitcoin price could hit $ 85K in months as indicators turn bullish: report.
Therefore, investors should not be put off by quiet short-term price action. Bitcoin’s fundamentals remain strong and are likely to lead to a new uptrend in the future.
As the cryptocurrency markets consolidate, let’s take a look at the charts of the top 5 cryptocurrencies that may outperform in the coming days.
BTC / USDT
Bitcoin turned down from the resistance line of the descending triangle on January 12 and broke below the 20-day exponential moving average ($ 36,586). This suggests that the bears are aggressively defending the resistance line.
The longer the price stays below the 20-day EMA, the greater the chances of a dip to the lower levels. If the bears slide the price below $ 34,600, the BTC / USDT pair could drop to $ 33,400 and then $ 31,000.
A breakout and close below $ 31,000 will complete a descending triangle pattern, which has a target of $ 19,549. However, it is unlikely to be a direct drop to the lower levels as the bulls will try to stop the decline in the $ 31,000 to $ 28,000 support zone.
This negative view will be invalidated if the price continues to rise and rises above the resistance line of the triangle. Such a move could open the doors for a rise to the 50-day simple moving average ($ 44,709), which is again likely to act as a stiff resistance.
A break above the 50-day simple moving average (SMA) will suggest that the correction may be over and the bulls will gradually try to start a new bullish move.
The moving averages on the 4-hour chart have crossed over each other and the Relative Strength Index (RSI) is just above the midpoint, indicating that the bulls are trying to turn back.
A breakout and a close above the resistance line of the triangle will indicate that demand exceeds supply. If the bulls hold the price above the triangle, a new bullish move could start.
Alternatively, if the price turns down from the resistance line and breaks below $ 34,000, it could indicate a small advantage for the bears. That could bring the price down to the critical support at $ 31,000. A bounce off this support will suggest build-up to lower levels and that could keep the pair in the triangle for longer.
AAVE / USDT
Aave trades within a wide range between $ 280 and $ 581.67 during the last few months. The bulls have successfully defended range support on five previous occasions, so buyers are likely to buy back the dip.
If the price rebounds from the current level strongly, it will suggest that the bulls continue to accumulate on the dips. Then the buyers will try to push the price above the 20-day EMA ($ 344). If they are successful, the AAVE / USDT pair could move up to the 50-day SMA ($ 414), which can act as a strong hurdle.
If the price turns down from the 50-day SMA, the pair could consolidate between $ 280 and $ 414 for a few days. Conversely, a break above the 50-day SMA will clear the way for a march north toward $ 581.67.
This positive view will be invalidated if the price turns down from the 20-day EMA and breaks below the $ 280 support. That will encourage the bears who will then try to lower the price to $ 208.09 and then to $ 160.
The 4-hour chart shows that the bears had dropped the price below $ 280, but are struggling to hold the lower levels. However, the moving averages are declining and the RSI is in the negative zone, indicating an advantage for bears.
If the price turns down from the current level and breaks below $ 266.68, the pair could begin its journey to the downside. This negative view will be invalidated if the bulls push the price above the downtrend line. Such a move will suggest that the correction is over and the pair could rally to $ 500.
KSM / USDT
Kusama (KSM) has seen volatile movements in recent days. Although the bulls pushed the price above the overhead resistance of $ 480 on June 9, they were unable to sustain the higher levels and the price fell back below the June 10 level. This shows that the bears are selling on rallies.
However, buyers have not allowed the price to break below the 20-day EMA ($ 388). This suggests that sentiment is turning positive as the bulls are buying the dips of the 20-day EMA.
The rise of the 20-day EMA and the RSI near the midpoint indicate a minor advantage for the bulls. Buyers will now make one more attempt to lift the price above $ 480. If successful, the KSM / USD pair could rise to $ 537 and then retest the all-time high at 625.
This positive view will be invalidated if the price turns down from the current level or overhead resistance and breaks below $ 360. That could 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 is down and the RSI is in the negative zone, indicating that the bears have the upper hand.
If sellers lower the price below $ 380, the pair could drop to $ 342. A break below this support could result in a decline to $ 280.
This negative view will invalidate if the bulls can push the price above $ 429. That could attract buying, pushing the pair to $ 480.
SOMETHING / USDT
Algorand (ALGO) bounced off the trend line on June 12 and rose above the 20-day EMA ($ 0.97), suggesting that the bulls are buying on dips. The 20-day flat EMA and the RSI near the midpoint suggest that the selling pressure has eased.
The price action of the past few days has formed an ascending triangle pattern, which will complete on a breakout and close above $ 1.15. If the bulls manage to hold the price above $ 1.15, the ALGO / USDT pair could climb to the target of $ 1.63.
Contrary to this assumption, if the price falls below $ 1.15, the pair can extend its stay inside the triangle for a few more days. A break and close below the trend line will nullify the bullish view and open the doors for 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 pair could rise to $ 1.15. A breakout and close above this resistance could start a new uptrend.
Conversely, if the price turns down from the current level and breaks below the moving averages, the bears will make one more attempt to sink the price below the trend line. If they are successful, it will signal the beginning of a deeper correction.
TFUEL / USDT
Theta Fuel (TFUEL) spiked to a new all-time high at $ 0.679 on June 9, but the bulls were unable to sustain the higher levels as seen from the long wick on the day’s candle. That was followed by a sharp pullback to the 20-day EMA ($ 0.41) on June 12.
The strong bounce from the 20-day EMA shows that sentiment is positive and traders are aggressively buying on dips. The bulls will now attempt to push the price to the all-time high where they are likely to encounter strong resistance from the bears.
If the price turns down from the all-time high, the bears will make one more attempt to bring the price below the 20-day EMA. If they are successful, it will suggest the start of a deeper correction.
Alternatively, if buyers push the price above the all-time high, the TFUEL / USDT pair could resume the uptrend, with the next target target at $ 0.85 and then $ 1.
The 4-hour chart shows that the pair rebounded strongly from the $ 0.40 support, suggesting accumulation at lower levels. However, the relief rally is facing resistance just below the 61.8% Fib retracement level at $ 0.57.
This suggests that the bears have not yet given up and are selling on rallies. If the price falls below the 20-EMA, the bears will try to lower the price to $ 0.40. If that happens, the pair can consolidate between these two levels for a few days.
Alternatively, if the price bounces off the 20-EMA, it will indicate that the sentiment is positive and that the bulls are not waiting for a deeper drop to buy. That will increase the chance of a breakout above $ 0.57. Then the pair could rise to retest the all-time high.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move involves risk, you should do your own research when making a decision.