Bitcoin (BTC) has experienced an increase of more than 8% this week, indicating that buyers are still attracted to lower price levels. Generally, traders tend to buy near support levels and sell close to resistance levels. This suggests that the price of Bitcoin may reach the top of its current range at $73,777, although surpassing this resistance level may prove to be challenging.
Analysts have differing opinions on the next directional move for Bitcoin. Some believe that the correction is over and that Bitcoin will break out to a new all-time high, while others expect Bitcoin to decline and retest the $60,000 support level or even go lower. It is difficult to predict the direction of a breakout from a range with certainty. Therefore, it may be prudent to wait for the price to establish a new trend before taking large trading positions.
As Bitcoin consolidates, traders may turn their attention to altcoins for short-term trading opportunities. Although a full-blown altseason has not yet arrived, select altcoins are likely to present trading opportunities.
Could Bitcoin’s potential rise above its near-term resistance level boost sentiment in the crypto sector? Let’s examine the top 5 cryptocurrencies that appear promising on the charts.
Bitcoin Price Analysis
Bitcoin has been facing resistance near $68,000, but the fact that the bulls have not given up ground to the bears is a positive sign. This suggests that the bulls are holding onto their positions in anticipation of a move higher.
The 20-day exponential moving average ($64,109) has started to turn up, and the relative strength index (RSI) is in positive territory, indicating that the path of least resistance is upward. If the $68,000 level is surpassed, the BTC/USDT pair could retest the strong overhead resistance at $73,777.
To prevent an upward movement, bears will need to quickly push the price below the moving averages. If they succeed, the pair could decline to $59,600 and later to the May 1 intraday low of $56,552.
Both moving averages are sloping upward on the 4-hour chart, and the RSI is in the positive zone, indicating that the bulls are in control. The crucial support level to watch on the downside is the 20-EMA. If the price bounces off this level, it will improve the chances of a rally above $68,000.
Conversely, if the price breaks below the 20-EMA, it will signal a weakening of bullish momentum. The pair may then slide toward the 50-simple moving average and subsequently to the support near $59,600.
Solana Price Analysis
Solana (SOL) experienced a rise above the moving averages on May 15, and the bulls are attempting to build on this strength.
There is a minor resistance at $176, where bears may attempt to initiate a correction. The key level to watch on the downside is the breakout level of $162. If the price rebounds strongly from this level, it will indicate that the bulls are trying to turn $162 into support, increasing the likelihood of a rally above $176. The SOL/USDT pair may then move toward $185.
This positive outlook will be invalidated in the short term if the price sharply declines below the moving averages. This could trigger a long liquidation and pull the pair down to $140.
On the 4-hour chart, the pair has retreated from the overhead resistance near $176 and dipped below the 20-EMA. It is likely to retest the breakout level of $162, where buyers are expected to step in and prevent further decline. To resume the upward move, buyers will need to push the price above $176.
If the pair drops below $162, it will suggest that the bulls may be losing control. There is minor support at the 50-SMA, but if that level is broken, the pair may decline to $140.
Arweave Price Analysis
Arweave (AR) has been in an uptrend in recent days. The bulls managed to push the price above the overhead resistance of $47.51 on May 17, but were unable to sustain the higher levels.
The bears are attempting to pull the price down to the 20-day EMA ($40), a crucial level to monitor. If the price bounces strongly from this level, it will indicate that the bulls are buying on dips, increasing the chances of a break above the psychological resistance at $50. If this occurs, the AR/USDT pair may surge to $68.
However, if the price sharply declines and falls below the 20-day EMA, it will suggest that the bulls are exiting their positions. This could trigger a correction to the 50-day SMA ($35).
On the 4-hour chart, a rising wedge pattern has formed. The 20-EMA is the immediate support to watch on the downside. If this level is breached, the pair may slide to the support line of the wedge. A break and close below the wedge could initiate a downward move to $38 and then $36.
Conversely, if the price turns up from the 20-EMA or the support line and breaks above the resistance line of the wedge, it will signal that the bulls are still in control. This would invalidate the negative setup and initiate a move toward $68.
The Graph Price Analysis
The Graph (GRT) began a relief rally after the bulls pushed the price above the moving averages on May 15.
The 20-day EMA ($0.29) has started to turn up, and the RSI has entered positive territory, indicating that the bulls are attempting a comeback. Buyers will aim to push the price to the overhead resistance of $0.35, where bears may put up a strong defense.
The 20-day EMA remains a key support level on the downside. If the price turns down and breaks below this level, it will suggest that the bears are still selling on every minor rally. This could result in a decline to $0.26 and subsequently to $0.23.
On the 4-hour chart, the pair has been trading within the range of $0.22 and $0.31 for some time. The bulls managed to push the price above the range briefly, but were unable to sustain the higher levels. If the price plunges and remains below the 50-SMA, it will indicate that the breakout has been rejected. The pair may then drop to $0.26.
On the other hand, if the price turns up from the moving averages with strength, the bulls will make another attempt at $0.31. If this level is surpassed, the pair may rise to $0.35 and later reach the pattern target of $0.40.
Fantom Price Analysis
Fantom (FTM) broke above the moving averages and the horizontal resistance level of $0.79 on May 16, signaling the start of a recovery.
The moving averages are on the verge of a bullish crossover, and the RSI has risen into positive territory, indicating that the bulls are back in control. However, the bears are unlikely to give up easily. They will try to pull the price back toward $0.79. If the bulls manage to turn this level into support, the FTM/USDT pair could rise to $1.04.
On the contrary, if the price turns down and falls below the moving averages, it will suggest that bears are still active at higher levels. This could result in a decline to $0.60.
On the 4-hour chart, the bears are attempting to initiate a correction, but the bulls are likely to buy the dips to the 20-EMA. If this occurs, the pair is expected to gain momentum and rise toward the overhead resistance of $1.04.
However, if the price continues to decline and breaks below the 20-EMA, it will indicate that the bulls are losing control. The pair may then slump to the breakout level of $0.79. This is a crucial level for the bulls to defend, as a break below it would suggest that the recovery has faltered.
Disclaimer: This article is not intended to provide financial advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making a decision.