Bitcoin (BTC) is currently facing resistance above the key psychological level of $70,000. However, despite this, the bulls have managed to hold their ground against the bears, with Bitcoin only experiencing a marginal decline of under one percent this week.
Interestingly, this range-bound action of Bitcoin has not deterred investors from pouring money into spot Bitcoin exchange-traded funds (ETFs). According to data from Farside Investors, there have been net inflows of over $2.1 billion into Bitcoin ETFs since May 14. This suggests that investors are accumulating Bitcoin in anticipation of a potential breakout to the upside.
Renowned trader Peter Brandt is also bullish on Bitcoin compared to gold in the long term. Brandt predicts that the ratio of gold to Bitcoin will remain volatile for the next 12-18 months. However, after that period, he believes that the rally could reach new heights, with 100 ounces of gold needed to buy one Bitcoin. Currently, one Bitcoin is valued at around 29 ounces of gold.
Now let’s take a look at the charts of the top five cryptocurrencies that could lead the market’s recovery.
Bitcoin Price Analysis:
On May 31, Bitcoin briefly dipped below the support line of a symmetrical triangle pattern. However, the bears were unable to sustain the lower levels, indicating that the bulls continue to buy on dips.
For the bulls to gain the upper hand, they will need to push and maintain the price above the triangle. If they succeed, the BTC/USDT pair could rise to the overhead resistance of $73,777. Overcoming this barrier may prove challenging, but if successful, the pair could surge to $80,000.
On the other hand, if the bulls fail to stage a strong rebound from the current level, it would increase the likelihood of a break below the triangle. In that case, the pair may slump to the 50-day simple moving average ($64,956) and then to $61,000.
BNB Price Analysis:
BNB has been trading above the moving averages in recent days, indicating that the bulls are aggressively defending this level.
The bulls will attempt to drive the price to the overhead resistance of $635, a crucial level to watch out for. A break and close above this resistance could signal the start of the next leg of the uptrend, with a target pattern of $775.
However, if the price turns down and breaks below the uptrend line, it would invalidate the ascending triangle pattern and potentially lead to selling pressure, pushing the BNB/USDT pair down to $536.
Arweave Price Analysis:
Arweave rebounded strongly from the 50-day simple moving average ($37.58), indicating significant buying activity at lower levels.
While the zone between $47.51 and $50 presents strong resistance, the rising 20-day exponential moving average ($41.84) and positive relative strength index (RSI) suggest that the path of least resistance is to the upside. A break above $50 would complete an inverse head-and-shoulders pattern and open the doors for a new uptrend, with a target of $72.
However, if the price turns down from the overhead zone, it would indicate persistent bearish pressure. The AR/USDT pair could then slide to the moving averages, which are expected to provide strong support. A drop below $36 would give the bears control.
Monero Price Analysis:
Monero has been steadily climbing higher in recent days, with the price breaking above the downtrend line on June 1, suggesting that the correction could be coming to an end.
The up move may face strong selling near $153.44, but if the bulls manage to hold the price above the 20-day exponential moving average ($140.90), the chances of breaking above the resistance increase. In that case, the XMR/USDT pair could attempt a rally to $170.
However, a sharp downturn and a break below the 20-day exponential moving average would indicate bearish sentiment and potentially lead to a deeper correction towards the 50-day simple moving average ($130.80).
Celestia Price Analysis:
Celestia has been trading above the moving averages, suggesting that the bulls are attempting a new up move.
A bullish crossover of the moving averages and a positive relative strength index (RSI) indicate that the bulls have the advantage. To confirm a new up move, the price needs to surpass the overhead resistance zone of $12.02 to $12.90. If successful, the TIA/USDT pair could rally to $15.50 and later to $18.50.
However, if the bulls fail to push the price above the overhead zone, it would indicate bearish activity at higher levels and could keep the pair range-bound for some time.
In conclusion, Bitcoin is currently facing resistance, but the bulls are holding their ground. The top five cryptocurrencies, including BNB, Arweave, Monero, and Celestia, are showing signs of potential recovery. As always, readers should conduct their own research and exercise caution when making investment decisions.