Bitcoin’s recovery near $70,000 is currently showing hesitation, but the bulls have not given up ground to the bears. Laurent Benayoun, CEO of Acheron Trading, believes that the current bull cycle still has room to grow and could reach between $120,000 and $180,000. This positive outlook is supported by factors such as the introduction of Bitcoin exchange-traded funds, the upcoming Bitcoin halving, and the potential reduction in interest rates.
Another optimistic perspective comes from Matthew Hougan, the chief investment officer of Bitwise, who advised investment professionals to “keep calm and take the long view.” Hougan suggests that if global wealth managers allocate just 1% of their portfolio to Bitcoin, it could result in an influx of approximately $1 trillion into the cryptocurrency market.
While there are several catalysts supporting Bitcoin’s rally in the second quarter of 2024, trading firm QCP Capital warns that the current movement is showing signs of exhaustion, making it challenging for the bulls to sustain the uptrend.
Now, let’s analyze the charts of the top 10 cryptocurrencies to determine whether Bitcoin and altcoins will correct in the near term or continue their rally.
Bitcoin Price Analysis:
Bitcoin has been trading in a narrow range between $71,770 and $68,359, indicating indecision between the bulls and bears. However, the fact that the price is consolidating near the highs is a positive sign, suggesting that the bulls are holding their positions. The rising 20-day exponential moving average and positive RSI further support the bulls’ advantage. If the price breaks above the resistance zone of $71,770 to $73,777, it could open the gates for a rally to $80,000. On the other hand, a break below the 20-day EMA would indicate profit booking by the bulls and could lead to a decline towards the 50-day simple moving average.
Ether Price Analysis:
Ether has been trading near the $3,678 resistance level, indicating a battle between the bulls and bears. The flattish 20-day EMA and neutral RSI suggest a lack of clear advantage for either side. If the price breaks above $3,678, the ETH/USDT pair could climb to $4,100, with strong resistance expected at that level. Conversely, a break below $3,460 would signal weakness from the bulls and could result in a decline towards the 50-day SMA.
BNB Price Analysis:
After struggling near the 61.8% Fibonacci retracement level of $588, BNB made a decisive move higher. Sustaining above $588 could lead to a further rally towards the resistance levels of $645, $669, and eventually $692. However, if the bears defend the $645 level and push the price below the 20-day EMA, it could trigger a deeper correction towards $495.
Solana Price Analysis:
Solana is facing resistance at the downtrend line, indicating a potential comeback from the bears. A break below the 20-day EMA would tilt the advantage towards the bears and could result in a decline towards $162 and the 50-day SMA. On the other hand, if the bulls push the price above the downtrend line and the resistance level of $205, the pair may rally towards $267.
XRP Price Analysis:
XRP has been trading near the 20-day EMA, indicating uncertainty about the next move. A break below the 20-day EMA could lead to a decline towards the uptrend line and potentially $0.52. A break above $0.69 would favor the bulls and pave the way for a rally towards the resistance at $0.74.
Cardano Price Analysis:
Cardano is struggling to stay above the breakout level of $0.68, which is a bearish sign. A break below $0.63 would suggest a range-bound movement between $0.68 and $0.57. On the other hand, a rise and sustained move above $0.70 could lead to a rally towards $0.81. A break below $0.57 would favor the bears and complete a bearish head-and-shoulders pattern.
Dogecoin Price Analysis:
Dogecoin has pulled back near the overhead resistance of $0.23, indicating profit booking by traders. A correction towards the breakout level of $0.19 could provide support for the bulls and increase the likelihood of a rally towards $0.30. However, a break below $0.19 could lead to a decline towards the 20-day EMA and potentially the 50-day SMA.
Avalanche Price Analysis:
Avalanche is struggling to bounce off the support line of the pennant, indicating pressure from the bears. A break below the 20-day EMA could result in a drop towards $50 and the 50-day SMA. On the other hand, a rebound from the support line could lead to a retest of the resistance line and potentially a move towards $65.
Shiba Inu Price Analysis:
Shiba Inu’s relief rally is facing selling near the 38.2% Fibonacci retracement level of $0.000032. A break below the 20-day EMA would increase the risk of a fall towards the 50-day SMA. Conversely, a rebound from the 20-day EMA would suggest strong buying at lower levels and could lead to a rise towards $0.000035 and $0.000039.
Toncoin Price Analysis:
Toncoin rebounded from the 38.2% Fibonacci retracement level of $4.78, indicating the bulls’ attempt to defend this level. If the rebound sustains, the price could move towards the overhead resistance of $5.69. However, the negative divergence on the RSI suggests a potential slowdown in bullish momentum. A break below $4.78 could lead to a deeper correction towards the 20-day EMA.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.