Bitcoin (BTC) has experienced a 2% decline this week, but there is optimism among bulls as the price has rebounded from its weekly low of $64,493. However, cryptocurrency exchange Coinbase warns that Bitcoin’s price could face obstacles after the upcoming halving event, as this time of year tends to be weak for crypto markets and other risk assets.
Despite this, the downside for Bitcoin appears to be limited. Analyst Dylan LeClair from UTXO Management believes that even in the event of a fall, Bitcoin is unlikely to drop to $50,000, where a large number of long positions would be at risk. However, LeClair also cautions that anything is possible in the volatile crypto markets.
While Bitcoin has been leading the market, several altcoins have been outperforming. Pantera Capital’s Liquid Token Fund has reported a 66% return in the first quarter of 2024, attributing it to increased allocations to decentralized finance (DeFi) tokens and a reduction in exposure to Bitcoin and Ether.
Now, let’s take a look at the technical analysis of the top 5 cryptocurrencies:
Bitcoin:
Bitcoin has been trading within a symmetrical triangle pattern, indicating uncertainty about its next move. The 20-day exponential moving average (EMA) is gradually rising, and the relative strength index (RSI) is in positive territory, favoring the bulls. A break and close above the triangle would suggest a resolution in favor of buyers, with potential targets at $73,777 and $80,000. On the other hand, a break below the triangle could lead to a decline to $59,000 and $54,298.
Toncoin:
Toncoin has been gradually moving towards its overhead resistance at $5.69, indicating a potential takeover by the bulls. However, negative divergence on the RSI suggests a possible consolidation or correction in the near term. A rejection at the resistance level could push the price down to the 20-day EMA, while a breakout could lead to further gains towards $7.09.
Stacks:
Stacks has been facing resistance between its moving averages, signaling a battle between buyers and sellers. A break above $3.36 would indicate bullish momentum and could lead to a rally towards $3.84, $4.27, and $5. On the other hand, a break below the 50-day simple moving average (SMA) could signal bearish strength and result in a deeper pullback to $2.50 and $2.20.
Mantle:
Mantle has encountered resistance at $1.50, but the bulls have managed to keep the price above the 20-day EMA. Upsloping moving averages and an RSI near the overbought zone suggest that the path of least resistance is to the upside. A breakout above $1.50 could lead to a rally towards $1.90, while a rejection could result in a drop to the 20-day EMA and potentially deeper correction.
Maker:
Maker has struggled to sustain its price above the $4,000 level, leading to profit-taking. A correction to the 20-day EMA is possible, with a rebound indicating positive sentiment and a potential retest of the $4,074 resistance. A break below the 20-day EMA could signal a bearish trend and a drop to the 50-day SMA.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investing in cryptocurrencies.