The S&P 500 Index and the Nasdaq Composite reached new all-time highs following the release of the U.S. Consumer Inflation report, which showed lower-than-expected inflation. This news sparked a rally in Bitcoin, pushing its price above $66,000. As Bitcoin moves further away from the $60,000 level, the likelihood of a breakdown decreases, but this does not guarantee the start of a new uptrend.
During Galaxy Digital’s first quarter earnings call, founder and CEO Mike Novogratz predicted that Bitcoin would consolidate between $55,000 and $75,000 before moving higher in the current quarter.
The failure of the bears to push Bitcoin below $60,000 seems to have attracted buyers, as shown by the $130 million inflow into digital asset investment products reported by CoinShares’ “Digital Asset Fund Flows Weekly” report, the first such occurrence in five weeks.
The State of Wisconsin Investment Board (SWIB) revealed investments of approximately $164 million in spot Bitcoin exchange-traded funds. Bloomberg ETF analyst Eric Balchunas expects more institutional investments in Bitcoin as institutions tend to move in herds.
Now let’s analyze the charts of the top 10 cryptocurrencies to see if Bitcoin and select altcoins can overcome near-term resistance and move higher.
Bitcoin:
Bitcoin recently surpassed the 20-day exponential moving average, indicating that the bulls have absorbed the supply. If the buyers can maintain the momentum and push the price above the 50-day simple moving average, it could lead to a rally towards the resistance at $73,777. However, the bears are likely to defend this level. On the other hand, if the bears manage to defend the 50-day SMA and pull the price to the $59,600 support, the bulls are expected to aggressively defend this level. A break below this support could result in a plunge to the 61.8% Fibonacci retracement level at $54,298.
Ether:
Ether experienced a strong bounce off the $2,850 support, indicating strong defense by the bulls. If the buyers can push the price above the 20-day EMA, the ETH/USDT pair could rise to the resistance line of the descending channel. The bears are likely to put up a strong defense at this level, but if the bulls prevail, the pair could start a rally towards $3,400. Conversely, if the price turns down from the 20-day EMA, it will signal selling by the bears on every minor rally. The pair could then retest the strong support at $2,850, and a break below this level could lead to a downward move towards the support line of the descending channel.
BNB:
BNB fell below the moving averages but rebounded sharply off the support line of the symmetrical triangle pattern, indicating aggressive buying at lower levels. If the buyers can push the price above the resistance line of the triangle, it could lead to a surge towards $634 and then to $692. The pattern target of the setup is $726. However, if the price turns down and breaks below the triangle, it will suggest that the bears have gained control in the near term. The pair could then decline towards $495 and subsequently to the pattern target at $434.
Solana:
Solana broke above the 20-day EMA, indicating a reduction in selling pressure. If the price maintains above $145, it could rally towards $162. In a range-bound market, traders typically sell near the resistance level, so a downturn from the overhead resistance could indicate that the pair will remain range-bound for some time. A break above $162 or below $126 could initiate the next trending move, with a break above $162 potentially leading to a climb towards $205, while a break below $126 could result in a decline to $100.
XRP:
XRP tried to push above the 20-day EMA but was met with resistance from the bears. The bulls are attempting another push above the 20-day EMA, and if successful, the XRP/USDT pair could rally towards the overhead resistance at $0.57. However, this level could prove to be a difficult barrier to cross. On the other hand, if the price turns down from the 20-day EMA, the bears will try to strengthen their position by pulling the price to the critical support at $0.46. Buyers are expected to aggressively defend this level, and a strong rebound off $0.46 would indicate that the range-bound action may continue for some more time.
Toncoin:
Toncoin buyers attempted to push the price above the $7.67 resistance but faced selling at higher levels. However, the bulls have not given up much ground to the bears, suggesting that they may make another attempt at the overhead resistance. If buyers can maintain the price above $7.67, it will signal the resumption of the uptrend, with the TON/USDT pair potentially rallying towards $9. On the other hand, a downturn from the current level and a drop below the moving averages would invalidate this positive view.
Dogecoin:
The bulls are trying to prevent Dogecoin from completing a bearish head-and-shoulders pattern by defending the neckline support. The flattish 20-day EMA and the RSI near the midpoint suggest a range-bound action in the near term. If the price rises above the 20-day EMA, the DOGE/USDT pair could reach the 50-day SMA and potentially rally towards $0.21. However, a sustained move below the neckline of the H&S pattern would give the bears control and could result in a drop to $0.08.
Cardano:
The failure of the bears to maintain Cardano below the support line attracted solid buying by the bulls. The downsloping 20-day EMA and the negative RSI suggest that the bears currently have the upper hand. If the price turns down from the 20-day EMA and sustains below the support line, it will signal the start of the next leg of the downtrend, with the ADA/USDT pair potentially descending to $0.35. However, if the price continues higher and breaks above the 20-day EMA, it will suggest that the bears are losing their grip. The pair may then climb to the 50-day SMA and later to $0.57.
Avalanche:
Avalanche has been trading below the 20-day EMA for the past few days, but the bears have failed to push the price to the support of the range. This indicates a decrease in selling pressure at lower levels. If the bulls can push the price above the 20-day EMA, it could suggest that the pair will remain range-bound between $40 and $29 for a while longer. A break above $40 could lead to a rally towards $50. Conversely, if the price turns down from the 20-day EMA, it will indicate that the bears are attempting to take control. The pair may then decline to the strong support at $29, and a break below this level would signal the start of the next leg of the downtrend, potentially pushing the pair to $25.
Shiba Inu:
Shiba Inu successfully defended the support line of the symmetrical triangle pattern. The flattening 20-day EMA and the RSI near the midpoint suggest a lack of clear advantage for either the bulls or the bears. It is better to wait for a breakout above or below the triangle before making any significant bets. If the price breaks above the triangle, it could indicate the end of the corrective phase and a rise towards $0.000030 and $0.000033. Conversely, a break below the triangle could result in a fall to the 78.6% Fibonacci retracement level at $0.000017.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.