Bitcoin (BTC) has experienced an increase of over 8% this week, indicating that buyers are still attracted to lower price levels. Typically, traders buy when the price is near support and sell when it is close to resistance. This suggests that the price may reach the top of its current range at $73,777, but surpassing this level could be challenging.
Analysts have differing opinions on the next move for Bitcoin. Some believe that the correction is over and that Bitcoin will reach a new all-time high, while others anticipate a decline to retest the $60,000 support level. It is difficult to predict the breakout direction with certainty when the price is in a range. Therefore, it may be wise to wait for the price to establish a new trend before taking large trading positions.
As Bitcoin consolidates, traders may look to altcoins for short-term trading opportunities. Although a full-fledged altseason has not yet arrived, select altcoins may present favorable 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 show promise on the charts.
Bitcoin Price Analysis
Bitcoin has encountered resistance near $68,000, but the fact that the bulls have not given up suggests that they are holding their positions in anticipation of an upward move.
The 20-day exponential moving average ($64,109) has started to turn upwards, and the relative strength index (RSI) is in positive territory, indicating that the path of least resistance is upwards. If the price surpasses the $68,000 level, the BTC/USDT pair may retest the strong overhead resistance at $73,777.
To prevent an upward move, bears will need to quickly push the price below the moving averages. If they succeed, the pair could decline to $59,600 and potentially the May 1 intraday low of $56,552.
Both moving averages are sloping upwards on the 4-hour chart, and the RSI is in the positive zone, suggesting that the bulls are in control. The critical 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 in bullish momentum. The pair may then decline to the 50-simple moving average and potentially the support level near $59,600.
Solana Price Analysis
Solana (SOL) recently rose above the moving averages and is attempting to build on its 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 bounces off this level strongly, it will indicate that the bulls are trying to establish $162 as support. This would increase the likelihood of a rally above $176, with the potential for the SOL/USDT pair to reach $185.
This positive outlook would be invalidated if the price sharply declines and falls below the moving averages. This could trigger long liquidation and push the pair to $140.
The pair has turned downwards from the overhead resistance near $176 and dropped below the 20-EMA. It is likely to retest the breakout level of $162, where buyers are expected to step in and halt the decline. To resume the upward move, buyers will need to push the price above $176.
If the pair falls below $162, it would suggest a weakening of bullish momentum. There is minor support at the 50-SMA, but if that level is breached, the pair may plummet 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), which is an important level to monitor. If the price bounces off this level strongly, it will indicate that the bulls are buying on dips, increasing the likelihood of a breakout above the psychological resistance at $50. If this happens, the AR/USDT pair could surge to $68.
On the contrary, if the price sharply declines and falls below the 20-day EMA, it will suggest that the bulls are selling off. This could lead to a correction towards the 50-day SMA ($35).
The 4-hour chart shows the formation of a rising wedge pattern. The immediate support level to watch on the downside is the 20-EMA. If this level is breached, the pair may slide towards the support line of the wedge. A break and close below the wedge could trigger a downward move towards $38 and then $36.
However, if the price turns up from the 20-EMA or the support line and breaks above the resistance line of the wedge, it will indicate that the bulls are still in control. This would invalidate the negative setup and potentially lead to a move towards $68.
The Graph Price Analysis
The Graph (GRT) initiated 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 upwards, 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 strongly defend.
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 bears continue to sell on every minor rally. This could push the GRT/USDT pair down to $0.26 and potentially $0.23.
On the 4-hour chart, the pair has been trading between $0.22 and $0.31 for some time. The bulls managed to push the price above this range, but failed to sustain the higher levels. If the price plunges and remains below the 50-SMA, it will suggest that the breakout has been rejected. The pair may then decline to $0.26.
However, if the price turns up from the moving averages with strength, the bulls will attempt to break above $0.31 once again. If this level is cleared, the pair may rise to $0.35 and potentially reach the pattern target of $0.40.
Fantom Price Analysis
Fantom (FTM) broke above the moving averages and the horizontal resistance of $0.79 on May 16, signaling the beginning of a recovery.
The moving averages are on the verge of a bullish crossover, and the RSI has entered positive territory, indicating that the bulls are back in control. However, the bears are unlikely to give up easily and will attempt to pull the price back towards $0.79. If the bulls manage to turn this level into support, the FTM/USDT pair could rise to $1.04.
On the other hand, if the price declines and falls below the moving averages, it will suggest that bears are still active at higher levels. This may push the pair down to $0.60.
On the 4-hour chart, the bears are trying to initiate a correction, but the bulls are expected to buy the dips towards the 20-EMA. If this happens, the pair is likely to gain momentum and rise towards the overhead resistance of $1.04.
However, if the price continues to decline and breaks below the 20-EMA, it will suggest a weakening of bullish momentum. The pair may then slump to the breakout level of $0.79. This level is crucial for the bulls to defend, as a break below it would indicate a faltering recovery.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.