Bitcoin (BTC) experienced a drop below $60,000 this week, but this decline attracted buyers who are now attempting to initiate a recovery. However, Bitcoin is currently stuck within a range of $56,552 to $73,777, indicating a battle between bullish and bearish forces. The direction of a potential breakout is uncertain, making it difficult to predict. As a result, traders have the option to either trade within the range or wait for a breakout to occur before making significant bets.
Opinions regarding Bitcoin’s future price action are divided among investors. Former PayPal CEO Peter Thiel believes that Bitcoin has limited potential for growth. During an interview with CNBC, Thiel stated that while Bitcoin’s price may increase slightly, it will be a volatile and turbulent journey.
On the other hand, popular trader BitQuant is optimistic about Bitcoin’s prospects. He revealed in a post on X that his Bitcoin model consistently points to a target objective of $95,000.
Bitcoin’s drop toward $60,000 has led to selling pressure in several altcoins, but a few cryptocurrencies have managed to buck this trend. Let’s examine the top five cryptocurrencies that appear strong based on chart analysis.
Bitcoin’s price analysis reveals that bulls have successfully defended the $60,000 level in recent days, but they are struggling to push the price above $62,500. The downsloping 20-day exponential moving average ($63,651) and the negative relative strength index (RSI) suggest that bears currently have the upper hand. If the support at $60,000 breaks down, the BTC/USDT pair could plummet to $56,552. However, buyers are expected to fiercely defend this level to prevent a further decline to $50,000. On the other hand, if the price manages to break above $62,500, it will indicate a potential comeback by the bulls. The pair could then rise to the crucial resistance levels at $64,602 and $70,000.
In terms of the 4-hour chart, the 20-EMA is flattening out and the RSI is slightly above the midpoint, indicating a balance between supply and demand. If the price surpasses $62,500, it would signal the beginning of a strong recovery, potentially leading to a rally to $64,602.
The first sign of weakness would be a break and close below the 20-EMA, which could open the door for a decline to the critical support level at $60,000. If this level is breached, the pair may drop to $58,402.
Moving on to Toncoin, the cryptocurrency is struggling to maintain its position above $7.67, but the bulls have managed to prevent the price from falling below the 20-day EMA ($7.43). The upward sloping moving averages and the positive RSI indicate that the path of least resistance is to the upside. If the bulls can push the TON/USDT pair above $7.67, it could retest the crucial resistance at $8.29. A successful break above this level may lead to a move to $10. However, if the price sharply reverses and falls below $6.60, it would complete a bearish head-and-shoulders pattern with a target objective of $4.91.
The 4-hour chart reveals that the bulls have been buying the dips to the 50-SMA. If the price rises and holds above $7.67, the pair may embark on a journey to $8.29. However, strong resistance can be expected at $7.87 and $8.1. A break and close below the 50-SMA would indicate weakness and could result in a decline to $7 and later to $6.77. Buyers are expected to vigorously defend the zone between $6.66 and $6.77.
In the case of Avalanche (AVAX), buyers are attempting to push the cryptocurrency above the $29 resistance level to initiate a strong recovery. Although the upward move is facing resistance at $29, buyers have not given in to the bears, suggesting that the bulls are maintaining their buying pressure. This increases the likelihood of a breakout above the resistance level. If successful, the AVAX/USDT pair could rise to the 50-day SMA ($32.78). However, if the price sharply reverses from the current level, it would indicate that the bears have turned $29 into a resistance level, potentially leading to a retest of the June 24 intraday low of $23.51.
The 4-hour chart indicates that the pair is forming an inverse head-and-shoulders pattern, which would complete with a break and close above $29. If this occurs, the pair could rally to the pattern target of $34.50. Conversely, if the price continues to decline and breaks below the 20-EMA, it would suggest profit-taking by short-term traders. The pair may then drop to the 50-SMA and eventually to $23.51.
Kaspa (KAS) experienced a surge and closed above the overhead resistance of $0.19, completing a cup-and-handle pattern on June 29. The upward sloping moving averages and the overbought RSI suggest that the bulls are in control. If the price remains above $0.19, the KAS/USDT pair could continue its rally, potentially reaching $0.24 and the pattern target of $0.28. However, if the price sharply reverses and falls below $0.19, it would indicate that the recent breakout may have been a bull trap, potentially pulling the price down to the 20-day EMA ($0.16).
On the 4-hour chart, the bears attempted to trap aggressive bulls by pulling the price below $0.19, but the buyers held their ground. The bulls will aim to build on this advantage and push the price to $0.22 and then $0.24. To make a comeback, the bears will need to quickly push the price below the breakout level of $0.19 and the 20-EMA. This could trigger a long liquidation, resulting in a decline to the 50-SMA.
Finally, Monero (XMR) is attempting to bounce off the 20-day EMA ($165), signaling a shift in sentiment towards bullishness as traders buy on dips. The flat 20-day EMA and the RSI just above the midpoint indicate that bears are losing their grip. If the price surpasses $172, the XMR/USDT pair could rally to the strong resistance levels at $180 and $190. However, if the price reverses from the current level and breaks below the 20-day EMA, it would suggest that bears are still in control. This could lead to a decline to the 50-day SMA ($155), and if the pair breaks and closes below this level, it would tilt the advantage in favor of the bears.
On the 4-hour chart, the moving averages have completed a bullish crossover, and the RSI is in positive territory, indicating that the bulls have the upper hand. There is a minor resistance at $172, but it is likely to be overcome. The pair could then continue its upward march toward $180. However, if the price reverses and breaks below the 50-SMA, the bears will attempt to push the price below the $160 to $156 support zone.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading involve risks, and readers should conduct their own research before making any decisions.