Key points:
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Continuation of Bitcoin’s consolidation seems likely in the near term, but the trend remains positive as long as the price remains above $110,530.
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Charts for BNB, XLM, LTC, and ETC are looking positive.
Bitcoin (BTC) remains in a consolidation phase as bears thwart the bulls’ attempt to sustain the price above $120,000. According to Fidelity Director of Global Macro Jurrien Timmer, BTC remains right in the middle of its adoption curve compared to internet adoption from past decades. That suggests BTC has more room to run.
BTC’s rally and the passing of three key pieces of legislation in the US House of Representatives have boosted sentiment in the cryptocurrency sector. That pushed the total cryptocurrency market capitalization to just under $4 trillion on Friday, according to CoinMarketCap. Since then, the market cap has cooled off to $3.85 trillion.
Ether (ETH) is leading the altcoins charge higher, signaling the start of an altseason. Although sharp rallies are common during bull markets, traders should be ready for frequent pullbacks during the up move. Hence, it is better to stick to sound money management principles rather than blindly chase prices higher.
Let’s analyze the charts of the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price prediction
BTC’s shallow pullback suggests the bulls are in no hurry to book profits as they anticipate the uptrend to continue.
The upsloping 20-day exponential moving average ($113,984) and the relative strength index (RSI) in the positive territory indicate an advantage to buyers. If the bulls thrust the price above $123,218, the BTC/USDT pair could resume its uptrend. The pair could surge to $135,729 and thereafter to the pattern target of $150,000.
Time is running out for the bears. They will have to swiftly tug the price below the $110,530 support to get back into the game. That may tempt short-term traders to book profits, pulling the price to $100,000.
The price has slipped below the 50-simple moving average, indicating that the bulls are losing their grip. The pair could drop to $115,000, which is an essential level for the bulls to defend. If they fail to do that, the pair may challenge the zone between the neckline of the inverse head-and-shoulders pattern and the $110,530 support.
If the price turns up from the support zone, the bulls will again attempt to kick the pair above $123,218. If they manage to do that, the pair could rally to $130,000 and then to $135,729.
BNB price prediction
BNB (BNB) picked up momentum after breaking and closing above the $698 resistance on Wednesday.
The BNB/USDT pair pierced the $732 resistance and reached the $761 level on Friday, where the bears are mounting a solid defense. If buyers do not allow the price to dip below $732, it suggests a positive sentiment. That enhances the prospects of a break above $761. The pair could then soar to $794.
Contrarily, if the price continues lower and breaks below $732, it signals the possibility of a range formation. The pair could swing between $698 and $761 for some time.
Both moving averages are sloping up, and the RSI is in the overbought zone on the 4-hour chart, indicating that bulls are in control. The pair turned down from $765, but a positive sign is that the bulls have not allowed the price to plummet below $732. Buyers will make one more attempt to catapult the pair to $794.
The first sign of weakness will be a close below the $732 level, and the selling could pick up if the pair tumbles below the 20-EMA.
Stellar price prediction
Stellar (XLM) rallied sharply in the past few days and has reached the overhead resistance at $0.51.
The rally has pushed the RSI into the overbought territory, signaling a possible consolidation or correction in the near term. If buyers do not allow the price to dip below $0.43, the XLM/USDT pair could break out above $0.51. If that happens, the pair may start the next leg of the uptrend to $0.64 and later to the target objective of $0.80.
This positive view will be invalidated in the near term if the price turns down and closes below $0.43. The pair may then slide to the 20-day EMA ($0.36).
The RSI on the 4-hour chart is showing early signs of forming a bearish divergence, suggesting weakening momentum. If the 20-EMA gives way, the pair could drop to the 50-SMA. This is a significant level to keep an eye on because a break below the 50-SMA may sink the pair to the 50% Fibonacci retracement level of $0.37.
Alternatively, a solid bounce off the 20-EMA signals buying on dips. That improves the possibility of a break above the $0.51 resistance. The pair may…
cointelegraph.com