Bitcoin (BTC) has been trading in a narrow range for the past few days but that doesn’t take away the sheen from its stunning 84% rally in 2023. The s
Bitcoin (BTC) has been trading in a narrow range for the past few days but that doesn’t take away the sheen from its stunning 84% rally in 2023. The strong recovery in Bitcoin’s price has boosted buying in several altcoins, which have risen sharply from their yearly lows.
As the second half of the year begins, the major question on every investor’s mind is, will the rally continue? CoinGlass data shows that July has seen only three negative monthly closes since 2013 and the biggest decline was 9.69% in 2014. This suggests that bulls have a slight edge.
A large part of the latest leg of the rally in Bitcoin and altcoins was fuelled by hopes that the United States Securities and Exchange Commission will approve one or more applications for a spot Bitcoin exchange-traded fund. Any adverse news on this front could turn the sentiment bearish and result in a sharp sell-off.
However, for now, Bitcoin and select altcoins are showing strength. Let’s analyze the charts of the top-5 cryptocurrencies that may continue their up-move over the next few days.
Bitcoin price analysis
Bitcoin continues to trade near the stiff overhead resistance at $31,000. This suggests that the bulls are in no hurry to book profits as they anticipate another leg higher.
Usually, a tight consolidation near a crucial overhead resistance resolves to the upside The rising 20-day exponential moving average ($29,278) and the relative strength index (RSI) in the positive territory indicate that the road of least resistance is to the upside.
If bulls propel and sustain the price above $31,000, the BTC/USDT pair is likely to start the next leg of the uptrend. The bullish momentum may catapult the price above the immediate resistance at $32,400. If that happens, the pair may continue its northward march toward $40,000.
If bears want to make a comeback, they will have to sink and sustain the price below the 20-day EMA. The pair could then slide to the 50-day simple moving average ($27,622).
Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. The price has been stuck between $31,431 and $29,500 for some time.
Buyers will have to drive and sustain the price above the $31,431 hurdle to indicate the resumption of the up-move. Alternatively, a break and close below the $29,500 support may start a deeper correction toward $27,500.
Litecoin price analysis
Litecoin (LTC) skyrocketed above the descending channel and the overhead resistance of $106 on June 30, indicating the resumption of the uptrend.
The bears yanked the price back below the breakout level of $106 on July 1 but the bulls purchased the dip. If buyers sustain the price above $106, it increases the likelihood of the continuation of the rally. The LTC/USDT pair could then soar to the overhead resistance zone between $134 and $144.
Contrary to this assumption, if the price slips and sustains below $106, it will signal that bears are selling at higher levels. That could pull the price to the psychological level of $100 and then to the breakout level from the channel.
The 4-hour chart shows that bears are attempting to guard the $112 level with vigor but they are struggling to sustain the price below $106. This suggests that the bulls are buying at lower levels. The rising 20-EMA and the RSI in the overbought territory indicate that buyers have the edge.
If the price sustains above $112, the pair may start the next leg of the uptrend toward $126. The first support on the downside is at the 20-EMA and then at $98.
Monero price analysis
Monero (XMR) rose and closed above the downtrend line on June 23, invalidating the developing descending triangle pattern.
The failure of a bearish pattern is typically a positive sign as it traps several aggressive bears, resulting in a short squeeze. That could be seen in the XMR/USDT pair which surged from $150 on June 23 to $171 on June 27.
After the sharp rally, the price has been oscillating between $171 and $160 for the past few days. The consolidation is a positive sign as it shows that the bulls are holding on to their positions as they anticipate another leg higher.
If buyers shove the price above $171, the pair may start the next leg of the up-move. The pair may then skyrocket to $187. The bears will have to sink the price back below the 50-day SMA ($149) to seize control.
The 4-hour chart shows the formation of a symmetrical triangle, which generally acts as a continuation pattern. If buyers push and sustain the price above the triangle, it will suggest that the uncertainty between the bulls and the bears has resolved in favor of the buyers. That could signal the resumption of the up-move. The pattern target…
cointelegraph.com