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Bitcoin's (BTC) price has been stable over the long weekend, forming a third weekly Doji candlestick pattern, which indicates uncertainty from both bulls and bears. The S&P 500 has also been range-bound for nine months, with a breakout expected eventually.
While some altcoins experienced moves to the upside, others had minor pullbacks, suggesting traders are anticipating a higher move. We'll need to keep an eye on resistance levels for four cryptocurrencies (including BTC) to see if they turn bullish when Bitcoin breaks out.
<source: Binance, tradingview>
Bitcoin's price has been stable over the past two days, suggesting indecision among buyers and sellers. Notably, such tight ranges are historically followed by significant volatility. With the 20-day EMA leveling off and the RSI nearing the center, supply and demand seem balanced. If the price falls below the 20-day EMA, we might see a drop to $25,250; but if it rebounds, a rally to $30,000 and then $32,500 is possible. The four-hour chart doesn't give a clear advantage to either bulls or bears, so it's better to wait for a breakout before making any moves. Keep an eye on $29,200 (upside) and $26,500 (downside) as key levels for a short-term trend.
<source: Binance, tradingview>
Stellar's price recently dropped from the resistance at $0.12 and is now approaching the 20-day EMA ($0.10), where bulls may buy the dips. If the price bounces back, it could complete a bullish rounding bottom pattern, potentially reaching $0.15 and then $0.17. However, if it breaks below the 20-day EMA, it could drop to the 200-day SMA ($0.09) and possibly plummet to $0.07. The four-hour chart shows the price correcting within a falling wedge pattern. Bulls will try to push it above the wedge, aiming for $0.11 and then $0.12. If the price falls below the support line, it could intensify selling and lead to a decline towards the 200-SMA if the $0.10 support fails.
<source: Binance, tradingview>
Cardano's price is staying above the 20-day EMA ($0.37), showing demand at lower levels. With an upsloping 20-day EMA and a positive RSI, the path of least resistance is upward. ADA/USDT could rise towards the neckline of an inverse head-and-shoulders pattern, potentially reaching $0.60 if it breaks through. However, if the price falls below the 20-day EMA, it could drop to the 200-day SMA ($0.35) or even $0.30. The four-hour chart shows bulls pushing the price above the 20-EMA, aiming to break the downtrend line. If successful, the pullback may be over and the pair could face resistance at the neckline. If rejected at the downtrend line, bears may push the price down, with accelerated selling below $0.37 leading to the 200-SMA.
<source: Binance, tradingview>
Aave's price dropped from the resistance at $82, and bears have pushed it below the 20-day EMA ($75). The price might slip to the 200-day SMA ($73), where buyers are expected to defend it. If it rebounds and breaks above the 20-day EMA, it could reach $82 and potentially $100 if the ascending triangle pattern is completed. However, if the uptrend line breaks, the price could fall to $68 or $64. The four-hour chart shows bears have an advantage, with the price at the 200-SMA, the 20-EMA declining, and the RSI in negative territory. If the 200-SMA fails, the price may drop to the uptrend line, which is crucial for bulls to defend. If the price breaks above the 20-EMA, it could signal a bullish comeback, potentially leading to the $82 resistance.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.