Bitcoin (BTC) attempted to begin a relief rally this week, but came under severe selling pressure near $67,000. The largest cryptocurrency by market capitalization is set to end the week with a slight loss of around 2%.
Popular trader and analyst Rekt Capital believes Bitcoin has “entered the post-halving ‘danger zone’” which could see further declines in the next two weeks. Another short-term negative is the net outflow of spot Bitcoin exchange traded funds. Farside Investors reported that the ETF saw net outflows of $218 million on April 25, following $120 million outflows the previous day.
When prices are trading in a large range, it is difficult to predict with certainty the direction of the breakout. By maintaining appropriate stop losses, traders can buy near support and sell near resistance, or wait until a breakout occurs.
Will Bitcoin and altcoins hold above their respective support levels and begin a relief rally?
Let’s study the top five cryptocurrencies that look strong on the charts and could begin a recovery.
Bitcoin Price Analysis
Bitcoin has fluctuated between $59,600 and $73,777 for several days, indicating indecision about the next direction move between bulls and bears.
Typically, within a certain range, traders buy near support and sell near resistance. Bulls are expected to aggressively defend the $59,600 level as a break below that level could deepen the correction to $54,298, the 61.8% Fibonacci retracement level. This move will delay the start of the next uptrend.
Conversely, if the price rises from current levels or the $59,600 support, it would mean that the bulls remain active at lower levels. The BTC/USDT pair may rise to $67,250 and later to the overhead resistance of $73,777. A close above this level would signal the start of the next phase of the uptrend towards $84,000.
A flat moving average and an RSI just below the midpoint suggest a balance between supply and demand. The first sign of strength is a breakout and close above the downtrend line. This could pave the way for a rise to $68,000 and $71,500.
Alternatively, if the price declines from the current level or downtrend line and falls below $62,300, it means that the bears are in control. The pair could then slip towards the important support level at $59,600 where buyers are likely to intervene.
Short Distance Protocol Price Analysis
Near Protocol (NEAR) closed above a descending channel pattern on April 25, indicating that the downtrend may be ending.
However, the bears have not given up and are selling at $7.70, near the immediate resistance level. If the price falls back into the channel, it suggests that the breakout may have been a bulltrap. That could bring the price down to $5.90.
Instead, if the price drops above $7.70, it means the bulls are in control. The NEAR/USDT pair could attempt a rally up to $9., where bears are likely to put up a strong defense.
Both moving averages are rising and the RSI is in positive territory, indicating that the bulls have a slight advantage. Buyers will likely face selling in the area between $7.70 and $8.10, but if it gets through, a rally could reach $9.
This bullish view will be invalidated in the near term if the price declines and falls below $6.60. This move indicates that the bears are continuing to sell off the relief rally. The pair could then fall to $5.90.
Arweave price analysis
Arweave (AR) moved above both moving averages on April 25th, signaling that the bull market is attempting a rebound.
Bears attempted to retrace the price, but bulls bought the dip all the way to the 20-day EMA ($32.19) on April 27. This suggests a shift in sentiment from selling on the rise to buying on the dip. There is a small resistance at $40, but if it is crossed, the AR/USDT pair could rise to solid overhead resistance at $47.52.
If the bears want to stop the rally, they will need to get the price below the 20-day EMA quickly. That could send the pair down to $22.
This pair shows the formation of an inverted head-shoulders pattern that is completed at the breakout and finishes above the neckline. If that happens, the pair is likely to rush towards the pattern target of $50.
Conversely, if the price does not hold above the neckline, it means demand will decline from higher levels. The pair could then fall to the important support level at $30. A drop below this level will tip the scale in favor of the bears.
Related: Cryptocurrency traders are seeing their best ‘alt season’ since 2017 as Bitcoin price cools.
Core Pricing Analysis
Core (CORE) has found support at the 20-day EMA ($2.23) twice in the past few days, indicating a positive tone.
If the price rebounds from current levels and breaks above $2.91, it means the bulls will take control again. The CORE/USDT pair could gain momentum and surge to $4.
Contrary to this assumption, if the price declines and falls below the 20-day EMA, it means that the bears are not willing to give up. This could open the door for a decline towards the 50-day SMA ($1.72).
The 4-hour chart shows the pair in a range between $1.83 and $2.91. RSI near the flattening moving averages and midpoints does not provide a clear advantage to either bulls or bears.
If the price breaks above the moving average, the bulls will try to push the pair up to $2.91. The bears are expected to actively defend this level as a break above this level could initiate a new upward movement.
Conversely, if the price declines below $2.10, it may fall to the strong support level of $1.83.
Bonk Price Analysis
Bonk (BONK) rose above its moving average on April 23, signaling that the correction phase may be over.
Bears tried to push the price below the moving average, but bulls stayed there. This means that bulls are trying to turn the moving average into support. If the price rebounds from the current level and goes above $0.000030, the BONK/USDT pair will complete an inverse H&S pattern. The pattern target for this bullish setup is $0.000048.
But the bears likely have other plans. They will try to gain the upper hand by driving the price below the moving average. If successful, the pair could fall to $0.000019 and then to $0.000015.
Looking at the 4-hour chart, we can see that the bulls are facing strong resistance at $0.000030. Bears try to strengthen their positions by pushing the price below the moving average. Doing so will cause the pair to complete the H&S pattern and fall to $0.000019.
On the other hand, if the price rises from current levels or the 50-day SMA, it indicates bulls are continuing to buy on the downside. A breakout and close above $0.000030 would be the first sign of strength. The pair could then jump to $0.000036.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.