Bitcoin (BTC) fell below $60,000 this week, but the lower levels have attracted buyers who are looking to start a recovery. Bitcoin is stuck in a range between $56,552 and $73,777, indicating a battle between bulls and bears. It is difficult to predict the direction of the breakout with certainty. Therefore, traders can trade within the range or wait for a breakout to occur before making a big bet.
Investors are divided on the future price action of Bitcoin. Peter Thiel, former CEO of PayPal, believes that Bitcoin does not have much room to go up. Thiel told CNBC that Bitcoin price may go up a bit, but that it will be “volatile and bumpy.”
In contrast, popular trader BitQuant is bullish on Bitcoin. He said in X’s post that his target target for each run of his Bitcoin model is $95,000.
As Bitcoin fell to $60,000, selling increased in several altcoins, but some bucked the trend. Let’s take a look at the top five cryptocurrencies that are showing strength on the charts.
Bitcoin Price Analysis
Bitcoin bulls have managed to defend the $60,000 level over the past few days, but are struggling to push the price above $62,500.
A downward sloping 20-day exponential moving average ($63,651) and the relative strength index (RSI) in negative territory suggest that the bears have the upper hand. If the $60,000 support is broken, the BTC/USDT pair could plummet to $56,552. Buyers are expected to defend this level with all their might, as failure to do so could send the pair down to $50,000.
Conversely, if the price rises and surpasses $62,500, it means that the bull market is attempting a rebound. The pair could then rise to the important resistance level of $64,602 and then move towards $70,000.
The 20-EMA on the 4-hour chart is flattening, and the RSI is just above the midpoint, indicating a balance between supply and demand. If the price breaks above $62,500, it suggests the start of a strong recovery. The pair could attempt a rally to $64,602.
The first sign of weakness is a break and close below the 20-EMA. This could lead to a decline to the important support of $60,000. A break above this level could send the pair crashing to $58,402.
Toncoin Price Analysis
Toncoin (TON) is struggling to hold above $7.67, but the positive sign is that the bulls have prevented the price from falling below the 20-day EMA ($7.43).
Rising moving averages and RSI in positive territory indicate that the path of least resistance is to the upside. If the bulls push the TON/USDT pair above $7.67, the rally could retest the critical resistance at $8.29. If this level is extended, the pair could attempt a move towards $10.
This positive outlook will be invalidated in the short term if the price falls sharply and falls below $6.60. This will complete the bearish head and shoulders pattern, with a target price of $4.91.
Looking at the 4-hour chart, we can see that the bulls are buying the dips up to the 50-SMA. If the price rises and holds above $7.67, the pair could begin a trip to $8.29. However, the bears will not give up easily and will mount a strong challenge at $7.87 and $8.1.
The first sign of weakness is a break and close below the 50-SMA, which indicates selling by short-term traders. The pair may fall to $7 and later to $6.77. Buyers are expected to aggressively defend the area between $6.66 and $6.77.
Avalanche Price Analysis
Buyers are looking to push Avalanche (AVAX) above the $29 resistance level to start a strong recovery.
The uptrend faces resistance at $29, but the positive sign is that buyers have not given ground to the bears. This suggests that the bulls are maintaining buying pressure, increasing the likelihood of a break above resistance. If that happens, the AVAX/USDT pair could rise to the 50-day SMA ($32.78).
Conversely, if the price plunges from current levels, it would be a sign that the bears have flipped the $29 level as resistance. The pair could then retest the June 24 intraday low of $23.51.
Looking at the 4-hour chart, we can see that the pair is attempting to form an inverse H&S pattern that will complete on the break and close above $29. The pair could then begin a rebound towards the pattern target of $34.50.
Contrary to this assumption, if the price continues to decline and falls below the 20-EMA, this suggests that short-term traders will lock in profits. The pair could then fall to the 50-SMA and eventually $23.51.
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Caspar Price Analysis
Kaspa (KAS) surged and closed above the $0.19 overhead resistance on June 29, completing a cup and handle pattern.
The rising moving average and the RSI in overbought territory suggest that the bulls are in control. If buyers hold the price above $0.19, the KAS/USDT pair could begin the next phase of the rally. The pair could rise to $0.24, reaching the pattern target of $0.28.
Alternatively, if the price breaks down from current levels and drops below $0.19, it suggests that the recent breakout may have been a bull trap. This could lead to a drop to the 20-day EMA ($0.16).
The 4-hour chart shows that the bears tried to trap the aggressive bulls by driving the price below $0.19, but the buyers held on. The bulls will try to use their advantage to push the price to $0.22 and then to $0.24.
Time is running out for the bear. If we want to make a comeback, we will need to quickly drop the price below the breakout level of $0.19 and the 20-EMA. This could initiate a long liquidation, bringing the pair towards the 50-SMA.
Monero Price Analysis
Monero (XMR) is attempting to bounce above the 20-day EMA ($165), which indicates sentiment is turning bullish and traders are buying the dip.
A flat 20-day EMA and RSI just above the midpoint suggest that the bears are losing control. If the price rises above $172, the XMR/USDT pair could rally towards the strong resistance level of $180 and then move up to $190.
On the other hand, if the price declines from current levels and falls below the 20-day EMA, it suggests that the bears have not given up. This could lead to a drop to the 50-day SMA ($155). A drop and close below the 50-day SMA would be favorable for the bears.
The moving averages have completed a bullish crossover, and the RSI is in positive territory on the 4-hour chart, indicating that the bulls have the upper hand. There is some resistance at $172, but a crossover is likely. The pair could then move higher to $180.
This optimistic outlook will be invalidated in the short term if the price declines and falls below the 50-SMA. Then, the bears will try to push the price below the $160-$156 support area.
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.