Bitcoin (BTC) made an attempt at a relief rally this week but faced strong selling pressure around the $67,000 level. The largest cryptocurrency is set to end the week with a small 2% loss. According to popular trader and analyst Rekt Capital, Bitcoin has entered a “Danger Zone” after the halving, and could see further downside in the next two weeks. Another negative factor in the near term is the net outflows from spot Bitcoin exchange-traded funds, which saw a net outflow of $218 million on April 25, following a $120 million outflow the previous day.
When the price is trading in a wide range, it becomes difficult to predict the direction of a breakout. Traders could consider buying near support and selling at resistance with a suitable stop loss, or they could wait on the sidelines until a breakout occurs.
Now let’s take a look at the top 5 cryptocurrencies that appear strong on the charts and could potentially start a recovery.
Bitcoin Price Analysis:
Bitcoin has been trading within a range of $59,600 and $73,777 for several days, indicating indecision between the bulls and bears regarding the next move. In a range, traders typically buy near support and sell near resistance. The $59,600 level is expected to be strongly defended by the bulls, as a break below it could lead to a deeper correction towards the 61.8% Fibonacci retracement level at $54,298. On the other hand, if the price bounces off the current level or the $59,600 support, it suggests that bulls are still active at lower levels. In that case, the BTC/USDT pair could rise to $67,250 and then to the overhead resistance at $73,777. A break and close above this level would indicate the start of the next leg of the uptrend towards $84,000.
The flattish moving averages and the RSI just below the midpoint suggest a balance between supply and demand. The first sign of strength would be a break and close above the downtrend line, which could pave the way for a rally to $68,000 and then to $71,500. On the downside, if the price turns down from the current level or the downtrend line and breaks below $62,300, it would indicate that bears are in control. The pair could then decline to the crucial support at $59,600, where buyers are likely to step in.
Near Protocol Price Analysis:
Near Protocol (NEAR) broke out of a descending channel pattern on April 25, suggesting that the downtrend may be coming to an end. However, bears are still selling near the immediate resistance at $7.70. If the price falls back into the channel, it could indicate that the breakout was a bull trap and may lead to a drop towards $5.90. On the other hand, a break above $7.70 would suggest that bulls are taking charge. The NEAR/USDT pair could then attempt a rally towards $9, where bears are likely to defend.
Both moving averages are sloping up, and the RSI is in positive territory, indicating a slight advantage for the bulls. However, buyers may face selling pressure between $7.70 and $8.10. If they manage to break through, the rally could reach $9. This bullish view would be invalidated if the price turns down and breaks below $6.60, indicating that bears are still selling on relief rallies. In that case, the pair may slump to $5.90.
Arweave Price Analysis:
Arweave (AR) broke above both moving averages on April 25, signaling a potential comeback for the bulls. The bears attempted to pull the price back, but the bulls bought the dip, indicating a change in sentiment from selling on rallies to buying on dips. There is a minor resistance at $40, but if the price crosses it, the AR/USDT pair could rally to the strong overhead resistance at $47.52.
The formation of an inverse head-and-shoulders pattern is visible on the chart, which would complete on a breakout and close above the neckline. If that happens, the pair could rally towards the pattern target of $50. However, if the price fails to maintain above the neckline, it would suggest a lack of demand at higher levels. The pair could then drop to the critical support at $30, with a break below that level favoring the bears.
Core Price Analysis:
Core (CORE) has found support at the 20-day EMA ($2.23) on two occasions in recent days, indicating a positive sentiment. If the price bounces off the current level and breaks above $2.91, it would suggest that bulls are in control and could push the CORE/USDT pair towards $4. However, if the price turns down and breaks below the 20-day EMA, it would indicate that bears are not willing to give up and could lead to a drop towards the 50-day SMA ($1.72).
The 4-hour chart shows that the pair is range-bound between $1.83 and $2.91, with the moving averages flattening out and the RSI near the midpoint, indicating a lack of clear advantage for either the bulls or bears. If the price breaks above the moving averages, the bulls will aim to push the pair towards $2.91. On the other hand, if the price turns down and breaks below $2.10, the pair may decline to the strong support at $1.83.
Bonk Price Analysis:
Bonk (BONK) broke above the moving averages on April 23, suggesting that the corrective phase may be coming to an end. The bears attempted to pull the price below the moving averages, but the bulls held their ground, indicating their attempt to flip the moving averages into support. If the price bounces off the current level and breaks above $0.000030, the BONK/USDT pair would complete an inverse head-and-shoulders pattern, with a pattern target of $0.000048.
On the 4-hour chart, the bulls are facing strong resistance at $0.000030, and the bears are trying to push the price below the moving averages. If they succeed, the pair could complete a head-and-shoulders pattern and drop towards $0.000019. Conversely, if the price turns up from the current level or the 50-day SMA, it would indicate that the bulls are still buying on dips. A break and close above $0.000030 would be the first sign of strength, with the pair potentially jumping to $0.000036.
Please note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making a decision.