Bitcoin (BTC) has rebounded from its strong support level and is now attempting to break above the significant psychological level of $70,000. Many analysts predict that the current consolidation phase will result in a bullish move, leading Bitcoin to reach a new all-time high.
Experienced trader Peter Brandt noted that historically, Bitcoin’s halving event occurs during the middle of a bull cycle. In 2020, the bull market began 16 months before the halving and reached its peak 18 months after the event. Brandt expects the current cycle to reach a top in the range of $130,000 to $150,000 if it follows a similar pattern.
Not only Bitcoin, but Ether (ETH) also has the potential to surprise on the upside. Traders have withdrawn a significant amount of Ether, totaling around 797,000, between May 23 and June 2. Analysts anticipate a supply shortage of Ether once Ether exchange-traded funds start trading, which could lead to a new all-time high for the cryptocurrency.
Now, let’s analyze the charts to see if Bitcoin and select altcoins can overcome their respective resistance levels.
S&P 500 Index:
The S&P 500 Index fell below the breakout level of 5,265 on May 30 and reached the 50-day simple moving average (SMA) of 5,181 on May 31. However, the solid rebound from the 50-day SMA suggests that sentiment remains positive and traders see the dips as buying opportunities. The bears will likely attempt to stall the relief rally in the 5,265 to 5,342 zone. A break below the 50-day SMA could signal a deeper correction towards 5,000, while a push above 5,342 could lead to a rise towards 5,500.
U.S. Dollar Index:
The U.S. Dollar Index turned down from the 50-day SMA of 105 on May 30 and slipped below the support line of the ascending channel on June 3. The downsloping 20-day exponential moving average (EMA) and the negative relative strength index (RSI) give the bears a slight advantage. If the price sustains below the channel, the index could decline to 103.17 and later to 102.35. However, a rise above the 50-day SMA would suggest that the breakdown was a bear trap, potentially pushing the index to 105.75 and subsequently to 106.50.
Bitcoin:
Despite several attempts by bears to sink Bitcoin below the support line of the triangle, the bulls have managed to keep the cryptocurrency above this level. A break and close above the triangle would indicate a resolution in favor of the bulls, with the BTC/USDT pair potentially rallying to the strong overhead resistance at $73,777. If this level is breached, the pair could skyrocket to $80,000. However, if the bears can quickly drag the price below the triangle’s support line, it may open the gates for a possible drop to the critical support level at $59,600.
Ether:
Ether has been holding above $3,730, signaling that the bulls are attempting to establish this level as support. The upsloping 20-day EMA and the positive RSI indicate that the bulls have the upper hand. Buyers will aim to clear the minor obstacle at $3,977 and challenge the overhead resistance at $4,100. Conversely, a break below $3,730 would suggest a comeback by the bears, potentially leading to selling pressure and a drop towards the 50-day SMA of $3,282.
BNB:
After trading in a narrow range for several days, BNB experienced a sharp rise on June 3, indicating that the bulls are attempting to take control. A break and close above the resistance level at $635 would complete a bullish ascending triangle pattern, potentially starting the next leg of the uptrend towards $692. However, if the price turns down sharply from the overhead resistance and falls below the uptrend line, it would invalidate the bullish setup and push the price to $536.
Solana:
Solana is currently locked in a battle between bulls and bears near the breakout level of $162. If the bears prevail and sink the price below this level, the SOL/USDT pair could drop to the 50-day SMA of $153, with a further slide to $140 likely. On the other hand, if the bulls can quickly push the price above $174, it may lead to a rally towards $189 and subsequently $205. However, the $205 resistance level may pose a challenge for the bulls.
XRP:
XRP has been trading below the 20-day EMA of $0.52 for the past few days, but the bears have failed to push the price below the support line. This suggests that selling pressure is drying up at lower levels. If the bulls can push the price above the moving averages, the XRP/USDT pair will attempt a rally towards the overhead resistance of $0.57. However, a break below the support line could result in a drop towards the critical support level at $0.46.
Toncoin:
Toncoin rallied sharply on June 2, breaking above the immediate overhead resistance at $6.73 and giving the bulls a slight advantage. However, they are struggling to sustain higher levels, indicating selling pressure between $7 and $7.67. A rebound from the current level or the 20-day EMA of $6.43 would suggest that the bulls are buying the dips, improving the chances of a rally towards $7.67. On the other hand, a break below the 20-day EMA would invalidate the positive view, favoring the bears and potentially pushing the price below $6.
Dogecoin:
Dogecoin turned up from the 50-day SMA of $0.15, indicating strong support from the bulls at this level. They will now attempt to drive the price towards the overhead resistance of $0.18. A break and close above this level would open the doors for a possible rally towards $0.21. However, if the price turns down from $0.18, it would suggest that the bears are active at higher levels. This could result in the DOGE/USDT pair trading between $0.18 and the 50-day SMA for some time. A break below the 50-day SMA would give the bears an advantage, potentially leading to a drop towards $0.14.
Cardano:
The bulls are currently defending the support line of the symmetrical triangle pattern in Cardano. Buyers will need to push the price above the moving averages to suggest that the ADA/USDT pair may continue trading within the triangle. If this happens, the pair could reach the resistance line where the bears are likely to put up a strong defense. However, if the price turns down from the moving averages, it would indicate that every minor rise is being sold into, increasing the chances of a break below the triangle. In this case, the pair could drop towards the strong support level at $0.35.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.