Bitcoin’s recovery has hit a roadblock around the $70,000 mark, but there are positive signs that the bulls are not giving up. Laurent Benayoun, CEO of Acheron Trading, believes that the current bull cycle still has room to run and could reach anywhere between $120,000 and $180,000. This optimism is fueled by factors such as the introduction of Bitcoin exchange-traded funds, the upcoming Bitcoin halving, and the potential reduction in interest rates.
Another voice of optimism comes from Bitwise’s chief investment officer, Matthew Hougan, who advises investment professionals to remain calm and take a long-term view. He believes that if global wealth managers allocate just 1% of their portfolios to Bitcoin, it could result in an influx of around $1 trillion into the cryptocurrency space.
While there are several bullish factors that could continue to drive Bitcoin’s rally in the second quarter of 2024, trading firm QCP Capital warns that the current upward movement is showing signs of exhaustion and the bulls may struggle to sustain the uptrend.
As for the top 10 cryptocurrencies, let’s analyze their charts to determine whether they will correct in the near term or if the rally will continue.
Bitcoin:
Bitcoin has been trading within a narrow range of $71,770 and $68,359, indicating indecision between the bulls and bears. However, a consolidation near the highs is generally seen as a positive sign, indicating that the bulls are holding their positions. The rising 20-day exponential moving average and the positive RSI suggest that the bulls have an advantage. If the price breaks above the resistance zone of $71,770 to $73,777, it could open the doors for a rally to $80,000. On the other hand, a break below the 20-day EMA could signal profit-taking by the bulls and potentially lead to a drop to the 50-day simple moving average.
Ether:
Ether has also been trading in a tight range near the overhead resistance of $3,678, indicating a battle between the bulls and bears. The flat 20-day EMA and the RSI near the midpoint suggest a lack of clear advantage for either side. A break above $3,678 could push the price to $4,100, with a possibility of reaching $4,500 if the bulls come out on top. Conversely, a break below $3,460 could indicate that the bulls have given up and may lead to a decline to the 50-day SMA.
BNB:
After struggling near the 61.8% Fibonacci retracement level of $588, BNB made a decisive move higher. If the price sustains above $588, it could reach the overhead resistance of $645, with further potential gains to $669 and $692. However, the bears will need to defend the $645 level to maintain control and potentially push the price below the 20-day EMA, leading to a deeper correction.
Solana:
Solana is facing resistance at the downtrend line, suggesting that the bears are attempting a comeback. A break below the 20-day EMA could tilt the advantage in favor of the bears and lead to a drop to $162 and potentially the 50-day SMA. On the other hand, if the bulls kick the price above the downtrend line, the pair could attempt to break above the resistance at $205 and potentially start the next leg of the uptrend.
XRP:
XRP has been trading near its 20-day EMA, indicating uncertainty about the next move. A break below the 20-day EMA could lead to a drop to the uptrend line and potentially to $0.52. On the other hand, a break above $0.69 could clear the path for a rally to the resistance at $0.74.
Cardano:
The bears are attempting to keep Cardano below the breakout level of $0.68, which is a negative sign. A break below $0.63 could indicate a range-bound movement between $0.68 and $0.57. On the upside, a rise and sustained move above $0.70 could lead to a rally to $0.81, while a break below $0.57 could signal a bearish head-and-shoulders pattern.
Dogecoin:
Dogecoin has pulled back near the overhead resistance of $0.23, suggesting profit-taking by traders. A correction to the breakout level of $0.19 could be possible, but a rebound from this level could increase the likelihood of a rally to $0.30. However, a break below $0.19 could lead to a drop to the 20-day EMA and potentially the 50-day SMA.
Avalanche:
Avalanche is struggling to bounce off the support line of the pennant, indicating bearish pressure. A break below the 20-day EMA could lead to a drop to $50 and potentially to the 50-day SMA. Conversely, a rebound from the support line could push the price to the resistance line of the pennant, with a break and close above it signaling strength and potentially retesting the resistance at $65.
Shiba Inu:
Shiba Inu’s relief rally is facing selling near the 38.2% Fibonacci retracement level. A break below the 20-day EMA could increase the risk of a fall to the 50-day SMA, while a rebound from the 20-day EMA could indicate strong buying and a potential rise to $0.000035 and $0.000039.
Toncoin:
Toncoin’s rebound suggests that the bulls are defending the 38.2% Fibonacci retracement level. A sustained rebound could push the price toward the overhead resistance of $5.69, but the negative divergence on the RSI suggests a slowing bullish momentum. A break below $4.78 could lead to a deeper correction and a potential trend change.
Please note that this article does not provide investment advice or recommendations. It’s important to conduct your own research before making any investment decisions.