Bitcoin (BTC) has experienced a 2% decrease this week, but there is a positive sign for the bulls as the price has rebounded from the weekly low of $64,493. Analysts are expecting the next trigger for Bitcoin to be the halving event. However, cryptocurrency exchange Coinbase warns that Bitcoin’s price action may face obstacles after the halving, as this period is typically weak for crypto markets and other risk assets.
While there is potential for an upward movement, the downside is expected to be limited. Analyst Dylan LeClair from UTXO Management believes that even in the case of a fall, Bitcoin is unlikely to dip to $50,000 where a large number of long positions risk being liquidated. However, he cautions that anything is possible in the volatile crypto markets.
Although Bitcoin has been leading the market, several altcoins have been performing exceptionally well. Pantera Capital’s Liquid Token Fund revealed in a shareholder letter that it has reduced exposure to Bitcoin and Ether while increasing allocations to DeFi tokens. This shift has resulted in a 66% return in the first quarter of 2024.
Now, let’s analyze the top 5 cryptocurrencies that appear strong on the charts.
Bitcoin price analysis:
Bitcoin has been trading within a symmetrical triangle pattern, indicating uncertainty about the next move. The 20-day exponential moving average is gradually rising, and the relative strength index (RSI) suggests a slight advantage for the bulls. A break and close above the triangle would indicate a resolution in favor of the buyers, with potential targets at $73,777 and eventually $80,000. On the other hand, a break below the triangle would favor the bears, potentially leading to a decline to $59,000 and the 61.8% Fibonacci retracement level at $54,298.
Toncoin price analysis:
Toncoin has been steadily moving towards the overhead resistance of $5.69, indicating a potential bullish takeover. However, the negative divergence on the RSI suggests the possibility of a consolidation or correction in the near term. If the price fails to break above $5.69, it could signal aggressive selling from bears and pull the price down to the 20-day EMA. On the other hand, a breakthrough above $5.69 could propel the price towards $7.09.
Stacks price analysis:
Stacks has experienced a correction within an uptrend, resulting in a battle between bulls and bears. A move above $3.36 would indicate that the bulls have absorbed the supply, opening the door for a rally towards the overhead resistance at $3.84. Further targets would be $4.27 and $5. However, a break below the 50-day SMA would suggest bearish dominance, potentially leading to a deeper pullback at $2.50 and subsequently $2.20.
Mantle price analysis:
Mantle has faced resistance at $1.50, but the bulls have managed to keep the price above the 20-day EMA. The upsloping 20-day EMA and the RSI near the overbought zone suggest that the path of least resistance is to the upside. A break above $1.50 could lead to a rally towards $1.90. However, a turn down from $1.50 would indicate aggressive selling from bears, potentially pushing the price down to the 20-day EMA and signaling a deeper correction.
Maker price analysis:
Maker has struggled to sustain its position above $4,000, resulting in profit-booking. The price could correct to the 20-day EMA, an important level to watch. A rebound from this support would suggest positive sentiment and a possible retest of the overhead resistance at $4,074. If this level is surpassed, the pair may gain momentum and reach $5,280. However, a break below the 20-day EMA would indicate bearish pressure, potentially leading to a drop to the 50-day SMA.
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.