Bitcoin (BTC) is currently forming two successive Doji candlestick patterns on the weekly charts, indicating indecision in the market. However, the price of Bitcoin is sustaining above the 20-week exponential moving average ($28,072), which suggests that the bulls are still in control. According to technical analysis using the three-week timeframe, Bitcoin’s compression above the 20-period moving average has only occurred four times since its creation, and on all three previous occasions, the price expanded to the upside, favoring the bulls.
Despite the positive indicators for Bitcoin, the lack of volatility in the market has led to a decrease in Bitcoin futures trading volumes, which are currently at their lowest levels since December 2022. This suggests that traders may have shifted their focus to other markets or are choosing to stay on the sidelines at the current price levels.
While many altcoins are looking to Bitcoin for direction, some have outperformed in the near term. Let’s take a look at the charts of the top-five cryptocurrencies that are showing positive signs over the next few days.
Bitcoin Price Analysis:
Bitcoin has been trading near the 20-day exponential moving average ($29,447) for the past two days, signaling indecision between the bulls and the bears. The moving averages and the relative strength index (RSI) do not provide a clear advantage to either side, suggesting that the BTC/USDT pair may remain stuck inside the $28,585 to $30,150 range for now. The next trending move is likely to occur once the price breaks out of this range. A break below $28,585 could lead to further selling and a drop to $26,000, while a break above $30,150 may attract buyers and push the price towards the $31,804 to $32,400 resistance zone.
Shiba Inu Price Analysis:
Shiba Inu (SHIB) has been experiencing a strong recovery, with buyers currently facing resistance near the overhead resistance at $0.000012. The upsloping 20-day exponential moving average ($0.000009) and the RSI near the overbought zone indicate that bulls are in command. If buyers can maintain their position near the overhead resistance, it could lead to a rally above $0.000012 and a potential surge to $0.000014 and $0.000016. However, if the price drops below $0.000010, it may signal the end of the recovery and lead to a further pullback towards the 20-day EMA.
Uniswap Price Analysis:
Uniswap (UNI) has rebounded off the 50-day simple moving average ($5.79) and risen above the 20-day exponential moving average ($6.09), indicating that buyers are active at lower levels. The UNI/USDT pair is facing a tough battle near the 20-day EMA, suggesting that bears are still present. If the price sustains below the 20-day EMA, selling pressure could intensify, pushing the pair towards the 50-day SMA. On the other hand, a rebound off the 20-day EMA could indicate that bulls are trying to flip this level into support, potentially leading to a rise above the immediate resistance at $6.35 and a move towards $6.70.
Maker Price Analysis:
Maker (MKR) has been trading above the breakout level of $1,200, indicating that bulls are attempting to establish it as a new support level. The 20-day EMA ($1,204) is sloping up gradually, and the RSI is in positive territory, indicating that bulls have the upper hand. If buyers manage to push the price above the immediate resistance at $1,284, it could signal the start of a new uptrend, with the potential to reach the local high at $1,370. However, if bears can bring the price back below the breakout level of $1,200, it may open the doors for a decline to the 50-day SMA ($1,041).
XDC Network Price Analysis:
XDC Network (XDC) has pulled back to the 20-day EMA ($0.062), which is an important support level to watch. The 20-day EMA is flattening out, and the RSI is just above the midpoint, suggesting that bullish momentum may be weakening. To gain control, buyers will need to push the price above the overhead resistance at $0.073, potentially leading to an up-move to $0.082. On the other hand, a break and close below the 20-day EMA could bring the pair down to the 61.8% Fibonacci retracement level of $0.056, delaying the start of the next leg of the uptrend.
In conclusion, while Bitcoin is showing signs of indecision in the market, it is still being supported by the 20-week exponential moving average, indicating that the bulls have not lost their grip. Altcoins such as Shiba Inu, Uniswap, Maker, and XDC Network are also showing positive signs, with potential for further gains in the near term. However, it is important for traders and investors to conduct their own research before making any investment decisions.