Bitcoin (BTC) had a strong performance this week, with prices increasing by about 10% to reach the important psychological level of $30,000. While this rally has been positive, investors are now questioning if the upward trend will continue or if a reversal is on the horizon.
Stockmoney Lizards, a trading team, recently stated that Bitcoin might soon surpass its overhead resistance and experience a significant rally. They believe that the approval of the exchange-traded fund (ETF) will drive mass adoption and serve as a catalyst for the upcoming rally before the halving event in April 2024.
Notably, the strength of Bitcoin appears to have influenced several altcoins, causing them to surge above their respective resistance levels. This suggests that the sentiment in the market is gradually turning positive, indicating that it may be a good time to selectively consider buying altcoins.
In general, the coins that lead the market higher tend to perform well, while the laggards typically underperform. Therefore, it is advisable to focus on the top-performing cryptocurrencies in the near term. Let’s analyze the charts of the top five cryptocurrencies that show potential for outperformance.
Bitcoin’s price analysis reveals that it is currently hovering near the $30,000 mark, with both bulls and bears engaged in a tough battle. However, the consolidation near this level suggests that the bulls are not eager to book profits yet, indicating a potential for another leg higher. If the price breaks above $31,000, it could reach the resistance zone between $31,000 and $32,400. On the other hand, a drop below the 20-day exponential moving average ($28,160) could lead to a retest of the support level.
Solana (SOL) recently broke out of a bullish inverse head and shoulders pattern, signaling a target objective of $32.81. Although overbought levels on the relative strength index (RSI) suggest a potential correction, a bounce off the support level at $27.12 could indicate a continuation of the uptrend. However, a drop below $27.12 could invalidate the breakout, potentially leading to further downside.
Chainlink (LINK) has been trading within a range between $5.50 and $9.50 since May 2022, indicating a balance between supply and demand. Recently, there was a breakout above the range, but the long wick on the candlestick suggests resistance from bears. Maintaining support above $8.50 could lead to a rally towards the pattern target of $13.50.
Aave (AAVE) invalidated a bearish descending triangle setup by rising above the downtrend line. Both moving averages have turned up, indicating that bulls have an advantage. By maintaining support above the downtrend line, Aave could surge to $88 and then $95. However, a drop below the 50-day simple moving average ($62) could shift the momentum in favor of bears.
Stacks (STX) has seen a notable increase in price recently, suggesting the start of a new uptrend. The bullish crossover on the moving averages supports this view. A minor correction or consolidation is possible in the short term, with support at the 20-day exponential moving average ($0.54). A rebound from this level could lead to a continuation of the up-move, targeting $0.80 and $0.90.
It’s important to note that this article does not provide investment advice or recommendations. As always, it is crucial for readers to conduct their own research and make informed decisions regarding investments or trades.