Trader sentiment has turned bearish following Bitcoin’s recent 11% slump. Bitcoin has found support near $25,000, but analysts believe it could drop further towards the crucial $20,000 level. This negative sentiment extends beyond the cryptocurrency market, as US equities markets also witnessed a losing week, with the S&P 500 Index falling 2.1% and the Nasdaq Composite dropping 2.6%.
The fall in Bitcoin has led to a broad-based sell-off in altcoins, but there are a few standout performers. Let’s take a look at the top five cryptocurrencies that may defy the negative trend and remain positive over the next few days.
Bitcoin has been trading in a range between $24,800 and $31,000, but after failing to sustain above resistance, it has dipped towards the lower end of the range. The relative strength index (RSI) has entered oversold territory, suggesting a potential recovery. If the price rises from the current level, it could reach the 20-day moving average at $28,309. However, if the bears continue to sell rallies, the price could drop to $24,800 and potentially to $20,000.
Hedera (HBAR) turned down from overhead resistance at $0.078, indicating bearish activity at higher levels. However, the buyers have shown some strength by purchasing the dip to the 50-day simple moving average (SMA). Both moving averages are sloping up, and the RSI is positive, indicating the upper hand for buyers. They will attempt to push the price to the overhead resistance at $0.078 and potentially to $0.099. If the price turns down, the support at the uptrend line and further levels will be crucial for the bulls to defend.
Optimism (OP) broke below moving averages but found support at the uptrend line, indicating demand at lower levels. The price has bounced off the uptrend line but faces resistance at the 20-day EMA. If the price remains above the uptrend line, the likelihood of a rally above the 20-day EMA increases. If that happens, the price may rise to the overhead resistance at $1.88. On the other hand, a break below the uptrend line could suggest bearish control, with potential support levels at $1.21 and $1.09.
Injective (INJ) has formed a bullish ascending triangle pattern, indicating a slight advantage for buyers. The bulls successfully held the price above the 20-day EMA and are attempting to flip it into support. A rise above the 50-day SMA could clear the path for a potential rally to $10. However, a break below the uptrend line could invalidate this view and potentially lead to a slump to $5.40.
THORChain (RUNE) has been in an uptrend, despite the pressure faced by most altcoins. The price is facing resistance at $2, but if bulls can maintain the current level, a break above $2 could lead to a march towards $2.30 and potentially $2.60. However, a dip below $1.41 could signal a deeper correction to the 20-day EMA.
Overall, trader sentiment has turned bearish following Bitcoin’s slump, and this sentiment is reflected in both the cryptocurrency and equities markets. However, there are a few cryptocurrencies that have shown strength and may defy the negative trend in the coming days. Investors should closely monitor key support and resistance levels for potential opportunities.
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