Bitcoin (BTC) has been largely trading within a tight range over the past few days but that hasn’t diminished the excitement surrounding its impressive 84% rally in 2021. This surge in Bitcoin’s price has also positively impacted the altcoin market, with several alternative cryptocurrencies experiencing significant gains from their yearly lows.
As we enter the second half of the year, investors are eager to know if the rally will continue. Historical data from CoinGlass shows that July has only seen three negative monthly closes since 2013, with the largest decline being 9.69% in 2014. This suggests that the bulls may currently have a slight advantage.
One major factor driving the recent rally in Bitcoin and altcoins has been the hope that the United States Securities and Exchange Commission (SEC) will approve one or more applications for a spot Bitcoin exchange-traded fund (ETF). However, any negative news on this front could potentially turn sentiment bearish and result in a sharp sell-off.
Despite this potential risk, Bitcoin and select altcoins are currently displaying strength in the market. Let’s take a closer look at the charts of the top 5 cryptocurrencies that may continue their upward movement in the coming days.
Bitcoin Price Analysis
Bitcoin is currently trading near the strong overhead resistance level at $31,000. This suggests that buyers are not rushing to book profits and are anticipating another leg higher in the price. The rising 20-day exponential moving average ($29,278) and the positive relative strength index (RSI) indicate that the path of least resistance is to the upside.
If the bulls are able to push and sustain the price above $31,000, the BTC/USDT pair is likely to begin the next leg of its uptrend. This bullish momentum could potentially send the price above the immediate resistance at $32,400, with the potential for further gains towards $40,000.
On the other hand, if the bears manage to sink the price below the 20-day EMA, the pair could slide towards the 50-day simple moving average ($27,622).
Litecoin Price Analysis
Litecoin recently broke out above a descending channel and the crucial overhead resistance level at $106, indicating a continuation of its uptrend. Although the bears briefly pulled the price back below $106, the bulls quickly bought the dip.
Sustaining the price above $106 increases the likelihood of a continued rally, potentially taking the LTC/USDT pair towards the overhead resistance zone between $134 and $144. Conversely, a sustained drop below $106 would signal bearish selling at higher levels and could lead to a pullback towards the psychological level of $100.
Monero Price Analysis
Monero invalidated a developing descending triangle pattern by rising and closing above the downtrend line on June 23. This failure of a bearish pattern typically traps aggressive bears and results in a short squeeze.
After a sharp rally, the price has been consolidating between $171 and $160. This consolidation is seen as a positive sign, indicating that the bulls are holding their positions and anticipating another leg higher. If buyers push the price above $171, the XMR/USDT pair may see another surge towards $187. However, a drop back below the 50-day SMA ($149) could give the bears control.
Aave Price Analysis
Aave has been trading within a descending channel pattern in recent weeks. However, there appears to be a change in sentiment from selling on rallies to buying on dips, as evidenced by the bulls buying the dip to the 20-day EMA ($61.69).
Continued buying pressure could potentially push and sustain the price above the channel, leading to a new upward movement towards the $84 resistance level. The 20-day EMA remains an important support to watch on the downside, and a break below it would suggest the pair may remain within the channel for a longer period.
Maker Price Analysis
Maker has shown signs of initiating an upward movement, with bulls buying the dip to the moving averages between June 24 and 28. This indicates demand at lower levels and has led to a bullish outlook.
While the MKR/USDT pair reached above the downtrend line on July 2, strong selling pressure was seen at higher levels. A break above the downtrend line could provide confirmation of a rally towards $979, while a drop below $772 would suggest weakness and a potential correction towards the 20-day EMA.
These analyses are based on historical price data and technical indicators. It’s important to conduct your own research and consider other factors before making any investment decisions.
In conclusion, while Bitcoin and altcoins have been trading within narrow ranges recently, the overall sentiment remains positive. If Bitcoin is able to break above its strong overhead resistance at $31,000, it could pave the way for further gains. Similarly, altcoins like Litecoin, Monero, Aave, and Maker also show potential for continued upside movement. However, investors should always exercise caution and conduct their own research before making any investment decisions.