Bitcoin (BTC) has remained within a narrow trading range over the past week, potentially forming its third consecutive Doji candlestick pattern on the weekly chart. The cryptocurrency market has not received any support from the US equities markets, which ended the week with negative performance. The S&P 500 Index dropped 1.3%, while the Nasdaq closed down 1.9%.
Bitcoin’s weakness has also had a negative impact on several altcoins, causing them to test multi-week lows. This suggests that the broader crypto market is currently under bearish pressure. Negative markets make it difficult for buyers to find short-term bullish trades, as rallies struggle to sustain. However, this may be a good time for long-term investors to build their portfolios.
According to a recent report from Amberdata, 24% of asset management firms are appointing senior executives dedicated to implementing digital strategies, with an additional 13% planning to adopt digital assets strategies in the future. This indicates a seriousness about implementation and buy-in from senior management.
Now let’s analyze the charts of the top 5 cryptocurrencies that are showing promise in the near term.
Bitcoin price analysis:
Bitcoin has been trading near the $26,000 level, indicating a battle between bullish and bearish forces. The downward sloping moving averages give an advantage to bears, but the positive divergence on the relative strength index (RSI) suggests that selling pressure is reducing. However, the indicators do not provide a clear advantage for either side. It is therefore better to wait for the price to either sustain above $26,500 or drop below $24,800 before making larger trades. If bulls manage to overcome the obstacle at $26,500, the BTC/USDT pair could rise to the overhead resistance at $28,143. Conversely, a fall below $24,800 could open the door for a collapse to $20,000.
Toncoin price analysis:
Toncoin (TON) has pulled back to the 20-day exponential moving average ($1.69), which offers a low-risk opportunity for entry during an uptrend. If the price bounces back from the 20-day EMA, it will indicate a positive sentiment and buying on dips. The TON/USDT pair could potentially rise to $1.89 and then attempt a rally to $2.07. On the other hand, if the price continues to decline and falls below the 20-day EMA, it will suggest that bulls are exiting their positions. This could lead to a drop to $1.53 and potentially to the 50-day simple moving average ($1.45).
Stellar price analysis:
Stellar (XLM) has experienced a recovery in recent days, indicating that buyers are attempting a comeback. The XLM/USDT pair broke above the 20-day EMA ($0.12) and the bulls successfully defended against attempts to push the price back below it. This suggests that bulls are trying to turn the 20-day EMA into a support level. The price has reached the 50-day SMA ($0.13), which is acting as a resistance. If the price breaks above the 50-day SMA, the pair could rise to $0.15 and potentially to $0.17. However, if the price turns down and falls below the 20-day EMA, it would invalidate the bullish view in the near term.
Monero price analysis:
Monero (XMR) has held support at the uptrend line for the past few days, indicating buying at lower levels. The price has reached the 20-day EMA ($143), which is an important level to watch. If bulls drive the price above the 20-day EMA, it would suggest the start of a sustained recovery. The XMR/USDT pair could then climb to the 50-day SMA ($151) before potentially surging to $160. On the other hand, if bears manage to pull the price below the uptrend line, it could result in a drop to $130.
Maker price analysis:
Maker (MKR) has been trading between moving averages, indicating indecision among both bulls and bears. The price currently resides above the downtrend line, which is a minor positive for the bulls. However, the lack of bullish momentum is indicated by the RSI near the midpoint. Buyers will need to push and sustain the price above the 50-day SMA ($1,157) to signal the start of an upward move to $1,227. A re-entry below the downtrend line could invalidate the bullish view and potentially lead to a drop to strong support at $980.
To conclude, the cryptocurrency market has experienced a lack of support from US equities markets, resulting in a narrow trading range for Bitcoin. This has dragged down several altcoins and indicates that the broader market is currently under bearish pressure. Long-term investors may see this as an opportunity to build their portfolios. Promising cryptocurrencies to keep an eye on include Toncoin, Stellar, Monero, and Maker. However, traders should conduct their own research and consider the risks involved before making any investment decisions.
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