Bitcoin (BTC) has risen over 8% this week, indicating that lower levels continue to attract buyers. Generally, in a range, traders buy near the support and sell close to the resistance. This suggests that the price may reach the top of the range at $73,777, but clearing this hurdle might be difficult.
Analysts are divided in their opinion about Bitcoin’s next directional move. Some believe that the correction is over and Bitcoin will break out to a new all-time high, while others expect Bitcoin to turn down to retest the $60,000 support and go lower. It is difficult to predict the direction of the breakout from a range with certainty. Hence it could be prudent to wait for the price to start a new trend before establishing large trading positions.
As Bitcoin consolidates, traders may look toward altcoins for short-term trading opportunities. Although a full-blown altseason has still not arrived, select altcoins are likely to present trading opportunities.
Could Bitcoin’s potential rise above its near-term resistance boost sentiment in the crypto sector? Let’s study the top 5 cryptocurrencies that look promising on the charts.
Bitcoin price analysis
Bitcoin has been facing resistance near $68,000, but a positive sign is that the bulls have not ceded ground to the bears. This suggests that the bulls are holding on to their positions as they anticipate a move higher.
The 20-day exponential moving average ($64,109) has started to turn up, and the relative strength index (RSI) is in the positive territory, indicating that the path of least resistance is to the upside. If the $68,000 level is crossed, the BTC/USDT pair could retest the formidable overhead resistance at $73,777.
If bears want to prevent the upside, they will have to quickly yank the price below the moving averages. If they do that, the pair could slump to $59,600 and later to the May 1 intraday low of $56,552.
Both moving averages are sloping up on the 4-hour chart, and the RSI is in the positive zone, indicating that the bulls are in command. The critical support to watch on the downside is the 20-EMA. If the price rebounds off this level, it will improve the prospects of a rally above $68,000.
Conversely, if the price breaks below the 20-EMA, it will signal that the bullish momentum is weakening. The pair may slide toward the 50-simple moving average and subsequently to the support near $59,600.
Solana price analysis
Solana (SOL) rose above the moving averages on May 15, and the bulls are trying to build upon their strength.
There is a minor resistance at $176 from where the bears will try to start a correction. The essential level to watch on the downside is the breakout level of $162. If the price rebounds off this level with strength, it will indicate that the bulls are trying to flip $162 into support. That will increase the likelihood of a rally above $176. The SOL/USDT pair may then travel to $185.
This positive view will be invalidated in the short term if the price turns down and dives below the moving averages. That could result in long liquidation, pulling the pair to $140.
The pair has turned down from the overhead resistance near $176 and dipped below the 20-EMA. It is likely to retest the breakout level of $162, where the buyers are expected to step in and arrest the decline. Buyers will have to kick the price above $176 to resume the up move.
If the pair dips below $162, it will suggest that the bulls may be losing their grip. There is a minor support at the 50-SMA, but if that gives way, the pair may nosedive to $140.
Arweave price analysis
Arweave (AR) has been in an uptrend for the past few days. The bulls pushed the price above the overhead resistance of $47.51 on May 17 but could not sustain the higher levels.
The bears are trying to pull the price to the 20-day EMA ($40), an important level to keep an eye on. If the price rebounds off this level with strength, it will suggest that the bulls are buying on dips. That will enhance the prospects of a break above the psychological resistance at $50. If that happens, the AR/USDT pair may surge to $68.
Contrary to this assumption, if the price turns down sharply and plummets below the 20-day EMA, it will suggest that the bulls are rushing to the exit. That could trigger a correction to the 50-day SMA ($35).
The 4-hour chart shows the formation of a rising wedge pattern. The 20-EMA is the immediate support to watch out for on the downside. If this level gives way, the pair may slide to the support line of the wedge. A break and close below the wedge may start a downward move to $38 and then to $36.
Instead, if the price turns up from the 20-EMA or the support line and breaks above the resistance line of the wedge, it will signal that the bulls remain in control. That will invalidate the negative setup and start a move toward $68.
Related: Bitcoin’s $66.9K price holds strong, casts doubts on a ‘deep correction
The Graph price analysis
The Graph (GRT) started a relief rally after the bulls pushed the price above the moving averages on May 15.
The 20-day EMA ($0.29) has started to turn up, and the RSI has risen into the positive area, indicating that the bulls are attempting a comeback. Buyers will try to push the price to the overhead resistance of $0.35, where the bears may again mount a strong defense.
The 20-day EMA remains the key support on the downside. If the price turns down and breaks below the level, it will suggest that the bears continue to sell on every minor rally. That may sink the GRT/USDT pair to $0.26 and thereafter to $0.23.
The 4-hour chart shows that the pair is stuck between $0.22 and $0.31 for some time. The bulls pushed the price above the range but could not sustain the higher levels. If the price plunges and maintains below the 50-SMA, it will suggest that the breakout has been rejected. The pair may then drop to $0.26.
Alternatively, if the price turns up from the moving averages with strength, the bulls will take another shot at $0.31. If this level is cleared, the pair may jump to $0.35 and later to the pattern target of $0.40.
Fantom price analysis
Fantom (FTM) broke above the moving averages and the horizontal resistance of $0.79 on May 16, signaling the start of a recovery.
The moving averages are on the verge of a bullish crossover, and the RSI has risen into the positive territory, indicating that the bulls are back in the game. However, the bears are unlikely to give up easily. They will try to pull the price back toward $0.79. If bulls flip this level into support, the FTM/USDT pair could rise to $1.04.
Contrarily, if the price turns down and breaks below the moving averages, it will suggest that the bears remain active at higher levels. That may pull the pair to $0.60.
The bears are trying to start a correction on the 4-hour chart, but the bulls are likely to buy the dips to the 20-EMA. If that happens, the pair is expected to pick up momentum and rise toward the overhead resistance of $1.04.
Instead, if the price continues lower and breaks below the 20-EMA, it will suggest that the bulls are losing their grip. The pair may slump to the breakout level of $0.79. This is an essential level for the bulls to defend because a break below it will suggest that the recovery has faltered.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
