Bitcoin Enters 'Danger Zone'; Top 5 Cryptocurrencies Poised for Recovery
Summary:
The article analyses Bitcoin's attempt to initiate a relief rally this week which faced significant selling pressure near $67,000. It also explains how Bitcoin is currently in the "Post-Halving ‘Danger Zone’" according to trader analyst Rekt Capital. Other subjects include net withdrawals from Bitcoin spot exchange-traded funds and prediction difficulties when the price fluctuates within a broad range. The piece also covers price analyses of top cryptocurrencies, such as Near Protocol, Arweave, Core, and Bonk, highlighting their recent performance and potential future trajectories.
This week Bitcoin (BTC), the biggest cryptocurrency by market value, tried to initiate a bounce back but faced a strong sell-off near the $67,000 mark. It's on course to conclude the week with a modest 2% loss. Noted trader analyst Rekt Capital suggests Bitcoin is now in the "Post-Halving ‘Danger Zone’" and could experience further falls over the coming fortnight. Additionally, the short-term future looks dim with net withdrawals from Bitcoin spot exchange-traded funds. Farside Investors highlighted that there was a $218 million withdrawal from these ETFs on April 25th, following a $120 million withdrawal the day before.
In situations where the price fluctuates within a broad range, predicting the exact direction of the price spike is a challenging task. Traders could opt to purchase near the support and sell at the resistance while maintaining a reasonable stop loss, or wait it out till there is a price spike.
So, will Bitcoin and other cryptocurrencies remain above their respective support levels and kick start their relief rally? Let us look at the top five cryptocurrencies that appear robust on the charts and are poised for recovery.
When it comes to Bitcoin price analysis, it's been hovering between $59,600 and $73,777 for a while now signalling that bulls and bears are conflicted about the next move. Generally, traders opt to buy near the support and sell as it approaches resistance. It is expected that the bulls would aggressively protect the $59,600 level since a breach below it could intensify the downward correction to 61.8% Fibonacci retracement level at $54,298. This would postpone the next rising trend.
On the contrary, if the price reverses from this point or the $59,600 support, it indicates that the bulls are still active at lower levels. The BTC/USDT pair could leap to $67,250 and later to the overhead resistance of $73,777. A break and close over this level signifies the beginning of a rising trend to $84,000.
When it comes to Near Protocol (NEAR) it closed over the descending channel pattern on April 25th, signalling the potential end of a downward trend. However, the bears have not given up and are still selling off at the immediate $7.70 resistance. On the other hand, if the price goes beyond $7.70, it signals a bullish domination. The NEAR/USDT pair could then attempt a rally up to $9.
Arweave (AR) rose above both moving averages on April 25, indicating a bullish comeback. The bears tried to pull the price back down, but the bulls bought the dip to the 20-day EMA ($32.19) on April 27 which shows a change in sentiment, shifting from selling the rallies to buying on dips. There's minor resistance at $40, but if cleared, the AR/USDT pair could rally to a strong overhead resistance of $47.52.
Core (CORE) has found support at the 20-day EMA ($2.23) twice in the past few days, signifying positive sentiment. If the price bounces back and breaks above $2.91, it suggests the bulls are in charge. The CORE/USDT pair could then gain momentum and rally toward $4.
Bonk (BONK) soared above the moving averages on April 23, indicating that the correctional phase could be coming to a close. The bears attempted to drag the price back below the moving averages, but the bulls resisted. This points out that the bulls are trying to turn the moving averages into support. If the price bounces back from this point and breaks above $0.000030, the BONK/USDT pair will complete an inverse H&S pattern looking towards a pattern target of $0.000048.
This article offers no financial advice or recommendations. Every investment and trade move involves risk and readers must carry out their research before making a decision.
Published At
4/29/2024 1:41:20 AM
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