bitcoin (BTC) hit a new 52-week high on June 23, signaling that the bulls are on fire. Buyers have managed to hold on to much of the gains made during the week, indicating that they are in no rush to book profits. Bitcoin is up 16% this week, outperforming the S&P 500 Index, which fell 1.39%.
Not just Bitcoin, but even Ether (ETH) shows signs of starting a bullish movement. Glassnode data shows that Ether balances on exchanges fell sharply in the last 30 days and hit a new low of 12.6%.
A similar drop in Ether exchange balances occurred in November 2022, followed by a strong 33% rally. Although a rally is possible, traders should be cautious because the drop in currency balances this time may have been triggered by the US Securities and Exchange Commission. actions against Binance and Coinbase.
Crypto recovery is not limited to Bitcoin and Ether. Several altcoins have risen sharply from their respective lows, indicating solid buying at lower levels. This implies that the bearish sentiment may be waning.
Could the return of buyers start a new bull run in cryptocurrencies, or will higher levels attract selling from bears? Let's study the charts of the top five cryptocurrencies that may rise in the short term.
Bitcoin Price Analysis
Bitcoin has been trading near the $31,000 level for the past four days. This suggests that the bears are protecting this level, but the bulls have not given up. Typically, a tight consolidation near a major resistance level tends to resolve to the upside.
The up-sloping 20-day exponential moving average ($28,085) and the RSI in the overbought area indicate an advantage for the bulls. If the buyers push and hold the price above $31,000, the BTC/USDT pair could start the next leg of the up move. There is resistance at $32,400, but it is likely to be crossed. The pair can then shoot towards $40,000.
The first sign of weakness will be a break and close below $29,500. If that happens, the pair can slide down to the 20 day EMA. This remains the key level to watch because if it gives way, the pair may drop to the 50-day simple moving average ($27,199).
The pair is stuck between the 20 day EMA and $31,000, but this tight range trading is unlikely to continue for long. A breakout of the range above the $31,000 to $31,500 zone could start the next leg of the uptrend.
Conversely, if the price turns down and sustains below the 20-day EMA, it can trigger stops for short-term traders. The pair could then drop to $29,500 where the bulls are expected to mount a strong defense. A break below this level could open the doors for a possible drop to the 50-day SMA.
Ether Price Analysis
Ether has been facing selling at the $1928 level for the past three days, but the bulls are not willing to give way to the bears. This indicates that the buyers are waiting for the resistance to be broken.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating that the bulls are in command. If the buyers break through the $1,928 barrier, the ETH/USDT pair can rally to the upper zone between $2,148 and $2,200.
If the bears want to avoid the rally, they will have to quickly drag the price below the moving averages. That can hit the stops of the aggressive bulls, resulting in a correction from the strong support at $1,700.
The four-hour chart shows that the price is stuck within the range between $1,936 and $1,861. The rising moving averages and the RSI in the positive zone suggest that the path of least resistance is to the upside. If the buyers push the price above the range, the pair could start its march towards the psychological $2,000 level.
Instead, if the price turns down and breaks below the $1861 support, it will tip the short-term advantage in favor of the bears. The pair can then drop to the 50-SMA and then to $1,750.
Decision Price Analysis
Arbitrum (ARB) rallied above the breakout level of $1 on June 19 and followed up with a strong rally on June 20. This indicates rejection of the recent breakout.
The bears are trying to stop the rally at the 50-day SMA ($1.12), but a positive sign is that the bulls have successfully defended the 20-day EMA ($1.07). This tight range trade is unlikely to continue for long, and a breakout can be expected soon.
A break and close above $1.18 could suggest the start of a new move higher. The ARB/USDT pair could first rally to $1.28 and then $1.54. This bullish view will be reversed if the price turns down and falls below the $1 to $0.90 support zone.
The four hour chart shows that the bulls are struggling to clear the $1.18 hurdle. This indicates that the bears are active at higher levels. The sellers pushed the price below the 20-day EMA but were unable to crack the 50-day SMA.
The 20 day EMA is flattening out and the RSI is near the midpoint, indicating a balance between buyers and sellers. If the bulls push the price above $1.18, it will signal the start of a strong rally. Conversely, a break and close below the 50-day SMA can result in a drop to $1.
Related: Bitcoin Sees New All-Time Highs In 3 Countries As BTC Price Hits $31K
VeChain Price Analysis
VeChain (VET) turned down from the resistance line on June 23, but the bears are struggling to hold the price below the 50-day SMA ($0.018). This suggests that traders are buying the dips.
The bulls will once again try to push the price above the resistance line. If they succeed, it will indicate that the downtrend has ended. The VET/USDT pair could start its upward move towards $0.026.
Contrary to this assumption, if the price turns back down from the resistance line, it will suggest that the bears are in control. They will then try to sink the pair below the moving averages and challenge the support at $0.013.
The four hour chart shows that the price turned from the resistance line, but is finding support at the 20 day EMA. This suggests that sentiment is turning positive and traders see dips as a buying opportunity.
The bulls will again try to push the price above the resistance line. If they manage to do that, the pair could rally to $0.021. This level can again act as an obstacle, but if it is crossed, the upward movement can begin. The first support on the downside is the 20-day EMA, and the next one is the 50-day SMA.
Battery Price Analysis
Stacks (STX) spiked above the moving averages on June 20, signaling a possible trend reversal. The corrective phase started on June 22, but a positive sign is that the price remains above the moving averages.
The moving averages have completed a bullish crossover and the RSI is in the positive territory, indicating that the bulls have the upper hand. If the price rises from the current level or bounces off the 20-day EMA ($0.65), it will suggest buying on dips. That will improve the prospects for a break above $0.89.
If that happens, the STX/USDT pair could rally to $1.10 and then $1.30. This positive view will be invalidated if the price turns down and falls below the moving averages. Such a move will suggest that the bears have not given up yet and will continue to sell rallies.
The four hour chart shows that the pair is in a corrective phase. The bears pulled the price below the 20-day EMA, but the bulls defend the 50% Fibonacci retracement level of $0.71. Buyers will have to push the price above the downtrend line to open the doors for a potential rally to $0.88.
Alternatively, if the price turns down from the downtrend line, it will suggest that the bears are trying to gain the upper hand. A break and close below the 61.8% retracement level of $0.67 could indicate that the bears are back in the game.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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