Bitcoin is currently experiencing a major showdown between buyers and sellers around the $69,000 level. Daan Crypto Trades, an independent trader and analyst, mentioned in a social media post that Bitcoin has been close to its 2021 cycle peak for about four weeks. It is common for Bitcoin to experience a 4-8 week consolidation period at cycle highs before its price begins to move once again.
This period of sideways trading can be frustrating for investors, but the minimum pullback is considered a bullish indicator. Checkmate, a pseudonymous lead on-chain analyst at Glassnode, noted in a social media post that the market's previous bull cycle from 2019 to late 2021 saw Bitcoin suffer two major corrections exceeding 50%. By contrast, corrections in the current bull market have been less severe; The most recent significant drop was a 20% drop in September of the previous year.
Strong demand for spot Bitcoin exchange-traded funds (ETFs) could have helped mitigate losses in the current cycle. Additionally, anticipation of Bitcoin extending its bull run following the Bitcoin halving event could be another factor contributing to the modest pullback.
Which direction will Bitcoin take after its current consolidation period: down or up? And have the corrections among certain altcoins come to an end? We'll dive into the charts of the top 5 cryptocurrencies to find out more.
Bitcoin (BTC) Price Prediction
bitcoin has developed a symmetrical triangle formation, indicating a balance between buying and selling forces. Typically, this symmetrical triangle serves as a continuation pattern, although occasionally it can signal a trend reversal. At the time of writing,
The price is trading at $67,738, rising more than 1.2% in the last 24 hours.
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The almost flat 20-day EMA ($67,750) and the RSI positioned around the midpoint fail to provide a decisive advantage for either the bulls or the bears. A turn lower and a break below the triangle could signal the beginning of a more significant recession. In such a case, the BTC/USDT pair could fall to $61,000 and potentially reach the 61.8% Fibonacci retracement level at $59,000.
Conversely, a bullish move and break above the triangle could indicate that the bulls have overcome the selling pressure, increasing the chances of the uptrend continuing. After this, the pair could rise to $73,800 and perhaps extend to $80,000.
Super Trump (STRUMP) Price Analysis
STRUMP has remained below the 50-day SMA after rejecting the $0.006 level. The growing bearish crossover of the moving averages, along with the relative strength index (RSI) falling into bearish territory, suggests that sellers currently have the upper hand. Although there is considerable support at $0.0044, a break below this threshold could see the STRUMP/USDT pair fall further to $0.003.
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On the contrary, a strong rebound from the $0.0044 support level would indicate strong interest in buying at lower prices. This could see the pair move within a range between $0.005 and $0.006 for some time. If the price rises above $0.006, it would indicate a return of bullish momentum.
Ethena (ENA) Price Analysis
Ethena value has seen a rapid rise, recently surpassing multiple Fibonacci retracement levels. Currently, investors are focused on continuing this uptrend by pushing the price beyond $1.23.
ENA/USDT active chart TradingView
The 20-day exponential moving average (EMA), now at $1.07, is showing signs of a rebound. Coupled with the Relative Strength Index (RSI) positioning just above the neutral 50 mark, this suggests that the buying force is strengthening. However, a drop below $1 could trigger increased selling, which could cause the ENA/USDT pair to fall as low as $0.6.
To avoid such a slowdown, it is essential for buyers to push the price above the current moving averages. Achieving this could indicate a trading range between $1.3 and $2. If the price can break $2 and stay above, it would be indicative of strong bullish momentum, which could send the pair to a target of $2.48.
Wormhole (W) Price Analysis
W price has continued a downward trend, experiencing selling pressure around the $1.07 mark, which has led to a more bearish market environment. The price has faced intense liquidation by sellers, which has created negative sentiment on the price chart.
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On the other hand, buyers are not backing down and are aiming to spark a recovery from the $1 mark. This attempted rally could face obstacles at the 20-day EMA at $1.14. If the price fails to break above this point, the probability of falling below the $1 threshold could increase. In such a scenario, the W/USDT pair could fall to $0.5.
Alternatively, if buyers manage to send the price above the 20-day EMA, it would suggest strong interest in buying at lower levels. Such a move could push the pair towards $1.1 and possibly extend towards $1.4, which is the key resistance level to overcome.
EGO Price Analysis
EGO price has taken a big jump today, breaking through crucial resistance lines. The price rose to the high of $0.08 but then faced rejection, stabilizing the bullish momentum. At the time of writing, EGO price is trading at $0.075, rising over 11% in the last 24 hours.
EGO/USDT chart activated TradingView
Predicting the breakout direction from a triangle formation can be challenging, so it is advisable to wait for further momentum before taking significant positions. If the price continues to rise from the 20-day EMA and breaks above $0.085, it would indicate a continuation of the uptrend. In such a scenario, the EGO/USDT pair could rise to $0.1, with a potential to reach a pattern target of $0.12.
On the other hand, a drop below the EMA20 would suggest that the bears are gaining the upper hand, which could lead to a drop in the pair's value to $0.066. If this support level is broken, the next target could be the pattern target of $0.05.
