bitcoin (BTC) has been trading in a tight range for the past few days, but that doesn't take away the shine from its impressive 84% rally in 2023. Bitcoin's strong price recovery has prompted buying of several altcoins, which have risen sharply since its inception. annual minimums.
As the second half of the year begins, the main question on every investor's mind is, will the rally continue? CoinGlass data shows that July has seen only three negative monthly closings since 2013 and the biggest drop was 9.69% in 2014. This suggests that the bulls have a slight advantage.
Much of the late leg of the rally in Bitcoin and altcoins was fueled by hopes that the United States Securities and Exchange Commission will approve one or more applications for a spot Bitcoin ETF. Any adverse news on this front could turn sentiment bearish and result in a sharp selloff.
For now though, Bitcoin and select altcoins are showing strength. Let's analyze the charts of the top 5 cryptocurrencies that may continue their upward movement in the coming days.
Bitcoin Price Analysis
Bitcoin continues to trade near the stiff upper resistance at $31,000. This suggests that the bulls are in no rush to book profits as they anticipate another leg of bullishness.
Usually, a tight consolidation near crucial overhead resistance resolves to the upside. The rising 20-day exponential moving average ($29,278) and the RSI in the positive territory indicate that the path of least resistance is to the upside.
If the bulls push and hold the price above $31,000, the BTC/USDT pair is likely to start the next leg of the uptrend. Bullish momentum can catapult the price above the immediate resistance at $32,400. If that happens, the pair can continue its march north towards $40,000.
If the bears want to turn back, they will have to dig in and hold the price below the 20 day EMA. The pair could then drop to the 50-day simple moving average ($27,622).
Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. The price has hovered between $31,431 and $29,500 for some time.
The buyers will have to push and hold the price above the $31.431 hurdle to signal the resumption of the bullish move. Alternatively, a break and close below the $29,500 support can initiate a deeper correction towards $27,500.
Litecoin Price Analysis
Litecoin (LTC) shot up above the descending channel and the overhead resistance of $106 on June 30, indicating the resumption of the uptrend.
The bears pushed the price below the breakout level of $106 on July 1, but the bulls bought the dip. If the buyers hold the price above $106, the probability of the rally continuing increases. The LTC/USDT pair could shoot up to the upper resistance zone between $134 and $144.
Contrary to this assumption, if the price falls and sustains below $106, it will indicate that the bears are selling at higher levels. That could take the price to the psychological $100 level, and then to the breakout level of the channel.
The 4-hour chart shows that the bears are vigorously trying to protect the $112 level, but are struggling to hold the price below the $106 level. This suggests that the bulls are buying at lower levels. The rise of the 20-EMA and the RSI into the overbought territory indicate that the buyers have the upper hand.
If the price sustains above $112, the pair may start the next leg of the uptrend towards $126. The first support on the downside is at the 20-EMA and then at $98.
Monero Price Analysis
money (XMR) rose and closed above the downtrend line on June 23, invalidating the developing descending triangle pattern.
The failure of a bearish pattern is usually a positive sign, as it traps several aggressive bears, resulting in a small squeeze. That could be seen in the XMR/USDT pair, which rose from $150 on June 23 to $171 on June 27.
After the strong rally, the price has been oscillating between $171 and $160 for the past few days. The consolidation is a positive sign, as it shows that the bulls are holding on to their positions while anticipating another leg of bullishness.
If the buyers push the price above $171, the pair can start the next leg of the move higher. The pair can then skyrocket to $187. The bears will have to sink the price below the 50-day SMA ($149) to take control.
The 4-hour chart shows the formation of a symmetrical triangle, which generally acts as a continuation pattern. If the buyers push and hold the price above the triangle, it will suggest that the uncertainty between the bulls and the bears has been resolved in favor of the buyers. That could signal the resumption of the up move. The pattern target for this setup is $182.
This positive view will be invalidated in the short term if the price turns down and breaks below the triangle. Then the pair could drop to $148.
Related: Why has the Litecoin price gone up today?
Aave Price Analysis
Ghost (GHOST) has been trading within a descending channel pattern for the past few weeks. The price turned down from the resistance line of the channel on June 25, but the bulls stopped the correction at the 20-day EMA ($61.69).
This suggests a shift in sentiment from selling on the rallies to buying on the dips. The price has reached the resistance line again. Retesting a resistance level within a short interval tends to weaken it.
The rising 20 day EMA and the RSI in the positive territory indicate that the path of least resistance is to the upside. If the buyers push and hold the price above the channel, the AAVE/USDT pair could start a fresh move higher towards $84.
The 20 day EMA remains the important support to watch on the downside. A break and close below this level will suggest that the pair may spend more time inside the channel.
Both moving averages are rising on the 4 hour chart and the RSI is in positive territory, indicating that buyers are in control. If the bulls flip the downtrend line to support, the pair can rally to $76.
Alternatively, if the price plunges and sustains below the downtrend line, it will indicate that the bears remain active at higher levels. The pair may then drop to the moving averages. A break below the 50-SMA can open the doors for a possible drop to $62 and then $58.
Manufacturer price analysis
maker (MSEK) is attempting to initiate an upward move. Bulls bought the lower moving averages between June 24-28, indicating that demand is at lower levels.
The 20-day EMA ($725) has turned up and the RSI is in overbought territory, indicating that the bulls have the upper hand. Buyers pushed the price above the downtrend line on July 2, but the long wick of the candle shows strong selling at higher levels.
A minor silver lining in buyers' favor is that they have held their ground. This improves the prospects for a rally above the downtrend line. If that happens, the MKR/USDT pair can shoot towards $979. The first sign of weakness will be a drop below $772. That could start a deeper correction towards the 20 day EMA.
The pair closed above the downtrend line, but the rally faces selling at higher levels. The bears are trying to catch the aggressive bulls by pulling back the price below the downtrend line. If they do, the pair could drop to the 20 day EMA. This remains the key level to watch because a break below it will tip the advantage in favor of the bears.
Conversely, if the price rises from the current level and breaks above $900, it will suggest that the bulls have shifted the downtrend line to support. That could start a rally to $941.
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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