Bitcoin (BTC) has been trading in a narrow range for the past few days, but that doesn’t take away from its stunning 84% rally in 2023. Bitcoin’s strong price rally has spurred the buying of several altcoins, which have risen sharply from their annual lows.
As the second half of the year begins, the main question for all investors is: will the recovery continue? Data from CoinGlass shows that July has only had three negative monthly closes since 2013 and the biggest decline was 9.69% in 2014. This suggests that the bulls have a slight advantage.
Much of the latest leg of the Bitcoin and altcoin rally has been fueled by hopes that the United States Securities and Exchange Commission will approve one or more applications for a spot Bitcoin exchange-traded fund. Any unfavorable news on this front could turn bearish sentiment and lead to a strong sell-off.
However, for now, Bitcoin and some altcoins are showing strength. Let’s analyze the charts of the top 5 cryptocurrencies that may continue their ascent over the next few days.
bitcoin price analysis
Bitcoin continues to trade near the strong overhead resistance at $31,000. This suggests that the bulls are in no rush to take profits as they anticipate another leg higher.
Usually, a tight consolidation near crucial overhead resistance resolves to the upside. The upward 20-day exponential moving average ($29,278) and the Relative Strength Index (RSI) in positive territory indicate that the route of least resistance is to the upside.
If the bulls propel and hold the price above $31,000, the BTC/USDT pair is likely to begin the next leg of the uptrend. The bullish momentum could propel the price above the immediate resistance at $32,400. If that happens, the pair could continue its march north towards $40,000.
If the bears want to make a comeback, they will have to sink and keep the price below the 20-day EMA. The pair could then slide towards 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 been stuck between $31,431 and $29,500 for some time.
The buyers will need to drive and hold the price above the $31,431 hurdle to signal the resumption of the upside. Alternatively, a breakout and close below the $29,500 support can trigger a deeper correction towards $27,500.
Litecoin Price Analysis
Litecoin (LTC) surged above the descending channel and overhead resistance at $106 on June 30, indicating the resumption of the uptrend.
The bears took the price back below the breakout level of $106 on July 1, but the bulls bought the decline. If the buyers hold the price above $106, it increases the likelihood of the rally continuing. The LTC/USDT pair could then soar towards the overhead resistance zone between $134 and $144.
Contrary to this assumption, if the price slips and holds below $106, it will signal that the bears are selling at higher levels. This could pull the price to the psychological level of $100 and then to the breakout level of the channel.
The 4-hour chart shows that the bears are trying to hold the $112 level with vigor, but they are struggling to keep the price below $106. This suggests that the bulls are buying at lower levels. The rising 20-EMA and the RSI in the overbought territory indicates that the buyers have the advantage.
If the price holds above $112, the pair may begin the next leg of the uptrend towards $126. The first downside support is at the 20-EMA and then at $98.
Monero Price Analysis
Monero (XMR) rose and closed above the downtrend line on June 23, invalidating the descending triangle development.
The failure of a bearish pattern is usually a positive sign as it traps several aggressive bears resulting in a short squeeze. This can be seen in the XMR/USDT pair which moved from $150 on June 23rd to $171 on June 27th.
After the strong rally, the price has been hovering between $171 and $160 for the past few days. Consolidation is a positive sign as it shows the bulls holding their positions as they anticipate another leg higher.
If the buyers push the price above $171, the pair may begin the next leg up. The pair can then skyrocket to $187. The bears will need to pull the price back below the 50-day SMA ($149) to gain control.
The 4-hour chart shows the formation of a symmetrical triangle, which usually acts as a continuation pattern. If the buyers are pushing and holding the price above the triangle, it will suggest that the uncertainty between the bulls and bears has resolved in favor of the buyers. This could signal the resumption of the upward movement. The pattern target for this setup is $182.
This positive view will be invalidated in the short term if the price declines and falls below the triangle. The pair could then plunge to $148.
Related: Why is Litecoin price up today?
Aave price analysis
Aave (AAVE) has been trading in a descending channel pattern for several weeks. The price moved lower 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 rallies to buying on declines. The price again reached the resistance line. Repeated retesting of a resistance level within a short interval tends to weaken it.
The rising 20-day EMA and the RSI in positive territory indicate that the path of least resistance is to the upside. If the buyers propel and hold the price above the channel, the AAVE/USDT pair could start a further rise towards $84.
The 20-day EMA remains the important support to watch on the downside. A breakout and close below this level will suggest that the pair may spend more time inside the channel.
Both moving averages are up on the 4-hour chart and the RSI is in positive territory, indicating that the buyers are in control. If the bulls reverse the downtrend line into support, the pair could rise to $76.
Alternatively, if the price goes down and holds below the downtrend line, it will signal that the bears remain active at higher levels. The pair may then collapse towards the moving averages. A break below the 50-SMA can open the doors for a possible decline to $62 and then to $58.
Manufacturer Price Analysis
Maker (MKR) attempts to start an upward move. The bulls bought the decline in the moving averages between June 24 and June 28, indicating demand at lower levels.
The 20-day EMA ($725) has appeared and the RSI is in the overbought territory, indicating that the bulls have the upper hand. The buyers pushed the price above the downtrend line on July 2, but the long wick on the candlestick shows strong selling at higher levels.
A small positive point in favor of the buyers is that they held their ground. This improves the outlook for a rally above the downtrend line. If that happens, the MKR/USDT pair could soar towards $979. The first sign of weakness will be a drop below $772. This could trigger 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 attempt to trap the aggressive bulls by driving the price below the downtrend line. If they do, the pair could go down to the 20-EMA. This remains the key level to watch as a break below will tip the scales in favor of the bears.
On the contrary, if the price rises from the current level and breaks above $900, it will suggest that the bulls have reversed the downtrend line into support. This could trigger a rally to $941.
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.
This article is for general informational purposes and is not intended to be and should not be considered 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.
