Bitcoin (BTC) is trying to post its second weekly gain in a row and end with its highest closing price in a week since the beginning of the year. According to on-chain data from Glassnode, the price recovery on bitcoin was driven by demand in the spot market. This will probably please the bulls because history shows that demand in the spot market leads to a steady increase.
Another positive sign is the strong demand for ProShares Bitcoin Strategy (BITO) exchange traded funds over the past two weeks, which has resulted in an all-time high exposure. Arcane Research said that the strong inflows “suggest that the appetite for bitcoin through traditional investment cars is increasing.”
Daily display of market data for cryptocurrencies. Source: Coin360
Besides Bitcoin, the broader crypto area also attracts investors. Venture capital buyers pumped $ 4 billion into the crypto space in the last three weeks of February, according to research firm Fundstrat.
Will buyers be able to maintain momentum and prolong the bitcoin and altcoin rally? Let us examine the lists of the 5 best cryptocurrencies that can give better results in the short term.
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Bitcoin / US dollars
The long week in the bitcoin candlestick on March 25 shows that the bears are defending the upper resistance at $ 45,400. The simple positive is that the bulls did not lose many positions, which indicates that traders are in no hurry to close their positions.
BTC / USDT daily chart. Source: Trading View
The 20-day EMA appears ($ 42,025) and the Relative Strength Index (RSI) is in positive territory, indicating that the bulls are in control. If buyers push the price above $ 45,400, BTC / USDT may rise to the rising channel resistance line.
This level can again be an obstacle, but if the bulls overcome it, the pair can rise to the psychological level of $ 50,000.
Contrary to this assumption, if the price drops from $ 45,400, the bears will try to pull the pair against the strong support of $ 42,594. This is an important level to look at from the bottom up, because if the bulls turn it against support, there is likely to be a break above $ 45,400.
Bears must retreat and support the price below the moving averages to signal a withdrawal for the bulls.
BTC / USDT on the 4-hour chart. Source: Trading View
The 4-hour chart shows that the price has fallen from the upper resistance level, but the bulls did not let the pair break below 20-EMA. This indicates that traders are buying on every little dip.
Moving averages and RSI rising near the overbought zone indicate that the path to least resistance is going up. These positive prospects will be worthless in the short term if the price breaks and falls below the 20-EMA. In this case, the pair may fall to $ 42,594.
ADA / USDT
Cardano (ADA) has stayed above the critical $ 1 level in recent days. This indicates that the bulls, which may have bought at the lower levels, do not make a profit aggressively as they expect the recovery to continue.
ADA / USDT daily chart. Source: Trading View
The moving averages have completed a bullish cross and the RSI is in positive territory, indicating that the bulls have taken over. If buyers push the price above $ 1.26 and continue to do so, the bullish momentum may increase and the ADA / USDT pair may rise to the next critical resistance level of $ 1.60.
Alternatively, if the price reverses down from $ 1.26 but bounces back from $ 1, this means that the pair can stay in an area between the two levels for a few more days. The bears need to go lower and keep the price below the moving averages to cancel out the bullish outlook.
ADA / USDT, 4-hour chart. Source: Trading View
On the 4-hour chart, the bears aggressively defend the upper resistance at $ 1.20, but on the small side, the bulls did not allow the price to consolidate below the 20-EMA. If the price rises from the current level, the bulls will again try to break the barrier at $ 1.20 and push the pair towards $ 1.26.
Alternatively, if the price falls and breaks through the 20-EMA, this indicates that the bullish momentum has slowed. After that, the pair can gradually retreat towards the strong support level of $ 1.00.
AXS / USDT
Axie Infinity (AXS) has been trading between $ 72 and $ 44 in recent days. Buyers pushed the price above the upper resistance level on March 25, but they failed to hold on to higher levels.