In trading, selling a position is as important as buying it at the right time. Therefore, the big question that traders may worry about is whether the price of Bitcoin (BTC) will enter a bearish phase or not, or whether the trend will continue after this week’s decline.
PlanB, the creator of the popular bitcoin-to-stream exchange model, recently tweeted that the cryptocurrency transaction has just begun and “is not nearing its end.”
PlanB is not the only optimistic voice about Bitcoin. Mike McGlone, chief trading strategist at Bloomberg Intelligence, believes that given past behavior, Bitcoin’s peak in 2021 could be close to $ 400,000.
One of the main reasons that may attract institutional investors to cryptocurrencies is the potential weakening of the US dollar. In an interview with Bloomberg, Soros Foundation CIO Don Fitzpatrick said that a 25% increase in the US money supply over the past 12 months ensures that Bitcoin is no longer a marginal asset.
The fund recently participated in a NYDIG financing round of $ 200 million and also invested in cryptocurrency accounting firm Lukka. This indicates that institutional investors are broadening their horizons and looking for investment opportunities other than bitcoin.
Let us examine the charts of the top five cryptocurrencies that may resume the bullish trend in the short term.
BTC / USDT
Bitcoin is currently in a correction phase and is trading within a bearish channel. The strong return from the 50-day SMA ($ 52,000) on March 26 shows that bulls continue to rise at lower levels.
The Bears could create tough resistance near the channel resistance line, but if the bulls manage to push the price above it, the BTC / USDT pair could challenge the resistance zone again from $ 60,000 to $ 61,825.84.
A break in this area could signal the start of the next phase of the uptrend, targeting $ 71,112.06. The 20-day exponential moving average ($ 54,820) begins to rise, and the relative strength index (RSI) remains in positive territory, indicating that the bulls are trying to confirm their dominance.
Contrary to this assumption, the bears will try to push the pair below the 50-day moving average, if the price falls below the channel resistance line. If successful, the pair could fall to the guideline, and a break below that could trigger a deeper correction to $ 43,006.77.
The 4-hour chart shows that the recovery meeting faces stiff opposition around $ 56,500. If the price falls below the current level, it could fall to 20-EMA and then to $ 54,000.
A strong rebound from this support could eventually lead to a reverse head and shoulder pattern that ends in a breakout and closes above $ 56,618. This installation has a target of $ 63,339.98.
On the other hand, a break below $ 54,000 would indicate weakness and a shortage of buyers at higher levels.
KLAY / USDT
Klaytn (KLAY) has shown a strong bullish trend since mid-February. The alternative currency recently completed a slight correction when the bulls bought a decline to the 20-day moving average ($ 2.76) on March 26, indicating that sentiment remains positive.
The bulls are currently trying to resume the bullish trend, pushing the price above the all-time high of $ 3.50. If successful, the KLAY / USD pair could rise to $ 4.86. Bullish moving averages and RSI in the overbought zone indicate that the path to least resistance is up.
The bet becomes invalid if the price falls and falls below the 20-day moving average. Such a move will mean a possible change of mood. The initial support is at $ 2.58, and a breakout at this level could trigger a deeper correction.
The 4-hour chart shows that the moving average has completed the bullish cross and the RSI has jumped into the overbought zone, indicating that the bulls are ahead. Momentum could increase further if the bulls manage to push the price and keep it above the general resistance of $ 3.50.
Although the price falls from $ 3.50, but finds support at 20-EMA, it will indicate that the sentiment remains bullish. A strong rebound from this support will increase the likelihood of a resumption of the trend.