Bitcoin (BTC) has encountered strong resistance around the $ 60,000 level in recent days. This indicates that market participants are cautious at these levels and a positive catalyst may be required in order for the price to rise and initiate the next phase of the uptrend.
One event that might be optimistic about Bitcoin is that Brazil followed in Canada’s footsteps and gave the green light to launch a registered Bitcoin Fund. The ETF will be managed by QR Asset Management and is expected to start trading in the second quarter of 2021.
Bitcoin ETFs launched by different countries are likely to put pressure on the US Securities and Exchange Commission to approve Bitcoin ETFs, because institutional investors can use options available in neighboring countries.
While Bitcoin shows some vulnerability around $ 60,000, Cointelegraph shareholder Marcel Pehman analyzed data derived from various exchanges to show that the top traders were still adding long positions of around $ 57,000.
Bitcoin appears to be consolidating its recent gains before the next trend move begins. But there are other cryptocurrencies in an uptrend and may continue to move north. Let’s examine the charts of the top 5 cryptocurrencies that may remain optimistic in the short term.
Bitcoin / USD
Bitcoin is in an uptrend and the bulls keep buying as they drop to the 20-day exponential moving average ($ 55,282). The long tail of the day candle also shows that the bulls were using traps for buildup.
Now the bulls will try to push the price above $ 60,000 to $ 61,825 resistance. If they succeed, the BTC / USD could initiate the next phase of the trend, which could be as high as $ 72,112.
Another possibility is that the price falls again due to uptrend resistance and the pair remains stuck in a tight area. If this happens, the next breakout is likely to lead to a strong trend.
The only downward trend appearing on the chart is the negative RSI divergence. These bearish expectations may take effect after prices rally and remain below the 20 day EMA.
If that happens, the pair may drop to the 50-day simple moving average ($ 49,497), which is an important support to watch out for. A break below this level could challenge the $ 43.006 grant.
The 4 hour chart is showing symmetric triangle formation, which usually acts as a continuation pattern. The price has rebounded from the triangular support line, indicating that the bulls are protecting this support.
If the bulls manage to push the price above the moving average, the pair may try to rise above the resistance line in the triangle again. If that happened, it would be possible to fly full-time at $ 61,825. A breakout and closeness of this resistance could resume the movement.
Alternatively, if the price falls below the moving average, the bears will try to push the price below the triangle. If they succeed, the pair could go down to $ 53,288 and then $ 44,752.
UNI / USD
Uniswap (UNI) is currently consolidating between $ 27.97 and $ 35.20. The bulls tried to resume the trend on March 20, but the long week on the candle and the close marked in red indicates that the gains will be close to $ 35.20.
However, no further action was taken today. Both moving averages are sloping up and the RSI is in positive territory, indicating that the path of least resistance is upward.
If the bulls manage to push the price above $ 35.20, the UNI / USD pair can initiate the next leg of the trend, which could push it to $ 42.43 and then to $ 46.
Contrary to this assumption, the pair could drop to $ 27.97 if the price drops and breaks through the 20-day moving average ($ 30). This is an important support to look for because in the event of a break, traders might be rushing out and this could lead to a deeper bounce towards the 50-day SMA ($ 25.39) then $ 22.
The moving averages on the 4 hour chart have flattened and the RSI indicator has flattened just above its midpoint. This assumes that there is an equilibrium between supply and demand.