Bitcoin (BTC) volatility has eased further this week and is on track to form an inside bar pattern on the weekly chart. Although the bulls are finding it difficult to clear the $30,000 to $31,000 zone hurdle, one positive sign is that they have not given up ground to the bears.
Not just cryptocurrencies, even the S&P 500 index has been range-bound for the past few days. This indicates that the markets are waiting for a trigger to initiate the next directional move.
Although short-term price developments are uncertain, analysts are optimistic for the long term. Trader Titan of Crypto highlighted a possible signal on the Bollinger Bands monthly chart, which projects a rally to the $63,500 mark in about a year.
Although most of the major cryptocurrencies have given up some ground over the past week, some pockets of strength remain. Let’s analyze the charts of five cryptocurrencies that could rise in the short term.
Bitcoin Price Analysis
Bitcoin fell sharply from the resistance line of the symmetrical triangle pattern on May 6, indicating that the bears are unwilling to let the bulls pass. One slight positive is that the bulls have been buying the dips to the support line of the triangle as seen on the long tail of the day’s candle.
The flat 20-day exponential moving average ($28.819) and the RSI near the midpoint do not signal a clear advantage for either the bulls or the shorts.
If the price breaks below the triangle, it will suggest that the shorts are trying to take over. The BTC/USDT pair could first drop to $26,942 and then $25,250.
On the other hand, a breakout and close above the triangle will suggest that the bulls have absorbed the offer. This could trigger a rally to $32,400, where the bears are expected to mount strong defense again.
The buyers pushed the price above the triangle, but the long wick of the candlestick shows that the breakout turned out to be a short-term bull trap. BTC price fell sharply and crashed to the support line of the triangle.
The bounce from this level has reached the moving averages, which is a key short-term level to pay attention to. If the Bitcoin price turns lower from the current level, the chances of a break below the support line will increase.
Conversely, if the buyers push the pair above the moving averages, the pair could reach the resistance line. The bulls will have to drive and sustain the price above this level to initiate a move higher.
Ether Price Analysis
Ether (ETH) faced a sharp rejection above the psychological resistance at $2,000 on May 7. This indicates that the bears have not given up and continue to protect the upper resistance levels.
The 20-day EMA ($1,903) has flattened out and the RSI is near the midpoint, indicating that the ETH/USDT pair may remain range bound in the short term. The limits of the range could be between $2,000 and $1,785.
A consolidation just below the local high is a positive sign. It shows that the bulls are in no rush to take profits, raising the possibility of breaking above the $2,200 mark.
Conversely, if the price falls below $1,785, it will suggest that the bears have taken over. That could start a slide to $1,619.
The 4 hour chart shows that the bears were unable to take advantage of the break below the 50 SMA. This shows that the selling pressure is reduced at lower levels. The bulls try to rally, holding the pair above the 20 day EMA. If they do, the pair will try again to break out of the $2,000 resistance.
Conversely, if ETH price turns lower from the current level and breaks below the 50-day SMA, it will suggest that the bears are in control. That could sink the pair to the support line.
Monero Price Analysis
Monero (XMR) is trying to hold above the moving averages, which indicates that the bulls are attempting a comeback.
The flat 20-day EMA ($156) and the RSI just above the midpoint indicate a balance between supply and demand. If the buyers push the price of XMR above the neckline of the inverse head and shoulders pattern, the odds will tilt in their favor.
The XMR/USDT pair could then start a new bullish move. There is minor resistance at $181, but if crossed, the pair could reach the $187 mark.
Instead, if the price turns lower from the current level or the neckline, it will suggest that the bears are still active at higher levels. The sellers will then try to pull the price below the $149 support, opening the door for a decline to $130.
On the 4-hour chart, the pair bounced off the 50-day SMA zone, but the bulls were unable to break above the resistance line. This indicates that the bears are selling rallies. If the price pulls back from the 20 day EMA, sentiment will turn positive and traders will buy on dips.
The bulls will try again to clear this hurdle. If they do, the pair could rally to $162 first, and then $164.
On the other hand, if the price turns lower and breaks below the 50-day SMA, it will suggest that the bears are in control. This would increase the probability of retesting the support line.
OKB Price Analysis
OKB (OKB) is trading inside a large symmetrical triangle pattern. Typically, in this setup, traders buy near the support line and sell near the resistance.
The bears try to keep the OKB price below the 50-day SMA ($45.57), while the bulls try to recapture the level. If the price rises from the current level or bounces from the support line, it will suggest demand at lower levels.
If the buyers push the price above the 20-day EMA ($46.87), it will suggest that the OKB/USDT pair may extend its stay inside the triangle for some more time.
Contrary to this assumption, if the bears sink the price below the triangle, it will suggest that the setup has behaved as a trend reversal pattern. This could trigger a new downtrend that is likely to take the pair as high as $37.
On the 4-hour chart, the bulls are trying to defend the horizontal support near $44.35, but have been unable to push the price above the moving averages. This suggests that every little relief rally is being sold. If the pair turns back from the current level and falls below $44.35, the pair could drop as low as $41.70.
Conversely, if the price rises above the moving averages, it will signal accumulation at lower levels. The pair could first rally as high as $49.50 and then attempt a rally to $53.
Rocket Pool Price Analysis
Rocket Pool (RPL) looks strong, trading above the moving averages. This shows that the bulls are buying cheap.
The bulls will have to push the price above the resistance at $53.45 to signal that the corrective phase may be over. Thereafter, the RPL/USDT pair could attempt a rally to $58.
Another possibility is that the RPL price rally from the 20-day EMA ($48.36) but turn down from $53.45. That would indicate a possible range-bound action between the 50-day EMA ($46.13) and $53.45 for some time.
A break and close below the 50-day SMA will be the first indication that the bears are in command. This would open the doors for a possible decline to $37.
On the 4-hour chart, the bears are trying to hold the pair below the 20 EMA, while the bulls are trying to break above it. If the buyers succeed, the pair could reach the downtrend line. This is the key short-term level. If this resistance is broken, the pair could reach $53.45.
Conversely, if the price turns down from the current level and breaks below the 50-day SMA, the price risks falling to the support line. The bulls are likely to defend this level with everything.
This article does not contain investment advice or recommendations. All investing and trading involves risk, so readers should do their own research before making a decision.