Bitcoin (BTC) hit a new 52-week high on June 23, indicating that the bulls are on fire. Buyers managed to hold on to much of the gains made over the week, signaling that they are in no rush to make a profit. Bitcoin has climbed 16% this week, outperforming the S&P 500 index, which has fallen 1.39%.
Not only Bitcoin, but even Ether (ETH) is showing signs of beginning bullish movement. Data from Glassnode shows that Ether balances on exchanges have fallen sharply over the past 30 days and hit a new low of 12.6%.
A similar decline in Ether exchange balances occurred in November 2022, which was followed by a sharp 33% surge. While a rally is possible, traders should be cautious as the fall in FX balances this time may have been triggered by the actions of the United States Securities and Exchange Commission against Binance and Coinbase.
Crypto recovery is not limited to Bitcoin and Ether. Several altcoins rose sharply from their respective lows, indicating strong buying at lower levels. This implies that the bearish sentiment may be waning.
Could the return of buyers trigger a new bull run in cryptocurrencies, or will higher levels attract selling from the bears? Let’s study the charts of the top five cryptocurrencies that are likely to rise in the short term.
bitcoin price analysis
Bitcoin has been trading near the $31,000 level for four days. This suggests that the bears are protecting this level, but the bulls have not given up. Usually, a tight consolidation near a major resistance level tends to resolve to the upside.
The rising 20-day exponential moving average ($28,085) and the RSI in the overbought zone indicate an advantage for the bulls. If the buyers initiate and hold the price above $31,000, the BTC/USDT pair could begin the next leg up. There is resistance at $32,400, but it is likely to be broken. The pair can then soar towards $40,000.
The first sign of weakness will be a breakout and a close below $29,500. If this happens, the pair may slide towards the 20-day EMA. This remains the key level to watch because if it gives way, the pair could drop to the 50-day simple moving average ($27,199).
The pair is stuck between the 20-day EMA and $31,000, but this narrow range trading is unlikely to continue for long. A range break above the $31,000-$31,500 area could initiate the next leg of the uptrend.
Conversely, if the price declines and holds below the 20-day EMA, this can trigger short-term traders’ stops. The pair could then drop to $29,500, where the bulls should mount a strong defense. A break below this level could open the doors for a potential decline in the 50-day SMA.
Ether Price Analysis
Ether has been facing selling at the $1,928 level for the past three days, but the bulls are unwilling to give ground to the bears. This indicates that the buyers are expecting the resistance to be broken.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating that the bulls are in control. If the buyers overcome the barrier at $1,928, the ETH/USDT pair could reach the overhead zone between $2,148 and $2,200.
If the bears want to prevent the rally, they will have to quickly drag the price below the moving averages. This could hit the aggressive bulls, leading to a correction from strong support at $1,700.
The four-hour chart shows that the price is stuck in the range between $1,936 and $1,861. The rising moving averages and the RSI in the positive zone suggest that the path of least resistance is to the upside. If the buyers propel the price above the range, the pair could begin its march towards the psychological level of $2,000.
Instead, if the price declines and breaks below the $1,861 support, it will tip the short-term advantage in favor of the bears. The pair can then drop to the 50-SMA and later to $1,750.
Decision Price Analysis
Arbitrum (ARB) broke above the $1 breakdown level on June 19 and followed with a strong rally on June 20. This indicates rejection of the recent vent.
The bears are trying to block the recovery at the 50-day SMA ($1.12), but a positive sign is that the bulls have successfully defended the 20-day EMA ($1.07). This narrow range trading is unlikely to continue for long, and a breakout can be expected soon.
A breakout and close above $1.18 could suggest the start of a new upswing. The ARB/USDT pair could rise to $1.28 first and then to $1.54. This bullish view will be negated if the price turns down and dips below the $1-$0.90 support area.
The four-hour chart shows the bulls struggling to overcome the hurdle at $1.18. This indicates that the bears are active at higher levels. The sellers pulled the price below the 20-day EMA, but they were unable to break the 50-day SMA.
The 20-day EMA is flattening out and the RSI is near the midpoint, indicating a balance between buyers and sellers. If the bulls push the price above $1.18, this will signal the start of a strong rally. On the contrary, a breakout and close below the 50-day SMA can result in a drop to $1.
Related: Bitcoin Sees New All-Time Highs in 3 Countries as BTC Price Hits $31,000
VeChain Price Analysis
VeChain (VET) turned down the resistance line on June 23, but the bears are struggling to keep the price below the 50-day SMA ($0.018). This suggests that traders are buying the dips.
The bulls will again attempt to propel the price above the resistance line. If they succeed, it will indicate that the downtrend is over. The VET/USDT pair could then start its upward movement towards $0.026.
Contrary to this assumption, if the price falls again from the resistance line, it will suggest that the bears remain in check. They will then try to drop the pair below the moving averages and challenge the support at $0.013.
The four-hour chart shows that the price has reversed from the resistance line but is finding support at the 20-day EMA. This suggests that sentiment is turning positive and traders view the dips as a buying opportunity.
The bulls will again attempt to propel the price above the resistance line. If they succeed, the pair could rise to $0.021. This level can again act as an obstacle but if it is crossed, the upward movement can begin. The first downside support is the 20-day EMA, and the next is the 50-day SMA.
Battery Price Analysis
Stacks (STX) climbed above the moving averages on June 20, signaling a potential trend change. The corrective phase started on June 22, but a positive sign is that the price remains above the moving averages.
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that the bulls have the upper hand. If the price rises from the current level or bounces off the 20-day EMA ($0.65), it will suggest buying lower. This will improve the outlook for a break above $0.89.
If that happens, the STX/USDT pair could rally to $1.10 and, subsequently, to $1.30. This positive view will be invalidated if the price declines and breaks below the moving averages. Such a move will suggest that the bears have not given up yet and will continue to sell in rallies.
The four-hour chart shows that the pair is in a corrective phase. The bears have pulled the price below the 20-day EMA, but the bulls are defending the 50% Fibonacci retracement level of $0.71. Buyers will need to push the price above the downtrend line to open the doors for a possible rally to $0.88.
Alternatively, if the price is falling from the downtrend line, it will suggest that the bears are trying to gain the upper hand. A breakout and close below the 61.8% retracement level of $0.67 could indicate that the bears are back in play.
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.