BTC, MATIC, EOS, XMR, AAVE
Bitcoin (BTC) is struggling to maintain a price point during the current pullback, indicating a lack of demand at higher levels. Does this mean that the uptrend is over and institutional investors are abandoning the crypto markets?
No! It’s the opposite. Glassnode’s weekly bulletin pointed out that the Grayscale Bitcoin Trust (GBTC) premium is increasing, suggesting that institutional investors are accumulating at lower levels.
GBTC is not the only one, another popular vehicle for institutional investors, the exchange-traded fund Canadian Purpose Bitcoin has also seen large inflows. According to Glassnode analysts, this shows “the first signs of renewed institutional interest”.
Daily view of Crypto market data. Source: Coin360
Another metric that can signal a possible Bitcoin bottom is its dominance chart, which looks like early 2017. If Bitcoin’s dominance follows a similar trajectory to 2017, this will indicate that Bitcoin is still some distance from its top and There is still room for the altcoin season to unfold.
Now that the monthly expiration of options and futures has passed, investors are probably wondering if Bitcoin could start a strong rally next week and which altcoins will rally if that happens.
Let’s take a look at 5 cryptocurrencies that could start trending this week.
BTC / USDT
Bitcoin’s brief breakout was unable to break through the 200-day simple moving average ($ 41,014) hurdle on May 26 and 27, indicating that bears are aggressively defending that level. The 20-day descending exponential moving average ($ 41,327) and the Relative Strength Index (RSI) near the oversold zone suggests the bears are in control.
BTC / USDT daily chart. Source: TradingView
If the BTC / USDT pair breaks out of the $ 33,000 support, the next stop could be the $ 30,000 to $ 28,000 support area. If this area also gives way, the pair may witness panic selling and a drop to $ 20,000 is possible.
The longer the price stays below the 200 day SMA, the harder it will become for the bulls to enter the next stage of the uptrend.
However, if the price rises from the current level and exceeds the 200 day SMA, it will suggest a strong buy at lower levels. This could pave the way for a possible rally to the 61.8% Fibonacci retracement level at $ 48,231.
4 hour BTC / USDT chart. Source: TradingView
The 4-hour chart shows the formation of a symmetrical triangle, which generally acts as a continuation pattern. If the bears dip the price below the triangle, the pair could drop to $ 30,000 and then to the pattern target at $ 20,316.
On the other hand, the pattern can act as a reversal pattern if the bulls push and hold the price above the resistance line of the triangle. Such a move will suggest that the downtrend is over and the pair may rally to the target target at $ 51,951.
MATIC / USDT
Polygon (MATIC) bounced off the 20-day EMA ($ 1.58) today, indicating that the bulls buy if that support falls. The rising 20-day EMA and the RSI in positive territory indicate that the path of least resistance is on the upside.
MATIC / USDT daily chart. Source: TradingView
However, MATIC / USDT has formed a symmetrical triangle pattern, indicating indecision between bulls and bears. If the bulls push the price above the triangle resistance line, the pair could move up to $ 2.70 and then start its journey towards the pattern target at $ 4.20.
Contrary to this assumption, if the price goes down from the resistance line of the triangle, the pair could extend its stay inside the triangle. A breakout and close below the triangle will signal weakness and could push down to $ 0.80.
MATIC / USDT 4 hour chart. Source: TradingView
The 4 hour chart shows that the relief rally is facing resistance on the downtrend line. If the bears cause the price to drop below the $ 1.51 support, the pair will complete a bearish head-and-shoulders pattern that could push the price down to $ 0.68.
Conversely, if the buyers propel the price above the downtrend line, the bullish momentum could accelerate and the pair could challenge the resistance of $ 2.43. A break above this level could cause a rally to $ 2.70.
EOS / USDT
EOS attempted a rally, which collapsed to the 38.2% Fibonacci retracement level at $ 7.89 on May 27. However, the positive sign is that the bulls did not allow the price to drop below the $ 5.60 support. This indicates that traders are not waiting for a deeper drop to buy.
EOS / USDT daily chart. Source: TradingView
If the bulls can push and close the price above the 20-day EMA ($ 6.95), that will suggest that supply is exceeding demand. This could open the doors for a rally to the 50% retracement level at $ 9.23 and then to the 61.8% retracement level at $ 10.57.
This bullish view will invalidate if the bears block the next withdrawal attempt at the 20-day EMA or $ 7.89. Such a move will increase the possibility of a breakout below $ 5.60. If this happens, the EOS / USDT pair could drop to the 200-day SMA ($ 4.52) and then to $ 3.57.
4 hour EOS / USDT chart. Source: TradingView
The 4 hour chart shows that the bulls are defending the $ 5.60 support, indicating that the selling pressure has eased. The 20-EMA flat and the RSI just below the midpoint suggest a balance between supply and demand.
If the bulls push the price above $ 6.81, the pair could rally at 200-SMA and then $ 8.69. A breakout and close above this resistance will signal that the bulls are back in the game. Alternatively, if the bears push the price below the $ 5.60 to $ 5 support area, the pair could drop to $ 3.57.
XMR / USDT
Repeated attempts by the bears to drop Monero (XMR) below the 200-day SMA ($ 222) have failed in recent days. This suggests that the bulls are accumulating at current levels.
XMR / USDT daily chart. Source: TradingView
Buyers attempted to push the price above the 20-day EMA ($ 294) on May 29, but the candlestick’s long wick shows a strong sell at higher levels. However, the bulls will once again attempt to break through the hurdle at the 20-day EMA.
If they are successful, XMR / USDT could start a rescue rally that could reach the 61.8% Fibonacci retracement level at $ 368.45. This level can act as steep resistance as traders who bought at higher levels can close their positions.
This positive opinion will void if the price drops and falls below the 200-day SMA. In such a case, the pair may drop to $ 175 and then to $ 124.69.
XMR / USDT 4 hour chart. Source: TradingView
The 4 hour chart shows a symmetrical triangle formation, indicating indecision among bulls and bears as to the next directional move. The flat 20-EMA and the RSI near the midpoint also suggest a balance between supply and demand.
This advantage will tilt in favor of the bulls if they can push and hold the price above the triangle. The price could then move up towards the 200-SMA, which could act as a stiff resistance.
On the contrary, if the price drops and falls below the triangle, the pair could drop to $ 175 and then to $ 124.69.
AAVE / USDT
AAVE is trying to bounce off the solid support at $ 280. This level has not been broken at the close since Jan. 26, so bulls are likely to aggressively defend it. The 200-day SMA ($ 290) just above the level is an added bonus.
AAVE / USDT daily chart. Source: TradingView
However, the 20-day descending EMA ($ 398) and RSI below 43 suggest that the short-term trend favors the bears. The sellers will try to block any rescue rally during the 20 day EMA. If they are successful, the AAVE / USDT pair may correct again to $ 280.
A breakout and close below that support could trigger a downtrend and the downside could extend to $ 160. Conversely, if the bulls push the price above the 20-day EMA, the pair could move up to $ 489, which is likely to act as stiff resistance.
4 hour AAVE / USDT chart. Source: TradingView
The 4 hour chart shows the bulls bought the downside to $ 280. The 20-EMA is flattening, indicating that the selling pressure is diminishing. If the buyers push and hold the price above the downtrend line, the pair could move up to $ 418. A breakout and close above this resistance could cause a rally to $ 480.
This positive opinion will be invalidated if the price drops from the 20-EMA or the downtrend line and drops below $ 280. If this happens, the bears will attempt to bring the price below the May 23 low of $ 208.09 and start the downtrend.