Bitcoin (BTC) made a new 52-week high on June 23, indicating that the bulls are on fire. Buyers were able to keep a large part of the profits made during the week, indicating that they are not in a hurry to book profits. Bitcoin is up 16% this week, outperforming the S&P 500 Index, which fell 1.39%.
Not only Bitcoin but even Ether (ETH) is showing signs of starting a strong move. Glassnode data shows that the balance of Ether on exchanges has decreased significantly in the last 30 days and hit a new low of 12.6%.
A similar decline in Ether exchange balances occurred in November 2022, followed by a sharp rally of 33%. Although a rally is possible, traders should be cautious as the fall in exchange balances this season may have been triggered by the actions of the US Securities and Exchange Commission against Binance and Coinbase.
Crypto recovery is not limited to Bitcoin and Ether. Many altcoins have risen sharply from their respective lows, indicating strong buying at lower levels. This means that the bearish sentiment may be easing.
Could the return of buyers start a new bull move in cryptocurrencies, or will higher levels attract bear sales? Let’s study the charts of the top-5 cryptocurrencies that may rise in the short term.
Bitcoin price analysis
Bitcoin has been trading near the $31,000 level for the past four days. This suggests that the bears are protecting this level, but the bulls are not giving up. Usually, a tight consolidation near a major resistance level tends to resolve to the upside.
The upsloping 20-day exponential moving average ($28,085) and the RSI in the overbought area indicate the bulls’ advantage. If the buyers kick in and hold the price above $31,000, the BTC/USDT pair may start the next leg of the up-move. There is a resistance at $32,400, but that is likely to be crossed. The pair can go up to $40,000.
The first sign of weakness is a break and close below $29,500. If that happens, the pair may slide to the 20-day EMA. This remains a key level to watch because if it delivers, the pair could fall below the 50-day simple moving average ($27,199).
The pair is stuck between the 20-day EMA and $31,000, but this tight trade is unlikely to continue for long. A range break above the $31,000-to-$31,500 zone could start the next part of the uptrend.
On the contrary, if the price drops and continues below the 20-day EMA, it may prompt short-term traders to stop. The pair could then descend to $29,500, where the bulls are expected to mount a strong defense. A break below this level could open the doors for a potential fall to the 50-day SMA.
Ether price analysis
Ether has faced trading at the $1,928 level for the past three days, but the bulls are not ready to cede ground to the bears. This indicates that buyers are expecting the resistance to be broken.
The moving averages are on the cusp of a bullish crossover and the RSI is in positive territory, indicating that the bulls are in command. If the buyers overcome the barrier of $1,928, the ETH/USDT pair may rise to the overhead zone between $2,148 and $2,200.
If the bears want to stop the rally, they need to quickly drag the price below the moving averages. That could hit a stop for the aggressive bulls, resulting in a correction to the strong support at $1,700.
The four-hour chart shows that the price remains within the range between $1,936 and $1,861. The increase in moving averages and the RSI in the positive zone suggest that the path of least resistance is up. If buyers push the price above the range, the pair may begin its march to the psychological level of $2,000.
Instead, if the price reverses and breaks below the $1,861 support, it will tilt the short-term advantage in favor of the bears. The pair could then fall to the 50-SMA and then $1,750.
Decision price analysis
Arbitrum (ARB) rose above the collapse level of $1 on June 19 and followed that with a sharp rally on June 20. This showed the rejection of the recent collapse.
The bears are trying to stop the recovery of the 50-day SMA ($1.12), but a positive sign is that the bulls are successfully protecting the 20-day EMA ($1.07). This narrow trade is unlikely to continue for long, and a breakout can be expected soon.
A break and close above $1.18 could suggest the start of a new up-move. The ARB/USDT pair may first rise to $1.28 and, subsequently, to $1.54. This bullish view will be negated if the price breaks down and breaks below the $1-to-$0.90 support zone.
The four-hour chart shows that the bulls are struggling to overcome the $1.18 barrier. This indicates that the bears are active at a higher level. The sellers pulled the price below the 20-day EMA, but they could not crack the 50-day SMA.
The 20-day EMA has flattened and the RSI is near the middle, indicating a balance between buyers and sellers. If the bulls drive the price above $1.18, it will indicate the beginning of a strong recovery. Conversely, a break and close below the 50-day SMA could result in a fall of $1.
Related: Bitcoin hits new all-time highs in 3 countries as BTC price breaks $31K
VeChain price analysis
VeChain (VET) bounced off the resistance line on June 23, but the bears struggled to keep the price below the 50-day SMA ($0.018). This suggests that traders are buying the dips.
The bulls will try again to push the price above the resistance line. If they succeed, it will indicate that the downtrend has ended. The VET/USDT pair may start its upward movement towards $0.026.
Contrary to this assumption, if the price once again turns back from the resistance line, it will suggest that the bears will remain in control. They will then try to sink the pair below the moving average and challenge the support at $0.013.
The four-hour chart shows that the price has reversed direction from the resistance line but found support at the 20-day EMA. This suggests that sentiment has turned positive and traders are viewing the dips as a buying opportunity.
The bulls will try again to push the price above the resistance line. If they can do that, the pair could go up to $0.021. This level can also act as a barrier but when crossed, it can start an upward movement. The first downside support is the 20-day EMA, and the next is the 50-day SMA.
Analysis of the price of stacks
Stacks (STX) rose above the moving average on June 20, signaling a potential trend reversal. 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 rebounds to the 20-day EMA ($0.65), it will suggest buying the dips. That would improve the prospects of a break above $0.89.
If that happens, the STX/USDT pair may rally to $1.10 and, subsequently, to $1.30. This positive view becomes invalid if the price becomes low and falls below the moving averages. Such a move would suggest that the bears have not given up and will continue to trade rallies.
The four-hour chart shows that the pair is in a corrective phase. The bears pulled the price below the 20-day EMA, but the bulls defended the 50% Fibonacci retracement level at $0.71. Buyers should bring the price above the downtrend line to open the doors for a possible rally to $0.88.
Alternatively, if the price deviates from the downtrend line, it will suggest that the bears are trying to gain the upper hand. A break and close below the 61.8% retracement level of $0.67 could indicate that the bears are back in the game.
This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do 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 solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.