If the Bitcoin price remains above $30,000, matic, theta, cro, and leo could move higher this week.
Bitcoin (btc) bulls have successfully defended the $30,000 level over the past few days, but failed to achieve a strong rally that has some traders fear that the price will eventually fall to new lows.
In a series of tweets, ecoinometrics said the current correction "looks very similar to 2013," when it took Bitcoin 197 days to rise to an all-time high and formed a bottom after a 69% pullback from its all-time high.
If history repeats itself, then the trader may need to be patient, as the current correction has only occurred for 95 days. Bitcoin is priced at $30,000, down 54% from an all-time high, while a 69% correction could take it down to $20,000.
Daily view of crypto market data. Source: coin360
In a new report, Delphi numbers highlight that trading activity has collapsed, with spot trading volumes down more than 60 percent from Their May highs. There has also been an outflow of leveraged traders in the derivatives market, and open interest in Bitcoin futures has returned to levels in early 2021.
delphi digital considers this to be a bullish signal as they believe that "strong hands are the main players leading to the current level of open positions." ”
Let's look at the charts of the top 5 cryptocurrencies that are likely to outperform the broader market in the short term.
Bitcoin is trying to rally from the $31,000 support level, but the long wick on the candlestick today indicates that purchases are drying up at higher levels. The bears will now try again to push the price down below the $31,000 support level.
btc/usdt daily chart. Source: tradingview
The 20-day exponential moving average ($33,174) skews downwards and the Relative Strength Index (RSI) is in negative territory, indicating that bears have the upper hand. If the seller drops the price below $31,000, the btc/usdt pair may fall to the next support level of $28,000.
The $31,000 to $28,000 zone is crucial for bulls as sentiment will worsen further and could lead to long-term liquidation if the region breaks down. This could exacerbate sales and cause the price to fall to $20,000.
Contrary to this assumption, if the bulls maintain their rally and push the price above the 50-day simple moving average ($34,925), it indicates that selling pressure is easing. This may increase the likelihood of a breakout of $36,670.
btc/usdt 4-hour chart. Source: tradingview
Bulls pushed the price above 20-ema on the 4-hour chart, but they were unable to clear the 50-sma barrier. This indicates that the bears continue to sell on highs. The bears will now try again to push the price down below the $31,000 support level.
If they succeed, the pair may fall to $30,000 and then to $29,000. The first sign of strength will be a breakout and close above the 50 moving average. If the pair rises above the downtrend line, the short-term trend will turn to the bulls.
Polygon (matic) has been correcting over the past few days and the price has reached a strong support area of $0.74 to $0.68. Bulls may be actively defending the region.
matic/usdt daily chart. Source: tradingview
Despite the downward tilt of the moving average, the rsi is trying to bounce back from the oversold zone. This suggests that aggressive bulls are trying to start a rescue rally.
The first resistance to the upside is the 20-day moving average ($1). If the price falls from this level and breaks below the support area, the downtrend may resume, and the matic/usdt pair may fall to $0.54, then $0.34.
Alternatively, if the bulls push the price above the 20-day moving average, the pair may rise to the 50-day moving average ($1.26). A break through this resistance level could open the door to a rise towards $1.71.
matic/usdt 4-hour chart. Source: tradingview
The rally from $0.78 faces resistance from 20-ema on the 4-hour chart. This shows that the bears are not willing to give up their advantage and sell on the rally. The bears will now try to move the pair down to $0.74.
Conversely, if the price recovers from the current level, the bulls will try again to push the price above 20-ema. If they manage to do this, the pair could rise to 50-sma. Above that resistance, the relief rally could reach $1.05.
Since hitting a high of $15.88 on April 16, theta has been in a downtrend. The downtrend has reached a strong support area of $4.57 to $3.85, which could attract buying.
Theta/usdt daily chart. Source: tradingview
A downward sloping moving average indicates that bears are dominant, but an oversold level of rsi indicates a possible counter-trend rally. The first resistance to the upside is the 20-day moving average ($5.68).
If the price falls back from this resistance level, the bears will once again try to push theta/usdt pair down below the support zone. A break below $3.85 would mark the start of the next downtrend, possibly reaching $2.60.
Conversely, if the bulls push the price above the 20-day moving average, the pair may rise to a downtrend line. Breaking through this resistance will indicate a possible trend change.
theta/usdt 4-hour chart. Source: tradingview
The pair has been consolidating in a narrow range of $4.33 to $4.62. The rsi forms a positive divergence on the 4-hour chart, indicating that bearish momentum may be weakening.
If the bulls push the price higher and hold above 20-ema, the pair may rise to 50-sma. This level may become resistance, but if buyers can overcome this obstacle, the pair may rise to the next upper resistance of $6.
Conversely, if the bears fall and keep the price below $4.33, selling could intensify and the pair could fall to the psychological support of $4.
crypto.com coin (cro ) has been fluctuating between $0.14 and $0.08 over the past few days. Price fell back from $0.13 on July 14, but a positive sign is that bulls are trying to block a correction near the moving average.
Cro/usdt daily chart. Source: tradingview
The two moving averages tend to flatten out, with rsi slightly below the midpoint, indicating a balance between supply and demand. If the price falls from its current level and falls below $0.10, the pair may slide to a strong support of $0.08.
Conversely, if the bulls push the price higher and stay above the moving average, the cro/usdt pair may rise to the upper resistance zone from $0.13 to $0.14. The bears are likely to actively defend the region. If the price falls from the area, the range fluctuations may last for several days.
Cro/usdt 4-hour chart. Source: tradingview
The bears pulled the price down below the support level of $0.108, but they were unable to build an advantage. The price recovered and rose to 20-ema, but the bulls were unable to clear this obstacle. This shows that the bears are not giving up, but selling on the high.
If the bears fall and the price remains below $0.108, the pair may start moving towards the key support level of $0.08.
Conversely, if the bulls push the price above 20-ema, the pair may rise to 50-sma. A break through this level will increase the likelihood of retesting the resistance zone above.
Correlation: It's a way to trade Bitcoin, even if the btc price is crumbling on the abyss
Over the past few days, unus sed leo (leo) has been trading near large range resistance between $2.03 and $2.95. Usually, a tight consolidation near upper resistance indicates that bulls are not taking profits in the expected breakout.
Leo/usd daily chart. Source: tradingview
Both moving averages have risen, with rsi above 63, indicating that buyers are in an advantageous position. If the bulls hold the price above $2.96, the leo/usd pair may start to move towards the next resistance level of $3.32.
If the price falls from its current level and falls below the 20-day moving average ($2.78), this positive view will be invalidated.
Such a move would indicate that buyers have given up on the prospect of a breakout and are booking profits. This could pull the price down to the 50-day moving average ($2.59).
leo/usd 4-hour chart. Source: tradingview
The 4-hour chart shows that the tight consolidation between $2.85 and $2.95 has resolved to the upside. If buyers hold the price above $2.96, the bullish momentum may pick up and the pair may rise to $3.10 in the short term.
20-ema began to gradually recover, with rsi above 62, indicating a slight advantage for the bulls. Contrary to this assumption, if the price falls and falls below $2.80, the pair may fall to $2.67.