Bitcoin (BTC) is up more than 8% this week, showing that lower prices continue to attract buyers. Generally, within a range, traders buy near support and sell near resistance. This suggests the price could reach the top of the range at $73,777, but overcoming this barrier could prove difficult.
Analysts have different views on Bitcoin's next directional move. Some believe the correction is over and Bitcoin will break out to a new all-time high, while others expect Bitcoin to drop to retest the $60,000 support level. It is difficult to predict the direction of the breakout from a range with certainty. Therefore, it may be prudent to wait for the price to start a new trend before establishing large trading positions.
As Bitcoin consolidates, traders may look towards altcoins for short-term trading opportunities. Although “altcoin season” is not yet here, select altcoins may offer trading opportunities.
Can bulls push Bitcoin above short-term resistance to boost sentiment in the crypto sector? Let's study the top 5 promising cryptocurrencies on the chart.
BTC technical analysis
Bitcoin has been facing resistance near $68,000, but a positive sign is that the bulls have not yet given way to the bears. This shows that the bulls are holding their ground as they anticipate the price to move higher.
BTC/USDT Daily Chart | Source: TradingView
The 20-day exponential moving average ($64,109) has started to rise and the relative strength index (RSI) is in positive territory, suggesting the path of least resistance is to the upside. If the $68,000 level is conquered, the BTC/USDT pair could retest the formidable resistance at $73,777.
If the bears want to stop the rally, they will have to quickly drag the price below the moving averages. If they do that, the pair could fall to $59,600 and then to the May 1 low of $56,552.
BTC/USDT 4-hour chart | Source: TradingView
Both moving averages are sloping up on the 4-hour chart and the RSI is in the positive zone, which shows that the bulls have the upper hand. The key support to watch out for in the downtrend is the 20 EMA. If the price rebounds from this level, it will improve the bullish outlook above $68,000.
Conversely, if the price breaks below the 20 EMA, it will signal that the bullish momentum is weakening. The pair could slide towards the 50 simple moving average and then to the support level near $59,600.
SOL technical analysis
Solana (SOL) rose above the moving averages on May 15 and the bulls are trying to exert their strength.
SOL/USDT Daily Chart | Source: TradingView
There is a minor resistance at $176, from where the bears will attempt to initiate a correction. The essential level to watch during the bearish trend is the $162 breakout. If the price bounces strongly from this level, it will show that the bulls are trying to turn $162 into support. That would increase the likelihood of a rally above $176. After that, the SOL/USDT pair could reach $185.
This positive view will be invalidated in the short term if the price turns down and breaks below the moving averages. That could lead to the liquidation of long positions, pushing the pair towards $140.
SOL/USDT 4-hour chart | Source: TradingView
The pair turned down from the overhead resistance near $176 and dropped below the 20 EMA. It is likely to retest the breakout level of $162, where buyers are expected to step in and stop the decline. Buyers will have to push the price above $176 to continue the uptrend.
If the pair drops below $162, it will suggest that the bulls may be losing control. There is a minor support at the 50-SMA, but if it gives way, the pair can drop to $140.
AR technical analysis
Arweave (AR) has been trending up over the past few days. The bulls pushed the price above the $47.51 resistance on May 17 but could not sustain the higher levels.
AR/USDT Daily Chart | Source: TradingView
The bears are attempting to drag the price to the 20-day EMA ($40), an important level to watch. If the price bounces strongly from this level, it will show that the bulls are buying at lower prices. This move would raise the prospect of overcoming psychological resistance at $50. If that happens, the AR/USDT pair could rise to $68.
Contrary to this assumption, if the price declines sharply and breaks below the 20-day EMA, it will show that the bulls are in a hurry to exit. This move could trigger a correction to the 50-day SMA ($35).
AR/USDT 4-hour chart | Source: TradingView
The 4-hour chart shows the formation of a rising wedge pattern. The 20 EMA is the closest support level to pay attention to in a downtrend. If this level gives way, the pair could slide down to the support line of the wedge. A break and close below the wedge could initiate a move down to $38 and then $36.
Instead, if the price rises from the 20 EMA or support line and breaks above the resistance line of the wedge, it will signal that the bulls are still in control. This move will neutralize the negative setup and initiate a move towards $68.
GRT technical analysis
The Graph (GRT) initiated a slight recovery after the bulls pushed the price above the moving averages on May 15.
GRT/USDT Daily Chart | Source: TradingView
The 20-day EMA ($0.29) has started to turn up and the RSI has risen into the positive zone, showing that the bulls are trying to make a comeback. The buyers will try to push the price to the $0.35 resistance level, where the bears may again build a solid defense.
The 20-day EMA remains the key support level in the downtrend. If the price turns down and breaks below this level, it will show that the bears continue to sell during each small rally. That could push the GRT/USDT pair down to $0.26 and then $0.23.
GRT/USDT 4-hour chart | Source: TradingView
The 4-hour chart shows the pair stuck between $0.22 and $0.31 for a while. The bulls pushed the price above the range but could not sustain the higher levels. If the price drops sharply and sustains below the 50 SMA, it shows that the breakout has been rejected. The pair could then drop to $0.26.
Additionally, if the price strengthens from the moving averages, the bulls will make another bet on $0.31. If this level is conquered, the pair could rally to $0.35 and then reach the pattern's target at $0.40.
FTM technical analysis
Fantom (FTM) broke above the moving averages and horizontal resistance at $0.79 on May 16, signaling the start of a recovery.
FTM/USDT Daily Chart | Source: TradingView
The moving averages are about to create a bullish cross and the RSI has risen into positive territory, showing that the bulls are back in the game. However, the bears are unlikely to give up easily. They will try to pull the price back to $0.79. If the bulls turn this level into support, the FTM/USDT pair can rally to $1.04.
Conversely, if the price turns down and breaks below the moving averages, it will show that the bears are still active at higher levels. That could drag the pair down to $0.60.
FTM/USDT 4-hour chart | Source: TradingView
The bears are attempting to initiate a correction on the 4-hour chart, but the bulls are likely to buy on a dip to the 20-day EMA. If that happens, the pair is expected to pick up momentum and move higher. resistance at $1.04.
Instead, if the price continues to decline and breaks below the 20 EMA, it will show that the bulls are losing control. The pair could drop to the breakout level at $0.79. This is an essential level for the bulls to defend as a break below this level would indicate that the recovery has stalled.
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