BTC is down about 2% this week, but a positive sign for bulls is that the price has moved away from the weekly low of $64,493. Some analysts expect the next trigger to be the Bitcoin halving. However, cryptocurrency exchange Coinbase warns that Bitcoin's price action after the halving event may face obstacles as the period is usually a weak time of the year for crypto markets and other risk assets.
While the upside looks open, the downside may be limited. Dylan LeClair, senior analyst at UTXO Management, believes that even if there is a decline, Bitcoin is unlikely to fall to $50,000, at which point a large number of longs may be eliminated. However, he warned that nothing is impossible in the cryptocurrency market.
While Bitcoin has been leading the market higher, some altcoins have outperformed. Pantera Capital’s Liquid Token fund cut its exposure to Bitcoin and Ethereum and increased its allocation to DeFi tokens, helping it post a 66% return in the first quarter of 2024, the fund said in a shareholder letter reviewed by Bloomberg.
Will certain altcoins continue to outperform Bitcoin in the short term? Let’s examine the top 5 cryptocurrencies that appear to be performing the strongest on the charts.
Bitcoin Price Analysis
Bitcoin has been oscillating inside a symmetrical triangle pattern for the past few days, indicating indecision about the next move.
The 20-day exponential moving average ($68,049) continues to gradually rise and the relative strength index (RSI) is in the positive territory suggesting a slight advantage for the bulls. A breakout and close above the triangle will indicate that the uncertainty is resolved in favor of the buyers. The BTC/USDT trading pair could rise to $73,777 and ultimately to $80,000.
Conversely, if the price turns lower from the downtrend line and breaks below the 20-day EMA, it will suggest that the trading pair is likely to extend its stay inside the triangle. On a break below the triangle, the advantage will tilt in favor of the bears. This could start a decline to $59,000 and then to the 61.8% Fibonacci retracement level of $54,298.
The 20-day EMA has started to turn up and the RSI is in the positive zone on the 4-hour chart, which suggests that bulls have the upper hand. The uptrend is likely to face stiff resistance at the downtrend line, but if the bulls overcome this hurdle, the consolidation phase is likely to end. The pair could move up to $72,000 and then to $73,777.
Contrary to this assumption, if the price turns down and breaks below the moving averages, it will show that the bears are unwilling to give up. The trading pair might then slide towards the support line of the triangle. The sellers will have to pull the price below this level to signal the start of a decline towards $59,000.
Toncoin Price Analysis
Toncoin (TON) is gradually moving higher towards the overhead resistance at $5.69, which shows that the bulls are attempting to regain control.
Although the rising 20-day EMA ($4.86) suggests that buyers have the upper hand, the negative divergence on the RSI suggests that a consolidation or correction is likely in the near term. If the price turns down from the current levels ($5.69), it will suggest that the bears are aggressively defending the overhead resistance. This could pull the price down to the 20-day EMA.
On the other hand, if the buyers break the $5.69 resistance, the TON/USDT trading pair could start the next leg of the uptrend towards $7.09.
The 4-hour chart shows that the price has been trading between $5.60 and $4.72 for a while now. The moving averages have started to gradually turn up, suggesting that bulls have the upper hand. This strengthens the prospects of a breakout above $5.69. If this happens, the pair could climb to $6.48.
Conversely, if the price turns sharply down and breaks below the moving averages, it will suggest that the range-bound action is likely to continue for a while. Bears will have the upper hand on a break below $4.72.
Stacks Price Analysis
If the price rises above $3.36, it will suggest that the bulls have absorbed the supply. This will increase the possibility of a rally to the overhead resistance at $3.84. If this level is cleared, the STX/USDT trading pair could move up to $4.27 and subsequently to $5.
Contrary to this assumption, if the price turns down and breaks below the 50-day SMA, it will suggest that the bears are overpowering the bulls. This could start a deeper correction to $2.50 and subsequently to $2.20.
The bulls have pushed the price above the 20 EMA on the 4-hour chart, which suggests that the selling pressure is easing. If the buyers maintain the momentum and push the price above the 50 EMA, the pair is likely to attempt a rally to $3.60 and subsequently to $3.84.
Alternatively, if the price turns down from the 50 SMA, it will suggest that the bears are selling on rallies. A break below $3.05 will strengthen the bears and the selling may accelerate below $2.90.
Mantle Price Analysis
Mantle (MNT) has been facing resistance at $1.50, but a positive sign is that the bulls have not allowed the price to sink below the 20-day EMA ($1.18).
The bulls will once again try to retest the overhead resistance at $1.50. The upsloping 20-day EMA and the RSI near the overbought zone suggest that the path of least resistance is to the upside. If the buyers break the $1.50 barrier, the MNT/USDT trading pair could start a rally towards $1.90.
Conversely, if the price turns down from $1.50, it will suggest that bears are selling on rallies. The pair can drop to the 20-day EMA. A break below this support will signal the start of a deeper correction.
Both moving averages are gradually sloping up on the 4-hour chart and the RSI is in the positive territory, which suggests that buyers are still in control. There is a minor resistance at $1.45 but if it is crossed, the pair could climb to $1.50.
The 50-EMA remains a key support to watch on the downside. A break below it will indicate that the bulls are losing control. The pair could then drop to the strong support near $1.15.
Maker Price Analysis
The MKR/USDT pair could pullback to the 20-day EMA ($3,481), which is an important level to watch. If the price rebounds off this support, it will show that the sentiment remains positive and traders are buying on dips. Subsequently, the pair is likely to retest the overhead resistance of $4,074. If it breaks above this level, the pair is likely to accelerate towards $5,280.
Conversely, a break below the 20-day EMA will suggest that the bulls are in a hurry to exit. The pair can then drop to the 50-day SMA ($2,794).
The pair has declined below the moving averages on the 4-hour chart, which suggests that the bears are trying to take control. The pair could drop to $3,561 and below it to $3,453, where the bulls will try to stall the decline. If the price rebounds off the support, it will suggest that the pair might consolidate for a while.
Conversely, a break below $3,453 could start a correction towards $3,000 and $2,700. The uptrend is likely to resume on a close above $4,074.