Bitcoin trades above $30,000, increasing traders’ interest in ETH, ARB, VET and STX
Bitcoin (BTC) made a new 52-week high on June 23, indicating bulls are on fire. Buyers have managed to hold on to a large portion of the gains made during the week, signaling that they are in no rush to book profits. Bitcoin climbed 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 bullish move. Glassnode data shows that Ether balances on exchanges fell sharply in the last 30 days, reaching a new low of 12.6%.
A similar drop in the Ether exchange balance occurred in November 2022, which was followed by a sharp 33% rise. Although a rally is possible, traders need to be cautious because the drop in currency balances this time may have been triggered by the US Securities and Exchange Commission̵[ads1]7;s actions against Binance and Coinbase.
The crypto recovery is not limited to Bitcoin and Ether. Several altcoins have rallied sharply from their respective lows, indicating solid buying at lower levels. This suggests that the bearish sentiment may be waning.
Could the return of the buyers start another bull move in cryptocurrencies, or will higher levels attract selling by the bears? Let’s study the charts of the top five cryptocurrencies that can 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 have not given up. Usually, a tight consolidation near a major resistance level tends to go up.
The rising 20-day exponential moving average ($28,085) and RSI in the overbought area indicate upside for the bulls. If buyers kick and sustain the price above $31,000, the BTC/USDT pair could start the next leg of the rally. There is resistance at $32,400, but it is likely to be crossed. The pair can then skyrocket towards $40,000.
The first sign of weakness will be a break and close below $29,500. If that happens, the pair could slide to the 20-day EMA. This remains the key level to watch because if it gives way, the pair could fall to 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 leg of the uptrend.
Conversely, if the price falls and stays below the 20-day EMA, it can trigger stops for short-term traders. The pair could then go down to $29,500, where the bulls are expected to mount a strong defense. A break below this level could open the door to a potential drop to the 50-day SMA.
Ether price analysis
Ether has faced selling at the $1,928 level for the past three days, but the bulls are not willing to cede ground to the bears. This indicates that buyers expect the resistance to be broken.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating that the bulls are in command. If buyers overcome the barrier of $1,928, the ETH/USDT pair could rise to the overhead zone between $2,148 and $2,200.
If bears want to prevent the rally, they must quickly pull the price below the moving average. It may hit the aggressive bulls, resulting in a correction to the strong support at $1700.
The four-hour chart shows that the price is within the range between $1,936 and $1,861. The rising moving averages and RSI in the positive zone suggest that the path of least resistance is up. If buyers drive the price above the range, the pair could start its march to the psychological level of $2,000.
Instead, if the price goes down 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 later to $1750.
Decision price analysis
Arbitrum (ARB) rose above the $1 breakdown level on June 19th and followed it up with a strong rally on June 20th. This indicates rejection of the recent breakdown.
The bears are trying to stop the recovery at the 50-day SMA ($1.12), but a positive sign is that the bulls have defended the 20-day EMA ($1.07). This narrow range trading 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 another up move. The ARB/USDT pair may first rise to $1.28 and then to $1.54. This bullish view will be nullified if the price declines and plunges below the $1 to $0.90 support zone.
The four-hour chart shows that the bulls are struggling to overcome the hurdle at $1.18. This indicates that bears are active at higher levels. Sellers pulled the price below the 20-day EMA, but they could not break the 50-day SMA.
The 20-day EMA is flattening and the RSI is near the midpoint, indicating a balance between buyers and sellers. If bulls drive the price above $1.18, it will indicate the start of a strong recovery. Conversely, a break and close below the 50-day SMA could result in a decline to $1.
Related: Bitcoin sees new all-time highs in 3 countries as BTC price fetches $31K
VeChain Price Analysis
VeChain (VET) rejected the resistance line on June 23, but the bears are struggling to sustain the price below the 50-day SMA ($0.018). This suggests that traders are buying the dips.
The bulls will once again try to drive the price above the resistance line. If they succeed, it will indicate that the downtrend is over. The VET/USDT pair could then start upwards towards $0.026.
Contrary to this assumption, if the price again descends from the resistance line, it would suggest that the bears remain in control. They will then try to lower the pair below the moving average and challenge the support at $0.013.
The four-hour chart shows that the price reversed direction from the resistance line, but finds support at the 20-day EMA. This suggests that sentiment is turning positive and traders are seeing the falls as a buying opportunity.
The bulls will again try to drive the price above the resistance line. If they manage to do so, the pair could climb to $0.021. This level can again act as a barrier, but if crossed, the up move can begin. The first support on the downside is the 20-day EMA, and the next is the 50-day SMA.
Stacks price analysis
Stabler (STX) rose above the moving averages on June 20, signaling a potential trend change. The correction phase started on 22 June, but a positive sign is that the price is staying above the moving averages.
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that bulls have the upper hand. If the price goes up from the current level or pulls back from the 20-day EMA ($0.65), it will suggest buying on the dip. That would raise the prospect of a break above $0.89.
If that happens, the STX/USDT pair could rise to $1.10 and then to $1.30. This positive view will be invalidated if the price turns lower and plunges below the moving averages. Such a move would indicate that the bears have not yet given up and will continue to sell at 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 are defending the 50% Fibonacci retracement level of $0.71. Buyers need to drive the price above the downtrend line to open the doors for a possible rally to $0.88.
Alternatively, if the price breaks down from the downtrend line, it would indicate that bears are trying to gain the upper hand. A break and close below the 61.8% retracement level at $0.67 could indicate that the bears are back in the game.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
