When market sentiment turns bearish, any negative news, even insignificant, will cause the price to fall as traders panic sales.. It did so after China’s social media giant Weibo suspended a number of accounts related to cryptocurrencies and raised fears of wider crackdown.
In a different order of ideas A note from Goldman Sachs said that their meetings with 25 hedge fund and long-term investment leaders revealed that Bitcoin (BTC) is the least popular asset..
Although the news can be negative in the short term, it is unlikely that the long-term evolution of the Bitcoin price will change. As the price corrects, a number of institutional investors are likely to consider cryptocurrency investments to hedge their portfolios against possible rising inflation in the US..
From the point of view of most traders, Bitcoin’s current decline still represents a long-term buying opportunity..
Let’s take a look at the charts of the top 5 cryptocurrencies that could outperform in the coming days.
BTC / USDT
Bitcoin price was down from its 20-day exponential moving average ($ 39,127) on June 3, but is finding support near the triangle’s trendline.. This shows that the bulls are buying on the dips and the bears are selling on the upward moves.
The next trend move is likely to begin after price leaves the triangle. If the bulls push and hold the price above the resistance line, the BTC / USDT pair could rise to the 50-day SMA ($ 47,198) and then to the target of the pattern at $ 52,622.90..
Instead, When price goes down and falls below the triangle’s trendline, it indicates that supply is exceeding demand. These could result in a decline into the $ 30,000-28,000 support zone.
If this zone breaks, sales could intensify as several traders who recently bought were able to leave their positions. This could cause the price to drop as low as $ 20,000.
The moving averages on the 4-hour chart have flattened and the Relative Strength Index (RSI) is hovering roughly between 40 and 60, indicating a. indicates Balance between buyers and sellers.
However, This state of uncertainty is unlikely to last long and the price is likely to fall above or below the triangle in the next few days. If the price breaks above the triangle and holds, it suggests that the setup was acting as a reversal pattern.
Vice versa, If the price falls below the triangle, it suggests that the current consolidation was a temporary high in a strong downtrend. It is difficult to predict the direction of the breakout, so traders can wait for the breakout to occur before considering new positions.
ETH / USDT
Ether (ETH) snapped off the 50-day SMA (USD 2,908) on June 4 and re-entered the symmetrical triangle. On the upside, however, the bulls didn’t give way much, suggesting a big buy near $ 2,550.
If buyers push price above the triangle’s resistance line, the ETH / USDT pair could challenge the 50-day SMA again.. A breakout and close above this resistance could open the way for a move towards the 61.8% Fibonacci retracement level at USD 3,362.72.
If the price moves back from the 50-day SMA instead, it suggests that the bears are aggressively defending the resistance. A break below $ 2,550 could push the price below the triangle support. A break below the triangle is the first sign that the bears are back in control.
The 4 hour chart is showing the formation of an ascending triangle pattern that will break out and close above $ 2,906. When that happens, the pair could rise to $ 3,600 and then target the $ 4,083.26 pattern.
This bullish view will be invalidated if the price falls down and breaks below the triangle’s trend line.. The bears will then attempt to push the price down to $ 2,200 and then to the critical support at $ 1,728.74.
ADA / USDT
Cardano (ADA) has been stuck in a wide range between $ 1.94 and $ 1 for the past few days. The altcoin turned off range resistance on June 4th and fell to the moving averages.
The bulls are currently trying to defend the zone between the 20-day EMA ($ 1.66) and the 50-day SMA ($ 1.55). If the price rebounds from current levels, it suggests that sentiment will turn positive and traders will buy towards the moving averages during the dip..
A breakout and close above $ 1.94 suggests the bulls are back in control of the market.. Should the price hold above this level, the ADA / USDT pair could retest the all-time high of $ 2.47. A break above this resistance signals the beginning of the next stage of the uptrend.
This positive view would be invalidated if the pair turns down and breaks below the 50-day SMA.. The bears will then attempt to push price into the USD 1.33 to USD 1.22 support zone.
The 4-hour chart shows the formation of an ascending triangle pattern that ends with a breakout and a close above $ 1.94.. This bullish setup is targeting $ 2.88. There is unlikely to be a direct race to the goal, however, as the bears could build significant resistance at the current all-time high of $ 2.47.
The 20-EMA has started to turn down and the RSI is just below the midpoint, indicating a possible decline in the triangle’s trendline. Breaking below this support would invalidate the bullish setup and that could lead to a fall to $ 1.36 and then to $ 1..
SOL / USDT
The bears are trying to stop the Solana (SOL) relief rally at the 61.8% Fibonacci retracement level at $ 43.38. However, Sellers were unable to push the price below the 20-day EMA ($ 36.39), suggesting sentiment has turned positive.
Cointelegraph Markets Pro VORTECS ™ data began to see a bullish outlook for SOL on June 1st before the rally picked up pace.
The VORTECS ™ Score, exclusive to Cointelegraph, is a algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As can be seen in the graphic above, the VORTECS ™ Score for SOL turned green on June 1 when the price was near $ 32.10.
The VORTECS ™ Score has been consistently green since then, and the SOL price has risen to $ 43.33 today, up 35% in five days. That shows how the VORTECS ™ score offered an early indication of bucking the trend, even if other tools would have been bassists.
The SOL / USDT pair bounced off the 20-day EMA on June 4th and the 50-day SMA (USD 39.42) today42. This suggests the bulls are not waiting for a deeper correction to buy.
When buyers lift the price above $ 43.38, it indicates that the downtrend is over.. The pair could climb to the 78.6% retracement level at $ 49.97 and then to the all-time high at $ 58.38. The 20-day EMA has started rising and the RSI is in positive territory, suggesting that buyers have the upper hand..
This positive view will be invalidated if the price falls down and falls below the trend line.. If so, the pair could drop to $ 25.58 and then to $ 21 later.
On the 4 hour chart, the moving averages have risen and the RSI is in positive territory, suggesting the bulls are coming back. The upside move could gain momentum if buyers push the price above $ 43.38.
On the contrary, if the price falls and breaks the 20 EMA, it suggests that supply is outstripping demand. The pair could drop to the 50-SMA and then the trendline. If it breaks below the trendline, the bears will attack again.
THETA / USDT
THETA trades within a descending channel. The bulls attempted to push and hold the price above the resistance line of the channel on June 4th and 5th but failed.. This suggests that the bears are aggressively defending this resistance.
However, the 20-day EMA ($ 8.19) has started rising and the RSI is in positive territory, suggesting that the bulls have a slight advantage. If the THETA / USDT pair bounces off the 20-day EMA, buyers will make another attempt to push the price above the channel..
If they succeed, the downward trend could end. The pair could initiate a bullish move towards $ 13 and later towards the all-time high of $ 15.88. This bullish view will be invalidated if the bears pull the price down and keep it below the 20-day EMA. This move could result in a drop to $ 6.
The 4 hour chart shows that the pair has turned down twice from the resistance line of the channel. However, the bears have been unable to bring the price down and hold it below the 20 EMA, suggesting that there is demand at lower levels.
If the pair recovers from current levels, the bulls will make another attempt to push the price above the channel.. If successful, the next leg of the uptrend could begin.
On the other hand, If the price falls below the 20-EMA, the pair could fall to the 50-SMA. A break below this support indicates the beginning of a deeper correction..
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. All investing and trading involves risk, so do your own research when making a decision.