Bitcoin is trading right below the last standing resistance before the $28,500 zone. Will we see a strong continuation after the breakout this week?
Bitcoin has been rejected by the resistance at $25,000 multiple times. On the bright side, this resistance has weakened after multiple attempts by the coin in the past week and a breakout could be just around the corner. However, this view will be invalidated if Bitcoin is not able to sustain above the major support at $22,500. Once it is able to break out, a clear path to the supply zone at $28,500 can be seen, which could result in many coins surging in price! In this week’s analysis, we will have a look at the coins which are about to break out and could strongly outperform Bitcoin this week.
LINK/USDT
After a strong breakout from the resistance at $7.50, LINK is retesting the beakout zone before continuing the strong uptrend. A successful retest will help push the price to the next resistance at $9.6.
However, traders should note that if the support level at $7.50 is broken, expect the price to head towards $6.20. A long position should only be taken once LINK is succesfully able to register a reversal from the support at $7.50. Expect a strong a continuation of trend once a reversal is seen.
Want to learn more? Read our guide on how to trade futures on Binance!
HIVE/USDT
After forming a huge 50% green candle, HIVE has once again lost all of its gains after the sudden surge in price. However, history shows that it consolidates near the breakout zone before continuing the rally. This can be seen clearly in the chart above where HIVE has been consolidating in a tight range since the start of this month. Traders must wait for the supply zone at $0.65 to be broken to expect any significant moves.
Once HIVE is able to break out from the supply zone, a quick move to the high of the huge candle could be seen. Traders must be cautious as a rejection from the supply zone could lead to HIVE dropping to the next support at $0.45.
DOT/USDT
The bull party seems to be over for DOT after it broke the support at $8.62 and plummeted to the demand zone at $7.68. The demand zone does not seem to be too strong which is why traders must be cautious as DOT could break down further.
There is a slight chance that a reversal could be seen from this price level as the RSI has dipped to the oversold level. Traders can expect DOT to retrace back to the resistance at $8.62 at best, however, a further breakout seems unlikely at the moment.
Check out our guide to leverage in crypto trading!
BAT/USDT
We had anticipated a breakout of BAT a few weeks ago; however, it was unable to sustain above the resistance post the breakout. This led to a sharp sell-off and resulted in the token falling back to the accumulation zone.
BAT is now heading towards a crucial demand zone at $0.36. If this demand zone is broken, it could end up plunging by over 20% to the February 2021 low. A close below $0.348 on the 4-hourly time frame will show weakness in BAT and could be followed by another sharp sell-off.
FLUX/USDT
The strong uptrend continues for FLUX.
FLUX has once again rallied to hit a new swing high after breaking the resistance at $0.901. However, it is not looking like FLUX will be able to sustain the breakout after it was trading 12% lower on Friday.
Traders must wait patiently for the price to flip the resistance once again before taking any long positions. If FLUX is not able to flip the resistance soon, expect a rapid move towards the support at $0.73.
You may also check out our guide to scalping vs swing trading!
Summary
A quick recap of all the coins:
- LINK is approaching the breakout zone for a retest.
- HIVE needs to cross the resistance at $0.65 to have a chance at continuing the up move.
- A reversal must be seen in DOT soon as a further sell-off is possible.
- BAT is approaching crucial support.
- FLUX has finally broken out and a strong rally could be seen if it is able to sustain above the resistance.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap. CoinMarketCap is not responsible for the success or authenticity of any project, we aim to act as a neutral informational resource for end-users.
