Bitcoin is making attempts to break yet another resistance. What to expect?
After a week-long cooldown, it seems like Bitcoin is ready for its next leg up.
Bitcoin briefly hit the $24,000 mark on Thursday, are we about to see another rally soon? In this week's analysis, we will observe what coins have the potential to outperform the market.
In our previous analysis, we had predicted some sideways movement to be seen in BTC
after the sharp rally in January. The sideways consolidation
is exactly what was seen this week in the range between $21,800 and $23,800.
Traders can expect a good week ahead if the resistance at $23,800 is broken. The next resistance
level is at $25,400, which could be tested in a rapid manner once there is a breakout. As can be seen in the chart above, BTC has attempted to break the resistance multiple times already and has, thus, weakened the resistance
. This increases the chances of the breakout.
Also Read: A Complete Guide to Death Cross and Golden Cross?
A similar structure can be seen in ETH
as the sideways movement after a sharp rally seems to be coming to an end. ETH has been trading between the range of $1,520 and $1,680 since the past week. The price is currently testing the resistance level
Once this resistance is broken, traders can expect the price to start approaching the next supply zone
This view is only valid if the price is able to break the supply zone/resistance at $1,680.
Also Read: Breakout vs Fakeout (False Breakout) — Spot the Difference and Increase Accuracy
NEAR followed the path we drew in our previous analysis
In our previous analysis, we had anticipated that NEAR could surge to $2.67 this week. It tried breaking out of the resistance
at $2.67 but failed. Therefore, traders should refrain from taking any long positions
until the resistance is flipped (turned into support
). Expect the price to rally towards the resistance at $3.4 if there is a breakout.
Also Read: What Is Fundamental Analysis in Cryptocurrency and Stocks?
There is a strong uptrend in ADA’s chart, and a continuation of this trend can be expected this week. The coin should test the resistance
at $0.437 this week. However, traders should maintain caution as there is a chance for a reversal from the resistance.
In our previous analysis, we underestimated the bulls
by setting a target of $3.6 after FTM
hit a high of $0.599 this week.
FTM has proved to be one of the best-performing coins as it doubled in price after our analysis. A small pullback could be expected to $0.49 as the RSI
is showing an overbought situation. However, after the pullback, the price should start approaching the resistance
A fresh breakout can be seen once again in AVAX
as the strong uptrend has once again hit a new high! Traders can expect the price to rise to $23.8 this week if this breakout is sustained. However, to be on the safe side, traders can wait for a retest of the support
Also Read: What Is Crypto Options Trading?
A quick recap of all the coins:
- BTC is trying to break out.
- ETH could rally soon.
- Wait for NEAR to break the resistance.
- ADA is in a strong uptrend.
- FTM has doubled in price.
- AVAX has just broken out.
Remember that this is all based on the subjective views of the writer. As always, DYOR
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