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Bitcoin Shows Potential For Range Expansion

Image Source: Lukas Gojda / Shutterstock

The S&P 500 Index saw a modest increase of 0.45% in its second positive week. While US equities markets had slow movement, gold saw a significant surge of over 5% this week, experiencing its best one-day performance since December 1 of last year. However, Bitcoin (BTC) did not have the same luck as it is on track to end the week down over 3%.

Bitcoin’s weakness and the regulatory uncertainties have caused crypto investors to stay away from altcoins, keeping Bitcoin’s market dominance near the 50% mark for the past few days.

Market observers are focusing on Bitcoin for the next few days. The longer the bulls hold the price above $25,000, the higher the chance of an upward move. A bullish move in Bitcoin is likely to trigger buying in select altcoins as crypto investors will sense a bull market.

Some cryptocurrencies are showing signs of forming a base. If they break out to the upside, a new uptrend may begin. Let’s analyze the charts of the top 5 cryptocurrencies that might outperform in the near term.

Bitcoin price analysis

Bitcoin has been trading within the moving averages recently, indicating uncertainty among buyers and sellers about the next move.

A period of consolidation is typically followed by a range expansion. If buyers push the price above the 20-day exponential moving average ($27,110), the BTC/USDT pair could rise to $28,143. However, strong resistance is expected at this level.

On the other hand, if the price falls below the 50-day simple moving average ($26,671), it would indicate bearish dominance. The pair may then drop to $25,990 and subsequently to the pivotal support at $24,800, which is likely to attract aggressive buying from the bulls.

The 4-hour chart shows resistance at the 20-EMA, but the fact that the bulls have not given up much ground suggests that buyers are maintaining pressure. If the 20-EMA is surpassed, the pair may rise to the 50-SMA, facing minor resistance. Breaking this level could lead to a climb towards $27,750 and $28,143.

On the downside, if the bulls fail to breach the 20-EMA, sellers may see an opportunity to push the price lower. A drop below $26,500 could lead to a decline to $26,000 and then $24,800.

Solana price analysis

Solana (SOL) has been engaged in a battle between buyers and sellers near the 20-day EMA ($21.77), as the bulls attempt to flip this level into support.

While there is minor resistance at $22.50, breaking this level could push the SOL/USDT pair to the neckline of the inverse head and shoulders pattern. Clearing this resistance would complete the bullish setup, with potential resistance at $27.12 before reaching the target objective at $32.81.

Negative price action would occur if the price falls below the 50-day SMA ($20.50), potentially leading to a descent towards $18.58 and then $15.33.

After trading between the moving averages for a while, the price broke below the 20-EMA, suggesting bearish control. The pair could initially drop to $20.93, and if that level is breached, further decline to $20 is possible.

If the price fails to stay below the 20-EMA, it would indicate strong buying at lower levels. A break and close above the 50-SMA would show strength and potentially lead to a rally to $23.50 and the neckline of the inverse H&S pattern.

Lido DAO price analysis

Lido DAO (LDO) has been trading near the moving averages, possibly indicating diminished bearish control.

The flattening moving averages and the RSI entering positive territory suggest a potential comeback by the bulls. The immediate resistance is at $1.73, and breaking this level could push the LDO/USDT pair to the downtrend line, which would likely face resistance from sellers.

If the price turns down and falls below the moving averages, it would indicate that bears are in control, selling on minor rallies. The pair may then retest the major support at $1.38.

The 20-EMA is starting to rise on the 4-hour chart, and the RSI is in the positive zone, indicating bullish control. With minor resistance at $1.63, it is likely to be surpassed, potentially leading the pair to rise to $1.73.

To weaken the bullish momentum, bears would need to quickly push the price below the moving averages, potentially causing the pair to fall to the $1.45 to $1.50 support zone.

Internet Computer price analysis

Internet Computer (ICP) has been consolidating within a narrow range between $2.86 and $3.35 in recent days.

A positive divergence in the RSI suggests diminishing selling pressure. If the ICP/USDT pair breaks and closes above the overhead resistance at $3.35, it could signify a potential trend change. The first upside target would be $4, followed by $4.50.

Alternatively, if the price falls from $3.35, it would indicate prolonged consolidation. A decline below $2.86 would indicate the resumption of the downtrend.

The moving averages have completed a bullish crossover, and the RSI is in the overbought zone on the 4-hour chart, indicating buyer dominance. The pair is likely to target the resistance at $3.35, posing a challenge for the bears.

If the price breaks above $3.35, it would indicate bull control. The pair may then rise to $3.74 and potentially reach the pattern target of $3.84.

VeChain price analysis

VeChain (VET) has been trading within a descending triangle pattern in recent days. Although this pattern is negative, the price has been clinging to the downtrend line, which is a positive sign.

The flattening moving averages and the RSI near the midpoint suggest decreasing bearish pressure. Buyers will attempt to push the price above the downtrend line, invalidating the negative setup. This could start a new uptrend towards $0.021.

If the price fails to break the current level, it would indicate continued defense of the downtrend line by bears. They may attempt another push towards the critical support at $0.014.

The 4-hour chart shows the price trading within a falling wedge pattern. Buyers are trying to sustain the price above the 50-SMA. If successful, the VET/USDT pair could reach the downtrend line of the wedge. A break and close above the wedge may initiate a new uptrend.

Bears are unlikely to give up easily and will robustly defend the area between the 50-SMA and the downtrend line. A sharp decline below the 20-EMA would indicate that the pair might remain within the wedge for some time.

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.

Image Source: Lukas Gojda / Shutterstock

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