Bitcoin’s Winning Streak May End, but Uptrend Remains
Bitcoin’s eight-week winning streak is likely to come to an end as the price has dropped nearly 4% this week. However, this pullback does not change the short-term uptrend and can help reduce market froth. The macro environment remains bullish for risk-assets, and strong hands are expected to re-enter the crypto market after the initial shakeout.
Altcoins Gain Attention as Bitcoin Takes a Breather
Traders are likely to turn their attention to select altcoins as Bitcoin takes a break. After sharp rallies, it’s common for traders to book profits and shift focus to other coins. This presents an opportunity for altcoins to attract buyers in the short term.
Bitcoin Price Analysis
Bitcoin is currently squeezed between the 20-day exponential moving average ($41,370) and the downtrend line, setting the stage for a potential breakout in the coming days. If the price drops below the 20-day EMA, bears may push it towards strong support at $37,980. On the other hand, a break above the downtrend line would suggest bullish dominance and could lead to a retest of overhead resistance at $44,700.
Cosmos Price Analysis
Cosmos (ATOM) has been on an uptrend with solid demand at lower levels. Although bears are offering resistance at $12, bulls have not allowed the price to dip below the 50-day SMA. A break above $12 could complete an inverse head-and-shoulders pattern and target $13.31.
Filecoin Price Analysis
Filecoin (FIL) is attempting to form a cup and handle formation, with a break above $5.67 signaling a new up-move. Bears may challenge at $6.50 and $7.40, while support at the 20-EMA is crucial to watch. Rebounding off the 20-EMA would improve the chances of a retest of overhead resistance at $6.20.
MultiversX Price Analysis
MultiversX (EGLD) remains bullish as buyers continue to buy on dips. The crucial resistance to watch is $70, which could lead to a rally to $90 and $100 if overcome. However, sellers may attempt to pull the price below the 20-day EMA and target a deeper correction towards the 50-day SMA.
Algorand Price Analysis
Buyers are struggling to push Algorand (ALGO) above the resistance at $0.22, but they have not given up much ground. Both moving averages are sloping up, indicating that bulls remain in control. A rebound off the 20-day EMA could lead to another attempt at breaking the barrier at $0.22.
Hot Take: Bitcoin’s Pullback Offers Buying Opportunity for Altcoins
While Bitcoin’s winning streak may come to an end, the overall uptrend remains intact in the crypto market. This pullback presents an opportunity for traders to turn their attention to altcoins that show promise in attracting buyers. As Bitcoin takes a breather, altcoins like Cosmos, Filecoin, MultiversX, and Algorand have potential for upward movements based on technical analysis. However, market conditions can change rapidly, so it’s essential to closely monitor price movements and key levels of support and resistance.
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