Bitcoin has finally broken the resistance at $30,000, what’s next?
Bitcoin has broken the resistance at $28,000 after trading right below it for a week. Are we about to see a strong bullish move?
In this week’s analysis, we will stick to the 4-hour time frame to keep the analysis precise!
BTC/USDT
For Newbies
The price has finally been able to rise above $28,000 after being prevented by the $28,000 level. The fast pace rise was held-up when the price reached $28,000. This is why we can ascertain the fact that there was a resistance at $28,000 (price barrier).
At the moment, the bulls have come out on top after they broke the price barrier and have made space for the price to rise further. At the time of writing, it seems like we might see some traders lock in their profits, and this could result in the price falling a bit.
For Experts
In the chart above, we can clearly mark the resistance at around $28,000, which has been preventing the price from hitting $30,000 this month. The resistance was taken out on Monday after the formation of a strong bullish candle which helped the price hit $30,000. The sharp surge resulted in the RSI showing an overbought reading, a scenario pointing towards a retest of the resistance.
If the retest is successful, traders can expect Bitcoin to start approaching the next resistance at $32,500.
Also Read: A Complete Guide to Death Cross and Golden Cross?
ETH/USDT
For Newbies
ETH seems to have outperformed Bitcoin. It has risen more in the past week than Bitcoin has. This implies that buyers are turning towards ETH, which could help us set a bullish bias (not financial advice).
ETH has formed a double-top pattern which is a bearish pattern that is often seen when the price fails to rise over a certain level twice. A “U” shape can be seen on the chart. Traders should maintain caution while trading ETH this week.
For Experts
The resistance at $1,840 has been taken out - however, the formation of the double top can lead to the price falling below the resistance once again (not financial advice).
At the time of writing, the price seems to be taking support at $1,840. If the level is respected, expect the price to start approaching the supply zone at $2,040.
Also Read: Breakout vs Fakeout (False Breakout) — Spot the Difference and Increase Accuracy
NEAR/USDT
For Newbies
NEAR is trading between a price band of $2.2 and $1.8. Until either of these bands is taken out, we cannot expect any strong moves. This is because the sellers return near the upper price band and the buyers start coming back near the lower price band.
NEAR is very close to the upper band - which is why we could see the price breaking the band soon. If the band is broken, a strong upwards move could be seen. However, traders should be patient as the bears could come back at this price level!
It is, thus, preferable for traders to let NEAR break the upper range before making buying decisions.
For Experts
NEAR has continued the sideways trend and a breakout is yet to occur. Until a breakout is seen it could be risky to buy NEAR.
In the chart above, we can see the price is about to test the supply zone this week. The price seems to be in great momentum which could help it break out!
If the resistance at $2.2 is taken, the price could surge toward the next supply zone at $2.6.
Also Read: What Is Fundamental Analysis in Cryptocurrency and Stocks?
ADA/USDT
For Newbies
After a strong bullish move that helped take ADA to $0.42, the bears returned in full force which resulted in the price plunging back to $0.39. A very important price floor can be seen at $0.39 - thus, the price must trade above the price floor in order to keep the bears at bay.
For Experts
ADA has broken the resistance that we had marked in last week’s analysis. There seems to be a lack of buying volume that may be triggering the price to fall back to the support at $0.39. Once buying volumes are seen, we should be able to see the price start approaching the next resistance marked at $0.43.
FTM/USDT
For Newbies
The price seems to have broken out of a trendline (the falling red line drawn in the chart above). This a great bullish move (if it continues), and the price can be seen rising in a fast manner after the breakout! If this momentum continues, we may see the price hunting for the previous high at $0.53.
For Experts
FTM has broken the trendline after trading under it for the past month. A strong breakout may be seen with strong buying volumes. The price should be able to hit the high of the trendline at $0.53 without any hurdles (if the buying volume continues to rise)!
AVAX/USDT
For Newbies
AVAX is still trading in a sideways trend between the price range of $19 and $15. We could only see a strong rally if the upper price band is broken. Once the upper price band is broken, we could see the price start rising towards $22.
For Experts
It is looking like AVAX could soon break above the supply zone at $19. The price can be seen in great momentum which is hinting towards a breakout! The next resistance is around $22, which gives AVAX room to rally once a breakout is seen.
Also Read: What Is Crypto Options Trading?
Summary
A quick recap of all the coins:
- BTC has formed an RSI divergence.
- ETH outperformed BTC.
- NEAR is still trading below the resistance,
- ADA broke the resistance.
- FTM is about to break a trendline.
- AVAX needs to break the resistance.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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