Bitcoin (BTC) has experienced a remarkable rally in 2023, with an 84% increase in its price. This surge has also led to increased buying in alternative cryptocurrencies (altcoins), which have seen significant gains from their lows. As we enter the second half of the year, investors are wondering if the rally will continue.
Historical data shows that July has generally been a positive month for Bitcoin. Since 2013, there have only been three negative monthly closes in July, with the largest decline being 9.69% in 2014. This suggests that the bulls have a slight advantage.
A major driving force behind the recent rally in Bitcoin and altcoins has been the anticipation of the United States Securities and Exchange Commission (SEC) approving a spot Bitcoin exchange-traded fund (ETF). If any negative news arises regarding this matter, it could result in a bearish sentiment and a sharp sell-off in the market.
However, for now, Bitcoin and select altcoins are showing strength. Let’s take a closer look at the charts of the top 5 cryptocurrencies that may continue their upward movement in the coming days.
Related Post
Bitcoin:
Bitcoin is currently trading near a strong overhead resistance level at $31,000. This indicates that the bulls are not rushing to take profits as they expect another upward move. The rising 20-day exponential moving average ($29,278) and the positive relative strength index (RSI) suggest that the path of least resistance is to the upside.
If the price of Bitcoin sustains above the $31,000 level, it is likely to start the next leg of its uptrend. The bullish momentum could potentially push the price above the immediate resistance at $32,400 and towards the $40,000 mark. Conversely, if the bears manage to push the price below the 20-day EMA, the price could decline to the 50-day simple moving average ($27,622).
Litecoin:
Litecoin broke above a descending channel and the overhead resistance level of $106 on June 30, indicating a resumption of the uptrend. Although the bears brought the price back below the breakout level, the bulls stepped in to buy the dip. Sustaining the price above $106 would increase the likelihood of a continuation in the rally, with potential targets at $134 and $144. On the other hand, a drop below $106 would signal bearish selling pressure and could push the price towards $100.
Monero:
Monero invalidated a descending triangle pattern by rising above the downtrend line on June 23. The failure of this bearish pattern often results in a short squeeze, as aggressive bears are caught off guard. After a sharp rally, the price has been consolidating between $171 and $160. This consolidation suggests that the bulls are holding their positions in anticipation of another leg higher. If the price breaks above $171, the next target could be $187. However, if the bears manage to push the price below the 50-day SMA ($149), they could gain control.
Aave:
Aave has been trading within a descending channel pattern recently. However, the recent bounce from the 20-day EMA suggests a change in sentiment from selling on rallies to buying on dips. Repeated retests of a resistance level tend to weaken it, and the positive slope of the 20-day EMA and the positive RSI indicate that the path of least resistance is to the upside. A sustained break above the channel could lead to an up-move towards $84. However, a break below the 20-day EMA could prolong the consolidation period.
Maker:
Maker has shown signs of an upward movement as the bulls bought the dip to the moving averages, indicating demand at lower levels. The rising 20-day EMA and the overbought RSI suggest an advantage for the bulls. Breaking above the downtrend line could lead the price towards $979. However, a drop below $772 would signal weakness and potentially push the price towards the 20-day EMA.
In summary, Bitcoin and select altcoins are showing strength in their price movements. While there are potential risks that could turn the sentiment bearish, for now, the bulls have a slight advantage. As always, it’s important for investors to conduct their own research and make informed decisions. This article is for informational purposes only and does not constitute financial advice.
