The S&P 500 Index had an impressive week, with a 5.85% increase, marking its best performance since November 2022. This surge in the stock market was largely driven by expectations that the Federal Reserve will not raise interest rates any further. On the other hand, Bitcoin (BTC) experienced a more muted performance, with a rise of approximately 2%. However, this is still considered a positive sign for cryptocurrency investors, as a “risk-on” sentiment is likely to benefit the crypto space as a whole.
Bitcoin’s rise has also attracted investments in several altcoins that have been underperforming for a while. If Bitcoin can maintain its current level and not experience a significant drop, the recovery in the cryptocurrency market may spread to other coins that have not yet participated in the recent rise.
Despite Bitcoin entering a range, there are select altcoins that are showing signs of moving higher. Let’s take a closer look at the charts of the top 5 cryptocurrencies that may extend their rally in the next few days.
Bitcoin Analysis:
Bitcoin is currently trading near the $35,000 resistance level, and recent price action has formed an ascending channel pattern. However, after a sharp rally, a tight ascending channel is generally seen as a negative sign. If the price turns down and falls below the channel, it may tempt aggressive traders to book profits, which could pull the price down to the 20-day exponential moving average at $33,033. However, a strong rebound off this level would suggest that the bulls remain in control, and they will likely try to push the price above $36,000 to resume the uptrend. On the other hand, if the price breaks below the 20-day EMA, it could plunge to the strong support zone between $32,400 and $31,000, which the bulls are expected to defend fiercely.
Related Post
Cosmos Analysis:
Cosmos (ATOM) recently rose above the $7.60 resistance level, completing a double bottom pattern. The bulls successfully defended the breakout level between November 1 and 3, indicating the resumption of the uptrend. If the price can cross the pattern target from the bullish setup at $8.91, it may act as a barrier, but a potential rally to $10 could follow. However, if bears pull the price below the important support level at $7.60, it would suggest aggressive selling at higher levels and the pair may drop to the 50-day simple moving average (SMA) at $7.07.
Uniswap Analysis:
Uniswap (UNI) reached the resistance level of $5 on November 2, but the bulls were unable to overcome this obstacle. On the positive side, the moving averages have completed a bullish crossover and the relative strength index (RSI) is in the positive zone, indicating that the bulls have the upper hand. If buyers can push the price above $5, the UNI/USDT pair could rise to $6 and potentially climb further to $6.40. However, if the price turns down from $5, it would suggest that the bears are defending the level with vigor. This may pull the price down to the 20-day EMA at $4.36, a key level for the bulls to defend.
Near Protocol Analysis:
Near Protocol (NEAR) has seen a sharp increase in the past few days, indicating that the bulls are attempting a comeback. The bears have been met with stiff resistance at $1.63, but the bulls have not allowed the price to drop below $1.43, indicating their confidence in a continued rally. If buyers can maintain the price above $1.63, the NEAR/USDT pair could climb to $2. However, the RSI suggests that overbought levels may lead to a consolidation or correction in the near term. A drop below $1.63 may give the bears an opportunity to push the pair below $1.43.
Axie Infinity Analysis:
Axie Infinity (AXS) has been experiencing a strong recovery phase in recent days, but the bears continue to sell near $6. The bulls have successfully defended the dips below $5.40, suggesting they are trying to resume the uptrend. If buyers can push the price above $6, the AXS/USDT pair may rise to $6.55 and potentially to $7. However, if the bears manage to yank the price below the 20-day EMA at $5.11, the pair may face a deeper correction to $4.65.
In conclusion, while Bitcoin’s performance has been relatively subdued compared to the stock market, it has still attracted investments in altcoins, suggesting a positive sentiment in the crypto space. However, investors should conduct their own research and exercise caution as every investment and trading move involves risk.
