Bitcoin (BTC) hit a fresh 52-week high on June 23, suggesting bulls are on fire. Buyers have managed to hold onto much of the gains made throughout the week, signaling they are in no rush to book profits. Bitcoin is up 16% this week, outperforming the S&P 500 Index, which fell 1.39%.
Not only bitcoin but also ether (ETH) is showing signs of bullishness. Glassnode data shows that ether balances on exchanges have fallen sharply over the past 30 days, hitting a new low of 12.6%.
A similar drop in ether exchange holdings occurred in November 2022, followed by a sharp 33% surge. While a rally is possible, traders need to be cautious as the decline in FX balances this time around may have been triggered by the US Securities and Exchange Commission’s actions against Binance and Coinbase.
Daily view of crypto market data. Source: Coin360
Crypto recovery is not limited to bitcoin and ether. Several altcoins have rallied sharply from their respective lows, suggesting solid buying at lower levels. This suggests that bearish sentiment may be fading.
Could the return of buyers spark a fresh uptrend in cryptocurrencies, or will higher levels lead to selling from the bears? Let’s look at the charts of the top 5 cryptocurrencies that could rise in the short-term.
Bitcoin price analysis
Bitcoin has been trading near the $31,000 level for the past four days. This suggests that the bears are protecting this level, but the bulls have not given up. Typically, a tight congestion near a major resistance level tends to resolve to the upside.
BTC/USDT daily chart. Source: TradingView
The rising 20-day exponential moving average ($28,085) and the RSI in the overbought territory are suggesting an advantage for the bulls. If buyers sustain and sustain the price above $31,000, the BTC/USDT pair could start the next leg of the uptrend. There is resistance at $32,400 but it is likely to be breached. The pair could then rise towards $40,000.
The first sign of weakness will be a break and close below $29,500. In that case, the pair could slide to the 20-day EMA. This remains the key level to watch because if it falls, the pair could drop to the 50-day simple moving average ($27,199).
BTC/USDT 4 hour chart. Source: TradingView
The pair is stuck between the 20-day EMA and $31,000, but this narrow range trade is unlikely to last long. A break of the range above the $31,000-$31,500 zone could start the next leg of the uptrend.
On the other hand, if the price declines and stays below the 20-day EMA, it can result in stops for short-term traders. The pair could then drop to $29,500 where the bulls are likely to mount a strong defense. A break below this level could open the door for a potential drop to the 50-day SMA.
Ether Price Analysis
Ether has faced selling at the $1,928 level for the past three days, but the bulls are not ready to concede ground to the bears. This suggests that buyers are expecting the resistance to be broken.
ETH/USDT daily chart. Source: TradingView
The moving averages are on the verge of a bullish crossover and the RSI is floating in positive territory, suggesting that the bulls are in charge. If buyers clear the $1,928 barrier, the ETH/USDT pair could surge into the $2,148 to $2,200 overhead zone.
If the bears want to avoid the rally, they need to push the price below the moving averages quickly. This could hit the aggressive bulls’ stops, which could lead to a correction at the strong support at $1,700.
ETH/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows the price stuck in a range between $1,936 and $1,861. The rising moving averages and the RSI in the positive territory suggest that the path of least resistance is up. If buyers propel the price above the range, the pair could start its march towards the psychological $2,000 level.
On the other hand, if the price declines and breaks below the $1,861 support, the short-term advantage will turn in the bears’ favor. The pair could then drop to the 50-SMA and later to $1,750.
Arbitrum Price Analysis
Arbitrum (ARB) surged above the $1 breakout level on June 19th and then posted a sharp surge on June 20th. This indicates a rejection of the recent breakthrough.
ARB/USDT daily chart. Source: TradingView
The bears are attempting to stall the recovery at the 50-day SMA ($1.12), but on a positive note, the bulls have successfully defended the 20-day EMA ($1.07). This narrow range trade is unlikely to last long and a breakout may be on the cards soon.
A break and close above $1.18 could signal the start of a fresh move higher. The ARB/USDT pair could initially rally to $1.28 and then $1.54. This optimistic view will be invalidated if the price declines and breaks below the $1-$0.90 support zone.
ARB/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the bulls are struggling to clear the $1.18 obstacle. This suggests that bears are active at higher levels. The sellers pulled the price below the 20-day EMA but failed to breach the 50-day SMA.
The 20-day EMA is flattening out and the RSI is near the midpoint, indicating an equilibrium between buyers and sellers. If the bulls push the price above $1.18, it will indicate the start of a strong recovery. In contrast, a break and close below the 50-day SMA could lead to a drop to $1.
Related: Bitcoin Hits New All-Time Highs in Three Countries as BTC Price Surges $31,000
VeChain price analysis
VeChain (VET) turned down the resistance line on June 23, but the bears are struggling to keep the price below the 50-day SMA ($0.018). This suggests that traders are buying on dips.
VET/USDT daily chart. Source: TradingView
The bulls will try again to push the price above the resistance line. If they succeed, it means that the downtrend is over. The VET/USDT pair could then start its uptrend towards $0.026.
Contrary to this assumption, renewed downtrend from the resistance line suggests that the bears remain in control. They will then attempt to sink the pair below the moving averages and challenge the support at $0.013.
VET/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the price has reversed direction from the resistance line but is finding support at the 20-day EMA. This suggests that sentiment is turning positive and traders are viewing the dips as a buying opportunity.
The bulls will try again to push the price above the resistance line. If they succeed, the pair could rally to $0.021. This level might act as a hurdle again, but if breached, the uptrend can begin. The first support on the downside is the 20-day EMA and the next is the 50-day SMA.
Stacks price analysis
Stacks (STX) surged above the moving averages on June 20th, signaling a possible trend reversal. The correction phase started on June 22nd, but a positive sign is that the price remains above the moving averages.
STX/USDT daily chart. Source: TradingView
The moving averages have completed a bullish crossover and the RSI is in the positive territory, which indicates that the bulls have the upper hand. If the price increases from the current levels or bounces off the 20-day EMA ($0.65), it will suggest buying on the dips. This increases the chances of a break above $0.89.
If that happens, the STX/USDT pair could rally to $1.10 and then $1.30. This positive view will be invalidated if the price declines and breaks below the moving averages. Such a move suggests that the bears are not yet giving up and will continue to sell on rallies.
STX/USDT 4 hour chart. Source: TradingView
The four hour chart shows that the pair is in a corrective phase. The bears have pulled the price below the 20-day EMA, but the bulls are defending the 50% Fibonacci retracement level of $0.71. Buyers need to push the price above the downtrend line to open the door for a potential rally to $0.88.
On the other hand, when the price diverges from the downtrend line, it indicates that the bears are trying to gain the upper hand. A break and close below the 61.8% retracement level at $0.67 could indicate that the bears are back in the game.
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