Bitcoin (BTC) is down approximately 2% this week, but an optimistic sign for the bulls is that the price has risen from the weekly low of $64,493. Many analysts are anticipating Bitcoin’s halving to be the next catalyst. Nevertheless, cryptocurrency exchange Coinbase warns that Bitcoin’s price movement could encounter obstacles following the halving event as this period typically presents a challenging time of the year for cryptocurrency markets and other risky assets.
Despite the potential for further increases, the downward movement may be constrained. Dylan LeClair, a senior analyst at UTXO Management, is of the opinion that even in the event of a decline, Bitcoin is unlikely to drop to $50,000 where a significant concentration of long positions could be liquidated. Nonetheless, he cautions that the cryptocurrency markets are unpredictable.
Daily overview of crypto market data. Source: Coin360
While Bitcoin has been leading the market higher, several alternative coins have significantly outperformed. Pantera Capital’s Liquid Token Fund stated in a shareholder letter reviewed by Bloomberg that the fund reduced exposure to Bitcoin and Ether while increasing investments in DeFi tokens, resulting in a 66% return in the first quarter of 2024.
Will some select alternative coins continue to overshadow Bitcoin in the short term? Let’s analyze the top 5 cryptocurrencies exhibiting strength in their charts.
Analysis of Bitcoin’s price
Bitcoin has been moving within a symmetrical triangle pattern recently, indicating uncertainty regarding the next directional move.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average ($68,049) continues its gradual upward trend, and the relative strength index (RSI) residing in the positive zone suggests a slight advantage for the bulls. A breakout and close above the triangle would indicate that the uncertainty has been resolved in favor of buyers. In such a scenario, the BTC/USDT pair could surge towards $73,777 and eventually target $80,000.
On the contrary, if the price reverses from the downtrend line and breaches the 20-day EMA, it would suggest a continuation of the consolidation within the triangle. A breakdown below the triangle would shift the advantage towards the bears, potentially triggering a decline towards $59,000 and subsequently $54,298 at the 61.8% Fibonacci retracement level.
BTC/USDT 4-hour chart. Source: TradingView
The 20-EMA has begun trending upwards on the 4-hour chart, and with the RSI residing in the positive zone, the bulls appear to have the upper hand. The resistance level to watch would be at the downtrend line, but if the bulls manage to overcome this resistance, the consolidation phase may conclude. The pair could then rise to $72,000 and potentially reach $73,777.
Conversely, if the price turns downwards and breaches below the moving averages, it would indicate the bearish sentiment prevailing. Subsequently, the pair could decline towards the support line of the triangle. To trigger a downward movement towards $59,000, sellers would need to push the price below this level.
Analysis of Toncoin’s price
Toncoin (TON) has been gradually approaching the major resistance level at $5.69, indicating the bulls’ endeavor to regain control.
TON/USDT daily chart. Source: TradingView
Despite the rising 20-day EMA ($4.86) favoring buyers, a negative divergence in the RSI suggests a potential consolidation or correction in the near future. A rejection from the current level or $5.69 would signal strong bearish defense at the overhead resistance. As a result, the price might retreat towards the 20-day EMA.
On the flip side, a breakthrough above the $5.69 resistance could signify the initiation of the next uptrend leg towards $7.09 for the TON/USDT pair.
TON/USDT 4-hour chart. Source: TradingView
Within the 4-hour chart, the price has been fluctuating between $5.60 and $4.72. The gradual upward movement of the moving averages suggests bullish control. This raises the possibility of a breakout above $5.69. In such a scenario, the pair may climb towards $6.48.
Should the price sharply reverse downwards and breach below the moving averages, this would indicate a continuation of the range-bound action, potentially granting bears control upon a drop below $4.72.
Analysis of Stacks’ price
Stacks (STX) has experienced a correction within an uptrend, indicating a fierce battle between bulls and bears as the price remains within the moving averages.
STX/USDT daily chart. Source: TradingView
If the price surpasses $3.36, it would signal bulls overpowering the supply, potentially leading to a rally towards the overhead resistance at $3.84. A successful breach of this level could drive the STX/USDT pair towards $4.27 and subsequently $5.
Alternatively, a reversal downwards and breach below the 50-day SMA would indicate bearish dominance, potentially initiating a deeper retracement towards $2.50 followed by $2.20.
STX/USDT 4-hour chart. Source: TradingView
Bulls have managed to propel the price above the 20-EMA on the 4-hour chart, suggesting a reduction in selling pressure. If buyers maintain the momentum and drive the price…
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