This week, Bitcoin (BTC) made an attempt to initiate a relief rally, which faced strong selling pressure around $67,000. The primary cryptocurrency by market capitalization seems likely to conclude the week with a slight decline of approximately 2%.
A well-known trader and analyst, Rekt Capital, has indicated that Bitcoin has now “entered the Post-Halving ‘Danger Zone’”, where a further decline might occur within the coming two weeks. Another negative factor in the short term is the net outflows from spot Bitcoin exchange-traded funds. Farside Investors reported that these ETFs experienced a net outflow of $218 million on April 25, following a $120 million outflow the day before.
Daily cryptocurrency market data view. Source: Coin360
When the price is moving within a wide range, forecasting the breakout direction precisely becomes challenging. Traders can opt to buy near the support level and sell at the resistance level while maintaining a suitable stop loss, or they could choose to remain on the sidelines until a breakout occurs.
Will Bitcoin and alternative cryptocurrencies manage to hold above their respective support levels and begin a recovery rally?
Let’s analyze the five leading cryptocurrencies that demonstrate strength in their charts and have the potential to kickstart their resurgence.
Bitcoin price analysis
Bitcoin has remained within a range of $59,600 to $73,777 for multiple days, hinting at a state of uncertainty between the bullish and bearish forces regarding the next directional move.
BTC/USDT daily chart. Source: TradingView
Typically, during a range-bound scenario, traders purchase near the support level and sell near the resistance level. It is anticipated that the bulls will strongly defend the $59,600 level, as breaching it could lead to a further correction to the 61.8% Fibonacci retracement level at $54,298. Such a move would postpone the initiation of the next upward trend leg.
Conversely, if the price rebounds from the current level or the $59,600 support level, it will indicate the continued bullish activity at lower price levels. The BTC/USDT pair might advance towards $67,250, then target the overhead resistance at $73,777. A breakout and close above this level will signify the commencement of the next uptrend leg towards $84,000.
BTC/USDT 4-hour chart. Source: TradingView
The relatively flat moving averages and the RSI positioned just below the midpoint signify a balance between the supply and demand dynamics. The initial show of strength would be a breakthrough and close above the downtrend line, potentially paving the way for an upward move towards $68,000 and then $71,500.
Alternatively, if the price reverses from the current level or the downtrend line and breaches below $62,300, it will imply the dominance of the bearish side. In this scenario, the pair could decline towards the critical support level at $59,600, where buying interest is anticipated to emerge.
Near Protocol price analysis
On April 25, Near Protocol (NEAR) successfully closed above the descending channel pattern, indicating the probable conclusion of the downtrend.
NEAR/USDT daily chart. Source: TradingView
Nevertheless, the bears are actively selling near the immediate resistance of $7.70. If the price descends back into the channel, it could signify that the breakout was a trap by the bulls. Such a scenario might result in the price retracing down to $5.90.
In contrast, a breakout above $7.70 would imply a takeover by the bulls. Subsequently, the NEAR/USDT pair could strive towards a rally to $9, where a strong defensive stand by the bears could be expected.
NEAR/USDT 4-hour chart. Source: TradingView
Both moving averages exhibit an upward slope, and the RSI is in positive territory, which portrays a slight advantage for the bulls. It is probable that buyers will face selling pressure within the range of $7.70 and $8.10. However, a breakthrough might propel the rally towards $9.
This optimistic scenario will be invalidated in the short term if the price turns downwards and breaches below $6.60. Such a move would indicate the continuation of bearish sentiment during relief rallies, potentially leading the pair to drop towards $5.90.
Arweave price analysis
On April 25, Arweave (AR) climbed above both the moving averages, suggesting a potential comeback effort by the bulls.
AR/USDT daily chart. Source: TradingView
Despite the bearish attempts to push the price downward, the bulls stepped in to buy the dip towards the 20-day EMA ($32.19) on April 27. This implies a shift in sentiment from selling during price rallies to buying during price pullbacks. While a minor resistance is present at $40, breaking past it could propel the AR/USDT pair towards the robust overhead resistance at $47.52.
If the bears wish to impede the rally, they would need to promptly push the price back below the 20-day EMA. In such a scenario, the pair might decline to $22.
AR/USDT 4-hour chart. Source: TradingView
An inverse head-and-shoulders pattern seems to be forming on the pair, indicating potential completion upon a breakout and close above the neckline. Should this materialize, the pair is likely to surge towards the target level of $50.
Conversely, if the price fails to sustain above the neckline, it would suggest a dwindling demand at higher levels. Subsequently, the pair could retreat towards the crucial support zone at $30. A breach below this level would shift the advantage towards the bears.
Related: Crypto trader sees best ‘altseason’ since 2017 as Bitcoin price cools
Core price analysis
Core (CORE) found support at the 20-day EMA ($2.23) on two consecutive…
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