The price of bitcoin is fluctuating at a steady rate as expected. On the other hand, currencies such as Binance Coin, Cardano, Litecoin and Chainlink have formed upward patterns.
to the the report Coin Telegraph Last week, traders bought Dogecoin in hopes of Elon Musk appearing on SNL. However, Musk’s references to Dogecoin in the program did not affect Dogecoin’s price, and the digital currency did not jump. On the other hand, it is possible that professional traders based on this issue sold their currencies.
Yesterday, the Dogecoin fell 34 percent to $ 0.41. Since then, we have seen a price recovery, with each Dogecoin currently trading at $ 0.54. The sharp fall in the Dogecoin price indicates that the buying frenzy was justified for no fundamental reason and may increase the fluctuations of this digital currency.
Ethereum, on the other hand, has expanded its rally in recent days to above $ 4,000. Bitcoin is currently looking to cross the $ 60,000 mark but has not yet reached this level, which indicates an increase in selling pressure in weak jumps. The stabilization of the Bitcoin price over the past few days is a positive sign that the digital currency is gaining a foothold to form a bullish rally.
In the following, we will examine the situation of 5 digital currencies that may experience significant fluctuations this week.
Bitcoin prices broke their downtrend on Saturday, but buyers failed to cross the $ 58,966 barrier. The first support for the Bitcoin price is moving averages. If the price of Bitcoin jumps after reaching the 20-day moving average (EMA20) at the level of $ 56,387, buyers will try again to raise the price above $ 58,966.
If successful, the price of Bitcoin could start a new journey towards the resistance of the uptrend channel at $ 67,000. The price has failed to do so in the last two attempts to cross the resistance line, and so the sellers are once again trying to defend this resistance. After buyers push the price to the top of this channel, the price acceleration accelerates.
However, the moving averages have been smoothed out and the Relative Strength Index (RSI) is near the middle area, indicating a lack of acceleration for the jump. If traders fall below the 20-day moving average, it is likely to fall to $ 52,323.
A strong recovery from this level indicates a buy at low levels, which may lead to fluctuations in a fixed channel between $ 52,323 and $ 58,966 in the next few days.
On the other hand, a fall below $ 52,323 may pave the way for a fall to the downtrend support line and the $ 46,985 area. At this point, buyers may be able to prevent further price reductions.
In the 4-hour timeframe, vendors are defending the $ 58,966 resistance. If the price falls below the simple 50-day moving average (SMA500), the price of Bitcoin may fall to $ 55,000 and then to $ 52,323.
The straight line of the moving averages of the relative strength index near the middle range indicates that supply and demand have reached equilibrium. However, if the price jumps from the current level and reaches above $ 58,966, the price of Bitcoin can start its rally with the goal of reaching $ 65,012.
Bainance Coin (BNB)
Bainance Quinn is on a strong uptrend, and the moving average indicates that price increases are not facing many obstacles and the way is open for it. Although the negative divergence in the relative strength index has sounded the alarm for traders, it can not be confirmed until the price is lower and we see a weakness in the chart.
If buyers raise the price above $ 680, Bainance Quinn could start another upward trend and reach $ 808. If the sellers lower the price to the 20-day moving average, the climb to $ 808 will be eliminated.
If that happens, short-term traders will close their positions, causing the price to fall to the simple 50-day moving average in the $ 466 area. This support is of particular importance; Because the price of Binance coin has not reached below this moving average since December 13, 2020 (December 23, 1999). A downward crossing of $ 428 may indicate that the Binance Coin price has stabilized.
The 4-hour chart shows that Bainance Quinn is trading between $ 600 and $ 680. The 20-day moving average has risen and the relative strength index is in the positive area, indicating more buyer power in the market. If buyers raise the price above $ 680 and stabilize there, there is a possibility of a jump to $ 760.
In addition, if the price falls below the current level and below the moving averages, a correction of up to $ 600 is likely. Price recovery from this area may extend the stabilization period for a few more days.
Cardano was priced at $ 1 to $ 1.48 in the previous weeks, but broke the channel on May 6; This means that the dispute between buyers and sellers is finally over with the superiority of sellers.
But that does not mean that the sellers are disappointed. They tried to bring the price back below $ 1.48 on Friday and Saturday. However, Kendall’s high spirits that day show that buyers well protected the $ 1.48 support.
If buyers set the price above $ 1.74, Cardano’s price could jump to $ 2 and then rise to $ 2.25. If the 20-day moving average falls below $ 1.42, the uptrend will be nullified. Such fluctuations can catch buyers who make large purchases and eventually bring the price down to $ 1. Restoring this level may cause prices to fluctuate at a steady pace in the coming days.
Moving averages in the 4-hour timeframe have an upward slope, and on the other hand, the relative strength index is in the positive range, indicating that buyers have the upper hand. Acceleration will be stronger if buyers stabilize the price above $ 1.75.
On the other hand, if the price goes below this level, Cardano’s price may fall below the 20-period moving average and then support $ 1.48. Restoring support prices will cause constant fluctuations in the range of $ 1.48 to $ 1.75. This analysis will lose its validity if the sellers cause the price to fall below the 50-day moving average.
The price of Litecoin has been fluctuating in the uptrend pattern for some time. Although the sellers have been protecting the resistance line of this pattern for a few days, the evidence shows that the buyers did not leave much to them.
If buyers can stabilize the price above $ 372, the price of Litecoin could start a new jump to $ 463. Prior to this jump, reaching $ 400 will be the goal of LightQueen buyers. The upward slope of the moving averages and the position of the relative strength index in the buying saturation zone indicate that the way to climb is more open.
On the other hand, if buyers fail to stabilize above this resistance level, short-term traders are likely to sell their currencies. This may reduce the price to a 20-day moving average at $ 298. If this support is broken, the next destination may be a simple 50-day moving average at $ 247.
In the 4-hour timeframe, the price of Litecoin fluctuates between $ 330 and $ 372. Sellers managed to maintain the resistance against Litecoin and push the price towards the 20-period moving average. If the price recovers from this area, buyers will try again to start the upward trend.
On the other hand, breaking the 20-day moving average could lead to a drop to $ 330.50. Rebirth from this level increases the likelihood of fluctuation at a constant interval in the next few days. In addition, breaking and closing below $ 330.5 could indicate that a more drastic correction has begun. In this case, the first support for a simple 50-day moving average would be in the $ 290 area.
Chainlink is on an uptrend, reaching a new all-time high of $ 51.96 on Friday. During this strong uptrend, China’s price corrections were a minor link, and prices stabilized at a certain point before the trend continued.
The big joy on Kendall on Friday showed the pressure at higher levels, and then on Saturday we saw the Kendall Inside Bar pattern; This indicates a dilemma between buyers and sellers. Meanwhile, the 20-day moving average has an upward slope and the relative strength index is in the buy saturation range, indicating that buyers have the upper hand in the market.
If buyers can stabilize the price of Chainlink above $ 51.96, we may see an upward trend. The next target in this trend will be $ 66.74
On the other hand, if the price falls below the current level and breaks the $ 46 support, it may fall below the 20-day moving average. The revival of prices in this area will indicate that the sentiment in the market is bullish. However, breaking the 20-day moving average will indicate that the price acceleration has weakened in the short term, and we will most likely see a fall to the simple 50-day moving average at $ 35.
In the 4-hour chart, the price has broken the $ 46 to $ 50 range. This indicates that the first target in the upward trend will be $ 54. The 20-day moving average has a steep upward trend and the relative strength index is in the range above 67, which indicates more buyers control over the market.
However, if the price falls to below $ 50, it indicates that the market is not ready to reach higher levels. This may lower the price to a simple moving average of 50 periods. A fall below this level would indicate that sellers have the upper hand in the market.