The price of bitcoin is facing considerable selling pressure. However, the price situation of some Altcoins such as Ripple, Polkadot, Stellar and Solana is such that there is a possibility of resuming their upward trend.
to the the report Coin Telegraph, the price of Bitcoin has been trying to cross the $ 50,000 mark for some time. This may have led to increased sales by investors to invest in the Altcoins market. Glassnode data show that the addresses of whales with more than 1,000 bitcoins have risen from 2,100 in February to 2,500.
If coarse-grained investors continue to sell their currencies, bitcoin is likely to undergo a more severe reform, and this will continue until institutional investors enter lower levels and start buying. Micro Strategy announced last week that it had bought another 271 units of bitcoin. Meanwhile, other institutional investors have taken the opposite approach and are waiting to see what the market will look like.
Amirta Ahuja, Square’s chief financial officer, said in a recent interview with Financial NewsSquare that her company has no plans to add bitcoins to its previous stocks at this time. According to Ahoja, Square bought about 8,027 bitcoins in October 2020 and November 2021.
If other institutions are thinking of moving away from bitcoin, it is likely that we will see a deepening price correction. Tom Lee, a senior executive at Funstrat, believes that Bitcoin’s uptrend continues to hold its own. Lee predicts that the price of bitcoin will reach $ 100,000 to $ 125,000 by the end of 2021.
Here are five digital currencies to look out for this week.
Buyers were once again buying at the neckline of the head and shoulders pattern, but Kendall’s high spirits indicate that investors at higher levels are withdrawing their profits. Market sentiment is such that investors are now selling in leaps and bounds instead of buying on the floor.
If the sellers manage to reduce the price and stabilize it below the neckline, the head and shoulders pattern will be complete. In this case, the target price will be $ 31,653. The downside slope of the 20-day moving average (EMA20) at $ 53,297 and the relative strength index (RSI) below 36 also indicate that sellers have the upper hand in the market.
However, buyers do not seem to give up. Buyers are trying to control price correction in the $ 43,000 to $ 40,000 support areas. If this attempt fails, there is a possibility of a more severe fall.
On the other hand, if the price starts to rise from the current area and reaches above $ 51,550, we may see a jump to the 20-day moving average. The price increase and closing above the $ 60,000 resistance will indicate that buyers are back in the game.
The price recovery started from 46,435 and continued until reaching the 20-day moving average. This means that market sentiment is negative and traders are trading in jumps at the 20-day moving average. Sales pressure will increase if sellers lower the price below the neckline.
However, if buyers defend the neckline again, the price of Bitcoin may rise to the 20-day moving average. In this case, the price rally will increase to $ 51,538; An area that faces tough resistance.
If the price of this resistance starts to decline, it is likely to stabilize between $ 46,000 to $ 51,500 in the next few days.
Ripple prices are currently fluctuating in a symmetrical triangle pattern; This pattern is mainly a pattern of continuity. If buyers can push the price above the triangle resistance line, Ripple could touch $ 1.96 again. This is the peak price of Ripple 52 weeks.
A jump above $ 1.96 could set the stage for another jump to $ 2.68. The relative strength index is reaching the positive zone, but the 20-day moving average at $ 1.43 has not yet risen; This means that sellers are more likely to defend the resistance line with force.
If the ripple price falls below the resistance line, we may see fluctuations in a constant range for several days. If sellers lower prices and stabilize below the triangle pattern, they are likely to fall further and reach $ 0.88.
In the 4-hour timeframe, prices have fallen to moving averages. If the Ripple price starts a strong recovery from this level, it will indicate a buy on the floor. Buyers then try to fix the price above the triangle pattern.
If traders lower the price below the moving averages and stabilize it, we may see a drop to $ 1.35 and then to the triangle pattern support line. Breaking this line can make sellers more powerful than buyers.
The price of Polkadot on Friday managed to close above this level by crossing the $ 44 resistance. Buyers managed to keep the price of Pulcadat up to $ 49.78 on Saturday, but higher levels remained out of reach. Traders’ withdrawals pushed prices down below $ 44.
If buyers show a lot of weakness in front of sellers, this issue will indicate a buy on the floor. It is possible that Polkadot will once again try to break the $ 50 psychological resistance.
In that case, the price of Polkadot could set the stage for $ 63.68. The upward slope of the 20-day moving average at $ 39.54 and the relative strength index in the positive range indicate that climbing is the easiest option for Polkadot.
On the other hand, if the price stabilizes below 44, the price of Polkadot may fall to the level of moving averages. Breaking this support may also lower the price to $ 32.5.
The 4-hour timeframe shows that sellers have lowered prices to the 20-day moving average, but buyers are still looking to regain that support. In order for the upper hand to be given to the buyers again, they have to increase the price up to $ 47. If successful, trying to win $ 50 is likely.
On the other hand, if the price does not rise above the 20-day moving average, it will indicate that there is not much support from buyers. In this case, the price may fall to the simple moving average of 50 cycles (SMA50). The moving average has 20 periods of direct satiety and the relative strength index is close to area 50, which indicates the balance between supply and demand.
Stellar Price is trying to start a new uptrend. Buyers traded lower at $ 0.61 on the 20-day moving average, raising the price to $ 0.79, the highest level in 52 weeks. However, Kendall’s loud cheers indicate a profit from traders.
If buyers fix the price above $ 0.73, the Stellar price can rise to $ 0.85 and then reach $ 1. The upward slope of the moving averages and the relative strength index in the range of 63 indicate that buyers have a higher hand in the market.
On the other hand, if the price stays below $ 0.73, it is likely to decline to the 20-day moving average. A strong price recovery from this support could indicate that market sentiment is still rising. In this case, buyers will try again to continue the uptrend.
This uptrend will be nullified if the price breaks the 20-day moving average. In this case, traders close their positions quickly and do not buy until the price reaches the floor. This could lower Stellar’s price to a 50-day moving average at $ 0.53.
In the 4-hour timeframe, we see the formation of an inverted head and shoulder pattern. This uptrend indicates the $ 0.9 target. The upward slope of the 20-day moving average and the relative strength index in the positive range indicate that buyers have more power in the market.
During strong uptrends, corrections are usually minor; For this reason, the current correction is likely to be supported at $ 0.72. A strong price recovery in this range could increase the likelihood that the uptrend will continue.
If the price falls and stabilizes below the neckline, the above analysis will be invalid. In this case, the trap may catch buyers and we will see the liquidation of shopping opportunities. After that, the price of Stellar may go down to $ 0.55.
The price of Solana has been fluctuating between $ 40 and $ 49.99 in recent days. A small period of stabilization indicates that traders are not in a hurry to withdraw their profits and is considered a positive sign.
The 20-day moving average averaged $ 42.86 and the relative strength index was above 65, indicating Solana’s low challenge.
If buyers push the price above the psychological level of $ 50, Solana may continue its upward trend. The next target will be $ 60, after which you can expect $ 69.
On the other hand, if the price fails to stabilize above $ 50, we may once again enter the stabilization range for a few more days. This uptrend will be overturned if the price of Solana falls below $ 40.
The 4-hour timeframe indicates that buyers have raised prices to a high of $ 52.60, but Kendall’s high joy indicates a higher profit. After that, the price of Solana fell below $ 50 and is likely to be supported at $ 46.
A price recovery from this level may indicate that buyers are entering the market at a lower price. Buyers will then try to continue the uptrend. The moving average of 20 periods is increasing and the relative strength index is near the buy saturation range, which indicates the superiority of buyers.
On the other hand, if sellers lower the price below $ 46, they are likely to fall to the 20-day moving average. In this case, it can be said that there will be a strong selling pressure above $ 50, which may cause fluctuations in a constant range in the next few days.