The next move of bitcoin will play a decisive role in the future direction of this digital currency. If buyers succeed in this move, one can expect a leap for other digital currencies such as Ethereum, Cardano, Solana and Theta.
When market sentiment is down, even the slightest negative news can cause traders to sell emotionally and prices fall further. This is exactly what happened after the restriction on the Chinese social network Weibo. Weibo recently announced that it has blocked several accounts related to digital currencies.
Goldman Sachs has previously announced that it will hold a roundtable discussion with 25 senior investment executives. According to the company, Bitcoin has been the least popular method of investing among these managers.
Although this news may have a negative effect on price in the short run, it does not seem to be effective in the long run of bitcoin. As prices fluctuate, institutional investors are likely to turn to bitcoin and fill their wallets to avoid rising inflation in the United States.
Meanwhile, traders are looking at lowering the current price of Bitcoin as a long-term buying opportunity.
The price of Bitcoin fell to $ 39,127 on Thursday from the 20-day moving average (EMA20). This fall was supported near the trend line of the triangle pattern. Price support indicates that buyers are buying at the bottom of the price and sellers are selling their currencies in rallies.
After the price leaves the triangle, we will probably see fluctuations in the direction of the next trend. If buyers are able to stabilize the price above the resistance line, there is a possibility of jumping to the simple 50-day moving average (SMA50) at $ 47,198. After this level, it is the turn of the pattern target at $ 52,622.
On the other hand, if the price falls below the trend line of the triangle, it will indicate that supply exceeds demand. This could lead to a drop in prices between $ 30,000 and $ 28,000.
If this area is broken, sales pressure can be expected to increase; This is because traders who have recently made a purchase are closing their positions in this area. This could lower the price to $ 20,000.
In the 4-hour timeframe, moving averages are smoothed out and the relative strength index (RSI) is in the range of 40 to 60. This shows that there is a balance between buyers and sellers.
However, this uncertainty in the price trend does not seem to last long. The triangle pattern is likely to break in the next few days. If this failure is upward and stabilizes in this area, it indicates the possibility of a price return pattern.
On the other hand, if the price breaks the triangle and stabilizes, it will indicate that the reduction in current fluctuations has been temporary and the downtrend is strong. Determining the direction of the triangle is difficult, so we have to wait and see what will happen to the price.
Ethereum fell below the $ 50,908 moving average on Friday and re-entered its symmetrical triangle pattern. However, in these fluctuations, they did not suffer such a severe defeat; This is evident in strong purchases at 2,550.
If buyers push the price above the resistance line, there is a possibility of trying again to cross the simple 50-day moving average. If the price jumps from this resistance and closes above it, the way will open for reaching Fibonacci 61.8% at $ 3,362.
On the other hand, if the price falls again below the simple 50-day moving average, it indicates that traders are strongly defending this resistance. Breaking below $ 2,550 could lower the triangle support line. Breaking this support is the first sign of bear control over the market.
In the 4-hour timeframe, we see the formation of an ascending triangle pattern that completes if the price closes above $ 2,906. In this case, there is a possibility of climbing to $ 3,600 and then to the target of $ 4,083, which is the target of the model.
If the price of Ethereum falls below the triangle trend line, this uptrend will be nullified. If this forecast is broken, we will probably see a fall to $ 2,200 and then to $ 1,728, which is a key support.
Cardano’s price has fluctuated between $ 1 and $ 1.94 over the past few days. The digital currency fell out of resistance on Friday as moving averages fell.
Buyers are currently trying to defend the area between the 20-day moving average at $ 1.66 and the 50-day moving average at $ 1.55. If the Cardano price recovers from this area, it will indicate that market sentiment is moving upwards and traders are buying at the price floor (at the level of moving averages).
Breaking the price above $ 1.94 will indicate that buyers have taken control of the market. If they maintain the price of this area, there is a possibility of re-testing the historical peak at $ 2.47. Breaking this resistance will prepare the ground for another uptrend.
If the Cardano price falls in this area and falls below the simple 50-day moving average, this uptrend will be invalidated. In this case, sellers will try to push the price to the support range of $ 1.22 to $ 1.33.
In the 4-hour timeframe, we see the formation of an ascending triangle pattern that completes if the price closes above $ 1.94. In this case, the target is $ 2.88. However, this leap does not seem to be direct and fast; Because we see high resistance on the chart in the $ 2.47 area.
The moving average of the last 20 periods has a downward slope and the relative strength index is slightly lower than the middle area. This situation indicates that there is a possibility of falling into the triangle trend line. Breaking below this support invalidates the uptrend and may lead to a fall to 1.36 and then to $ 1.
Sellers are trying to start a recovery rally in Fibonacci 61.8% at $ 43.38. Sellers failed to lower Solana’s price below the 20-day moving average at $ 36.39; This is a sign that the market is feeling positive.
On Friday, the Solana price rebounded from the 20-day moving average and jumped to $ 39.42 on the 50-day moving average. This shows that buyers do not wait for less floors to buy.
If buyers can raise the price to $ 43.28, it can be said that the downtrend is over. In this case, Cardano could rise to Fibonacci 78.6% at $ 49.97 and then to a historic high of 58.38. The 20-day moving average has an upward slope and the relative strength index is in the positive range, which indicates that the upper hand is in the hands of buyers.
If the price falls and falls below the trend line, this uptrend will be invalidated. In this case, it is likely to fall to $ 25.58 and then to $ 21.
In the 4-hour timeframe, the moving averages have an upward slope and the relative strength index is in the positive range, which indicates the comeback of buyers. If buyers can push the price above $ 43.38, Solana’s uptrend will accelerate.
On the other hand, if the price falls and exceeds the 20-period moving average, it will indicate an increase in supply over demand. This can lead to a fall to the simple moving average of 50 cycles and then to the trend line. Breaking the trend line indicates that sellers have regained control of the market.
Theta prices are currently fluctuating in a downtrend. Buyers tried to push the price above the channel resistance line on Friday and Saturday, but were unsuccessful. This shows that the sellers are strongly defending this resistance.
The 20-day moving average averaged $ 8.19 and the relative strength index was in the positive range. This indicates that buyers are slightly more powerful than sellers. If the theta price recovers from the 20-day moving average, buyers will once again try to break the downtrend.
If they succeed, it can be said that the downtrend is over. In this case, there is a possibility of starting the uptrend to $ 13 and then to the historic high of $ 15.88. In this uptrend, if the sellers lower the price to the 20-day moving average and stabilize below it, it will be void. This can lead to a reduction of up to $ 6.
In the 4-hour timeframe, we saw the price fall twice. However, sellers were unable to bring the price below the 20-day moving average and stabilize there; This means that there is demand at lower levels.
If the price recovers, buyers will try again to push the theta price to the top of the channel. If successful, the groundwork is laid for another uptrend.
On the other hand, if the price falls below the 20-day moving average, it is likely to fall to the 50-day moving average. Breaking this support could initiate a more drastic reform.