Altcoins Price AnalysisBitcoin Price Analysis

Five digital currencies that traders should monitor this week


A stabilization of the bitcoin price near $ 50,000 could draw more buyers to the currency markets such as Cardano, Luna, Wei Chin and Tzos.

to the Report Three days ago, Federal Reserve Chairman Jerome Powell announced that the US Federal Reserve would cut its $ 120 billion monthly bond purchases by the end of 2021. He went on to say that interest rate hikes will continue until the labor market and inflation can successfully pass the tests ahead.

After Powell’s speech, the dollar index fell and the S & P500 index reached a new high. The price of bitcoin rose to about $ 1,500 within an hour of Powell’s remarks. This shows that the subscribers of different markets consider Powell’s words to be somewhat exaggerated.

Bitcoin’s uncertainty of nearly $ 50,000 has led analysts to differ and somewhat contradictory views in the short term. Market trader Ryan Clark believes that the current Bitcoin price stabilization phase is similar to December 2020, when the Bitcoin price was around $ 24,000. Clark is talking about the possibility of price correction and reaching between $ 39,000 and $ 42,000 by September.

Bitcoin (BTC)

Bitcoin rebounded on Friday from the 20-day moving average (EMA20) at $ 46,823, but buyers failed to push the resistance above the $ 50,000 to $ 50,500 resistance area. This indicates that the sellers have not yet surrendered.

Bitcoin price chart
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If the price falls below current levels and falls below the 20-day moving average, it indicates that short-term traders are looking to withdraw their profits from the market. This could reduce the price to $ 43,927. After this area, bitcoin may reach $ 42,451.

If the price recovers from this area, you may see a stabilization between $ 42,451 and $ 50,500 in the next few days.

In addition, if the price of Bitcoin recovers from current levels or the 20-day moving average, buyers will try to push the price to the upside. If they do, it will open the door to $ 60,000.

Bitcoin price chart
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In the 4-hour timeframe, moving averages have been smoothed out and the relative strength index (RSI) has reached the mid-range; This situation shows that transverse fluctuations can be expected in the short term. The price of bitcoin may be stuck for $ 46,200 to $ 49,500 for a while.

If buyers can push the price above $ 49,500, the next target will be the $ 50,500 resistance. Breaking this resistance could trigger another uptrend. A fall below $ 46,200, on the other hand, could lead to a drop to $ 44,000.

Cardano (ADA)

Cardano is currently hovering between $ 2.47 and $ 2.97. Saturday’s price reached $ 2.47; This level is where Cardano was previously revived. Friday’s price reversal shows that buyers have turned this level into support.

Cardano price chart
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The stabilization of the price within the historical peak is a positive sign and shows that traders are buying on the floor. Both moving averages have an uptrend, and the relative strength index is close to the buy saturation range; This is the easiest way to climb Cardano.

If buyers push the price above the $ 3 resistance level, Cardano can continue its uptrend. The next target in this process will be $ 3.5.

On the other hand, if the price falls from $ 2.97 to $ 3, it is likely that we will see cross fluctuations in the next few days. A break of support and closing below $ 2.47 indicates that the uptrend has weakened.

Cardano price chart
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In the 4-hour timeframe, the relative strength index recorded a negative divergence, indicating that we may see a slowdown in price acceleration in the future. If traders bring the price below the simple 50-day moving average (SMA50), it is likely to fall to $ 2.47.

A strong price recovery in this area may cause multi-day cross-fluctuations between $ 2.47 and $ 2.97. Sellers will try to lower the price below $ 2.47 and $ 2.31 in order to gain the upper hand in the market. On the other hand, if buyers can stabilize the price above 2.97, we can hope for a resumption of the uptrend.

Luna (LUNA)

The price of Luna, the protocol protocol token, is experiencing a strong uptrend. After a few days of price stabilization, the digital currency began to recover on Friday from a 20-day moving average at $ 26.42, indicating that the sentiment in the market is bullish.

Luna Price Chart
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Moving averages have an upward slope and the relative strength index is in the buy saturation range, indicating that the buyer is above it. $ 43 is the first target for buyers. If you pass this level, the next goal will be $ 50.

Kendall’s loud cheers yesterday show that the vendors are strongly defending the resistance ahead. If sellers lower the price below $ 32, it is likely to fall to the 20-day moving average.

This moving average is an important level for buyers. A strong price recovery from this level will indicate that the uptrend has remained unchanged. On the other hand, a break below the 20-day moving average indicates that the uptrend has weakened.

Volona price chart
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In the 4-hour time frame, we see the formation of a triangle pattern, which indicates an increase in fluctuations. Previous buyers had managed to push the price above the triangle but failed to stabilize it. This shows that the sales pressure is high at high levels.

If the price recovers from the 20-period moving average, buyers will once again try to cross the resistance barrier. If buyers succeed in stabilizing the high price of the triangle, it can be considered a sign of the continuation of the downtrend. The purpose of this template is $ 46.95.

On the other hand, if the price falls below the moving averages, it is likely to fall to the triangle support line. The break in this support indicates that sellers have outperformed buyers. In that case, the price of Luna may fall to the support area of ​​$ 22.4 to $ 20.81.

Wei China (VET)

The digital currency has become a flagship pattern after China’s wide price revival from $ 0.05 last month. If the price falls below this pattern, the flag will be completed.

Wei China price chart
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The 20-day moving average is flat at $ 0.11 and the relative strength index is close to the midpoint, indicating a balance between supply and demand. The break of the price and its closing above the resistance line of the flag indicates that the upward movement will continue.

The first price target in the uptrend will be $ 0.16, and if this resistance is broken, it is likely that China will increase its price to $ 0.19.

On the other hand, if the price falls below the support of the flag, the uptrend scenario will be nullified. In that case, it is likely to fall below the simple 50-day moving average at $ 0.09.

Wei China price chart
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In the 4-hour timeframe, we see the price get caught between a triangle. Both moving averages are smoothed out and the relative strength index is below the mid-range. Looking at the situation of these indicators, it is not possible to determine the direction of market movement.

Price recovery from the support line is facing heavy resistance in the simple moving average of 50 periods. If the price falls below the current level, sellers will seek to pull China below the support line. Their success increases the probability of reaching 0.082.

On the other hand, if buyers can push the price above the simple 50-day moving average, he could see his chances of reaching the resistance line again. The breaking and closing of the high price of this resistance will indicate the continuation of the upward trend.

Tezos (XTZ)

Tezos recently recorded a round floor pattern. This pattern was created after the price closed above the resistance of $ 4.47. The goal of this pattern is to reach the price of $ 6.58.

Thesis price chart
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Generally, after a jump, the price of an asset tends to return to the level from which it began to jump. In this case, Tezos is likely to fall to $ 4.47. If buyers can turn this range into support, we can expect a new uptrend. The 20-day moving average is upwards at $ 4.25 and the relative strength index is in the saturation range; This means that the upper hand is at the disposal of the buyers.

On the other hand, if the price of Tezos falls below the current level and falls below the 20-day moving average, it will indicate that demand is lower than supply. In this case, aggressive buyers are likely to fall into the trap of cattle. Getting caught in this trap may lead to a drop in price to a simple 50-day moving average at 3.31.

Thesis price chart
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In the 4-hour timeframe, after rising as the price accelerated, Tezos reached a high of $ 4.47 resistance. Both moving averages have an upward slope, and the relative strength index is near the buying saturation zone, which indicates the higher hand of buyers in the market.

The price is likely to reach the resistance range between $ 6.31 and $ 6.5. In this range, sellers have formed a heavy resistance. Breaking and closing the low price of the 20-day moving average will be the first sign of a weakening uptrend. In this case, the way may open for a further fall to $ 4.47.

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