Although the Bitcoin (BTC) halving generated a lot of interest proceeding the event, it has failed to kickstart a trending move after completion of the event. This suggests in hindsight that the event was priced in.
However, the top-ranked cryptocurrency on CoinMarketCap has not given up much ground following the event, which suggests that traders who purchased before halving are confident that the path of least resistance is to the upside.
Crypto market data daily view. Source: Coin360
While Bitcoin has been consolidating in the past few days, the action has shifted to altcoins whose market capitalization has risen from about $77 billion on May 11 to $94 billion at press time.
Investors are now wondering if altcoins can continue their strong run while Bitcoin takes a breather, or will the action again shift back to Bitcoin?
Let’s find out by analyzing the charts to see which major cryptocurrencies could offer trading opportunities in the next few days.
BTC/USD
Bitcoin (BTC) has formed a symmetrical triangle pattern, which suggests that the bulls and the bears are digesting the sharp rally from the lows. With three touches on the resistance line of the triangle and two touches on the support line (marked via ellipses on the chart), the formation is complete.
BTC-USD daily chart. Source: Tradingview
If the bulls can propel the BTC/USD pair above the triangle, the next leg of the uptrend is likely to continue. Although the pattern target of this setup is $11,778, the bears are likely to defend the $10,500 levels aggressively.
However, if the bulls can push the price above $10,500, it will complete the breakout of a large symmetrical triangle. This move could signal the possible start of a new long-term uptrend.
The bullish view will be invalidated if the price turns down from the current levels or from $10,000 and breaks below the support line of the symmetrical triangle. A break below $8,130.58 could signal the start of a possible downtrend.
BTC-USD 4-hour chart. Source: Tradingview
The 4-hour chart shows that the bears are aggressively defending the resistance line of the symmetrical triangle. They have been mounting a stiff resistance in the $9,800-$10,000 zone.
However, if the pair turns around from the current levels or from $9,400, another attempt to breakout of the triangle is likely. The traders can wait for the price to close (UTC time) above the triangle before buying.
The stop-loss for the trade can be kept at $9,400 because if the bears drag the price back into the triangle, it will suggest that the breakout was a bear trap.
If the pair breaks below $9,400, a drop to the support line of the triangle is likely. A strong bounce off this level could also offer a buying opportunity.
BNB/USD
Binance Coin (BNB) has reached the overhead resistance at $18.1377, which is acting as a stiff resistance. However, if the bulls can push the price above the resistance, a rally to $21.7628 is possible.
BNB-USD daily chart. Source: Tradingview
Both moving averages have started to turn up and the relative strength index is in the positive territory, which suggests that bulls have the upper hand.
Even if the 8th-ranked cryptocurrency on CoinMarketCap turns down from the current levels, it is likely to find support at the trendline. A bounce off the trendline will increase the possibility of a break above $18.1377 as it will suggest that the bulls are buying the dips aggressively.
This bullish view will be invalidated if the bears sink the price below the trendline. Below this support, a drop to $15.7218 and then to $14 is likely. The bulls are likely to defend $14 aggressively as it has not been broken since April 30.
BNB-USD 4-hour chart. Source: Tradingview
The bulls had pushed the price above the overhead resistance of $18.1377 but they could not sustain the breakout. This suggests that the bears are not willing to give up without a fight.
If the bears sink the BNB/USD pair below the 20-simple moving average, the short-term momentum will weaken.
On the other hand, if the pair bounces off the current levels, the bulls will make another attempt to scale the price above $18.1377. Traders can buy on a close (UTC time) above $18.1377 with a stop-loss below the 50-SMA. The stops can be trailed higher as the price moves northwards.
Another possible buying opportunity will open up after the price rebounds off the trendline support. The stop-loss for this trade can be kept just below the trendline.
XLM/USD
Stellar Lumens (XLM) resumed its uptrend after breaking out of the symmetrical triangle on May 30. Both moving averages have started to slope up and the RSI has risen above 60 levels, which suggests that bulls have the upper hand.
XLM-USD daily chart. Source: Tradingview
The bears might defend $0.076994 aggressively but if the bulls can push the price above this level, the uptrend is likely to pick up momentum. The target objective of a breakout of the triangle is $0.0875.
As the 12th-ranked cryptocurrency on CoinMarketCap had turned down from close to $0.088 levels on three previous occasions (marked as ellipses on the chart), this level is likely to again act as a major barrier.
This bullish view will be invalidated if the altcoin turns down from the current levels and breaks below the support line of the ascending channel. Below the channel, the trend could turn in favor of the bears.
XLM-USD 4-hour chart. Source: Tradingview
On the 4-hour chart, both moving averages are sloping up and the RSI is in the positive territory. This suggests that bulls are in command. A breakout of $0.076994 is likely to attract further buying.
Therefore, traders can buy on a breakout and close (UTC time) above $0.076994. The initial stop-loss for the trade can be kept at $0.070. The stops can be trailed higher as the price moves up.
However, if the bears can drag the price below the 10-exponential moving average, a drop to the 20-SMA is possible. If this support also gives way, a drop to the support line of the symmetrical triangle is possible.
XMR/USD
Monero (XMR) has reached the critical overhead resistance of $68.4175. The price had turned down from close to this level twice before, hence, this level is likely to act as a major barrier.
XMR-USD daily chart. Source: Tradingview
If the bulls can drive the price above $68.4175, the 16th-ranked cryptocurrency on CoinMarketCap is likely to pick up momentum and could rally to the next resistance at $86.2384.
Conversely, if the digital asset reverses direction from the current levels, a drop to the moving averages and below it to the trendline is possible. If the bulls buy the dip to the trendline aggressively, it will increase the possibility of a break above $68.4175.
However, if the bears sink the price below the trendline, a drop to $51-$54 zone is possible. Below this zone, a new downtrend is possible.
XMR-USD 4-hour chart. Source: Tradingview
Although bulls pushed the XMR/USD pair above $68.4175, they could not sustain the breakout. This suggests that bears are defending the resistance aggressively. However, the pair has held the 20-SMA, which suggests that the bulls are buying the dips.
Both moving averages are sloping up and the RSI is in the positive territory indicating that the bulls have the upper hand. Therefore, traders can buy on a breakout and close (UTC time) above $68.4175 with a stop-loss at $65.
The momentum will weaken if the pair breaks and sustains below the 20-SMA. A break below $65 can drag the pair to the trendline. A strong bounce off the trendline can also offer a buying opportunity.
TRX/USD
Tron (TRX) broke out of the critical overhead resistance of $0.0167242, which is a huge positive because between April 29-May 9 the bulls had repeatedly failed to do so.
TRX-USD daily chart. Source: Tradingview
If the bulls can sustain the 17th-ranked cryptocurrency on CoinMarketCap above $0.0167242, the momentum is likely to pick up. The first target to watch out for is $0.0183655 and then $0.0213539.
Conversely, if the bears sink and sustain the price below $0.0167242, a drop to the trendline is likely. A strong bounce off the trendline could lead to one more attempt by the bulls to resume the up move.
The trend will turn in favor of the bears on a break below the trendline. If this support gives way, a drop to $0.0128935 is possible.
TRX-USD 4-hour chart. Source: Tradingview
The 4-hour chart shows that the bulls propelled the price above the overhead resistance of $0.0167242 but the bears are not ready to give up without a fight.
Currently, the bears have dragged the TRX/USD pair back below the breakout level. If the price sustains below $0.0166, a drop to the moving averages is possible.
Both moving averages are sloping up and the RSI is close to the overbought zone, which suggests that bulls are in command. Therefore, the bulls are likely to buy the dip to the moving averages. Traders might consider buying at $0.0173 or purchasing on a rebound off the moving averages.
A break below the moving averages could result in a drop to the trendline which can also offer another buying opportunity. Long positions can be avoided on a break below the trendline.
Author: Rakesh Upadhyay
Read more at: https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-bnb-xlm-xmr-trx
