Bitcoin’s recent surge above $30,000 has sparked renewed interest among traders, potentially leading to increased buying activity in other cryptocurrencies such as Ether (ETH), Arbitrum (ARB), VeChain (VET), and Stacks (STX).
Bitcoin reached a new 52-week high on June 23, indicating a strong bullish trend.
Traders have held onto a significant portion of the gains made during the week, suggesting a reluctance to book profits.
With a 16% increase this week, Bitcoin has outperformed the S&P 500 Index, which experienced a 1.39% decline.
Ether, the second-largest cryptocurrency, is also displaying signs of a potential bullish move. Data from Glassnode reveals a sharp decline in Ether balances on exchanges over the past 30 days, hitting a new low of 12.6%.
A similar dip in Ether exchange balances occurred in November 2022, preceding a substantial rally of 33%.
However, caution is advised this time as the decline in exchange balances may be attributed to actions taken by the U.S. Securities and Exchange Commission against major platforms like Binance and Coinbase.
The cryptocurrency market’s recovery extends beyond Bitcoin and Ether, as several altcoins have experienced significant increases from their recent lows.
This suggests a reduction in bearish sentiment and a growing interest among buyers at lower price levels.
The question remains whether the return of buyers will initiate a new bullish phase in cryptocurrencies or if higher price levels will attract selling from bears.
To gain insights into potential short-term price movements, let’s analyze the charts of the top five cryptocurrencies.
Bitcoin:
Bitcoin has been trading near the $31,000 level for the past four days, indicating a strong defense by bears. However, the presence of bulls is evident, with the 20-day exponential moving average and the relative strength index (RSI) in the overbought zone, favoring the buyers.
If the price sustains above $31,000, the BTC/USDT pair could embark on its next upward move, surpassing the resistance at $32,400 and potentially soaring to $40,000.
Conversely, a break below $29,500 may lead to a slide towards the 20-day EMA, a critical support level, and further down to the 50-day simple moving average.
Ether:
Ether has faced selling pressure near the $1,928 level for three consecutive days, but the bulls have not relinquished their position. The moving averages are on the verge of a bullish crossover, and the RSI remains in positive territory, suggesting bullish control.
If buyers successfully overcome the $1,928 resistance, the ETH/USDT pair could surge towards the $2,148 to $2,200 range. However, a swift downturn below the moving averages could trigger selling from aggressive bulls, resulting in a correction towards strong support at $1,700.
Arbitrum:
Arbitrum witnessed a rally after surpassing the breakdown level of $1, indicating rejection of recent downside movement. Although the bears are attempting to hinder the recovery at the 50-day SMA, the bulls have successfully defended the 20-day EMA, setting the stage for a potential breakout.
A break above $1.18 could mark the beginning of a new upward trend, with targets at $1.28 and $1.54. On the contrary, a downturn below the $1 to $0.90 support zone may negate this bullish view.
VeChain:
VeChain experienced a reversal from the resistance line on June 23, but struggles to sustain prices below the 50-day SMA, indicating buying interest during dips.
Bulls will likely attempt to drive the price above the resistance line, signifying the end of the downtrend and a potential climb towards $0.026.
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