Bitcoin (BTC) has been trading in a tight range for the past few days, but that hasn’t taken away the shine from a stunning 84% gain in 2023. A strong recovery in bitcoin prices has boosted buying in multiple altcoins that have risen sharply from yearly lows.
Starting in the second half of the year, the core question in every investor’s mind is: Will the rally continue? Since 2013, there have been only three negative monthly closes in July, with the most notable drop being 9.69% in 2014, according to CoinGlass data. This shows that the bulls have a slight advantage.
A big part of the latest rally in bitcoin and altcoins is the hope that the SEC will approve one or more applications for a spot bitcoin exchange-traded fund. Any bad news on this front could turn sentiment into a bearish one and lead to a sharp sell-off.
For now, however, Bitcoin and some altcoins are showing strength. Let’s analyze the charts of the top five cryptocurrencies that are likely to continue to rise in the coming days.
Bitcoin Price Analysis
Bitcoin (BTC) continues to trade near the overhead resistance of $31,000. This shows that the bulls are in no rush to take profits as they expect further gains.
Usually, tight consolidation near key overhead resistance levels eventually leads to the upside. The rising 20-day exponential moving average (EMA) ($29,278) and the relative strength index (RSI) in positive territory suggest the path of least resistance is to the upside.
If the bulls push and sustain the price above $31,000, the BTC/USDT pair could start the next phase of an uptrend. The bullish momentum could propel the price above the immediate resistance at $32,400. If this happens, the pair could continue north towards $40,000.
If the bears want to stage a comeback, they will have to sink and hold the price below the 20-day EMA. The pair could then slide towards the 50-day simple moving average (SMA) ($27,622).
Both moving averages have flattened out and the RSI is near the midpoint, suggesting a balance between supply and demand. The price has been hovering between $31,431 and $29,500 for some time now.
Buyers must push and sustain the price above the $31,431 mark to signal a resumption of upward momentum. Alternatively, a break and close below the $29,500 support could start a deeper correction towards $27,500.
Litecoin Price Analysis
On June 30, Litecoin (LTC) surged above the descending channel and the overhead resistance at $106, indicating that the uptrend has resumed.
The bears pulled the price back below the July 1 break above $106, but the bulls bought on dips. If the buyers sustain the price above $106, the chances of a continuation of the upside increase. The LTC/USDT pair could then surge towards the upper resistance zone between $134 and $144.
Contrary to this assumption, if the price slides down and sustains below $106, it will indicate that the bears are selling at higher levels. This could pull the price towards the psychological $100 level before breaking out of the channel.
The four-hour chart shows that the bears are attempting to defend the $112 level vigorously, but they are struggling to keep the price below $106. This shows that the bulls are buying at lower levels. The rising 20 EMA and RSI in overbought territory suggest that buyers have the upper hand.
If the price sustains above $112, the pair could start the next phase of an uptrend towards $126. The first support on the downside is the 20-day EMA and then at $98.
Monero Price Analysis
Monero (XMR) rallied and closed above the downtrend line on June 23, invalidating the developing descending triangle pattern.
The failure of a bearish pattern is usually a positive sign as it traps some aggressive shorts, leading to a short squeeze. This can be seen in the XMR/USDT currency pair, which surged from $150 on June 23 to $171 on June 27.
After a sharp rise, the price has been fluctuating between $171 and $160 for the past few days. A consolidation is a positive sign as it shows that the bulls are holding on to their positions as they anticipate further gains.
If the buyers push the price above $171, the pair could start the next leg up. The pair could then surge to $187. The bears must pull the price back below the 50-day moving average ($149) to seize control.
The four-hour chart shows the formation of a symmetrical triangle that often acts as a continuation pattern. If the buyers push the price higher and sustain it above the triangle, it will signal that the uncertainty between bulls and bears has been resolved in favor of buyers. This could signal a resumption of gains. The pattern target for this setup is $182.
This positive view will be invalidated in the short-term if the price turns lower and breaks below the triangle. The pair could then plummet to $148.
related: Why is Litecoin rising in price today?
AAVE price analysis
Aave (AAVE) has been trading within a descending channel pattern for the past few weeks. The price declined from the channel resistance line on June 25, but the bulls stopped the pullback at the 20-day EMA ($61.69).
This suggests a shift in sentiment from selling on rallies to buying on dips. The price hit the resistance line again. Repeated retests of a resistance level over a short period of time tend to weaken that resistance level.
The rising 20-day EMA and the RSI in positive territory suggest the path of least resistance is to the upside. If the buyers push and sustain the price above the channel, the AAVE/USDT pair could start a fresh up move towards $84.
The 20-day moving average is still an important support worthy of attention in the downward direction. A breakout and close below this level will indicate that the pair may spend more time inside the channel.
Both moving averages are sloping up on the four-hour chart, and the RSI is in positive territory, suggesting buyers are in control. If the bulls flip the downtrend line to support, the pair could rise to $76.
Alternatively, if the price declines and sustains below the downtrend line, it will indicate that bears are still active at higher levels. The pair may then drop to the moving averages. A break below the 50 SMA could lead to a drop to $62 and then to $58.
Manufacturer price analysis
Maker’s MKR (MKR) is trying to start rising. Bulls bought the moving averages on dips between June 24 and 28, indicating demand at lower levels.
The 20-day EMA ($725) has turned back up and the RSI is in overbought territory, suggesting that the bulls have the upper hand. On July 2, buyers pushed the price above the downtrend line, but the long shadows on the candlestick showed strong selling at higher levels.
A small positive in favor of buyers is that they hold their ground. This strengthens the prospect of a rally above the downtrend line. If this happens, the MKR/USDT pair could surge to $979. The first sign of weakness will be a break below $772. This could start a deeper correction to the 20-day EMA.
The pair settled above the downtrend line, but rallies faced selling at higher levels. The bears are trying to capture the aggressive bulls by pulling the price back below the downtrend line. If they do, the pair could drop to the 20 EMA. This remains a key level to watch, as a break below this level will tilt the advantage in favor of the bears.
Conversely, if the price rises from the current levels and breaks above $900, it will indicate that the bulls have flipped the downtrend line to support. This could start a rally towards $941.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
This article is for general information purposes only and is not intended and should not be construed as legal or investment advice. The views, ideas and opinions expressed here are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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