Bitcoin (BTC) made a new 52-week high on June 23, which indicates that the bulls are on fire. Buyers managed to hold onto a large part of the gains made during the week, indicating that they are in no rush to lock in profits. Bitcoin is up 16% this week, outperforming the S&P 500, which is down 1.39%.
Not only Bitcoin but even Ether (ETH) is showing signs of starting a bullish move. Glassnode data shows that ether balances on exchanges have dropped sharply in the past 30 days and recorded a new low of 12.6%.
A similar decline in Ether exchange balances occurred in November 2022, followed by a sharp rise of 33%. Although there is a possibility of a rally, traders need to be careful because the drop in exchange balances this time could be a result of the SEC’s actions against Binance and Coinbase.
Cryptocurrency recovery is not limited to Bitcoin and Ether. Many cryptocurrencies have rallied sharply from their lows, indicating strong buying on dips. This means that the downtrend may be waning.
Could the return of the buyers start a new bullish move in the cryptocurrency, or will the higher levels attract selling from the bears? Let’s study the charts of the top five cryptocurrencies that may rise in the short term.
Bitcoin price analysis
Bitcoin has been trading near the $31,000 level for the past four days. This indicates that the bears are protecting this level, but the bulls are not giving up. A tight consolidation near a major resistance level usually tends to the upside.
A bullish 20-day exponential moving average ($28,085) and an overbought RSI point to an advantage for the bulls. If buyers push the price above $31,000 and hold it, the BTC/USDT pair may start the next phase of the upward movement. There is resistance at $32,400, but it is likely to be crossed. After that, the pair may rise towards $40,000.
The first sign of weakness will be a break and close below $29,500. If this happens, the pair may slide to the 20-day moving average. This remains the key level to watch because if it gives way, the pair could drop to the 50-day Simple Moving Average ($27,199).
The pair is stuck between the 20-day moving average and $31,000, but this narrow range trading is unlikely to last for long. A range break above the $31,000-$31,500 area could start the next phase of the uptrend.
Conversely, if the price drops and sustains below the 20-day moving average, it could stop short-term traders. The pair could then drop to $29,500, where the bulls are expected to build up a strong defense. A break below this level could open the doors for a potential drop to the 50-day SMA.
Ether price analysis
Ether has been selling at $1928 for the past 3 days, but the bulls are unwilling to concede ground to the bears. This indicates that buyers expect the resistance to be broken.
The moving averages are about to cross upwards and the RSI is in positive territory, indicating that the bulls are in control. If the buyers overcome the barrier at $1,928, the ETH/USDT pair could rise to the upper region between $2,148 and $2,200.
If the bears want to prevent a rally, they will have to quickly pull the price below the moving averages. This could hit the bulls’ stops, correcting the strong $1,700 support.
The four-hour chart shows that the price is stuck within the range between $1936 and $1861. The bullish moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers push the price above the range, the pair could start its march to the psychological $2,000 level.
Alternatively, if the price declines and breaks below the $1,861 support, it will tilt the short-term advantage in favor of the bears. After that, the pair could drop to the 50-SMA and later to $1,750.
Decision price analysis
Arbitrum (ARB) rose above the $1 crash level on June 19 and followed that up sharply on June 20. This indicates a recent collapse rejection.
The bears are trying to stall the recovery at the 50-day SMA ($1.12), but a positive sign is that the bulls have successfully defended the 20-day SMA ($1.07). This narrow range trading is unlikely to last for long, and a breakout is expected soon.
A breach and close above $1.18 could signal the start of a new bullish move. ARB/USDT could rise first to $1.28, and subsequently to $1.54. This uptrend will be invalidated if the price declines and falls below the $1 to $0.90 support area.
The four-hour chart shows that the bulls are struggling to overcome the hurdle at $1.18. This indicates that the bears are active at higher levels. Sellers pulled the price below the 20-day moving average, but were unable to break the 50-day moving average.
The 20-day moving average is fading away and the RSI is nearing the halfway point, indicating a balance between buyers and sellers. If the bulls push the price above $1.18, it will signal the beginning of a strong recovery. Conversely, a break and close below the 50-day SMA could lead to a drop to $1.
Related: Bitcoin is seeing new all-time highs in 3 countries with BTC price reaching $31K
VeChain price analysis
VeChain (VET) turned lower from its resistance line on June 23, but the bears struggled to keep the price below the 50-day simple moving average ($0.018). This indicates that traders are buying on dips.
The bulls will again try to push the price above the resistance line. If they succeed, it will indicate that the downtrend is over. Then the VET/USDT pair could start its upward movement towards $0.026.
Contrary to this assumption, if the price falls again from the resistance line, it will indicate that the bears are still in control. They will then try to plunge the pair below the moving averages and challenge the support at $0.013.
The four-hour chart shows that the price reversed from a resistance line, but finds support at the 20-day moving average. This indicates that sentiment is turning positive and traders are looking at dips as a buying opportunity.
The bulls will again try to push the price above the resistance line. If they can do so, the pair could rise to $0.021. This level may again act as a hurdle but if it is crossed then the upward movement may begin. The first support on the downside is the 20 day EMA, and then the 50 day EMA.
Stacks price analysis
Stacks (STX) rose above its moving averages on June 20, indicating a possible change in trend. The corrective phase started on June 22, but the positive sign is that the price is still above the moving averages.
The moving averages have completed a bullish cross and the RSI is in positive territory, indicating that the bulls have the upper hand. If the price rises from the current level or bounces off the 20-day moving average ($0.65), it will suggest buying on dips. That will boost the odds of a breakout above $0.89.
If this happens, the STX/USDT pair could rise to $1.10, and after that, to $1.30. This positive outlook will be invalidated if the price turns lower and falls below the moving averages. Such a move would suggest that the bears are not giving up yet and will continue to sell on rallies.
The four-hour chart shows that the pair is in a corrective phase. The bears pulled the price below the 20-day EMA, but the bulls are defending the 50% Fibonacci retracement level at $0.71. Buyers will have to push the price above the downtrend line to open the doors for a potential rally to $0.88.
Alternatively, if the price falls from a downtrend line, it would indicate that the bears are trying to gain the upper hand. A break and close below the 61.8% retracement level at $0.67 might indicate that the bears are back in the game.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
This article is for general information purposes and is not intended and should not be considered legal or investment advice. The views, ideas and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.