Saturday, 3 June 2023

Crypto News

Bitcoin price holding $27K could open buying opportunities in BNB, ADA, XMR and TON

Bitcoin price holding $27K could open buying opportunities in BNB, ADA, XMR and TON

Bitcoin (BTC) is on target to finish the week with a sharp fall of around 9%. This suggests that some traders may be booking profits in fear of a resumption of the downtrend. Analysts expect Bitcoin to reach the $26,600 to $25,000 zone where buying interest may pick up.

When an asset emerges from a bear market, it tries to form higher lows on the way up. These levels act as strong supports during subsequent corrections. The current pullback could end up forming a higher floor for Bitcoin, which may act as a launch pad for the next rally.

Crypto market data daily view. Source: Coin360

If long-term investors believe that a bottom has been made, then panicking and selling on every corrective phase is not a good strategy. Rather, every dip could be an opportunity to build a portfolio.

The correction in Bitcoin has pulled several altcoins lower. Only a handful of major cryptocurrencies are holding out and looking strong on the charts. Let’s study the charts of five cryptocurrencies that may outperform on the way up.

Bitcoin price analysis

Buyers are trying to arrest Bitcoin’s correction at the 50-day simple moving average ($26,983) but the shallow bounce suggests that the bears are not willing to give up.

BTC/USDT daily chart. Source: TradingView

The 20-day exponential moving average ($28,606) has started to turn down and the relative strength index (RSI) is in the negative zone signaling that bears have a slight edge. The selling could pick up further if the 50-day SMA cracks.

The BTC/USDT pair could then tumble to the breakout level of $25,250. This is an important level to keep an eye on because if this support crumbles, the pair may plunge to $20,000.

Buyers will have to push and sustain the price above the 20-day EMA to signal a comeback. That could attract buying and push the price toward the $31,000 to $32,500 resistance zone.

BTC/USDT 4-hour chart. Source: TradingView

The pair bounced off $27,125 and reached the 20-EMA. This is the first hurdle that the bulls need to cross to start a strong recovery. The pair may then reach the 50-SMA where the bears will again try to mount a strong defense.

If the price turns down from the current level and slides below $27,125, it will suggest that the sentiment remains negative and traders are selling on every minor rally. That will increase the likelihood of a fall to $26,500 and eventually to $25,250.

BNB price analysis

BNB (BNB) is witnessing a tough battle between the bulls and the bears. Sellers are active above $338…

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