Tuesday, 30 May 2023

Crypto News

Just Bitcoin or diversify? 5 cryptocurrencies to watch in the next few days

Just Bitcoin or diversify? 5 cryptocurrencies to watch in the next few days

Risky assets marginally extend their up-move in April. The S&P 500 Index rose around 1.5% in April while Bitcoin (BTC) is on track to end the month with gains of more than 4%. Could the rally continue in May or is it time for a pullback?

The recovery could face headwinds if the United States banking woes escalate further. JPMorgan Asset Management chief investment officer Bob Michele said in an interview with Bloomberg that the turmoil at First Republic Bank is unlikely to be limited to the bank only, and could cause a domino effect.

Crypto market data daily view. Source: Coin360

If that happens, then the U.S. equity markets may witness a correction. However, it is difficult to predict how Bitcoin will react to such a crisis because, in the past few days, BTC price rose while legacy banking troubles deepened. But in case of a major upheaval in the U.S. banking sector, it is possible that Bitcoin will also face a correction sooner or later.

In the near term, Bitcoin and select altcoins are showing strength. Let’s study the charts of five cryptocurrencies that may outperform over the next few days.

Bitcoin price analysis

After two days of low volatile trading in Bitcoin, the bulls are trying to assert their supremacy on April 30.

BTC/USDT daily chart. Source: TradingView

The 20-day exponential moving average ($28,783) has started to turn up gradually and the relative strength index (RSI) is in the positive zone, indicating that the path of least resistance is to the upside.

If bulls kick Bitcoin’s price above $30,000, the BTC/USDT pair may climb to the overhead resistance zone of $31,000 to $32,400. Buyers may face formidable resistance at this zone but if it is crossed, the pair can soar toward $40,000.

The 50-day simple moving average ($28,026) is the important support to keep an eye on. If BTC price collapses below this level, the bears will sense an opportunity and try to sink the pair to $25,250.

BTC/USDT 4-hour chart. Source: TradingView

The bears tried to yank the pair below the 20-EMA but the bulls held their ground. This may have attracted further buying and the bulls will next try to drive the price above $30,000. If they succeed, Bitcoin can rise to $30,500, or even $31,000.

Conversely, if the price turns down and breaks below the 20-EMA, it will suggest that bears are selling near overhead resistance levels. The pair may then slip to the 50-SMA.

The bulls will try to protect this level but if bears overpower them, the next stop is likely to be $27,000….

Click Here to Read the Full Original Article at Cointelegraph.com News…