Bitcoin (BTC) made a new 52-week high on June 23, indicating that bulls are on fire. Buyers have managed to hold onto a large part of the gains made during the week, signaling that they are in no hurry to book profits. Bitcoin climbed 16% this week, outperforming the S&P 500 Index, which fell 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 dropped sharply in the past 30 days and hit a new low of 12.6%.
A similar dip in Ether exchange balances happened in November 2022, which was followed by a sharp rally of 33%. Although a rally is possible, traders need to be cautious because the fall in exchange balances this time may have been triggered by the U.S. Securities and Exchange Commission’s actions against Binance and Coinbase.
The crypto recovery is not limited to Bitcoin and Ether. Several altcoins have risen sharply from their respective lows, indicating solid buying at lower levels. This implies that the bearish sentiment may be waning.
Could the return of the buyers start a new bull move in cryptocurrencies, or will higher levels attract selling by 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 suggests that the bears are protecting this level, but the bulls have not given up. Usually, a tight consolidation near a major resistance level tends to resolve to the upside.
The upsloping 20-day exponential moving average ($28,085) and the RSI in the overbought area indicate advantage to the bulls. If buyers kick and sustain the price above $31,000, the BTC/USDT pair could start the next leg of the up-move. There is a resistance at $32,400, but that is likely to be crossed. The pair may then skyrocket toward $40,000.
The first sign of weakness will be a break and close below $29,500. If that happens, the pair may slide to the 20-day EMA. This remains the key level to keep an eye on because if it gives way, the pair may drop to the 50-day simple moving average ($27,199).
The pair is stuck between the 20-day EMA and $31,000, but this tight-range trading is unlikely to continue for long. A range break above the $31,000-to-$31,500 zone could start the next leg of the uptrend.
Conversely, if the…
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