Bitcoin (BTC) had a good week with prices rising about 10% to reach the psychologically important level of $30,000. After the rally, the question troubling investors is whether the uptrend will continue or is time for a reversal to happen.
Trading team Stockmoney Lizards recently said that Bitcoin may soon break above its overhead resistance and start a sharp rally. They believe the approval for the exchange-traded fund will drive mass adoption and trigger the rally before the halving due in April 2024.
A positive development this week was that Bitcoin’s strength rubbed off to several altcoins, which surged above their respective overhead resistance levels. This suggests that the sentiment is gradually turning positive and that it may be time to consider buying selectively.
Typically, the coins that lead the markets higher are the ones that tend to do well. Laggards are generally the last to perform, hence could be avoided initially.
Let’s look at the charts of the top-5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin is witnessing a tough battle between the bulls and the bears near the $30,000 mark, but a positive sign is that the buyers have not given up much ground.
A consolidation near the current level suggests that the bulls are in no hurry to book profits as they anticipate another leg higher. That could catapult the price to the overhead resistance zone between $31,000 and $32,400.
Contrarily, if the price turns down from $31,000, the BTC/USDT pair could drop to the 20-day exponential moving average ($28,160). If the price snaps back from this level, the bulls will again try to clear the overhead hurdle.
The positive sentiment will be negated on a break below the 20-day EMA. That could keep the pair stuck inside the $31,000 to $24,800 range for some more time.
The pair is in an uptrend as seen on the 4-hour chart. Normally, during an ascent, traders buy the dip to the 20-EMA. If that happens, it will signal that the sentiment remains bullish and every minor dip is being purchased. The pair may then continue its journey toward $32,400.
Conversely, if the price skids below the 20-EMA, it will indicate that the traders may be closing their positions in a hurry. That could open the gates for a further decline to the important support at $28,143.
Solana price analysis
Solana (SOL) broke out…