Top 5 cryptocurrencies this week: Bitcoin (BTC), Shiba Inu (SHIB), Polygon (MATIC), Cosmos (ATOM), ApeCoin (APE)

The bears are attempting to sink Bitcoin (BTC) below $19,000 to further extend their lead in the crypto market. Analysts are watching Bitcoin’s MVRV-Z Score, which measures how high or low Bitcoin’s price is relative to “fair value,” and expect it to drop even further before bottoming.

However, economist, trader and entrepreneur Alex Krueger pointed out that Bitcoin volume hit an all-time high in June. Usually, the highest volume in a downtrend is a sign of capitulation, and that “creates significant bottoms.” If Bitcoin performs like it did in the 2018 bear market, Krueger expects it to bottom in July.

Crypto market data, daily overview. Source: Coin360

With Bitcoin and the S&P 500 highly correlated, crypto traders will need to keep a close eye on how US stock markets will perform over the next week. These will be influenced by the details of the last Federal Reserve meeting and the June jobs report.

Could Bitcoin Form a Higher Low and Crypto Markets Lead to a Recovery Any Signs? To do this, let’s look at the top 5 cryptocurrencies that are legalizing a possible recovery rally in the near term.

BTC/USDT

The long wick on the July 1 bitcoin candle shows that the bears continue to sell on rallies near the 20-day EMA at $21,396. Although the bears sank the price below $19,637, they failed to extend this momentum any further.

BTC/USDT daily chart. Source: TradingView

The bulls are attempting a surge above $19,637. If they succeed, BTC/USDT could rally back towards the 20-day EMA. A breakout and close above $22,000 would signal a possible trend reversal. The pair could then scale the 50-day SMA at $25,938.

However, if the price turns down from the current level, it will indicate that the bears remain in control. The sellers will then try to sink the price below $18,626. If they succeed, the pair could slide to the $17,960-$17,622 support zone.

The bulls need to defend this zone, otherwise the next phase of the downtrend could begin. The pair could then slide to $15,000.

BTC/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows the bears aggressively defending the 20-day EMA. The moving averages are sloping down and the RSI is in the negative territory, which suggests that the bears are prevailing. A break below $18,626 could further strengthen the bears.

This bearish scenario will be invalidated if the bulls can scale the price above the 20-day EMA. The pair could then scale the 50-day SMA, which the bears are likely to defend strongly. If the price scales above this resistance, the pair could climb towards $21,000 to $22,000 thereafter.

SHIB/USDT

Shiba Inu (SHIB) is range-bound near the moving averages. The bulls, meanwhile, are attempting a higher low at 0.000009. A long span is usually followed by a violent breakout.

SHIB/USDT daily chart. Source: TradingView

If the price breaks out of the 50-day SMA at $0.000010, SHIB/USDT could gather momentum and rally to $0.000012 and then towards $0.000014. A breakout and close above this level could indicate a change in trend.

On the other hand, if the price drops below $0.000009, it could be a trap for the bulls. This could allow a retest of $0.000007. A break below this key support could signal that the downtrend will resume.

SHIB/USDT 4 hour chart. Source: TradingView

The 4-hour chart is showing a symmetrical triangle pattern forming. The pair is stuck between the 20-day EMA and the triangle support line. If the bears sink and sustain the price below the support line, the pair could drop to $0.000009. A dip below this support could indicate that the bears are back in control.

However, if the bulls push the price above the 20-day EMA, the pair could scale the triangle resistance. If they break that, the pair could rally to $0.000011 and then $0.000012.

MATIC/USDT

Polygon (MATIC) turned down from the support at $0.61 on June 26 and the bears managed to sink the price below the 20-day EMA at $0.50 on June 28. On the positive side, the bulls have not allowed the bears to extend their advantage.

MATIC/USDT daily chart. Source: TradingView

Since then, MATIC/USDT has been trading around the 20-day EMA. This indicates that the bulls are attempting to push the price back above this level. If successful, the pair could make another attempt to climb to $0.61.

The RSI is showing positive divergence, which suggests that the bears might lose their grip. A breakout of $0.61 could trigger a rally to $0.75.

However, if the price turns down from current levels and falls below $0.41, it would signal that the recent bounce was a bear market rally. The sellers will then attempt to sink the price back below the key support at $0.31.

MATIC/USDT 4 hour chart. Source: TradingView

The buyers pushed the price above the downtrend line and the 20-day EMA but failed to scale above the psychological $0.50 level. The bears then drove the price back down to $0.45. If this support gives way, a retest of the $0.41 level is likely.

However, if the price recovers from the current levels, it will indicate that the bulls are buying on the dips. The bulls will then make another attempt to scale above the $0.50 resistance. If they succeed, it could lead to a rally to $0.55 and then $0.61.

ATOM/USDT

Cosmos (ATOM) is attempting to bottom after a prolonged downtrend. Buyers pushed the price above the 20-day EMA at $7.84 on July 1, but the 50-day SMA at $8.81 is likely to prove a stiff resistance.

ATOM/USDT daily chart. Source: TradingView

The 20-day EMA has flattened out and the RSI is close to the midpoint, suggesting that selling pressure is gradually easing. If the buyers can scale the price above the 50-day SMA, the bullish momentum could strengthen and ATOM/USDT could rally to $10.84 and then $12.50. A breakout and close above this level could indicate a change in trend.

This bullish scenario will be invalidated if the price turns down from current levels and falls below $6.89. If that happens, the pair could retest the key resistance at $5.55.

ATOM/USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the bulls are attempting to make the 50-SMA for support. If the price rises from the current levels and breaks above $8.38, the bulls could challenge the resistance at $8.75. A breakout above this level could signal that the rise continues. The pair could then advance to $9.

However, if the price turns down and breaks below the moving averages, it will indicate that the bears will continue to sell at the higher levels. The pair could then slide towards $7.18 and then down to $6.89.

APE/USDT

Buyers managed to push ApeCoin (APE) above the 20-day EMA at $4.69 on June 27 but failed to extend the recovery. The bears sink the price back below the 20-day EMA on June 29. On the positive side, the bulls haven’t allowed too much of a decline.

APE/USDT daily chart. Source: TradingView

This suggests that buyers are not exiting their positions as they anticipate a rally higher. The 20-day EMA is gradually flattening out and the RSI is just below the middle. This suggests that selling pressure is easing.

If the buyers can scale the price above the 20-day EMA, the advantage could turn in their favor. APE/USDT could then rally to the 50-day SMA at $5.72 where the bears are likely to offer stiff resistance.

However, if the price turns down from the current levels and falls below $4.21, the decline could extend to $3.85.

APE/USDT 4 hour chart. Source: TradingView

There is a symmetrical triangle formation on the 4-hour chart, which indicates indecisiveness on the part of both buyers and sellers. The two moving averages are flat and the RSI is roughly in the middle, which indicates an equilibrium between bulls and bears.

If the price falls below the triangle, it will indicate that the bears remain in control. The pair could then drop as low as $3.78.

However, if the price rises from the current levels and breaks out of the triangle, it would give the bulls an advantage. The pair could then move up to $5.38 and a $5.57

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade involves risk and you should do your research before making a decision.

#Top #cryptocurrencies #week #Bitcoin #BTC #Shiba #Inu #SHIB #Polygon #MATIC #Cosmos #ATOM #ApeCoin #APE

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