The White House and the House of Republicans reached a tentative agreement on May 27. Thus, the United States is trying to avoid a catastrophic debt default. US stock markets rose in anticipation of a deal on May 26, and the positive mood was also reflected in the crypto money sector, which was trying to recover. Purchases are not limited to Bitcoin, as certain altcoins are also showing signs of short-term bullishness. However, increasing the momentum of the uptrend may prove difficult for the bulls. In this article, we will quote analyst Rakesh Upadhyay’s comments on Bitcoin and various altcoin projects. Here are the details…
Before altcoin projects: What’s next for Bitcoin?
According to the analyst, first of all, after the debt ceiling agreement, investors are likely to focus their attention on the Fed’s rate hikes. The release of the Personal Consumption Expenditures data on May 26 increased the possibility of an interest rate hike by the Fed at its June meeting. According to the CME FedWatch tool, as we reported on Kriptokoin.com, the probability of a 25 basis point rate hike increased to 64% on May 28, from 17% a week ago.
Bitcoin has reached the overhead resistance zone between the 20-day exponential moving average ($27,146) and the support line of the symmetrical triangle. This region is likely to witness a solid fight between bulls and bears. If the price turns down from the upper zone, the bears will make another attempt to push the price towards the crucial support at $25,250. The bulls are expected to defend the $25,250-$24,000 zone with all their strength as a break below this zone could intensify the selling. The BTC/USDT pair could then drop as low as $20,000.
On the contrary, if the buyers overcome the overall hurdle and push the price back into the triangle, it will suggest strong buys on the dips. This increases the probability of a break above the resistance line of the triangle. The pair could rally as high as $31,000 later. The four-hour chart shows that the pair is trading inside a descending channel formation and the bears are trying to defend the resistance line. If the price drops from the current level but recovers from the 20-EMA, it will indicate that the dips are bought.
XRP price analysis: These levels are critical for the popular altcoin
Altcoin XRP has formed an inverted head and shoulders pattern that will conclude with a break and close above the neckline. The 20-day EMA ($0.45) is gradually rising and the RSI has bounced into the positive zone, indicating that the path of least resistance is to the upside. If the bulls propel and sustain the price above the neckline, the XRP/USDT pair could start a rally towards the overhead resistance zone of $0.54 to $0.58. The formation target of the bullish pattern is at $0.55. This positive view will be adversely affected in the near term if the price turns down from the neckline and falls below the 20-day EMA.
The pair could then decline to the key support near $0.40. The four-hour chart shows that the pair is witnessing a tough battle between the bulls and bears near the neckline. The rising 20-EMA and the RSI in the positive zone point to a minor advantage for buyers. If the price recovers from the 20-EMA, the probability of a move above $0.48 will increase. If this happens, the pair is likely to start an upward move. Alternatively, if the price drops and breaks below the moving averages, the short-term advantage will turn in favor of the bears. The pair could decline to $0.44 later.
Is the recovery starting for Arbitrum?
The bulls pushed the Arbitrum (ARB) above the 20-day EMA ($1.17) on May 28, signaling the start of a potential recovery. The bears are likely to pose a strong challenge at $1.20 but if the bulls break past this level, the ARB/USDT pair could gain momentum. There is minor resistance at the simple moving 50-day average ($1.29) but it is likely to be surpassed. The pair could then climb to $1.36 and then $1.50. If the bulls want to avoid the rally, they will need to quickly pull the price below the 20-day EMA. If they manage to do so, the pair could drop to $1.06 and then $1.01. This is an important zone for the bulls to defend because if it loses, the pair could witness a sharp drop to $0.73.
The four-hour chart shows that the bulls are pushing the price above the resistance line of the symmetrical triangle formation. The bears are trying to stop the upside at $1.20, but if the bulls do not allow the price to re-enter the triangle, an upside break will increase the chances. The target of the formation is at $1.43. On the contrary, if the price drops and returns to the triangle, it will indicate that the recent breakout could be a bull trap. The bears will then try to pull the price back towards the support line of the triangle.
EOS moves in certain price ranges
EOS has been oscillating between $0.78 and $1.34 for the past few months. Generally, in such a wide range, traders buy near support and sell near resistance. The EOS/USDT pair bounced off $0.81 on May 25 and broke above the 20-day EMA ($0.89) on May 28. This is the first indication that the range is intact. The bulls will try to push the price to the 50-day SMA ($1), where the bears will make a strong defense. If the next drop finds support at the 20-day EMA, it will indicate that the bulls are at their peak. The pair could rally to $1.11 later. The bears will have to push the price below the vital support at $0.78 to indicate the start of a downtrend.
An attempt to rally faces selling near the overhead resistance of $0.93 but the bulls didn’t leave much ground. The moving averages have completed a bullish crossover and the RSI is close to the overbought zone, suggesting that the bulls have the upper hand. If buyers push the price above $0.93, the pair could gain momentum and rally to the psychological level of $1 and then $1.11. This positive view could be invalidated in the near term if the price declines and dips below the moving averages.
Last coin on the list: AAVE
Aave is falling inside a descending channel pattern that often acts as a bullish pattern. The bulls, which have struggled near the 20-day EMA ($65.50) for the past few days, pushed the price above the resistance on May 27. This indicates the beginning of a possible relief rally. The AAVE/USDT pair could rise to the 50-day SMA ($70) first and then attempt a rally towards the resistance line. A break and close above this level could initiate a short-term upward move. Contrary to this assumption, if the price turns down from the current level and dips below the 20-day EMA, it will indicate that demand is drying up at higher levels. The next support on the downside is at $62.
The four-hour chart shows that an ascending triangle formation is forming with a break and close above $67.40. The pair could then start a bullish move towards the $74 formation target. Instead, if the price turns down from the current level, it will show that the bears are fiercely holding the $67.4 level. If the price dips below the moving averages, it will indicate that the pair may stay inside the triangle for a while. A break below the triangle will invalidate the positive setup and turn the advantage in favor of the bears.
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