As we reported Kriptokoin.com, Bitcoin (BTC) is trying to form a higher level of $28,630 and if that happens, altcoins like Ethereum (ETH), Tezos (XTZ), KuCoin Token (KCS) and Aave (AAVE) projects may recover in the near term. So if Bitcoin starts a recovery in the short term, some altcoins are likely to follow the leading cryptocurrency higher.
Here are Bitcoin and 4 altcoins to watch that could lead a relief rally this week:
Bitcoin (BTC)
Bitcoin (BTC) stuck in a narrow range between the downtrend line and support at $28,630 left. The bulls will now try to push the price above the downtrend line and challenge the 20-day exponential moving average ($30,538). If successful, BTC could gain momentum and the rally could reach the 50-day SMA ($35,181). The positive divergence in the relative strength index (RSI) indicates that the bearish momentum may weaken and a rally is imminent. On the other hand, if the price turns down from overhead resistance, the bears will try to push the pair back below $28,630, and if they do, the pair will complete the descending triangle formation with a target target of $24.601. On the 4-hour chart
, the 20-EMA and 50-SMA have flattened and the RSI is just above the midpoint, indicating a balance between supply and demand. The negative descending triangle pattern will be rejected if the bulls push the price above the downtrend line. This could result in a short squeeze as short-term bears can close their positions. This could pave the way for a possible rally to the 200-SMA. Conversely, the bears will top out if the price declines and breaks below $28,630. This could cause a retest of the critical support at $26,700.
Ethereum (ETH)
The RSI indicator on the chart of the leading altcoin Ethereum (ETH) is forming a bullish divergence and indicates that the downtrend may be weakening. If the bulls push the price above the 20-day EMA ($2,036), the ETH/USDT pair could rise to the overhead resistance at $2,159. Bears are expected to defend this level aggressively. If the price bounces back from this resistance, the pair could range from $2,159 to $1,700 for a few days. On the other hand, if the price breaks from the current level or the 20-day EMA, the bears will again try to push the pair below $1,700. If successful, the pair could resume its downtrend with the next major support at $1,300.
Bounce from the $1,700 support reached the 20-EMA where the bears could form a strong defense. If the price declines from this level, it could increase the possibility of a break below $1,700. If this happens, the downtrend could continue. Conversely, if the bulls push the price above the 20-EMA, the pair could rally to the 50-SMA. This level could act as a resistance again, but if the bulls break this hurdle, the pair could rally to the psychological resistance at $2,000.
Tezos (XTZ)
Tezos (XTZ) is consolidating in downtrend. The 20-day EMA is flattening and the RSI is hovering above 46, indicating that selling pressure is easing. If the bulls propel the price above the 20-day EMA, the XTZ/USDT pair could rise towards the 50-day SMA ($2.45). If this resistance also turns up, buyers will try to push the price above the uptrend line. Conversely, if the price drops from the current level, it will indicate that the bears continue to defend the 20-day EMA. Sellers will then try to push the pair below $1.75, which could open the doors for a drop to $1.64.
The 4-hour chart shows that the recovery has turned down from the 200-SMA, but the pair has bounced off the uptrend line. The bulls have pushed the price above the 50-SMA and will now attempt to clear the overall hurdle at the 200-SMA. If they succeed, it will suggest the start of a short-term uptrend. Alternatively, if the price breaks from the current level or the 200-SMA, the pair could drop to the uptrend line. A break below this support and closing could push the price up to $1.61.
KuCoin Token (KCS)
KuCoin Token (KCS) broke above the 20-day EMA ($15.61) on May 20, but the bulls price broke the 50-day SMA ($17.19) ) could not get over it. The bears failed to develop their advantage and hold the price below the 20-day EMA, indicating strong buying by the bulls at the lower levels. Buyers pushed the price back above the 20-day EMA on May 29. If the bulls hold the price above the 20-day EMA, the probability of a break above the 50-day SMA increases. If this happens, the KCS/USDT pair could rally to $18.44 and later to the 200-day SMA ($19.63). Contrary to this assumption, if the price drops from the current level, it will indicate that investors are selling in rallies. A break and close below $14.92 might open the doors for more declines towards $12.90.
The pair faced stiff resistance at the 200-SMA but shallow correction indicates bulls buying on small dips. If the bulls propel the price above the 200-SMA, the next stop could be $17.14. A break and close above this level could initiate the next leg of the upward move. Conversely, if the price turns down from the overhead resistance, the bears can push the pair to the 38.2% Fibonacci retracement level at $14.20 and then to the 50% retracement level at $13.30. This zone is likely to act as a strong support.
The last altcoin on the list, Aave (AAVE)
AAVE, rose to the 20-day EMA ($101) on May 23, but the bulls failed to push the price above it. If the price rises and rises above the 20-day EMA, it will mark the start of a stronger relief rally. The AAVE/USDT pair could then rise to the 50-day SMA ($132), where the bears can again form a strong defense. Alternatively, if the price breaks from the current level or the 20-day EMA and dips below $89, short-term bulls who may have bought lower could close their positions. This could bring the price down to $79 and later to $64. The 4-hour chart
shows that the pair has been oscillating between $90 and $110 for a while. The 20-EMA and 50-SMA are flat and the RSI is just above the midpoint, indicating a balance between supply and demand. This balance could tip over in favor of buyers if they push the price above $110 and sustain it. If they do, the altcoin could rally towards $130 and then $143. Conversely, if the price drops below $90, the bears will gain the upper hand. The pair could then drop to $80 and then to $70.
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