Bitcoin’s recent move above $27,000 has empowered the altcoin market to maintain critical supports. According to technical analysis, the next moves of SHIB, ETH, LINK, MATIC, BTC and PEPE will largely depend on the breaking of these supports.
3 factors that will reverse the bearish spell of SHIB price
Symmetrical triangle formation
SHIB’s weekly chart reveals the formation of a symmetrical triangle formation that has been around for about a year. This pattern shows the convergence of trend lines driving the current horizontal trend. If the ascending trendline regains its bullish momentum, its price is suggesting a rise above 50% from its current level.
Analyst Clay Bro said the second factor will be new buyers coming from the support line of the pattern. According to the analyst, the bears have repeatedly failed to push the price below this support line, reflecting the aggressive accumulation. Such a breakout marks the beginning of a new bullish cycle within the pattern.
Finally, the RSI on the weekly chart of Shib Inu is bullish. Despite a series of lower highs (HL), the RSI slope showed a clear increase. It now points to increased buying pressure during the sideways trend. This bullish divergence increases the likelihood of a reversal and an upside break from the triangle pattern.
Cheeky Crypto warns of further declines
Another analyst took a closer look at on-chain data and what happens in Bitcoin in and outs. From January 1, 2023 until May 24, a total of 3.9075 million Bitcoins were deposited on exchanges, while 3.8734 million Bitcoins were withdrawn. The analyst highlights that there are about 34,000 more Bitcoins currently on exchanges compared to the end of 2022.
According to Cheeky Crypto, “Often this is seen as a bearish trend. We see this to the downside because we have seen the price action move upwards. But normally when this happens you see an increase in demand. When there is a surge in demand, Bitcoin tends to move away from exchanges.”
According to the analyst, this increase in Bitcoin on exchanges is a bearish signal. Normally, when there is an upward price movement, there is also an increase in demand. This leads to Bitcoin being moved from exchanges to cold wallets for better security. However, from January 1, 2023 until yesterday, about 1.9 million Bitcoins were deposited on exchanges. On the other hand, 1.8 million Bitcoins were withdrawn from exchanges. This shows that more Bitcoin is flowing into the exchanges at the moment.
Cheeky Crypto has compared this to previous bear markets like the same time frame in 2019. Accordingly, he said that there is a higher amount of Bitcoin (7.2299 million) invested in exchanges compared to the amount withdrawn (7.261 million). The analyst says there is a more bullish environment as more people buy and withdraw Bitcoin from exchanges.
What’s next for ETH, LINK, MATIC and PEPE?
On Friday, Ethereum price moved at pre-Shanghai levels despite the overall crypto decline. ETH, which closed last week in a Doji candlestick pattern, has a high chance of ending this week at the same level. However, if the Bitcoin price drops below $26,000 in the coming days, the Ethereum bears will revive to push $1700.
Chainlink (LINK)
Chainlink managed to hold dangerously at the support level of around $6.2 on Friday. However, the bears are taking the lead in the short-term, despite trading at $9.4 to $5.4 since June last year.
Polygon (MATIC)
As for Polygon (MATIC), the price is up about 3% on Friday after consolidating around $0.86 over the week. However, MATIC price will need to break above the 50 MA and logarithmic downtrend to confirm its bullish outlook.
Pepe (PEPE)
Finally, Pepe has been in a correction mode for the past three weeks after being listed on Binance and surging ATH earlier this month. Meme coin has found temporary support around $0.00000145 in the past two days.
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