Arthur Hayes, the former CEO of derivatives giant BitMEX, believes Bitcoin will bottom out in the $25,000 to $27,000 range despite the negative sentiment.
According to Glassnode on-chain data, smart money may have begun to accumulate Bitcoin. he net outflows from major cryptocurrency exchanges reached 23,286 Bitcoin on June 3, the highest level since May 14.
Crypto market data daily view. Source: Coin360
According to an Arcane Research report, investment in Bitcoin exchange-traded products (ETPs) was strong in May and has only risen further in the first two days of June, another sign of accumulation. The ETPs now manage 205,000 Bitcoin.
Could Bitcoin make a comeback? If that happens, could select altcoins follow the leader? Let’s take a look at the charts of the top five cryptocurrencies that could lead the relief rally.
BTC/USDT
Bitcoin fell below the 20-day exponential moving average (EMA) ($30,459) on June 1. The bulls attempted to push the price back above the 20-day EMA on June 2 and 3, but the bears resisted.
BTC/USDT daily chart. Source: TradingView
The bears will attempt to push the price below the strong support at $28,630. If they are successful, the BTC/USDT pair could fall to the critical support level of $26,700. Buyers are expected to defend this support zone with all their might because if they do not, the downtrend may resume.
On the upside, the bulls will need to push and hold the price above $32,659 to suggest that a new uptrend could be starting. The bullish momentum could pick up on a break and close above the 50-day simple moving average (SMA) ($33,778). After that, the pair could rally to the pattern target of $36,688 and then to $40,000.
BTC/USDT 4-hour chart. Source: TradingView
The four-hour chart suggests that the price action is getting squeezed. While bulls managed to push the price above the 20-EMA, they are facing stiff resistance at the 50-SMA. This indicates that bears are active at higher levels.
A minor positive in favour of the bulls is that they have not allowed the price to fall below the support level of $29,282.
The bulls will attempt to push the pair to the 200-SMA if its price rises from the current level and breaks above the downtrend line. If the price falls below $29,282, the next stop could be $28,630.
ADA/USDT
Cardano (ADA) broke above the downtrend line on May 31, but the bulls were unable to maintain the higher levels, as evidenced by the long wick on the day’s candlestick.
ADA/USDT daily chart. Source: TradingView
Although the bears successfully defended the downtrend line, the bulls have kept the ADA/USDT pair above the 20-day EMA ($0.56). This raises the chances of a break above the downtrend line.
If that happens, the pair may rally to the 50-day SMA ($0.67), where the bears may once again present a strong challenge. A break and close above this level will suggest a potential change in trend. The pair could then rally to the breakdown level of $0.74. If the price falls below $0.53, the bears will attempt to pull the pair down to $0.50 and then to $0.44.
ADA/USDT 4-hour chart. Source: TradingView
The four-hour chart shows that the price has been squeezed between the 200-SMA and the 50-SMA, but this tight range trading is unlikely to last long. If bulls push the price above the 200-SMA, the pair could attempt a rally to $0.64. A break and close above this level could pave the way for a possible rally to $0.69.
If the price falls and breaks below $0.53, the selling could pick up momentum. The pair may then fall to $0.50 and then to $0.47.
XLM/USDT
Stellar (XLM) rallied above the 20-day EMA ($0.14) on May 30, the first sign that selling pressure may be easing. The bears halted the uptrend near the 50-day SMA ($0.15), but they haven’t been able to sink and sustain the price below the 20-day EMA.
XLM/USDT daily chart. Source: TradingView
This indicates that bulls are buying the dips to the 20-day EMA. If bulls push the price above the 50-day SMA, it will signal the beginning of long-term recovery. The XLM/USDT pair could then try to rally to $0.18 and then to the 200-day SMA ($0.21).
This optimistic view will invalidate in the short term if the price falls below $0.13. Such a move would imply that demand is drying up at higher levels, which could pull the pair down to $0.12. If this support also fails, the bears will attempt to resume the downtrend by pushing the pair below the psychological level of $0.10.
XLM/USDT 4-hour chart. Source: TradingView
The four-hour chart shows the price trading inside a symmetrical triangle. If bulls can push the price above the triangle’s resistance line, the pair could rally to $0.15 before attempting to rally to the pattern target of $0.17.
If the price falls from its current level, the bears will attempt to sink the pair below the triangle’s support line. If they do, the selling could become more intense, and the pair could fall to the strong support level of $0.13.
XMR/USDT
Monero’s (XMR) failure to break through the 50-day SMA ($202) may have tempted short-term traders to book profits. This has pushed the price down to the 20-day EMA ($189).
XMR/USDT daily chart. Source: TradingView
The bulls are attempting to defend the 20-day EMA, but the lack of a strong bounce suggests weak demand. If the price remains below the 20-day EMA, the next stop could be the uptrend line. A break and close below this support level could push the price down to $167.
In contrast, if the price rebounds off the current level, the buyers will attempt to overcome the resistance zone between the 50-day SMA and $210. If they are successful, the XMR/USDT pair’s surge might extend beyond $230.
XMR/USDT 4-hour chart. Source: TradingView
The pair has been declining inside a descending channel, indicating a minor advantage to sellers. If bears manage to push the price below the channel, the negative momentum may pick up, and the pair could fall to $167.
If the price rebounds off the support line, buyers will try to push the pair above the channel. If they succeed, the pair could attempt a break above the overhead resistance again at $210.0.
MANA/USDT
Decentraland (MANA) has failed to break above the 20-day EMA ($1.06) for several days, but a minor positive is that the bulls have not given up much ground. This indicates that bulls are buying on dips in anticipation of a higher move.
MANA/USDT daily chart. Source: TradingView
If bulls push the price above the 20-day EMA, it will indicate that the bears are losing ground. The MANA/USDT pair could then rise to the overhead resistance level of $1.36. This is an important level to keep an eye on because a break and close above it could signal that a bottom may be in place. The pair could then rise to $1.68.
If the price falls and breaks below $0.90, the bears are in no mood to surrender their advantage. The pair may then retest the critical support level of $0.60. The bears will have to pull the price below this support to indicate the resumption of the downtrend.
MANA/USDT 4-hour chart. Source: TradingView
The four-hour chart shows that the pair has been trading inside a tight range between $0.94 and $1.04. The gradually descending 20-EMA and the RSI in negative territory suggest a slight advantage to sellers. If bears pull the price below $0.94, the pair could fall to $0.90.
On the other hand, if bulls push the price above $1.04, it will indicate that demand exceeds supply. This could pave the way for a rally to the stiff overhead resistance at $1.15.
If the price falls below this level, the pair may continue to oscillate between $0.90 and $1.15 for some time. A break and close above $1.15 could suggest that buyers have the upper hand.
