Bears back off, but Bitcoin price still wavers below $35K

Bitcoin price briefly surged above $35,000 to spark a relief rally in altcoins but a number of bearish factors still surround BTC.

Although bulls made a show of force in the morning trading hours, Bitcoin (BTC) price is still pinned under the $35,000 resistance and unable to flip the 20-day moving average to support or secure a daily close above the level. 

Data from Cointelegraph Markets Pro and TradingView since rallying to $35,400 on June 28, Bitcoin has traded in a range between $33,850 and $35,000 as the fallout from China’s crackdown on BTC mining continues to reverberate across the market.

BTC/USDT 4-hour chart. Source: TradingView

In addition to turning the Bitcoin mining ecosystem on its head, China’s government also turned the screw on local cryptocurrency exchanges, resulting in the closure of BTCChina. China has also effectively banned crypto derivatives trading for Huobi exchange users.

Bitfinex BTC flows come into focus while the selling continues

According to data from Glassnode, the downside price action over the past week “appears to have created a panic” for both long and short term holders “as demonstrated by the volatility in LTH-SOPR, and deep capitulation in STH-SOPR.”

Bitcoin short- and long-term holder SOPR. Source: Glassnode

Glassnode said:

“STHs have realized losses only slightly less than in the March 2020 capitulation event. LTHs were willing to spend coins with an average cost basis fluctuating between $9.2k and $16.3k this week, suggesting a high degree of uncertainty.”

Further insight into the current market conditions offered by CryptoQuant highlighted Bitcoin inflows and outflows at Bitfinex as a possible gauge for market developments.

According to CryptoQuant’s analysis, the market has seen a “relatively high derivative to spot BTC flow,” a change that usually “implies a turning point” in the market.

CryptoQuant highlighted that the recent increase seen in the Bitcoin all exchange inflow mean (MA7) “indicates that the large deposits that caused the decline are coming to an end,” an observation that was further supported by Bitcoin outflows from Bitfinex, “which was considered the main culprit of the recent downtrend.”

The increasingly risky situation the bears now find themselves in was highlighted by crypto Twitter analyst, William Clemente III, who posted the following tweet pointing to 11 straight days of negative funding.

Bitcoin rally brings relief to the altcoins

Most altcoins saw a turnaround in prices as Bitcoin showed signs of life above $34,000, including a 15.7% gain in Ether (ETH) price that briefly lifted the top altcoin back above $2,100.

Daily cryptocurrency market performance. Source: Coin360

The best performance of the day was posted by Populous (PPT), which surged 100% to an intraday high at $2.67, while IoTeX (IOTX), Kusama (KSM) and Compound (COMP) all registered 33%.

The overall cryptocurrency market cap now stands at $1.402 trillion and Bitcoin’s dominance rate is 46.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Top 5 cryptocurrencies to watch this week: BTC, ADA, SOL, MATIC, KLAY

Bitcoin’s consolidation in the current range could create trading opportunities for ADA, SOL, MATIC and KLAY over the coming days.

The U.S. core personal consumption expenditure (PCE) price index increased 0.5% in May, below market estimates of 0.6%. However, when compared year-over-year, the PCE index surged to 3.4% recording its largest gain since 1991.

While the U.S. Federal Reserve expects inflation to be transitory, analysts at BofA differ in their estimation. The bank anticipates U.S. inflation to remain high, in the 2% to 4% range, for the next two to four years and believes the Fed will hike rates in the next six months, barring a financial market crash.

Crypto market data daily view. Source: Coin360

If inflation remains elevated, investors are again likely to focus on Bitcoin (BTC) to hedge their portfolios. A CoinShares report published on June 21 said it was unsure of inflation in the next five years but believed “adding Bitcoin and other real assets as a prudent measure to protect portfolios from the tail-risk of out-of-control inflation.”

Although near-term risk remains, select cryptocurrencies could offer short-term trading opportunities to traders. During a bear phase, traders may focus on booking profits at regular intervals instead of waiting for windfall rallies. Let’s study the charts of the top-5 cryptocurrencies that may turn short-term bullish in the next few days.

BTC/USDT

Bitcoin dropped to the $28,000 to $31,000 support zone on June 26 but the positive sign is that the bulls again bought this dip. This suggests that buyers are accumulating at lower levels.

BTC/USDT daily chart. Source: TradingView

The bulls will now try to push the price above the 20-day exponential moving average ($35,148). If they manage to do that, it will suggest that the selling pressure may be reducing. The positive divergence on the relative strength index (RSI) is also pointing to a possible relief rally.

A break above the 20-day EMA could open the doors for a move to the stiff overhead resistance zone at $40,000 to $42,451.67. The 200-day simple moving average ($43,505) is just above this zone, hence the bulls may find it difficult to climb above it.

This points to a possible consolidation between $28,000 and $42,451.67 for the next few days. The longer the price trades in this range, the stronger will be the next breakout from it. The trend will favor the bears if they can sink and sustain the price below $28,000.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are attempting to form a higher bottom at $30,000. The 20-EMA has flattened out and the RSI is near the midpoint, suggesting that the sellers are losing their grip.

If the bulls sustain the price above the 20-EMA, the BTC/USDT pair could rally to the 200-SMA. A breakout of this resistance could attract further buying that may push the price to $40,527. This bullish view will invalidate if the bears sink the price below $30,000.

ADA/USDT

Cardano (ADA) rebounded off the $1 support on June 22, indicating strong accumulation near this level. However, the bulls could not push the price above the 20-day EMA ($1.39) on June 24 and 25, suggesting that bears are defending the resistance.

ADA/USDT daily chart. Source: TradingView

The gradually downsloping 20-day EMA and the RSI in the negative zone suggest that bears have the upper hand. The ADA/USDT pair may witness a long liquidation if the bears sink and sustain the price below $1. That could pull the price down to $0.68 and then to $0.40.

Conversely, if the bulls can thrust the price above the 20-day EMA, it will suggest that the short-term trend has tilted in favor of the bulls. The pair could then rise to $1.60 and then to the stiff overhead resistance at $1.94.

ADA/USDT 4-hour chart. Source: TradingView

The moving averages on the 4-hour chart have flattened out and the RSI near the midpoint suggest that the selling pressure is reducing. If the bulls push the price above $1.40, it will indicate the possibility of a short-term bottom formation. The pair could then attempt to rally to $1.60 and then to $1.88.

Contrary to this assumption, if the price turns down from the current level or $1.40 and plummets below $1.20, it will suggest a lack of buyers at higher levels. The pair may then drop to the critical support at $1.

SOL/USDT

The long tail on Solana’s (SOL) June 22 candlestick shows that traders are aggressively defending the 200-day SMA ($20). However, the relief rally could not scale above the 20-day EMA ($33), indicating that bears are selling on rallies.

SOL/USDT daily chart. Source: TradingView

The buyers are currently attempting to form a higher low at $26.65. If they can push and sustain the price above the 20-day EMA, the SOL/USDT pair could pick up momentum and move up to the downtrend line and then to $44.

However, the downsloping 20-day EMA and the RSI in the negative territory suggest that bears will have other plans. They will try to defend the 20-day EMA and sink the price below $26.65. If this support cracks, the pair may drop to $21.10.

A strong rebound off this support will suggest that bulls are accumulating on dips. The pair could then consolidate between $21.10 and $44 for the next few days.

SOL/USDT 4-hour chart. Source: TradingView

The 20-EMA on the 4-hour chart has flattened out and the RSI is near the midpoint, indicating a balance between buyers and sellers. This balance may tilt in favor of the bulls if they push and sustain the price above $33.

Such a move could clear the path for a move to the downtrend line and then to $42. On the other hand, if the price turns down from the current level or $33, The bears will try to break the support at $26.65. If that happens, the advantage may tilt in favor of the bears.

MATIC/USDT

Polygon (MATIC) has been trading below the 20-day EMA ($1.29) for the past few days but the positive sign is that the bulls have not allowed the price to dip to the May 23 low at $0.74. This suggests a lack of sellers at current levels.

MATIC/USDT daily chart. Source: TradingView

If the bulls regroup and push the price above the downtrend line, it will indicate that the correction may be over. The MATIC/USDT pair could then rise to $1.71 and later to the psychological resistance at $2.

However, the bears may have other plans. The downsloping 20-day EMA and the RSI in the negative zone suggest that sellers have the upper hand. If they sink the price below $0.92, the pair may drop to the $0.74 to $0.68 support zone.

The bulls are likely to defend this zone aggressively. A strong bounce will suggest accumulation at lower levels and the bulls may then try to push the price above the downtrend line.

MATIC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bears are aggressively defending the downtrend line. The downsloping 20-EMA and the RSI in the negative zone indicate advantage to the bears. If they sink the price below $1, the pair may drop to $0.92.

Conversely, if the price rebounds off $1, the bulls will make one more attempt to drive the price above the downtrend line. If they succeed, it will suggest that bulls are trying to make a comeback. The pair may pick up momentum on a breakout and close above $1.25.

Related: ‘Absolutely right’ to think of Bitcoin as the new gold — Mexico’s 3rd richest man

KLAY/USDT

Klaytn (KLAY) has been trading below the 20-day EMA ($1.02) for the past many days but the RSI is showing a positive divergence. This indicates that the sellers may be losing their grip.

KLAY/USDT daily chart. Source: TradingView

If the bulls push and sustain the price above the 20-day EMA, it will be an indication that a trend change is possible. However, the bears are unlikely to give up easily. They will try to stall the recovery in the $1.24 to $1.29 zone.

If the price turns down from the overhead zone but does not dip below the 20-day EMA, it will indicate that the bulls are trying to make a comeback. A breakout of the resistance zone could attract buyers who may then challenge the 200-day SMA ($1.51).

A breakout and close above the 200-day SMA will indicate that the downtrend may be over in the short term. This positive view will invalidate if the bears sink the price below $0.72.

KLAY/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the KLAY/USDT pair is trading inside a descending channel. The bulls had pushed the price above the channel and the 200-SMA but they could not sustain the higher levels.

If the bulls push and sustain the price above the 20-EMA, the pair may again try to rise above the channel and the 200-SMA. If that happens, the pair may start a new uptrend that could reach $1.62.

Contrary to this assumption, if the pair breaks below $0.86, the decline could extend to $0.72.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bulls hesitate to buy the dip after Bitcoin price falls close to $35K

Bitcoin’s drop to $35,130 has bulls hesitant to buy the current dip but on-chain data shows long-term holders continue to accumulate.

On June 18, Bitcoin (BTC) and traditional markets faced another day of downward pressure comments from the United States Federal Reserve about the possibility of raising interest rates sooner than expected has led to a spike in the price of the U.S. dollar at the expense of risk assets and treasury notes. 

The Fed doesn’t deserve all the bla, however, as concerns about a further downturn for BTC have been building for weeks with much of the discussion focused on the approaching death-cross and what it means for the future of Bitcoin.

Today’s selling pulled Bitcoin price below the crucial $36,000 support, leading traders to forecast $32,500 as the next stop before Bitcoin revisits the swing low at $30,000.

BTC/USDT 4-hour chart. Source: TradingView

These technical factors combined with negative headlines in the news such as Chinese authorities shutting down cryptocurrency miners or the most recent “rug pull” on the Iron Finance protocol that saw cryptocurrency proponent and billionaire investor Mark Cuban lose money have traders feeling apprehensive about the current dip in Bitcoin price.

Crypto Fear and greed index. Source: Alternative.me

As a result of these concerns, the crypto Fear & Greed Index has dropped to 25, registering extreme fear and continuing the trend of the past month.

Inflows to exchanges spiked before the sell-off

Data from the on-chain data analysis firm CryptoQuant shows that BTC netflows to exchanges provided some warning to observant traders ahead of this week’s drop from $41,000 to $36,000. A spike in BTC inflows to exchanges occurred on June 15 when BTC price hit $41,300 and then proceeded to decline by 15% over the next three days.

All exchanges netflow of Bitcoin. Source: CryptoQuant

One observant analyst has pointed out that whale activity on the Gemini cryptocurrency exchange, in particular, has a noticeable correlation with some of the larger sell-offs experienced by the cryptocurrency market in 2021.

With the Bitcoin netflow to exchanges balancing out over the past couple of days with inflows only slightly outpacing outflows, market participants now wait to see which way the price moves next as the dreaded death cross approaches.

Related: Traders search for bearish signals after Bitcoin futures enter backwardation

Smart money continues to accumulate

While investor fears are rising and some traders who bought between the March and May highs are selling at a loss, the total supply of Bitcoin held by long-term holders continues to increase after reaching a low in the middle of May. 

Total Bitcoin supply held by long-term holders. Source: Glassnode

According to crypto Twitter analyst William Clemente III, recent on-chain data indicates that BTC is oversold and “now sits on historically important inflection points for major on-chain indicators.” 

Clemente suggested that long-term holders “continue to scoop up discounted BTC,” which has helped offset selling by short-term holders and he pointed to the fact that “accumulation is growing stronger.”

Overall, the short-term future for BTC remains risky as previous instances of a death-cross have been followed by a retracement that is similar “to the retrace that preceded the crossover,” according to cryptocurrency analyst and trader Rekt Capital.

Bitcoin retracement after 2019 death-cross. Source: Twitter

On the other hand, the longer-term data hints at a more optimistic future because whale wallets and long-term holders continue to increase their Bitcoin balances.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bullish reversal? Traders debate whether $37K BTC price is a trend reversal

A stream of bullish Bitcoin adoption news helped to push BTC price back above $37,000 but traders are unsure if the 20% move confirms a trend reversal.

The cryptocurrency market flashed bullish on June 9 as Bitcoin (BTC) price reversed course and rallied 20% to $37,500. 

For the past few weeks, analysts had been debating whether or not BTC was entering a long-term bear trend and the argument has been further complicated by a mixture of positive and negative headlines including the adoption of Bitcoin (BTC) as legal tender in El Salvador and authorities in China ordering Chinese search engines to block results for searches related to the top crypto exchanges in the country. 

Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin has surged 20% from a low at $31,000 late on June 8 to an intraday high at $37,450 as bulls look to take control of the trend.

BTC/USDT 4-hour chart. Source: TradingView

The move higher is seen as a bullish development for many including Mike McGlone, senior commodity strategist at Bloomberg Intelligence, who now feels that BTC is more likely to reach $40,000 than collapse down to $20,000. On the other hand, traders like Rekt Capital believe that BTC needs to have a weekly close above $32,000 to avoid further downside. 

The coming days will determine the fate of the bull run

The steady flow of positive announcements combined with the renewed regulatory crackdown in China has led some traders to ponder whether a bullish reversal is at hand or if the current price action is nothing more than a bull trap. 

According to Delphi Digital, the clear head and shoulders pattern seen on the BTC chart is a potential bearish indicator. 

Bitcoin head and shoulders pattern. Source: Delphi Digital

Despite this bearish pattern, the analysts also noted that a bullish RSI divergence has also formed, indicating the possibility of a trend reversal in the near future.

Bitcoin price and a bullish divergence on the RSI.  Source: Delphi Digital

According to Élie Le Rest, partner at digital asset management firm ExoAlpha, “the thesis for Bitcoin as a store of value is stronger than ever” but he feels that the top cryptocurrency “needs to increase its dominance” in order for the current bull run to continue.

Le Rest pointed to the news that El Salvador would recognize BTC as legal tender as “a huge step forward toward Bitcoin adoption” and he expects other countries to follow suit in the coming months and years.

Regarding Bitcoin’s future prospects, Le Rest mentioned that following the lower level retest of the $30,000 to $40,000 range over the past few days, a break above $40,000 “could resume the bull run that took place a month ago.”

Le Rest said:

“Traders still have some doubts on where the market is heading, so leverage has remained relatively low as forced liquidations have been painful since May. Breaking $40,000 could give the boost in traders confidence to leverage again their book to power new highs of the crypto market.”

Traders have also been keeping a close eye on Ether (ETH) and Le Rest pointed to the “massive ETH outflow” seen on June 8 as “a positive sign that the ETH bull run is not over yet,” but he cautioned that alternative chains like the Binance Smart Chain, Solana, and Avalanche “are putting a lot of efforts to take their DeFi market share.”

Altcoins rally alongside Bitcoin

Daily cryptocurrency market performance. Source: Coin360

Bitcoin’s rally to $37,500 also provided a boost to many altcoins. 

Ether saw its price rally 14% from a low at $2,300 on June 8 to an intraday high near $2,630, and Delphi Digital pointed out that the price of Ether is being supported by a decline in the circulating supply of Ether as 23% of its supply is now locked up smart contracts.

Ether supply locked in smart contracts vs. price. Source: Delphi Digital

Other notable performances include a 23% gain in the price of Kusama (KSM) to an intraday high at $486 following the launch of the Kusama parachain auctions and an 18% gain in the price of the Curve DAO Token (CRV) to $2.50.

The overall cryptocurrency market cap now stands at $1.63 trillion and Bitcoin’s dominance rate is 43%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Top 5 cryptocurrencies to watch this week: BTC, KLAY, VET, SOL, KSM

Bitcoin appears to be preparing for a move toward $60,000, while KLAY, VET, SOL and KSM are attempting to find bullish momentum.

In trading, selling a position is as important as buying it at the right time. Therefore, the big question that could be troubling traders is whether or not Bitcoin (BTC) price will enter a bearish phase or will the bull run continue after this week’s pullback.

PlanB, the creator of the popular Bitcoin stock-to-flow model, recently tweeted that the crypto bull run has only started and is “nowhere near the end of it.”

PlanB is not the only voice that is hugely bullish on Bitcoin. Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, believes that if previous behavior is considered, Bitcoin’s 2021 peak could be nearer to $400,000.

Crypto market data daily view. Source: Coin360

One of the main reasons that could be drawing institutional investors to cryptocurrencies is the possible debasing of the U.S. dollar. In an interview with Bloomberg, Soros Fund Management chief information officer Dawn Fitzpatrick said the 25% increase in the U.S. money supply over the past 12 months has ensured that Bitcoin no longer remains a fringe asset.

The fund recently participated in the $200 million funding round held by NYDIG and also invested in crypto accounting firm Lukka. This shows that institutional investors are broadening their perspective and are looking at investing opportunities other than Bitcoin.

Let’s study the charts of top-5 cryptocurrencies that may resume their uptrend in the short term.

BTC/USDT

Bitcoin is currently in a corrective phase and trading inside a descending channel. The strong rebound off the 50-day simple moving average ($52,000) on March 26 shows the bulls continue to accumulate at lower levels.

BTC/USDT daily chart. Source: TradingView

The bears may mount stiff resistance near the resistance line of the channel but if the bulls can push the price above it, the BTC/USDT pair could once again challenge the $60,000 to $61,825.84 resistance zone.

A breakout of this zone could signal the start of the next leg of the uptrend that has a target objective at $71,112.06. The 20-day exponential moving average ($54,820) has started to turn up and the relative strength index (RSI) is sustaining in the positive zone, suggesting that the bulls are trying to assert their supremacy.

Contrary to this assumption, if the price turns down from the resistance line of the channel, the bears will try to sink the pair below the 50-day SMA. If they succeed, the pair may drop to the support line and a break below it could start a deeper correction to $43,006.77.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the relief rally is facing stiff resistance near $56,500. If the price turns down from the current level, it could drop to the 20-EMA and then to $54,000.

A strong bounce off this support could eventually form an inverse head and shoulders pattern that will complete on a breakout and close above $56,618. This setup has a target objective at $63,339.98.

On the contrary, a break below $54,000 will suggest weakness and a lack of buyers at higher levels.

KLAY/USDT

Klaytn (KLAY) has been in a strong uptrend since mid-February. The altcoin recently completed a minor correction as the bulls purchased the dip to the 20-day EMA ($2.76) on March 26, suggesting the sentiment remains positive.

KLAY/USDT daily chart. Source: TradingView

The bulls are currently attempting to resume the uptrend by pushing the price above the all-time high at $3.50. If they succeed, the KLAY/USD pair could rally to $4.86. The upsloping moving averages and the RSI in the overbought zone suggest the path of least resistance is to the upside.

This view will invalidate if the price turns down and breaks below the 20-day EMA. Such a move will suggest a possible change in sentiment. The first support is at $2.58 and a break below this level could start a deeper correction.

KLAY/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the moving averages have completed a bullish crossover and the RSI has jumped into the overbought zone, suggesting that bulls have the upper hand. The momentum could pick up further if the bulls can push and sustain the price above the overhead resistance at $3.50.

Even if the price turns down from $3.50 but finds support at the 20-EMA, it will suggest that the sentiment remains bullish. A strong rebound off this support will increase the possibility of the resumption of the uptrend.

Conversely, a break below the moving averages could pull the price down to the critical support at $2.60.

VET/USDT

VeChain (VET) is in a strong uptrend. The altcoin bounced off the 20-day EMA ($0.078) on March 25, indicating the sentiment is positive and the bulls view the dips as a buying opportunity.

VET/USDT daily chart. Source: TradingView

Both moving averages are sloping up and the RSI is close to the overbought territory, suggesting the path to least resistance is to the upside. The long wick on the March 27 candlestick shows the bears are trying to defend the overhead resistance at $0.098.

However, the bulls have not allowed the bears to establish their supremacy. If the buyers can drive the price above $0.098, the VET/USDT pair could resume the uptrend. The next target level on the upside is $0.136.

This bullish view will invalidate if the price turns down from the current levels or the overhead resistance and breaks the 20-day EMA. Such a move could pull the price down to the 50-day SMA ($0.059).

VET/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bears are defending the $0.095 level while the bulls are buying on dips to the moving averages. If the bulls can thrust the price above $0.095, it will complete an inverse head and shoulders pattern, which has a target objective at $0.114.

Conversely, if the bears sink and sustain the price below the moving averages, a drop to $0.076 is possible. A break below this support could signal the start of a deeper correction.

SOL/USDT

Solana (SOL) had formed a bearish descending triangle pattern, which would have completed on a break and close below $11.90. However, that did not happen. The bulls aggressively purchased the dip to the $11.90 support on 26 March and pushed the price above the downtrend line on March 27, invalidating the bearish setup.

SOL/USDT daily chart. Source: TradingView

The failure of a bearish pattern is a bullish sign because it traps several aggressive bears who initiate short positions in anticipation of the completion of the pattern. When the pattern invalidates, the bears rush to cover their positions resulting in a short squeeze.

Sustained buying from the bulls has propelled the price to a new all-time high today. If the bulls can sustain the price above $18.20, the SOL/USDT pair may rally to $24.84.

On the contrary, if the price turns down from the current level, a drop to the 20-day EMA ($14.60) is possible. A strong rebound off this support will suggest accumulation by the bulls at lower levels and may enhance the prospects of the resumption of the uptrend.

SOL/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows a sharp rally from $12.30 to a high at $19.26. This has pushed the RSI into overbought territory, suggesting the pair could be vulnerable to a pullback in the short term.

If the bulls can sustain the price above $18.20, it will suggest the resistance has flipped into support and the uptrend may resume.

This bullish view will invalidate if the bears sink the price below the 20-EMA. Such a move could keep the pair range-bound for a few days.

KSM/USD

Kusama (KSM) is in a strong uptrend. The recent dip to the 20-day EMA ($381) on March 25 was purchased aggressively, as seen from the long tail on the day’s candlestick. This shows strong demand on every minor dip as traders expect the rally to extend further.

KSM/USDT daily chart. Source: TradingView

The KSM/USDT pair rose to a new all-time high on March 27 but the bulls are facing stiff resistance at higher levels as seen from the long wick on the day’s candlestick. The pair has formed an inside day candlestick pattern today, indicating indecision among traders.

If the bulls can push and sustain the price above $505.33, the pair could extend its up-move to $583.

The pair has not broken and stayed below the 20-day EMA since Jan. 14. Therefore, traders can watch this level carefully because a break and close below it will suggest that the bullish momentum has weakened.

KSM/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bears are aggressively defending the $490 to $505.33 resistance zone as the price has repeatedly turned down from it. However, the positive thing is that the bulls have not given up much ground. A breakout and close above $505.33 could signal the resumption of the uptrend.

Conversely, if the bears sink the price below the moving averages, it will suggest profit-booking by traders. That could pull the price down to $370 where buyers may again step in.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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