As Bitcoin’s price shatters the $30K milestone, it ignites a potential domino effect for altcoins like SOL, LINK, AAVE, and STX, heralding an exciting era for the crypto market.
Bitcoin (BTC) had a good week as prices rose about 10% to reach the psychologically important level of $30,000. This positive development also rubbed off on several altcoins, suggesting a turning sentiment in the market. The question troubling investors now is whether the uptrend will continue or if a reversal is imminent.
According to the trading team Stockmoney Lizards, Bitcoin may soon break above its overhead resistance and start a sharp rally. They believe that the approval for the exchange-traded fund will drive mass adoption and trigger the rally before the halving due in April 2024.
Let’s take a look at the charts of the top-5 cryptocurrencies that may outperform in the near term.
Bitcoin (BTC) is witnessing a tough battle between the bulls and the bears near the $30,000 mark. However, a consolidation near the current level suggests that the bulls are in no hurry to book profits as they anticipate another leg higher. If the price turns down from $31,000, the BTC/USDT pair could drop to the 20-day exponential moving average ($28,160). If the price snaps back from this level, the bulls will again try to clear the overhead hurdle. The positive sentiment will be negated on a break below the 20-day EMA.
Solana (SOL) broke out of a bullish inverse head and shoulders pattern, with a target objective of $32.81. The overbought levels on the RSI suggest a correction is possible, but as long as the important support at $27.12 holds, the prospects of the uptrend continuing are high.
Chainlink (LINK) has been trading in a tight range between $5.50 and $9.50 since May 2022, indicating a balance between supply and demand. A break above the range could lead to a rally toward the pattern target of $13.50.
Aave (AAVE) rose above the downtrend line, invalidating the bearish descending triangle setup. Both moving averages have started to turn up, indicating that bulls are at an advantage. The price may surge to $88 and then to $95 if it maintains above the downtrend line.
Stacks (STX) saw a sharp rise in the past few days, indicating an attempt to start a new uptrend. The bullish crossover on the moving averages suggests that the bulls have an edge. A minor correction or consolidation may be possible in the short term, but as long as the price remains above the 20-day EMA, the likelihood of the up-move continuing is high.
Overall, the sentiment in the crypto market is gradually turning positive, with Bitcoin leading the way. It may be a good time to consider buying selectively, focusing on the coins that are leading the markets higher. However, it’s important to conduct your own research and make informed decisions when it comes to investments and trading moves.