Bitcoin’s attempt to form a bottom has attracted altcoins traders to focus on ETH, & MATIC. Bitcoin recovered from $18,910 last week, indicating that traders may be getting back into risky assets. However, opinions remain divided on the recovery in Bitcoin as some believe that the relief rally is a bull trap.
BTC
Bitcoin rose above the 20 day EMA of $20,894 on the 15th, but the bulls have not been able to build upon this advantage. The bears are likely to defend the resistance line of the symmetrical triangle. The 20-day EMA has flattened out and the RSI has risen close to the midpoint. This suggests a balance between supply and demand. The first sign of strength will be a break and close above the 50 day simple moving average of $23,445. That could clear the path for a possible rally to the pattern target at $28,171.
ETH
Ether completed an ascending triangle pattern when bulls pushed the price above $1,280 on the 16th. The bears are currently trying to pull the price back below the breakout level and trap the aggressive bulls. The critical level to watch on the downside is $1,280. If the price rebounds off this level, it will suggest that bulls have flipped $1,280 into support. ETH could then rise to $1,700 where the bears may again pose a strong challenge.
MATIC
MATIC completed an ascending triangle pattern when the price broke above the overhead resistance at $0.63. This was the first indication of the start of a new uptrend. The moving averages have completed a bullish crossover, signifying that buyers have the upper hand. However, the price action of the past few days has pushed the RSI near the overbought zone, indicating that a minor pullback or a consolidation is likely in the near term.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CryptoNews. Every investment and trading move involves risk and the reader should conduct their own research when making a decision.
