Bitcoin could push above $56,100 and that could attract buying in DOT, UNI and LINK. Bitcoin has continued to trade near the $55,000 level. The sharp rally in Bitcoin has pushed its market dominance from 40.70% to about 45% today. This shows that the strong recovery in cryptocurrencies has largely been led by Bitcoin.
BTC
Bitcoin rose above the stiff overhead resistance at $52,920 and the bulls have held the price above the breakout level. This is a encouraging sign as it indicates that buyers may be holding on to their positions in hopes of higher levels in the short term. The moving averages have completed a bullish crossover and the relative strength index is near the overbought zone which indicates that the path of least resistance is to the upside. If buyers push the price above $56,100, BTC may rally to $60,000.
DOT
Polkadot has been progressively moving higher toward the overhead resistance at $38.77. The RSI has broken out of the downtrend line and the 20-day EMA of $32.15 has started to turn up, signifying an advantage for buyers. If the bulls push the price above $38.77, it will cancel the head and shoulders pattern. The failure of a bearish setup is a bullish sign as it may trap the aggressive bears who then try to cover their positions, resulting in a short term squeeze.
UNI
Uniswap has been holding above the 20-day EMA of 24.55 for the past few days, which indicates that the bulls are trying to defend this support. The bears are in no mood to relent as they have not allowed the price to rise above the line. The buyers will have to push and close the price above the line to complete an inverse head and shoulders pattern. This bullish reversal setup has a pattern target at $36.98 but the rally may not be linear as bears will try to defend the level at $31.41.
LINK
Chainlink broke above the downtrend line but the bulls have not been able to exploit this move. The coin has been stuck in a tight range between $25.20 and $26.19 for the past few days.
