The major United States stock market indices continued their decline last week as worsening macroeconomic conditions increased concerns of a global recession. The Dow Jones Industrial Average closed at its lowest level in 2022 and major indices recorded their fifth weekly close in the past six weeks.
Although Bitcoin (BTC) has only declined marginally this week, it risks closing at the lowest level since 2020. While a new multi-year weekly close is a negative sign, sellers will have to sustain the lower levels or else it may turn out to be a bear trap. The price action of the next few days is likely to witness heightened volatility as both the bulls and the bears battle it out for supremacy.
Crypto market data daily view. Source: Coin360
Several investors miss opportunities to buy during sharp corrections because they try to catch the bottom. Traders should rather focus on the projects they like and accumulate the coins in a phased manner lasting a few weeks or months. All coins do not bottom at the same time, hence it is better to focus on individual cryptocurrencies that show strength.
While Bitcoin is nearing its yearly lows, certain altcoins are holding up well. Let’s look at the charts of five cryptocurrencies that look interesting in the near term.
The Bitcoin bulls have successfully defended the $18,626 to $17,622 support zone in the past few days but they continue to face strong selling at the 20-day exponential moving average ($19,720). This suggests that bears continue to sell on minor rallies.
BTC/USDT daily chart. Source: TradingView
The downsloping moving averages indicate that bears have the upper hand but the positive divergence on the relative strength index (RSI) suggests that the bearish momentum could be weakening.
A break and close above the 20-day EMA will be the first sign that the bears may be losing their grip. The BTC/USDT pair could then rise to the 50-day simple moving average ($21,043) and later to $22,799. Buyers will have to overcome this barrier to set the stage for a rally to $25,211.
Conversely, if bears sink the price below the June low of $17,622, the selling could…