Bitcoin (BTC) is down about 2% this week, but a positive sign for the bulls is that the price is off the weekly low of $64,493. Several analysts expect the next trigger to be Bitcoin halving. However, cryptocurrency exchange Coinbase cautions that Bitcoin’s price action could face hurdles after the halving event as the period is typically a weak time of the year for crypto markets and other risk assets.
While the upside looks open, the downside may be limited. UTXO Management senior analyst Dylan LeClair believes that even in case of a fall, Bitcoin is unlikely to dip to $50,000 where a large cluster of longs risk being taken out. However, he warned that nothing is impossible in the crypto markets.
Crypto market data daily view. Source: Coin360
Although Bitcoin has been leading the markets higher, several altcoins have been huge outperformers. Pantera Capital’s Liquid Token Fund said in a shareholder letter reviewed by Bloomberg that the fund trimmed exposure to Bitcoin and Ether and increased allocations to DeFi tokens, which helped it post 66% returns in the first quarter of 2024.
Will select altcoins continue to outperform Bitcoin in the near term? Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin has been oscillating inside a symmetrical triangle pattern for the past few days, signaling indecision about the next directional move.
BTC/USDT daily chart. Source: TradingView
The 20-day exponential moving average ($68,049) continues to move up gradually, and the relative strength index (RSI) in the positive territory indicates a slight edge for the bulls. A break and close above the triangle will suggest that the uncertainty has resolved in favor of the buyers. The BTC/USDT pair could rise to $73,777 and eventually to $80,000.
Instead, if the price turns lower from the downtrend line and breaks below the 20-day EMA, it will suggest that the pair may extend its stay inside the triangle. The advantage will tilt in favor of the bears on a break below the triangle. That could start a decline to $59,000 and then to the 61.8% Fibonacci retracement level of…..