The last month in the crypto space has had its ups and downs. There has been a constant shift between the bears and bulls. Crypto experts, however, have differing views on the performance of Bitcoin (BTC) and the crypto market at large.
PlanB, the creator of the Bitcoin price prediction model for stock prices, maintains its bullish view of Bitcoin. Its best-case scenario for Bitcoin is a strong rebound to $450,000, and its worst-case scenario also shows a bullish target of $135,000 by the end of 2021.
Other analysts cited recent on-chain data to suggest that long-term owners have been buying bitcoins in the past few days.
So what’s the best and worst-case scenario for the crypto market this week? Let’s take at three cryptocurrencies for this week.
In the past few days, Bitcoin has fluctuated between $31,000 and $42,451. The price fell from $41,330 on June 15, and the bears dragged the price below the 20-day exponential moving average on June 18.
Sellers will now attempt to push the price down to the $31,000 support level. The 20-day EMA has started to fall and a relative strength index (RSI) below 41 indicates the bears have the upper hand.
However, the BTC/USDT pair rebounded twice from $31,000 on May 23 and June 8, so the bulls will try again to defend this level. If this succeeds, the currency pair can extend its stay in this range by a few days.
Conversely, if the bears push the price below $31,000, the currency pair can drop to $28,000 and then to $20,000. Such a move will have a huge negative impact and can delay the start of the next segment of the uptrend.
The bears pulled the price below the $34,600 support on the 4-hour chart. If they manage to keep the price below this level, the currency pair may fall to the $31,000 support level. The downward sloping 20-EMA and the RSI near the oversold zone show the bear’s advantage.
On the other hand, if the price recovers from current levels and rises above $36,457, it indicates that traders are accumulating at a lower level. The currency pair can then rise to the 50-simple moving average and then to the resistance zone from $41,330 to $42,451.67. Breaking this area indicates that the correction has ended.
Monero (XMR) pulled back from the downtrend line on June 19, and the bears will now attempt to push the price down to the $225 support level. This is an important support to watch as the bulls have defended this level many times over the past few days.
When the price rebounds from $225, the buyer will try again to push the price above the downtrend line. If so, the XMR/USDT currency pair could challenge the 50-day moving average and then climb to $347.
Contrary to this assumption, if the bears break the price below the $225 support level, the currency pair will complete the descending triangle pattern. This bearish setup could trigger further sales, which could drop to $175 and then $124.69.
The 4-hour chart shows that the bulls have repeatedly tried to push the price up to and keep it above the $283 resistance level, but they all failed. This shows that the bears are actively defending this level.
Today sellers are dragging prices below the ascending triangle trendline, but they are unable to sustain the lower level. This shows that buying is strong at dips. The bulls will now attempt to push the price above the moving average and challenge the $283 resistance level.
If buyers can push the price above this level, the ascending triangle pattern will be completed and the currency pair could rally to $316.23 and then climb to the pattern target of $ 341.
If the bears fall and keep the price below the trend line, this positive view will be invalidated. Such a move could open the door to a decline to $225.
For the past few days, Cardano (ADA) has been trading between $ 1.33 and $1.94. The recovery in support on June 12th failed at the 20-day moving average ($1.52) on June 15, suggesting that market sentiment turned negative and traders were selling rallies.
The bears will now attempt to push the price below the $1.33 to $1.24 support zone. If this succeeds, the ADA/USDT pair may fall to the critical $1 support level. The downward-sloping 20-day EMA and RSI below 42 indicate the bears are in control.
Conversely, if the bulls defend the support area again, this indicates that demand is at lower levels. This can cause the currency pair to stay in the range for a few days. A break and a close above $1.94 would indicate that the bulls have regained control of the situation.
The 4-hour chart shows that the bears pulled the price below the $1.33 support level today, but the failure to hold any lower level suggests bargain hunting. Buyers will now try to push the price above the downtrend line. If they are successful, the retrograde pattern becomes invalid. Such a move can catch aggressive shorts off guard and pressurize shorts, which can send the price up to $1.74 and then to $1.88. Or, if the price falls and stays below $1.33, the currency pair will complete a descending triangle pattern. The goal for this bearish setting is $0.78.
The views and opinions expressed here are solely those of the
author and do not necessarily reflect the views of LightBlocks News. You should conduct your research before making an investment or trading decision.