The S&P 500 Index soared 5.85% last week, its best performance since November 2022. A large part of the gains were fuelled by expectations that the Federal Reserve will not hike rates anymore.
In comparison, Bitcoin (BTC) had a much muted performance with a rise of approximately 2%. However, a positive sign for cryptocurrency investors is that a risk on sentiment is likely to benefit the crypto space.
Crypto market data daily view. Source: Coin360
Bitcoin’s rise attracted investments in several beaten-down altcoins, which are rising from their long-term slumber. If Bitcoin does not collapse, the recovery may spread to coins that have still not participated in the rise.
Even as Bitcoin enters a range, select altcoins are showing signs of moving higher. Let’s look at the charts of the top-5 cryptocurrencies that may extend their rally in the next few days.
Bitcoin price analysis
Bitcoin continues to trade near the $35,000 resistance and the price action of the past few days has formed an ascending channel pattern. After a sharp rally, a tight ascending channel is generally considered a negative sign.
BTC/USDT daily chart. Source: TradingView
If the price turns down and skids below the channel, it may tempt several aggressive traders to book profits. That may pull the price to the 20-day exponential moving average ($33,033). A strong rebound off this level will suggest that the bulls remain in command. They will then again try to thrust the price above $36,000 and resume the uptrend.
On the contrary, if the price turns down and breaks below the 20-day EMA, the BTC/USDT pair could plunge to the strong support zone between $32,400 and $31,000. The bulls are expected to defend this zone with all their might because a break below it will tilt the advantage in favor of the bears.
BTC/USDT 4-hour chart. Source: TradingView
The pair has been gradually rising inside the ascending channel pattern but the negative divergence on the relative strength index (RSI) suggests that the bullish momentum may be weakening. If bulls want to retain control, they will have to kick the price above the channel. If they manage to do that,…
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