Bitcoin continues to face a tough battle between the bulls and the bears, investors are keeping a close eye on the cryptocurrency market for signs of a potential rebound. While Bitcoin struggles to regain its footing, several altcoins like Solana (SOL), Polkadot (DOT), NEAR Protocol (NEAR), and Kaspa (KAS) show promising signs that could lead to significant gains. Here’s a detailed look at the current state of Bitcoin and why these four altcoins might be worth considering for your investment portfolio.
Bitcoin, the leading cryptocurrency, recently dipped below the $56,552 support level on July 5, igniting concerns among investors. The price fell close to $53,500 but saw a brief resurgence as buyers stepped in to support the value. Despite this temporary bounce, the market remains on edge, with the potential for further declines if Bitcoin cannot maintain its support levels.
According to Farside Investors, U.S.-based spot Bitcoin exchange-traded funds saw significant net inflows of $143.1 million on July 5, marking the largest single-day increase in a month. Hunter Horsley, CEO of Bitwise Asset Management, noted on social media that this inflow represents a prime opportunity for investors to “buy the dip,” suggesting that Bitcoin’s long-term outlook remains strong despite current volatility.
Bitcoin’s recent performance has highlighted key support and resistance levels that will be crucial in determining its future trajectory.
Daily Chart Analysis:
On July 5, Bitcoin’s price fell below the $56,552 support level, but the bulls managed to defend this level on a closing basis. This price movement indicates that while the bears are trying to push Bitcoin lower, the bulls are equally determined to keep the price from falling further.
The 20-day exponential moving average (EMA) is currently at $61,231, which suggests that the bears have the upper hand in the short term. However, a positive divergence in the relative strength index (RSI) indicates that the bearish momentum might be slowing down.
Solana (SOL) has been forming a bearish descending triangle pattern, which suggests that the price could fall further if it breaks below $116. Despite this, there are signs that the bulls might still make a move.
Daily Chart Analysis:
The RSI shows a potential positive divergence, suggesting that the selling pressure might be easing. If SOL can break above the 20-day EMA, the price could rise to the 50-day SMA at $153 and potentially reach the downtrend line.
Polkadot (DOT) experienced a significant drop to $4.91 on July 5, but buyers have since pushed the price above the 20-day EMA, indicating that the bears are losing their grip.
Daily Chart Analysis:
If DOT can clear the hurdle at $6.54, the price may climb to $7.29 and beyond. If the price declines below the $5.38 to $4.91 support zone, the bears may regain control.
NEAR Protocol (NEAR) has been trading within a range between $4.28 and $8.58. Recent movements suggest that the bears have failed to maintain lower levels, which could be a sign of a potential rebound.
Daily Chart Analysis:
A break above the 20-day EMA at $5.17 could lead to a rise towards $5.63 and potentially $6.11. However, if NEAR falls below $4, it could drop to $3.50 and possibly $3.
Kaspa (KAS) recently broke above the $0.19 resistance level but struggled to build on this breakout. The price found support at the 50-day SMA and is currently testing the 20-day EMA.
Daily Chart Analysis:
If KAS maintains its price above the 20-day EMA, it could rally towards $0.19. A drop below the 50-day SMA could push the price down to $0.13 and $0.10.
While Bitcoin’s recovery faces hurdles, altcoins like Solana (SOL), Polkadot (DOT), NEAR Protocol (NEAR), and Kaspa (KAS) are showing strong potential for growth. Each of these cryptocurrencies presents unique opportunities based on current technical analyses and market trends.
Solana (SOL) is at a crossroads with a bearish pattern but also shows signs of potential upward movement if key resistance levels are overcome.
Polkadot (DOT) has bounced back from recent lows and could continue to rise if it breaks through significant resistance levels.
NEAR Protocol (NEAR) is testing its support levels and may rebound if it can hold above critical technical markers.
Kaspa (KAS) is finding support and may see further gains if it can maintain its current price levels.
Investors should keep a close watch on these altcoins as potential opportunities arise in the evolving cryptocurrency market.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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