Although Bitcoin is struggling to establish a bottom, altcoins are on a roll and the current price action could benefit UNI.
US equity markets staged a strong rally last week, led by the Nasdaq Composite, which gained 7.5%. The S&P is up about 6.5% for the week, while the Dow Jones Industrial Average posted a 5.4% gain.
Keeping with its close correlation with the equity market, the crypto markets are also attempting a relief rally. Bitcoin (BTC) has seen a modest recovery, but some altcoins have risen strongly in the past week. This suggests that investors are taking advantage of the sharp price drop to accumulate altcoins at lower levels.
Smaller investors have taken advantage of the drop in Bitcoin to increase their position until they have at least one Bitcoin. Data from Glassnode shows that the number of Bitcoin wallet addresses holding more than one Bitcoin increased by 873 between June 15 and June 25.
Could the recovery of Bitcoin and altcoins pick up momentum? Let’s study the charts of the top two cryptocurrencies that could go up in the short term.
BTC/USDT
Bitcoin’s relief rally is facing stiff resistance near $22,000 as seen by the long wick of the June 26 candle. This indicates that the bears are unwilling to give up their edge and are selling on rallies.
Sellers will try to push the price towards the $20,000 vital support. This is an important level to watch as a bounce off it will suggest that the bulls are attempting to form a higher low.
That could increase the prospects for a break above the 20-day exponential moving average ($23.155). If this happens, the BTC/USDT pair could indicate a possible change in trend. The bulls will then try to push the price towards the 50-day SMA ($27.424).
Conversely, if the price turns down and drops below $20,000, it will suggest that the bears are still in control. The sellers will then try to sink the BTC/USDT pair to the crucial level of $17.622.
The failure of the bulls to push the price to the 38.2% Fibonacci retracement level of $23,024 suggests a lack of demand at higher levels. The moving averages have flattened out and the RSI is just above the midpoint, which suggests a range-bound action in the short term.
UNI/USDT
Uniswap (UNI) rebounded strongly from $3.33 on June 18 and has reached the tough overhead resistance of $6.08. The bears are aggressively defending the level, but a small silver lining is that the bulls have not given up much ground.
The bears are attempting to stall the recovery near the $6.08 resistance, but the rising moving averages on the 4-hour chart suggest that the bulls have the upper hand in the short term.
If the bounce off the 20 EMA holds, it could increase the possibility of breaking above $6.08. If this happens, the pair could pick up momentum and rally to $6.66 and then $7.34.
If the price breaks below the moving averages, the pair could drop to $20,000. A break below this support could indicate weakness.
On the other hand, if the price bounces off the moving averages, it will suggest that the bulls are buying the dips. The bulls will then try to push the price towards $23,024. If this level is crossed, the next stop could be the 50% retracement level of $24.693.
By Audy Castaneda
