Bitcoin (BTC) has attracted several institutional investors in recent months, but with the Market capitalization With assets in excess of $ 700 billion, many more institutions are likely to consider buying Bitcoin. Likewise Ether (ETH) with a market capitalization of about $ 180 billion also cannot be ignored by the investors.
The institutional adoption of the two major cryptocurrencies is likely to attract numerous venture capitalists and early investors to smaller projects that have reached a decent size but have not yet reached their full potential. While the risk is high with such investments, the returns can be equally attractive.
For such investors, there are multiple projects to choose from because more than 50 digital assets have a market cap of more than $ 1 billion, which gives them unicorn status, a term used in old markets for companies with a market cap of more than $ 1 billion.
If big players jump into these unicorns, they are likely to recover strongly, which will benefit the early retail investors who are ahead of the institutions. While these gains can last a long time, in the short term traders can take advantage of the strong upward movements in various altcoins.
Let’s take a look at the charts of the top 5 cryptocurrencies that can resume their upward trend in the coming days.
BTC / USD
Bitcoin broke above $ 38,000 overhead resistance on Feb. 5 and followed it up with another upward move on Feb. 6, but the bulls failed to sustain the higher levels as seen from the long wick on the candlestick of the day.
The failure of the bulls to keep the price above USD 40,000 has made gains today and the bears are trying to hold and maintain the price below USD 38,000. If they succeed in this, the BTC / USD pair could drop to the 20-day exponential moving average ($ 35,386).
If the pair bounces off the 20-day EMA, the bulls will try to resume the uptrend again. A break from the $ 40,000 to $ 41,959.63 overhead resistance zone could be the start of the next leg of the uptrend to $ 50,000.
On the contrary, if the bears drop the price below the 20-day EMA, the pair could drop to the 50-day simple moving average ($ 32,840). If this support also creaks, the pair could drop towards the USD 28,850 support.
The 4-hour chart shows that the bulls had pushed the price above USD 38,000 towards the USD 40,000 overhead resistance zone, but the pair fell from USD 40,952.16. This shows that the bears are active at higher levels.
The pair has fallen below the 20-EMA and the Relative Strength Index (RSI) is just above midpoint, suggesting that momentum could weaken. The pair could now drop to the 50-SMA.
If the pair bounces off the 50 SMA, the bulls will make one more attempt to resume the uptrend, but if the 50 SMA crunches, the correction could deepen to $ 32,000.
DOT / USD
Dot (POINT) is in a strong upward trend. The bulls pushed the price above the USD 19.40 resistance on Feb. 3, but they have not been able to build on the breakout. This suggests that the bears are trying to slow down the upward trend.
The positive sign, however, is that the bulls have not kept the price below USD 19.40. This suggests that traders are not aggressively booking profits and buying with every little dip.
If the bulls can now propel the price above USD 21.7321, the next leg of the uptrend can begin. The targeted target at the upside is $ 24.08 then $ 30. The rising moving averages and RSI above 61 suggest the bulls are in control.
Contrary to this assumption, if the bears are sinking and holding the price below the 20-day EMA ($ 17.43), it will suggest that the bullish momentum has weakened. The DOT / USD pair could then spend a bit more time hovering between $ 19.40 and $ 14.7259.
The 4-hour graph shows the formation of a symmetrical triangle, which usually acts as a continuation pattern. The bears tried to lower the price below the triangle, but the 50-SMA’s sharp recovery shows aggressive buying at lower levels.
If the bulls can push the price above the triangle, the advantage will shift in favor of the bulls. The pattern target of the break above the triangle is $ 24.1621. On the other hand, if the bears hold the price below the triangle, the pair could drop to $ 15.8379.
LINK / USD
Chain link (LINK) broke and closed above the $ 25.7824 overhead resistance on Feb. 5, but the bulls failed to maintain momentum the next day. This shows that the bears are aggressively defending the USD 25.7824 to USD 27 resistance zone.
However, the long tail on today’s candlestick shows that the bulls are buying the dip to the 20-day EMA ($ 22.83). The ascending moving averages and the RSI in the positive zone suggest that the path of least resistance is upward.
If the bulls can drive price overhead above the resistance zone, the next leg of the uptrend can begin. The next level to look up is at USD 30 and if that is also exceeded, the upward move could reach USD 33.
On the contrary, if the Bears drop the price below the 20-day EMA, the LINK / USD pair can extend its range-bound action for a few more days between $ 20.1111 and $ 25.7824.
The 4-hour graph shows the formation of a rising triangle pattern. If the pair returns from the current level, the bulls will make another attempt to push the price above the overhead resistance zone. If they succeed, the pair can rally towards the $ 31.4537 pattern goal.
Conversely, if the bears hold the price below the support line the pair could drop to USD 22.61 and then to USD 21.65. The marginally decreasing 20-EMA and the RSI in the negative area suggest a small benefit to the bears.
XLM / USD
The tight range between USD 0.325 and USD 0.35 resolved upward on Feb. 6, showing that the bulls have overwhelmed the bears. If the bulls now Stellar Lumens (XLM) above $ 0.40, the next leg of the uptrend can begin.
The rising moving averages and the RSI near the overbought zone suggest that bulls are in command. Above USD 0.40, the XLM / USD pair could rise to USD 0.50, where bears could once again build solid resistance.
If the bulls fail to close the price above USD 0.40, the pair could drop back to USD 0.35. A strong rebound from this support will suggest that the bulls have turned it over to support, increasing the odds of a break above USD 0.40.
Contrary to this assumption, if the bears drop the price below the 20-day EMA ($ 0.315), it will suggest that the current outbreak was a bear trap.
The 4-hour chart shows the pair has broken out of a symmetrical triangle with a target of $ 0.445. Both moving averages gradually increase and the RSI is in the positive zone, suggesting that the bulls are in control.
If the price bounces off the 20-EMA, it indicates that traders are piling up on dips and that will increase the prospects of a resumption of the uptrend. Conversely, a hiatus below the 20-EMA will be the first sign that momentum may be weakening.
THETA / USD
THETA is currently consolidating in an upward trend. The price action of the past few days has formed a bullish bullish bullish bullish triangle pattern that will complete on a breakout and close above USD 2.51.
The bulls had pushed the price above $ 2.51 on Feb. 5, but they couldn’t sustain the breakout. This suggests the bears are trying to defend the resistance for $ 2.51.
However, the positive sign is that the bulls have not allowed the price to fall below the 20-day EMA ($ 2.09). If the price returns to its current level, the bulls will try again to push the THETA / USD pair above USD 2.51.
If they succeed, the pair can resume the next leg of the uptrend. The triangle breakout pattern goal is $ 3.56. This bullish scheme will be invalidated if the bears sink the price below the triangle.
The 20-EMA on the 4-hour chart is starting to decline and the RSI has dropped into the negative territory, indicating that the bears are trying to make a comeback. A break below USD 2.10 could pull price towards the triangle support line.
On the other hand, if the price rises from current levels or the triangle support line, it will suggest that the bulls are buying on dips. They will then try again to push the price above the USD 2.51 resistance.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trade move carries risks, you should do your own research when making a decision.