For some reason, Bitcoin (BTC) analysts never take the middle path. They either project that the price will go to the moon or warn of imminent doom. After surviving and thriving for over a decade and being one of the best assets to own during the current crisis, any doubts about its longevity should be put to rest.
On the other hand, for the top-ranked cryptocurrency on CoinMarketCap to replicate the previous bull run, it would first need to break out to new lifetime highs. There are several intermittent resistances between the current levels and the lifetime highs that need to be crossed first. Barring a miracle, this is likely to take time. The time spent in a bottoming formation will strengthen the base and act as a launchpad for the next bull run.
Daily cryptocurrency market performance. Source: Coin360
The investors who have purchased for the long-term should not be disturbed with small price swings. However, traders, who aim to profit from the volatility in the crypto sector should be willing to book profits at stiff resistances and buy at strong supports. They should gradually aim to build their portfolio instead of waiting for a home run on every trade.
Although cryptocurrencies are volatile, if traded with proper risk management, they offer an attractive opportunity to generate wealth. Let’s study the charts of the major cryptocurrencies to see if we spot any reliable trade setups.BTC/USD
Repeated failure of the bulls to clear the $10,000 level attracted profit booking from the short-term traders. This dragged Bitcoin (BTC) below the 20-day exponential moving average ($9,145) on May 21 but the bulls defended the uptrend line.
BTC–USD daily chart. Source: Tradingview
Currently, the bulls are attempting to sustain the price above the 20-day EMA. If successful, the buyers will try to clear the hurdle at $10,000. We spot a possible ascending triangle pattern that will complete on a breakout and close (UTC ...