Top 5 cryptocurrencies to watch this week: BTC, ADA, AXS, LINK, FTT

ADA, AXS, LINK and FTT may start a strong recovery in the next few days if BTC holds the $45,000 level as support.

Bitcoin (BTC) is attempting to notch its second successive weekly gains and end at the highest weekly closing price year-to-date. According to on-chain data from Glassnode, the recovery in Bitcoin’s price was driven by demand in the spot markets. This is likely to cheer the bulls because history suggests that spot market demand leads to sustained upside.

Another positive sign is the strong demand for the ProShares Bitcoin Strategy exchange-traded fund (BITO) in the past two weeks, which pushed its exposure to a record high. Arcane Research said the strong inflows “suggest that Bitcoin appetite through traditional investment vehicles is increasing.”

Along with Bitcoin, the broader crypto space is also attracting investors. According to research firm Fundstrat, venture capital buyers pumped $4 billion into the crypto space in the last three weeks of February.

Could buyers sustain the momentum and extend the relief rally in Bitcoin and altcoins? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the short term.

BTC/USDT

The long wick on Bitcoin’s March 25 candlestick shows that the bears are defending the overhead resistance at $45,400. A minor positive is that the bulls have not given up much ground, suggesting that the traders are not closing their positions in a hurry.

The 20-day exponential moving average ($42,025) has turned up and the relative strength index (RSI) is in the positive territory, indicating that bulls are in command. If buyers drive the price above $45,400, the BTC/USDT pair could rise to the resistance line of the ascending channel.

This level may again act as an obstacle, but if bulls overcome it the pair could rally to the psychological level at $50,000.

Contrary to this assumption, if the price turns down from $45,400, the bears will try to pull the pair to the strong support at $42,594. This is an important level to watch on the downside because if bulls flip it to support, the possibility of a break above $45,400 increases.

The bears will have to pull and sustain the price below the moving averages to signal that the bulls have been pushed to the back foot.

The 4-hour chart shows that the price turned down from the overhead resistance but the bulls did not allow the pair to break below the 20-EMA. This suggests that traders are buying on every minor dip.

The rising moving averages and the RSI near the overbought zone suggest that the path of least resistance is to the upside. This positive view will invalidate in the short term if the price breaks and sustains below the 20-EMA. In that case, the pair may drop to $42,594.

ADA/USDT

Cardano (ADA) has been sustaining above the critical level at $1 for the past few days. This indicates that bulls who may have purchased at lower levels are not booking profits aggressively as they expect the recovery to continue.

The moving averages have completed a bullish crossover and the RSI is in the positive zone, indicating that bulls have the upper hand. If buyers push and sustain the price above $1.26, the bullish momentum may pick up and the ADA/USDT pair could rally to the next critical resistance at $1.60.

Alternatively, if the price turns down from $1.26 but rebounds off $1, it will suggest that the pair may remain range-bound between the two levels for a few more days. The bears will have to sink and sustain the price below the moving averages to invalidate the bullish view.

The 4-hour chart shows that the bears are aggressively defending the overhead resistance at $1.20 but a minor positive is that the bulls have not allowed the price to sustain below the…

Read More: cointelegraph.com