Bitcoin price cracks $30K, possibly clearing a path for SOL, LINK, AAVE and STX

Bitcoin's Rally and the Path Ahead

Bitcoin (BTC) had a successful week, surging by 10% and crossing the significant milestone of $30,000. However, investors are now questioning whether this upward trend will continue or if a reversal is on the horizon.

Trading team Stockmoney Lizards believes that Bitcoin could break its overhead resistance and embark on a sharp rally. They argue that the approval of the exchange-traded fund could drive mass adoption and trigger a rally before the halving in April 2024.

This week, Bitcoin's strength also had a positive impact on several altcoins, which saw significant gains above their respective resistance levels. This indicates a gradual shift in sentiment and suggests that it may be time to consider selective buying.

Chart Analysis: Bitcoin's Price Outlook

Bitcoin is currently facing a battle between bulls and bears near the $30,000 mark. Nonetheless, the fact that buyers have not given up much ground is a positive sign.

Consolidation at the current level suggests that the bulls are not rushing to book profits, indicating the possibility of another leg higher. If this happens, the price could reach the overhead resistance zone between $31,000 and $32,400.

On the other hand, if the price turns down from $31,000, Bitcoin could drop to the 20-day exponential moving average ($28,160). A bounce back from this level would encourage bulls to attempt clearing the overhead hurdle.

However, a break below the 20-day EMA would negate the positive sentiment and keep the price range-bound between $31,000 and $24,800.

Looking at the 4-hour chart, the pair is in an uptrend. Traders typically buy the dip to the 20-EMA during an ascent, signaling continued bullish sentiment. If this happens, the pair may continue its journey towards $32,400.

Conversely, if the price falls below the 20-EMA, it suggests that traders may be closing their positions rapidly, potentially leading to further decline towards the important support at $28,143.

Altcoin Analysis: SOL, LINK, AAVE, and STX

Solana (SOL): SOL broke out of a bullish inverse head and shoulders pattern, with a target objective of $32.81. Overbought levels on the RSI indicate a possible correction, with $27.12 serving as important support. A strong bounce from this level would improve the prospects of continued uptrend.

Chainlink (LINK): LINK has been trading within a tight range between $5.50 and $9.50 since May 2022. A break above $9.50 could lead to a rally towards $13.50 and potentially $15 and $18. The first support on the downside is at $8.50.

Aave (AAVE): AAVE invalidated the bearish descending triangle setup by rising above the downtrend line. Both moving averages are turning up, indicating a bullish advantage. Maintaining above the downtrend line could lead to a surge towards $88 and $95. However, a drop below the downtrend line could put bears back in control.

Stacks (STX): STX has witnessed a sharp rise, indicating an attempt to start a new uptrend. The bullish crossover on the moving averages suggests an advantage for bulls. The first support on the downside is the 20-day EMA ($0.54), and a rebound from this level could signal a continuation of the up-move towards $0.80 and $0.90.