The basic PCE index in the US in May rose by 0.5%, which is lower than the estimates of 0.6%. However, compared with the annual rate, the PCE index rose to 3.4% and showed the largest increase since 1991.

While the US Federal Reserve expects inflation to be temporary, Bank of America analysts disagree. The bank expects US inflation to remain high, in the 2% to 4% range, over the next two to four years, and the bank expects the Fed to raise interest rates over the next six months unless the financial market crashes. …

See daily cryptocurrency market data. Source: Coin360
If inflation remains high, investors will likely reorient bitcoin (BTC) to keep their portfolios safe. A CoinShares report released on June 21 said there is no certainty about inflation over the next five years, but he believes that “adding bitcoin and other real assets is a prudent measure to protect portfolios from the additional risk of uncontrolled inflation.”

While there are short-term risks, certain cryptocurrencies can provide traders with short-term trading opportunities. During the bearish phase, traders can focus on making regular profits instead of waiting for sudden surges. Let’s examine the charts of the five major cryptocurrencies that could become a short-term bullish trend in the next few days.

BTC / USDT
Bitcoin fell to a support range of $ 28,000- $ 31,000 on June 26, but in a positive sign, the bulls bought the decline again. This indicates that buyers are accumulating at lower levels.

BTC / USDT daily chart. Source: TradingView
The bulls will now try to push the price above the 20-day exponential moving average ($ 35,148). If they can do this, it would mean that the selling pressure could ease. A positive deviation from the Relative Strength Index (RSI) also indicates a possible rally in relief.

A break in the 20-day EMA could open doors for a tough upper resistance range of $ 40,000 to $ 42,451.67. The 200-day SMA ($ 43,505) is located just above this area, so it can be difficult for bulls to break through.

This indicates the potential for consolidation between $ 28,000 and $ 42,451.67 over the next few days. The longer the price trades in this area, the stronger the next breakout from it will be. The trend will be favored by the bears if they can move lower and keep the price below $ 28,000.

4-hour BTC / USDT chart. Source: TradingView
The 4-hour chart shows that the bulls are trying to hit a higher bottom of $ 30K. The 20-EMA is flat and the RSI is close to the midpoint, indicating that sellers are losing traction.

If the bulls keep the price above the 20-EMA, the BTC / USDT pair could rise to the 200-SMA. Breaking this resistance could attract additional buying, which could push the price towards $ 40,527. This trend will reverse if the bears push the price below $ 30,000.

ADA / USDT
Cardano (ADA) returned from the $ 1 support level on June 22, indicating strong gains around that level. However, the bulls failed to push the price above the 20-day moving average ($ 1.39) on June 24 and 25, indicating that the bears are protecting resistance.

Daily ADA / USDT chart. Source: TradingView
The gradually scaling 20-day exponential moving average and the RSI in negative territory indicate that the bears have an edge. The ADA / USDT pair could see a long-term settlement if the bears fall and keep the price below $ 1. This could bring the price down to $ 0.68 and then to $ 0.40.

Conversely, if the bulls manage to push the price above the 20-day moving average, it would indicate that the short-term trend has reversed in favor of the bulls. The pair could then rally to $ 1.60 and then to extreme resistance at $ 1.94.

4-hour ADA / USDT chart. Source: TradingView
The moving averages in the 4-hour chart have become flatter, and the RSI near the midpoint indicates easing selling pressure. If the bulls push the price above $ 1.40, it will indicate the possibility of a short-term bottom. The pair could then try to move up to $ 1.60 and then to $ 1.88.

Contrary to this assumption, the price will indicate a shortage of buyers at higher levels if the price falls below the current level or $ 1.40 and falls below $ 1.20. After that, the pair may fall to the critical support level of $ 1.

Source: CoinTelegraph

LEAVE A REPLY