Bitcoin’s breakout above its descending channel boosted the world’s largest digital asset back toward the $39,000 mark. Alts such as MATIC and THETA posted gains on the back of bullish sentiment.
Bitcoin [BTC]
Source: BTC/USD, TradingView
Bitcoin saw an early breakout from a descending channel and cleared its first hurdle at 23.6% Fibonacci level ($37,494) on its 12-hour chart. The next target at 38.2% level ($42,763) was a critical area to retake over the coming sessions. A successful breakout could push the king coin back toward its 200-SMA (green) and above $50,000.
RSI was on a steady recovery since 19th May and even formed a bullish divergence with regardsto BTC’s price action. MACD continued its ascent toward the half-line and was at its highest level since the crypto-crash. While these were positive signs for a recovery, BTC’s next leg upwards was of particular significance as it approached an important resistance mark.
A successful breakout above 38.2% level could trigger a 20% price hike toward the next ceiling at the 61.8% level ($51,279). On the other hand, a failed breakout would likely push the coin back towards its down-channel.
MATIC
Source: MATIC/USD, TradingView
Like Bitcoin, MATIC also at the helm of a crucial development. A break above its 20-SMA (red) and $1.46 could result in some additional gains towards 50-SMA (yellow) and $1.65-resistance. An extremely bullish outcome would see the cryptocurrency head back towards its 15 May swing high of $1.89. Overall, the rise would represent gains of 30% when calculated from its current price level.
MACD’s bullish crossover was a step in the right direction in terms of a breakout. However, RSI was restricted below 50 at the time of writing. This suggested that MATIC could face some stiff opposition in its attempt to climb north over the coming days.
THETA
Source: THETA/USD, TradingView
A previous analysis on THETA mentioned the possibility of a rise towards $9 and the cryptocurrency did not disappoint market bulls. At the time of writing, THETA jumped by 11% over the last 24 hours and climbed above its 20-SMA (red). However, the 12-hour chart presented a few challenges in form of 200-SMA (green) and $10.56-ressitance. Rejection at those levels could push the cryptocurrency back towards a defensive line of $8.15.
According to Awesome Oscillator, bearish momentum was on the up over the past week. Even though the index did not fall below half-line, it did not indicate bullish strength either. On the other hand, MACD closed in a bullish crossover and backed a favorable outcome. A rise above 200-SMA and $10.56-resistance could push the cryptocurrency towards the next ceiling at $13.26.
