BTC, UNI, THETA, VET, LUNA

Bitcoin (BTC) fundamentals received a boost when the U.S. Senate passed the $ 1.9 trillion stimulus plan on March 7. If traders react to this bill the same way they did to the first stimulus package in April 2020, crypto markets could witness a strong rally.

The stimulus package also intensifies the focus on the devaluation of the US dollar. These concerns could lead some investors to park their money in hard assets or Bitcoin instead of holding them in fiat currencies, according to veteran trader Peter Brandt.

Day view of crypto market data. Source: Coin360

In addition to investors, more and more listed companies are choosing to protect their fiat reserves by buying Bitcoin. Following high profile purchases from MicroStrategy, Tesla and Square, a Chinese public company named Meitu announced it had acquired $ 40 million worth of Bitcoin and Ether.

If other companies around the world follow suit and invest some of their treasury reserves in Bitcoin, it could create a massive imbalance between supply and demand and drive prices up.

Let’s examine the charts of the top 5 cryptocurrencies that can resume their uptrend in the short term.

BTC / USD

Bitcoin fell below the 20-day exponential moving average ($ 48,484) on March 5th and 6th, but the long tail on each candlestick shows that buyers are ready to jump in at lower levels. The bulls have currently pushed the price towards the overhead resistance at $ 52,040.

BTC / USDT daily chart. Source: TradingView

While the 20-day EMA is flat, the Relative Strength Index (RSI) has risen to above 58, indicating that the bulls are trying to make a comeback.

If buyers can push the price above the resistance, the BTC / USD pair could retest the all-time high at $ 58,341. A breakout of this level could begin the next leg of the uptrend, which could hit $ 72,112.

Contrary to this assumption, if the price deviates from the overhead resistance and falls below $ 46,313, the pair can fall to the 50-day simple moving average of $ 42,861. This level should provide strong support.

If the couple recovers from this support, the couple may still spend a few more days in consolidation. However, if the bears cut the price below $ 41,959.63, traders could rush to exit, which could indicate a possible change in trend.

BTC / USDT 4-hour chart. Source: TradingView

The pair has formed an inverted head and shoulders pattern on the 4 hour chart that will complete on a breakout and close above $ 52,040. This bullish setup has a pattern target of $ 61,075.

The 20-EMA has popped up and the RSI has risen above 62, indicating a small advantage for the bulls.

This bullish view will be invalid if the price deviates from current levels or overhead resistance and falls below $ 47,000. Such a move could open the doors for a drop in the next major support at $ 41,959.

UNI / USD

After three days of consolidation near $ 29, Uniswap (UNI) broke out of overhead resistance today. If the bulls can hold the price above $ 29, the prospect of a resumption of the uptrend will be improved.

UNI / USDT daily chart. Source: TradingView

Both moving averages are rising and the RSI is in overbought territory, indicating that bulls are in command. When the UNI / USD pair rises above $ 33 the next level to watch out for is $ 38 and then $ 46.

This bullish view will be invalidated if the price deviates from current levels and falls below the 20-day EMA ($ 25.31). If so, the pair can drop to $ 22 and then to the 50-day SMA ($ 19.78).

UNI / USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bears are likely to be aggressively defending $ 32 overhead resistance. However, if the bulls do not allow the price to drop below the 20 EMA, it signals strength. A breakout and close above the $ 32-33 zone may begin the next leg of the uptrend.

This bullish view will be invalidated if the price drops and drops below the 20-EMA. Such a move suggests that traders are making profits on rallies. The pair could then fall to the 50 SMA.

THETA / USD

THETA is in a strong upward trend. Although the altcoin was rejected on March 7th, the long tail on the March 8th candlestick shows that it is buying at lower levels. Corrections in a strong uptrend usually take one to three days, after which the main trend continues.

THETA / USDT daily chart. Source: TradingView

The rising moving averages and RSI near the overbought zone suggest that the bulls are in control. If buyers can push the price above $ 4.72, the THETA / USD pair can resume the uptrend and climb to $ 5.73.

On the contrary, if the price drops from $ 4.50 to $ 4.72, the pair may drop to the 20-day EMA ($ 3.58). A strong rebound in this support suggests sentiment remains positive as the bulls buy the dips.

If the bears pull the price below the 20-day EMA, a deeper correction in the 50-day SMA ($ 2.82) is possible. Such movement indicates that momentum has subsided and may delay the resumption of the upward movement.

THETA / USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the 20-EMA is rising and the RSI is in the positive zone. If the bulls can push and hold the price above the downtrend line, the pair could retest $ 4.72. A breakout of this resistance could begin the next leg of the uptrend.

Conversely, if the price corrects further, it may find support at the 20 EMA. In this event, the bulls will try again to push the price above the downtrend line. However, a break below the 20 EMA can bring the price down to $ 3.85.

Vocational Education / USD

VeChain (VET) is currently stuck in a large range between $ 0.0345 and $ 0.060774. Price had hit range resistance but today’s candlestick long wick is showing a profit posting near $ 0.060774.

VET / USDT daily chart. Source: TradingView

However, the moving averages are rising and the RSI has also ventured further into positive territory, suggesting that the path of least resistance is up. If the bulls can push and hold the price above $ 0.060774, the VET / USD pair could begin the next leg of the uptrend.

The first target on the upside is $ 0.087048. If this level is also crossed, the pair can rise to $ 0.10.

Contrary to this assumption, the pair can fall to the 20-day EMA ($ 0.047) if the price deviates from current levels. A ricochet from this support suggests the uptrend remains intact, but a break below that may bring the range-tied action into play.

VET / USDT 4-hour chart. Source: TradingView

The 4 hour chart shows a profit posting near $ 0.060, but the positive sign is that the bulls did not allow the price to collapse. If the pair bounces off the 20-EMA, the bulls will make another attempt to push the price above the stiff overhead resistance.

If they can keep the price above $ 0.060774 then the next segment of the uptrend could begin. However, if the price falls below the 20-EMA, selling could intensify and the price could fall to the nearest support at the 50-SMA.

MOON / USD

Terra (LUNA) is currently consolidating in a large range between $ 5 and $ 8.50 for the past few days. Both moving averages are rising and the RSI is near the overbought area, indicating that the path of least resistance is up.

LUNA / USDT daily chart. Source: TradingView

The bulls pushed the price above the range on March 5th but failed to build on the breakout as the price fell and fell back below $ 8.50 on March 6th. This suggests that demand has dried up at a higher level.

If the bulls aren’t giving up much ground, however, it suggests that traders are waiting to buy the shallow dips. When this happens, buyers may try again to start the next leg of the uptrend. If successful, the LUNA / USD pair could rise to $ 12.

LUNA / USDT 4 hour chart. Source: TradingView

The long wicks on the candlesticks above $ 8.50 show a profit posting at higher levels and the bulls are currently trying to defend the 20 EMA. If price rebounds from current levels, buyers will try again to resume the uptrend by forcing the pair above the overhead resistance zone of $ 8.50 to $ 9.

On the contrary, if the bears sink and hold the price below the 20-EMA, the pair could fall to the 50-SMA. If price bounces off these levels, the pair may consolidate in the upper half of the range for some time. A fall below the 50 SMA is a signal that the price could hover in the $ 5 to $ 6 range.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.

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