Bitcoin's next move: caution or confidence?

Today, we'll take a closer look at BTC, ETH, SOL, WIF, and POPCAT, exploring their potential paths forward.

Let's dive into the details!

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

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BTC

• BTC's Open Interest is relatively unchanged over the last few days whilst Funding Rates have remained positive but at normal/healthy levels.
• BTC's price increase from $63K to $66 K was mostly driven by Spot buyers.

BTC mechanics breakdown:

Technical analysis

• Following a breakout from the downtrend line (red line), the price was able to reclaim above the horizontal resistance of $63,400 while maintaining the local uptrend.
• If the price were to pull back from here, we would look to the horizontal level of $63,400 as new support.
• If $63,400 is lost, we would expect the $61k area to support price.
• To the upside, the major horizontal resistance is at $68,900. We don't expect this to be overcome in the immediate term.
• The RSI is approaching overbought conditions, currently at 66, so this might suggest that a higher resistance (ie, $68,900) may likely act as too strong of a resistance in the short-term, if price is even able to retest that level in the immediate term.

Cryptonary's take

In the immediate term, we're slightly cautious about BTC. It's possible that BTC can continue its move higher and retest $68,900, but we're not confident that it can get beyond that in the immediate term. Price is up 24% in 3 weeks, so it's possible we can see a slight pullback either now or at some point very soon. However, beyond the immediate term, we're very bullish.

Therefore, we're looking to remain in Spot positions even though we think it's possible that we will see a slight pullback in the very near term. But, this isn't enough to entice us to sell; we'd prefer to just ride through any short-term volatility - assuming we're correct and we do actually see a slight pullback in the immediate term.

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ETH

• ETH's Funding Rate has remained positive, but it hasn't overheated at all, whilst the Open Interest has stayed relatively high.
• Overall, this is a healthy setup.

ETH's open interest:

Technical analysis

• ETH has bounced from the $2,300 lows, as we predicted.
• ETH has now reclaimed back above the key horizontal level of $2,557 and price has now built support on top of this level. Positive.
• The RSI is high at 60 but not really anywhere close to overbought levels. Therefore, this opens the door for more upside for ETH in the short-term.
• If price does move higher, it may find resistance between the $2,800 (downtrend line) and $2,875 (the horizontal resistance).

Cryptonary's take

ETH is looking really clean here to potentially go higher, and to go higher quickly. If there isn't a major pullback from BTC, we think ETH can get a tailwind from this and drive up higher in the short-term, potentially retesting the $2,800 to $2,875 levels.

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SOL

• SOL's Open Interest has been increasing over the last two weeks whilst Funding Rates have flip-flopped between positive and negative. This indicates that traders have been unsure and tried to Short as prices have gone higher.

SOL's open interest:

Technical analysis

• A really clean breakout of the local downtrend fuelled a move higher, enabling the price to break out of the main downtrend line.
• The price is now close to retesting the horizontal resistance of $162.
• Price is approaching overbought territory, but it's possible there's more room left to run higher, particularly if the price can reclaim back above $162.
• If the price were to pull back, we'd expect the zone between $140 and $150 to hold as support.
• If the price can break out at $162, the next major horizontal level is $185.

Cryptonary's take

Price is moving up into a crucial level here to retest the underside of the horizontal resistance at $162. This might create a short-term stumbling block for the price, but we expect the price to potentially just consolidate between $150 and $160 in the immediate term, with a major breakout of $162 to come after. The breakout of the major downtrend line is bullish over the medium term, and with the macro setup at play, we're extremely bullish over the medium and long-term.

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WIF

• Brilliant move from the lows with price now butting into the main downtrend line.
• The main downtrend line may act as resistance for price, especially considering that price is up 41% in 4 days.
• However, price has reclaimed back above the $2.20 horizontal level which is a positive sign. If price were to now pullback slightly from the downtrend line, we'd hope to see $2.20 act as support.
• If price were to see a more substantial pullback then we'd expect $1.96 to act as a more major support.
• If price can breakout of the major downtrend line, then we'd expect to see $3.05 be retested relatively swiftly after.

Cryptonary's take

WIF has made a great move higher and in a relatively short space of time. Now, the price is butting up against the resistance of the downtrend line, which may act as a short-term resistance for the price. However, we do expect the price to break out from the downtrend in the coming weeks, and for the price to then test $3.05 following that.

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POPCAT

• Following a breakout of the major downtrend line, POPCAT has moved higher and broken above its major horizontal resistance at $0.96 to $1.00, although it continues the battle in that area.
• Locally, the $0.95 level could be short-term support, but beneath that, it's likely we see a retest of $0.77. However, with the macro looking so strong, we might be able to avoid a more significant correction.
• What we do notice is that the RSI is overbought and it has printed a bearish divergence (higher high in price with a lower high on the oscillator) in overbought territory. This is usually a bearish setup, and it may fuel a short-term pullback.
• If the price can break beyond $1.08, it's possible we see the price sharply extend to the $1.20 to $1.40 area.

Cryptonary's take

Price has rallied 115% in just 20 days, so it's possible we could have a short-term pull back at some point soon. However, with upside potential still so great, this would encourage us to continue holding our Spot positions as we do expect price to be substantially higher over the coming weeks, even if we see a pullback in the short-term.