Bitcoin ended last week on a bullish weekly close, and some traders are now preparing for a relief rally in altcoins. Several major tokens are sitting on key support levels, and a 20% bounce across altcoins is being tipped as the next possible move.
An analyst who trades altcoin cycles has started building positions in Solana, SUI, Render and Avalanche.
Bitcoin Sets The Tone
The latest weekly candle suggests Bitcoin could recover most of the past two weeks’ losses within days. The levels being watched:
- Upside target: $84,000 to $85,000 this week
- Short-term trigger: a move above $80,000 to $81,000 could lift BTC quickly to $83,000
- Support: current levels, with a deeper floor at $77,000
- Liquidity: short positions are building between $81,000 and $82,700, which raises the chance of a short squeeze
Bitcoin’s daily RSI has also fallen to very low levels, a reading that often comes before a bounce.
Bitcoin Dominance Could Unlock Altcoins
Bitcoin’s share of the total crypto market is close to the top of a wedge pattern on the weekly chart. A sharp drop in dominance from here would usually mean money flowing into altcoins, and that could set off a fast rally.
Altcoins At Key Levels
Solana (SOL)
- Support zone: $97 to $101
- First target: $104, then a push toward $120
- Setup invalidated below $93 to $94
SUI
- Sitting on its 200-day moving average and the 0.618 Fibonacci level
- Trading inside a falling wedge on the four-hour chart, a pattern that often ends in a breakout
- Key support near $0.87
Render (RENDER)
- Holding the 200-day moving average and the 0.618 Fibonacci level
- Next important zone near $1.67
- Bounce target of $1.95 to $2
Avalanche (AVAX)
- The 0.618 Fibonacci support sits near $8.70 to $8.75
- Setup weakens below $8.40 to $8.50
- First target is a move of 10% to 12%
Other Altcoins On The Watchlist
- XRP: bouncing off its 200-day moving average and the 0.618 Fibonacci level, and needs a trendline break to start a bigger move
- Bittensor (TAO): a breakout above its current trendline would confirm a bullish setup
- Compound (COMP): back near $20 and sitting on its 200-day moving average
- Cardano (ADA): a possible four-hour breakout, though it is not seen as one of the strongest charts
- Injective (INJ) and NEAR: both still look weak in the short term, with INJ possibly slipping to around $7
Two Possible Paths
Prices could dip one more time to clear out leveraged positions before rallying, or break higher straight away. Either way, the current zone is seen as an early entry area ahead of a bigger move expected in the coming weeks.
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