Top 5 Cryptocurrencies to Watch This Week: BTC, ADA, AXS, LINK, FTT

Bitcoin (BTC) is attempting a second week of gains in a row and closed with its highest weekly close year-to-date. According to Glassnode’s on-chain data, the recovery in Bitcoin’s price was driven by demand in the spot market. That could cheer the bulls, as history has shown that demand in the spot market leads to sustained gains.

Another positive sign has been strong demand for the ProShares Bitcoin Strategy exchange-traded fund (BITO) over the past two weeks, pushing its exposure to an all-time high. Arcane Research said the strong inflows "suggest that demand for bitcoin in traditional investment vehicles is increasing."

Beyond bitcoin, the broader crypto space is also attracting investors. Venture capital buyers pumped $4 billion into the crypto space in the last three weeks of February, according to research firm Fundstrat.

Can Buyers Sustain Momentum and Extend Bitcoin and Altcoin Rally? Let’s examine the chart of the top 5 cryptocurrencies that are likely to outperform in the short term.

Bitcoin/USDT

The long shadow on Bitcoin’s March 25 candle shows that the bears are defending the overhead resistance at $45,400. A smaller positive is that bulls haven't given up much ground, suggesting traders are in no rush to close their positions.

The 20-day exponential moving average ($42,025) has risen and the relative strength index (RSI) is in positive territory, suggesting bulls are in command. If buyers push the price above $45,400, BTC/USDT could rise to the resistance line of the ascending channel.

This level may once again act as a hurdle, but if the bulls overcome it, BTC/USDT could rally towards the psychological $50,000 level.

Contrary to this assumption, if the price turns down from $45,400, the bears will attempt to pull BTC/USDT towards the strong support at $42,594. This is an important downside level to watch, as the odds of a break above $45,400 increase if the bulls flip it into support.

The bears will have to pull the price lower and sustain it below the moving averages to show that the bulls are on the back foot.

The 4-hour chart shows that the price retreated from the overhead resistance, but the bulls did not allow BTC/USDT to break below the 20 EMA. This shows that traders are buying on every small dip.

The rising moving averages and RSI near the overbought zone suggest that the path of least resistance is to the upside. This positive view will be invalidated in the short-term if the price breaks and sustains below the 20-EMA. In this case, BTC/USDT could drop to $42,594.

ADA/USDT

ADA has been holding above the key $1 level for the past few days. This suggests that bulls who may have bought at lower levels are not taking profits aggressively as they expect the recovery to continue.

The moving averages have completed a bullish crossover and the RSI is in positive territory, suggesting that the bulls have the upper hand. If the buyers push and sustain the price above $1.26, the bullish momentum could strengthen and ADA/USDT could rally towards the next key resistance at $1.60.

Alternatively, if the price pulls back from $1.26 but bounces off $1, it would suggest that ADA/USDT could remain range-bound between the two levels for a few days. The bears will have to pull lower and sustain the price below the moving averages to invalidate the bullish view.

The 4-hour chart shows that the bears are aggressively defending the overhead resistance of $1.20, but a smaller positive is that the bulls are not allowing the price to sustain below the 20 EMA. If the price rises from the current levels, the bulls will make another attempt to clear the $1.20 hurdle and push ADA/USDT to $1.26.

Alternatively, if the price declines and breaks below the 20-day EMA, it will indicate that the bullish momentum has weakened. Then, ADA/USDT may gradually decline to the strong support of $1.

AXS/USDT

Axie Infinity (AXS) has been trading between $72 and $44 for the past few days. Buyers pushed prices above overhead resistance on March 25 but were unable to sustain the higher levels. This shows that the bears are vigorously defending the level.

The moving averages have completed a bullish crossover and the RSI is in positive territory, suggesting a favorable position for buyers.

If the price rises from the current levels or bounces off the 20-day EMA ($56), the bulls will make another attempt to push AXS/USDT above $72. If they manage to do so, the upside could pick up momentum and AXS/USDT could rally towards $100.

This positive view will be invalidated if the price continues lower and breaks below the 20-day EMA. This could keep AXS/USDT range-bound for a few more days.

The 4-hour chart shows that the bulls pushed the price above the overhead resistance at $72 but were unable to sustain higher levels. This may have attracted short-term traders to take profits, pulling the price below the 20 EMA.

If the price rises from current levels and breaks above $68, it will signal accumulation on dips. Buyers will then attempt to clear the barrier at $72 and start a fresh increase.

Contrary to this assumption, if the price sustains below the 20 EMA, the correction may extend to the 50 SMA.

LINK/USDT

Chainlink (LINK) has been trading between $13 and $36 for the past few months. Although the bears pulled the price below the support of the range, they were unable to sustain the decline. This shows that the market rejected the lower levels.

The moving averages have completed a bullish crossover and the RSI is in positive territory, suggesting that the bulls have the upper hand. The rally could face resistance at the downtrend line, but if this barrier is breached, LINK/USDT could rally towards $20.

Alternatively, the moving averages could act as strong support if the price turns down from current levels. If the price bounces off it, the chances of breaking the downtrend line could increase. This positive view will be invalidated if the bears sink the price below the moving averages. This could open the door for a possible drop to $13.

The bears built a strong defense at $16.50, but a small positive is that the buyers did not allow the price to break below the 50-SMA. If the price rises from the current levels or bounces off the moving averages, the bulls will attempt to propel LINK/USDT above $16.50. If they succeed, LINK/USDT could rise to $17.50.

Contrary to this assumption, if the price breaks below the 50-SMA, it would indicate that short-term bulls may be unwinding their positions. There is a minor support at $15, but if it breaks, LINK/USDT could drop to $14.

FTT/USDT

FTX Token (FTT) broke out and closed above $49 on March 24, forming an ascending triangle pattern. Although buyers pushed prices above the psychological resistance of $50 on March 25, they were unable to sustain higher levels.

This shows that the bears have not given up yet and they continue to sell at higher levels. The bears will now attempt to pull and sustain the price below $49. Aggressive bulls who bought from the triangle breakout could be trapped if they manage to do so. This could send FTT/USDT down to the 20-day EMA ($45).

If the price bounces off this level, buyers will make another attempt to clear the overhead resistance zone between $49 and $52 and resume the uptrend.

Conversely, if the price breaks below the moving averages, it will indicate that the bears are attempting a strong rebound. A break and close below the uptrend line of the triangle will invalidate the bullish pattern. Then FTT/USDT could drop to $39.

A bounce above $51 pushed the RSI into overbought territory. Typically, such moves are followed by sharp corrections or consolidations. If the bears pull the price below $49, FTT/USDT could fall further towards the 50-SMA.

If the price bounces off this level, buyers will make another attempt to push FTT/USDT above $52 and continue higher. On the other hand, if the bears sink the price below the 50 SMA, the selling could intensify and FTT/USDT could drop to $45.