Bitcoin resumed the uptrend after facing a major fall on Monday and Tuesday ahead of the US CPI data. The dive to $66,000 sent jitters across the market as some investors panicked, selling irrationally. However, the market is up again backed by BTC’s rise above $69,000. With prices generally climbing, investors may want to consider select Bitcoin alternatives during this week’s cryptocurrency trading, including Terra Classic (LUNC) and GameStop (GME).
GME meme coin price hovered around $0.0191 during European business hours on Wednesday, a 12% increase in 24 hours and a further 107% increase in 7 days, as per CoinGecko data.
Gamestop price has been trending above the 50-day and 200-day simple moving averages, but dangerously close. After the initial surge in price that saw the meme coin hit an all-time high of $0.032, GME price crashed to $0.014, an over 50% drop in price in less than 24 hours.
Nevertheless, the asset began making higher lows and lower highs, typical of a symmetrical triangle formation. The GME price action is headed toward the end of the triangle, and soon it will be decision time. These types of market structures have a 50/50 chance of breaking upward or downward. However, combined with other factors, the odds may lie in favor of one side over the other.
One factor is that GME price is still in an uptrend despite the recent heavy crash since the price action did not fall below the previous low. A break to the upside may see the meme coin break the previous all-time high and hit $0.034. A key resistance exists around $0.023. On the flip side, GME price may find support around the $0.015 area.
2. Terra Classic (LUNC)
The Terra Classic bulls have an uphill battle defending the most critical support at $0.0001. So far, the price has bounced from this level on the daily chart, but with the Relative Strength Index (RSI) falling to 38, the down leg could extend further.
The RSI shows an expanding bearish divergence likely to make the situation difficult for the bulls. A continued drop below 30 into the oversold level would reveal two things: A stronger bearish grip and a weakening downtrend.
Therefore, traders would be wise to watch out for the price behavior around $0.0001, as highlighted by the lower ascending trendline. An immediate rebound will prop Terra Classic price for an incoming uptrend while closing the day below the same level could send jitters among investors, paving the way for a price drop to $0.00009, the next support level.
A potential rebound from the lower trendline would mark a trend reversal. Nevertheless, LUNC may remain under the influence of the bears until it climbs past the upper broken trendline and most importantly the resistance in red at $0.00012. From here, the move to $0.0002 could happen quickly backed by FOMO and a generally bullish market.
Conclusion
Cryptocurrency trading requires patience, and also the ability to adapt to a constantly changing landscape. The Bitcoin price drop to $66,000 on Tuesday was immediately followed by a run-up above $69,000, implying that trends change quickly. If the uptrend continues investors may find it practical to buy into key Bitcoin alternatives like LUNC and GME to reduce risk and maximize gains.
Related Articles
