Bitcoin (BTC) has staged a smart recovery in the past few days and the interest in the crypto sector seems to be picking up. JPMorgan Chase has added access to a new Bitcoin fund created by New York Digital Investment Group (NYDIG) for its private banking clients.
The increasing number of traditional financial institutions opening up crypto trading opportunities for their clients shows there is strong demand for the sector.
On-chain analyst Willy Woo said recently that strong holders had been scoping up Bitcoin and locking “them away for long-term investment”, resulting in a supply squeeze. Woo added that he had “not seen a supply shock opportunity like this since Q4 2020 when BTC was priced at $10,000 only to be repriced at $60,000 in the months thereafter.”
Andreessen Horowitz co-founder Marc Andreessen painted a more bullish view on Bitcoin calling it “one of the most amazing things I’ve ever seen” and a “fundamental technological breakthrough.”
With a pickup in demand, will Bitcoin and altcoins start a stronger rally? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin’s rebound off the 20-day exponential moving average ($38,111) suggests that the sentiment has turned positive and traders are buying the dips. The bulls are currently attempting to sustain the price above the critical overhead resistance at $42,451.67.
However, it may not be a straight rise to the target objective because the bears are likely to pose stiff resistance in the $50,000 to $51,500 zone.
Contrary to this assumption, if the price turns down from the current level, the pair could again retest the 20-day EMA. A break below this support will be the first sign that the bears are making a comeback.
ETH/USDT
Ether (ETH) rebounded off the downtrend line on Aug. 4, indicating that bulls have flipped it to support. The bulls are currently attempting to push the price to the psychological resistance at $3,000.
If they succeed, it will suggest the start of a new uptrend. The rising 20-day EMA and the RSI in the overbought territory indicate that the path of least resistance is to the upside. A break below the 20-day EMA will be the first sign that the bullish momentum may be weakening.
BNB/USDT
Binance Coin (BNB) bounced off the 20-day EMA ($320) on Aug. 4, indicating strong demand at lower levels. The bulls are currently attempting to thrust and sustain the price above the overhead resistance at $340.
Contrary to this assumption, if the price turns down from the current level and breaks below the moving averages, the BNB/USDT pair could drop to the trendline. A break below this support will invalidate the pattern and the pair may then drop to $211.70.
ADA/USDT
Cardano (ADA) broke and closed above the downtrend line on Aug. 3, which invalidated the developing descending triangle pattern. The bears tried to pull the price back below the downtrend line on Aug. 4 but failed.
A breakout and close above $1.50 may attract further buying, which could propel the price to $1.60 and then to $1.74. The bears will have to pull the price below $1.20 to gain the upper hand. If they manage to do that, the pair could again slide to $1.
XRP/USDT
XRP corrected to the 20-day EMA ($0.69) on Aug. 4 but the bulls purchased this dip. The bears again tried to pull the price down on Aug. 5 but the long tail on the day’s candlestick shows strong demand at lower levels.
This positive view will be negated if the price turns down from the current level and plummets below the 50-day simple moving average ($0.65). Such a move will suggest that the pair could remain range-bound between $0.50 and $0.75 for a few more days.
DOGE/USDT
The bears tried to pull Dogecoin (DOGE) lower on Aug. 3 but the bulls bought the dip and pushed the price back toward the overhead resistance at $0.21 on Aug. 4.
If that happens, the DOGE/USDT pair could rally to $0.28 and then to $0.33. On the other hand, if the price turns down from the current level and breaks below $0.18, the pair could drop to the critical support at $0.15.
DOT/USDT
Polkadot (DOT) bounced off the $16.93 support on Aug. 4, suggesting strong demand at lower levels. The moving averages have completed a bullish crossover and the RSI is in the overbought territory, indicating that bulls are in control.
Alternatively, if the price turns down from $21, the pair could again drop to $16.93. This is an important level for the bulls to defend because if it cracks, the pair could again drop to the critical support at $13.
UNI/USDT
Uniswap (UNI) bounced off the 20-day EMA ($21.04) on Aug. 4 and broke above the overhead resistance at $23.45. This suggests that the sentiment remains positive and traders are buying on dips.
This positive view will invalidate if the price turns down from the current levels and breaks below the moving averages. Such a move will suggest that the breakout above $23.45 was a bull trap.
Related: ‘Bitcoin fixes this’ — US Infrastructure Bill would add $250B to debt mountain
BCH/USDT
Bitcoin Cash (BCH) has been clinging to the $546.83 resistance for the past few days, which suggests that the bulls are not closing their positions in a hurry.
Contrary to this assumption, if the price turns down from the current level and breaks below the moving averages, it will indicate that short-term traders have given up and are dumping their positions. That could pull the price down to $383.53.
LINK/USDT
Although the bulls have held the support at $22.08 for the past few days, they are struggling to push Chainlink (LINK) to the overhead resistance at $26.48. This suggests that demand dries up at higher levels.
A breakout and close above the overhead resistance could open the doors for a rally to $32.50. The first sign of weakness will be a break below the 20-day EMA. That could result in a decline to the next support at 50-day SMA ($18.72).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
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