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Bitcoin (BTC) has staged a smart rally over the past few days and interest in the crypto industry appears to be escalating. JPMorgan Chase added access to a new Bitcoin fund created by New York Digital Investment Group (NYDIG) for its private banking clients.
The growing number of traditional financial institutions opening up crypto trading opportunities to their clients shows that there is a strong demand for the sector.
Channel analyst Willy Woo recently said that powerful holders have explored Bitcoin and blocked them “for long-term investments,” resulting in a squeeze in supply. Woo added that he had “not seen a supply shock opportunity like this since the fourth quarter of 2020, when BTC was priced at $ 10,000 to be revalued to $ 60,000 within months. that followed “.
Billionaire hedge fund manager Ray Dalio told CNBC that Bitcoin is “something like digital gold” and an important asset to use to diversify the portfolio. However, Dalio seemed to be more inclined to gold if there was a need to pick just one asset out of the two.
Andreessen Horowitz co-founder Marc Andreessen presented a more optimistic view of Bitcoin, calling it “one of the most amazing things I have ever seen” and a “fundamental technological breakthrough”.
With demand picking up, 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 from the 20-day exponential moving average ($ 38,111) suggests sentiment has turned positive and traders are buying dips. The bulls are currently trying to hold the price above the critical overhead resistance at $ 42,451.67.
The BTC / USDT pair has formed an inverted head and shoulders pattern that will end on a breakout and close above the neck line. If the bulls keep the price above the neck line, the pair could start its journey towards the setup target at $ 55,778.
However, this may not be a direct rise towards the target as bears are likely to pose strong resistance in the $ 50,000 to $ 51,500 area.
Contrary to this assumption, if the price drops from the current level, the pair could test the 20-day EMA again. A break below this support will be the first sign of a bear return.
ETH / USDT
Ether (ETH) rebounded off the downtrend line on August 4, indicating that the bulls have shifted it to support. The bulls are currently trying to push the price up to psychological resistance at $ 3,000.
If the price drops by $ 3,000, the ETH / USDT pair could again drop to the 20-day EMA ($ 2,428). A strong rebound on this support will suggest sentiment remains positive. The bulls will then make another attempt to break through the hurdle at $ 3,000.
If they are successful, it will suggest the start of a new uptrend. The rising 20-day EMA and the RSI in overbought territory indicate that the path of least resistance is on the upside. A break below the 20-day EMA will be the first sign that the bullish momentum may weaken.
BNB / USDT
Binance Coin (BNB) rebounded on the 20-day EMA ($ 320) on August 4, indicating strong demand at lower levels. The bulls are currently trying to push and hold the price above the air resistance at $ 340.
A close above $ 340 will complete an ascending triangle pattern, which could open the doors for a rally to $ 380 and then to $ 433. The gradually rising 20-day EMA and the RSI in positive territory suggest the path of least resistance is on the upside.
Contrary to this assumption, if the price drops from the current level and goes below the moving averages, the BNB / USDT pair could fall to the trendline. A break below this support will invalidate the pattern and the pair could then drop to $ 211.70.
ADA / USDT
Cardano (ADA) broke and closed above the downtrend line on August 3, invalidating the development of the descending triangle pattern. The bears tried to bring the price back below the downtrend line on August 4th, but failed.
The moving averages have completed a bullish cross and the RSI is in the positive zone, suggesting an advantage for the bulls. The ADA / USDT pair could now move up to $ 1.50, where bears will pose a big challenge again.
A breakout and close above $ 1.50 may attract further buys, which could push the price up 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 succeed, the pair could slide to $ 1 again.
XRP / USDT
XRP corrected to the 20-day EMA ($ 0.69) on August 4, but the bulls bought this lower. The bears attempted to pull the price lower again on August 5th, but the long tail of the day’s candlestick shows strong demand at lower levels.
The bulls will now try to lead and hold the price above the overhead resistance at $ 0.75. If they are successful, the XRP / USDT pair will complete a double bottom pattern and start its journey to the air zone at $ 1 to $ 1.07.
This positive opinion will be canceled if the price drops from the current level and falls below the 50-day simple moving average ($ 0.65). Such a move will suggest that the pair could stay in a range between $ 0.50 and $ 0.75 for a few more days.
DOGE / USDT
The bears attempted to pull Dogecoin (DOGE) lower on August 3, but the bulls bought lower and pushed the price back towards overhead resistance at $ 0.21 on August 4.
Tight consolidation near air resistance suggests that the bulls are holding onto their positions as they anticipate a rise. A stronger rally of relief could begin if the bulls push and hold the price above the 50 day SMA ($ 0.21).
If this happens, the DOGE / USDT pair could climb back up to $ 0.28 and then back to $ 0.33. On the other hand, if the price drops from the current level and goes below $ 0.18, the pair could drop to critical support at $ 0.15.
POINT / USDT
Polkadot (DOT) rebounded from $ 16.93 support on August 4, suggesting strong demand at lower levels. The moving averages have completed a bullish cross and the RSI is in overbought territory, indicating that the bulls are in control.
If the buyers push the price above $ 21, DOT / USDT could rally to air resistance at $ 26.50, where bears are likely to mount strong resistance. Bulls will need to break above $ 26.50 to suggest the start of a new uptrend.
Alternatively, if the price drops by $ 21, the pair could drop to $ 16.93 again. This is an important level for the bulls to defend as if it does crack, the pair could fall back to critical support at $ 13.
UNI / USDT
Uniswap (UNI) rebounded on the 20-day EMA ($ 21.04) on August 4 and broke overhead resistance at $ 23.45. This suggests that sentiment remains positive and traders are buying if there is a dip.
The bears tried to push the price below $ 23.45 on August 5, but the long wick of the day’s candlestick suggests large buys at lower levels. UNI / USDT could now rally to overhead resistance at $ 30.
This positive opinion will be invalidated if the price drops from current levels and goes below moving averages. Such a move will suggest that the breakout above $ 23.45 was a bull trap.
Related: “Bitcoin Solves This Problem” – US Infrastructure Bill Would Add $ 250 Billion To Mountain Of Debt
BCH / USDT
Bitcoin Cash (BCH) has held onto the resistance of $ 546.83 over the past few days, suggesting that the bulls are not closing their positions in a hurry.
The 20 day EMA ($ 514) is gradually increasing and the RSI is in the positive zone, suggesting that the bulls have a slight advantage. A breakout and close above $ 546.83 will complete a double bottom setup, which could start the rally towards the target goal at $ 710.13.
Contrary to this assumption, if the price drops from the current level and falls below the moving averages, this will indicate that the short-term traders have given up and are abandoning their positions. This could bring the price down to $ 383.53.
LINK / USDT
Although the bulls have held support at $ 22.08 over the past few days, they are struggling to push Chainlink (LINK) towards air resistance at $ 26.48. This suggests that demand is drying up at higher levels.
Repeated retests of a support tend to weaken it and the bears will now try to push the price down to the 20 day EMA ($ 20.79). If the price bounces off this support, the bulls will try again to push the LINK / USDT pair to $ 26.48.
A breakout and close above air resistance could open the door for a rally to $ 32.50. The first sign of weakness will be a break below the 20 day EMA. This could cause a dip towards the next 50 day SMA support ($ 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 trade move involves risk. You should do your own research before making a decision.
Market data is provided by HitBTC exchange.
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