In a downtrend, when markets do not react negatively to bearish news, this is a sign that selling may have reached exhaustion. Reports that electric car maker Tesla dumped 75% of its bitcoin (BTC) holdings in the second quarter caused only a minor surge as lower levels attracted heavy buying from bulls.

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Tesla wasn’t the only institution to sell their bitcoins. Arcane Research analyst Vetle Lunde highlighted in a Twitter thread that major institutions have sold 236,237 BTC since May 10.

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Encouragingly, even after the massive selling by institutions and the unfavorable macro environment, Bitcoin has held up quite well.

Daily indicators of the cryptocurrency market. Source: Coin360
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The current bear market provides an opportunity for new traders to enter lower levels. A report published by the Boston Consulting Group, Bitget and Foresight Ventures shows that only 0.3% of personal wealth is in crypto compared to 25% in equities. This shows that the cryptocurrency is still in the early stages of adoption compared to traditional markets.

Can Bitcoin and major altcoins extend their recovery in the short term? Let’s examine the charts of the top 10 cryptocurrencies to find out.

Bitcoin/US dollar

Bitcoin dipped below the 50-day Simple Moving Average (SMA) of $22,683 on July 21, but bulls bought the dip aggressively, as seen in the long tail of the daily candle. Buyers are currently trying to keep the price above the upper resistance level at $23,363.

BTC/USDT daily chart. Source: Trading View

The rising 20-day exponential moving average (EMA) ($21,729) and the Relative Strength Index (RSI) in positive territory indicate that the path of least resistance is up.

If the bulls push the price above the $23,363 to $24,276 resistance zone, the bullish momentum could pick up and the BTC/USDT pair could rise to $28,171 and then $30,000.

Contrary to this assumption, if the price turns down and breaks the 20-day EMA, it would mean that the bears have not given up yet. Then the sellers will seek to lower the pair to the support line. A break and close below this support could tip the lead in favor of the bears.

ETH/USDT

Ethereum (ETH) pullback ended on July 21st at $1,605. This shallow correction indicates that traders are not in a hurry to close their positions as they expect the up move to continue.

Daily ETH/USDT chart. Source: Trading View

The rising 20-day EMA ($1,345) and the RSI near the overbought zone indicate the buyers’ advantage. The bulls will look to push the price above the upper resistance at $1,700. If they succeed, the ETH/USDT pair could gain momentum and rise to the psychological level of $2,000.

Alternatively, if the price reverses from $1,700, it would mean that the bears are aggressively defending this level. The pair may then consolidate in the $1,600 to $1,700 range for several days. A break below this support could lead the pair to the 20-day EMA.

BNB/USDT

The BNB correction received support near the 20-day EMA ($247) on July 21, indicating that the bulls are accumulating on the dips. Buyers will try to push the price above the downtrend line and resume the uptrend.

BNB/USDT daily chart. Source: Trading View

A bullish crossover between the moving averages and the RSI in positive territory indicates that the bulls are gaining the upper hand. If the price breaks above the downtrend line, BNB/USDT could rise to $300 and then to $325.

Conversely, if the price turns down from the downtrend line, this indicates that the bears are actively defending the level. However, if the bulls do not give up many positions from this level, the likelihood of a breakout increases. This bullish view could be rebutted on a break below the 50-day SMA ($243).

XRP/USDT

The long tail of Ripple (XRP) on the July 21st candlestick shows that bulls are buying on falling moving averages. This suggests that sentiment has shifted from selling on the ups to buying on the downs.

Daily XRP/USDT chart. Source: Trading View

Gradually rising 20-day EMA ($0.35) and RSI in positive territory point to buying advantage. The bulls will try to push the price above the nearest resistance at $0.39.

If they succeed, the XRP/USDT pair could continue its rally to the tough upper resistance at $0.45. Bears can be a big problem at this level.

A break below the moving averages will deprive the bullish view. The pair may then consolidate in a large range of $0.30 to $0.39 over several days.

ADA/USDT

Cardano (ADA) dropped below the 50-day SMA ($0.49) on July 20, but the bears failed to push the price below the 20-day EMA ($0.47). This suggests that lower levels are attracting buyers.

Daily ADA/USDT chart. Source: Trading View

Gradually rising 20-day EMA and RSI in positive territory indicate that the bulls have a slight advantage. Buyers will make another attempt to overcome the upper resistance at $0.55.

If they succeed, ADA/USDT could gain momentum and move north towards $0.70. Conversely, if the price turns down and falls below the 20-day EMA, the pair may consolidate between $0.44 and $0.55 for several days.

SOL/USDT

Solana’s (SOL) pullback from the $48 level received support at the 20-day EMA ($39). Buyers attempted to push the price above the upper resistance level on July 22, but faced strong selling pressure at higher levels.

SOL/USDT daily chart. Source: Trading View

If the price turns down from the current level or upper resistance, the SOL/USDT pair may drop to the moving averages and spend some more time inside the ascending triangle pattern. A break below the support line will void the bullish setup and put the bears back in the driver’s seat.

Conversely, if the price bounces off the 20-day EMA, buyers will make another attempt to clear the $48 false hurdle. If they succeed, the triangle pattern will end. The pair may then start moving up to $60. If this barrier is broken, the next stop could be the $71 pattern target.

DOGE/USDT

The bears attempted to take Dogecoin (DOGE) below the 20-day EMA ($0.07) on July 21, but the bulls aggressively bought the dip as seen in the long tail of the candle.

Daily DOGE/USDT chart. Source: Trading View

This improves the prospects for a breakout of the upper resistance level at $0.08. If this happens, DOGE/USDT could rise to $0.09 and then to $0.10. A flat 20-day EMA and RSI in positive territory indicate a marginal buying advantage.

Contrary to this assumption, if the price deviates from $0.08, it would mean that the bears continue to sell at higher levels. This could keep the pair in the $0.08 to $0.06 range for a while.

Bitcoin Swings On Wall Street As Ethereum Hits $1.6k At 6-Week High

POINT/USDT

Polkadot (DOT) pulled back to the 20-day EMA ($7.25) on July 21, but the daily candle’s long tail shows bulls were buying at lower levels.

DOT/USDT daily chart. Source: Trading View

A bounce off the 20-day EMA is positive and increases the likelihood of a break above $8.08. If this happens, the DOT/USDT pair may resume its recovery and rise to $8.79 and then to the $10 psychological level.

Contrary to this assumption, if the price deviates from the current level or $8.08, this would mean that demand is drying up at higher levels. The bears will then attempt to push the price below the 20-day EMA and challenge key support at $6.

MATIC/USDT

Polygon (MATIC) remains in an uptrend. The pullback that began on July 19 at $0.98 rebounded from the 38.2% Fibonacci retracement level of $0.80. This suggests that sentiment remains positive and traders are buying on dips.

Daily MATIC/USDT chart. Source: Trading View

The rising 20-day EMA ($0.72) and the RSI in positive territory indicate that the buyers are gaining the upper hand. The MATIC/USDT could rise to $0.98 where the bears could try to stop the recovery. If the price deviates from this level, the pair could remain in the $0.80 to $0.98 range for several days.

Alternatively, if buyers push the price above $0.98, the bullish momentum could pick up and the pair could soar to $1.26. The bears will have to push the price below the 20-day EMA to gain the upper hand.

AVAX/USDT

Avalanche (AVAX) reversed down from $26 on July 20, but the bears failed to push the price up to the $21.35 breakout level. This suggests that the bulls are buying on minor dips.

AVAX/USDT daily chart. Source: Trading View

The rising 20-day EMA ($21.19) and RSI in the positive zone indicate the advantage of buyers. If the bulls take the price above $26.50, the bullish momentum could increase and the AVAX/USDT pair could rise to $29 and then to $33.

To negate this bullish point of view, sellers will have to push the price below $21.35. If they succeed, the pair could slide towards a support line, which could attract buyers. A break and close below this level may indicate that the bears are back in control of the market.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cryptooshala. Every investment and trading move involves risk. You should do your own research when making a decision.

Market data provided HitBTC exchange.