Bitcoin (BTC) and most of the major altcoins see profit taking on July 25 as bulls cut their positions ahead of the July 26-27 meeting of the Federal Open Market Committee. This indicates that sentiment remains fragile and that the bulls are unsure. about the transfer of long positions to the event.
Several analysts maintained their bearish outlook after Bitcoin failed to hold above the 200-week moving average at $22,780. CryptoQuant member Venturefounder expects selling to resume and bitcoin to drop to $14,000 before a macro bottom is confirmed.
Institutional investors seem to be missing from the markets and the recovery is driven by retail investors. Data from network analytics company Glassnode has shown that investors holding one bitcoin or less are aggressively accumulating “more now than ever.”
Can retail investors continue their buying frenzy and put the level below bitcoin and altcoins? Let’s examine the charts of the top 10 cryptocurrencies to find out.
Bitcoin bounced off the 20-day exponential moving average ($21,857) on July 23, but the bulls failed to clear the $23,363 barrier on July 24. This suggests that the bears are aggressively defending the upper resistance.
The price has returned to the 20-day EMA, which is an important level to keep an eye on. If this level breaks, BTC/USDT could drop to $20,750. Such a move will invalidate the breakout from the symmetrical triangle.
The 20-day EMA is flattening and the Relative Strength Index (RSI) has dropped to its midpoint, indicating a balance between supply and demand.
This advantage could tip in favor of buyers if the price rises above $23,363. If this happens, the pair could rise to $28,171 and then to $30,000. The bears will have to push the price below the support line to gain the upper hand.
The bears have successfully defended the upper resistance at $1,700 over the past few days. However, a small upside is that the bulls prevented Ether (ETH) from dropping below $1,464, indicating buying at lower levels.
If the price bounces again from $1,464, ETH/USDT could continue to move in a tight range for a few more days. The rising 20-day EMA ($1397) and the RSI in the positive zone indicate that the path of least resistance is up.
A break and close above $1,700 could signal renewed upside movement. The pair could then go up to $2,000.
This positive view may become invalid if the price falls below the 20-day EMA. If this happens, the pair could drop to $1,280. A strong bounce from this level could keep the pair in the $1,280 to $1,700 range for several days.
Binance Coin (BNB) deviated from the downtrend line on July 23, indicating that the bears continue to defend the level vigorously. Now the bears will try to push the price below the moving averages.
If successful, the BNB/USDT pair may test the uplink support line. If the price bounces from this level, the bulls will again try to push the pair above the downtrend line and challenge the channel resistance line.
Another possibility is that the bears are pushing the price below the channel’s support line. If this happens, the advantage will shift in favor of the bears and the pair could drop to strong support at $211.
Ripple (XRP) has been consolidating between $0.30 and $0.39 over the past few days. Although the price bounced off the moving averages on July 23, the rally failed to reach the upper resistance level at $0.39. This suggests that demand dries up at higher levels.
The bears are trying to push the price below the moving averages. If they manage to do so, the XRP/USDT pair could gradually drop to $0.30. Buyers are likely to defend this level with all their might, because if the support breaks, the pair may resume the downtrend.
Alternatively, if the price rebounds from the current level, the bulls will again try to overcome the false barrier at $0.39 and start a new upward movement. The pair may then rise to $0.50.
Cardano (ADA) attempted to rise above the upper resistance at $0.55 on July 24, but the bears successfully defended the level. This may have attracted profit-taking from short-term traders.
The bears are trying to push the price below the moving averages. If they manage to do so, the ADA/USDT pair could drop to $0.44. If the price bounces from this level, the pair could fluctuate between $0.44 and $0.55 for several days.
Another possibility is that the price is bouncing off the moving averages. If this happens, the bulls will again try to push the pair above the upper resistance level. If they succeed, the pair could gain momentum and rise to $0.63 and then to $0.70.
The failure of Solana (SOL) to rebound from the 20-day EMA ($39) indicates that the bullish momentum may be waning. The bears will try to bring the price down to the support line, which is an important level to keep an eye on.
If the price bounces off the support line, buyers will make another attempt to push the SOL/USDT pair towards the upper resistance at $48. The bulls will have to overcome this hurdle to signal the completion of the ascending triangle pattern. This bullish setup has a target target of $71.
Conversely, if the bears push the price below the support line, the bullish pattern will be nullified. The pair could then drop to $30. A break below this level would mean the bears are back in control.
The bears pulled Dogecoin (DOGE) below their moving averages on July 25, which opens the door for a decline towards the trend line. Bulls are likely to aggressively defend this level.
If the price bounces off the trend line, the bulls will try to push the DOGE/USDT pair above the moving averages. If this happens, the pair could rise to an upper resistance level at $0.08. A break and close above this level will complete the ascending triangle pattern with a target target of $0.11.
Conversely, if the price breaks below the trendline, the bullish setup will be nullified. This could take the pair down to $0.06 and then to critical support at $0.05.
Ethereum bearish reversal? ETH price momentum wanes after $1.6k rejection
Over the past few days, the bulls have repeatedly failed to push Polkadot (DOT) above the 50-day SMA ($7.47), indicating that the bears are aggressively defending this level.
The DOT/USDT pair fell below the 20-day EMA of $7.23 on July 25th. If the bears keep the price below this level, the pair could slide towards strong support at $6. This is an important level to keep an eye on because a break and close below it can signal the resumption of a downtrend.
Another possibility is that the price rises from the current level and breaks above the 50-day SMA. If this happens, it will mean demand at lower levels. The pair could then rise to $8.79 and then to the psychological $10 level.
Polygon (MATIC) reversed down from the July 25 resistance line, indicating that the bears are selling on small upswings. The bears will try to push the price down to the next support at $0.75.
The rising 20-day EMA ($0.75) and the RSI in positive territory indicate that buyers have a slight edge. If the price rebounds from $0.75, the bulls will again try to push the MATIC/USDT pair above the resistance line.
If they succeed, the pair could rise to the psychological $1 level. The bulls will have to clear this hurdle to start moving up to $1.26.
On the contrary, if the price falls below $0.75, this would mean that the bullish momentum has weakened. The pair could then drop to $0.63.
Avalanche (AVAX) formed a Doji candlestick pattern on July 23rd and an intraday pattern on July 24th, indicating bulls and bears are indecisive.
This uncertainty resolved to the downside on July 25, with AVAX/USDT falling to a breakout level at $21.35. If the price rebounds strongly from this level, it will mean that the bulls are buying on dips.
This could increase the chance of a retest at $26.50. A break above this resistance could clear the way for a rise to $29 and then to $33.
Contrary to this assumption, if the price drops below $21.35, the pair could fall to the support line. Bulls are likely to aggressively defend this level.
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.
Credit : cointelegraph.com