Bitcoin (BTC) could not overcome the barrier at $25,000 on Aug. 11 even though it had two catalysts in the form of a "favorable" Consumer Price Index
Bitcoin (BTC) could not overcome the barrier at $25,000 on Aug. 11 even though it had two catalysts in the form of a “favorable” Consumer Price Index print and news that BlackRock — the world’s largest asset manager, overseeing over $10 trillion in total assets — had launched a spot Bitcoin investment product.
In comparison, Ether (ETH) has managed to hold on to its recent gains on news that the Goerli testnet had successfully activated proof-of-stake, clearing the path for Ethereum’s mainnet transition planned for Sept. 15 or Sept. 16. Data from Santiment shows that Ether whale transactions have increased along with possible whale accumulation.
However, analysts remain divided about the prospects of the current recovery. While some believe that Bitcoin’s rally could rise above $28,000, others are not so bullish and they expect the price to turn down and resume the downtrend.
Could buyers clear the overhead hurdle in Bitcoin and select altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin nudged above the overhead resistance at $24,668 on Aug. 11 but the bulls could not sustain the higher levels. This indicates that bears have not yet given up and are selling on rallies.
The price remains squeezed between the 20-day exponential moving average ($23,151) and $24,668. Usually, a tight range trading is followed by a range expansion but it is difficult to predict the direction of the breakout with certainty.
In this case, the 20-day EMA is gradually sloping up and the relative strength index (RSI) is in the positive territory, indicating the path of least resistance is to the upside.
If buyers thrust and sustain the price above $25,000, the bullish momentum could pick up and the pair could rally to $28,000 and then to $32,000.
This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. The pair could then decline to the 50-day simple moving average ($21,845).
ETH/USDT
Ether attempted to rise above $2,000 on Aug. 11 but the long wick on the day’s candlestick suggests that bears are defending the level with vigor.
However, a positive sign is that the bulls have not ceded ground to the bears. This suggests that traders are not hurrying to book profits as they anticipate the up-move to continue.
The upsloping moving averages and the RSI near the overbought territory indicate advantage to buyers. If bulls drive the price above $2,000, the ETH/USDT pair could rally to the downtrend line.
Alternatively, if the price turns down sharply from the current level, the bears will try to sink the pair to the breakout level of $1,700. The bulls are expected to buy the dip to this support.
BNB/USDT
Binance Coin (BNB) has been facing stiff resistance at the overhead resistance zone between $338 to $350. Although bears have repeatedly thwarted attempts by the bulls to clear this hurdle, the buyers have not given up much ground. This indicates that the bulls are not rushing to the exit as they expect a move higher.
A tight consolidation near the overhead resistance increases the likelihood of a break above it. If that happens, the BNB/USDT pair could attempt a rally to $380 and then to $414.
The important support to watch out on the downside is the 20-day EMA ($300). If bears sink the price below this level, the pair could decline to $275 and then to the 50-day SMA ($261). A break below this support could tilt the advantage in favor of the bears.
XRP/USDT
XRP remains stuck between the overhead resistance at $0.39 and the 20-day EMA ($0.37). The bears attempted to resolve this uncertainty in their favor on Aug. 9 and Aug. 10 but the bulls purchased the dip and pushed the price back above the 20-day EMA.
The buyers tried to push the price above $0.39 on Aug. 11 but the bears held their ground. This indicates that $0.39 and the 50-day SMA ($0.35) are the critical levels to watch out for in the short term.
If buyers clear the overhead hurdle, the XRP/USDT pair could rally to $0.48 and later to $0.54. On the contrary, if the price slips below the 50-day SMA, the pair could slide toward the crucial support at $0.30.
ADA/USDT
Buyers attempted to push Cardano (ADA) above the overhead resistance at $0.55 on Aug. 11 but the bears held the level successfully. The price could now drop to the 20-day EMA ($0.51).
The tight range trading between the 20-day EMA and $0.55 is unlikely to continue for long. If buyers drive the price above $0.55, the ADA/USDT pair could rally to $0.63 and then to the stiff overhead resistance at $0.70.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the bears will attempt to challenge the support at $0.45. If the support holds, the pair may…
cointelegraph.com