Bitcoin (BTC) hit a six-week high above $24,000 on July 29, extending its rally that picked up momentum after the United States Federal Reserve hiked
Bitcoin (BTC) hit a six-week high above $24,000 on July 29, extending its rally that picked up momentum after the United States Federal Reserve hiked rates by 75 basis points on July 27. If the rally sustains for the next two days, Bitcoin could be on target to close the month of July with gains of more than 20%, according to data from Coinglass.
It is not only the crypto markets that have seen a post-FOMC rally. The U.S. equities markets are on track for big monthly gains in July. The S&P 500 and the Nasdaq Composite are up about 8.8% and 12% in July, on track to their best monthly gains since November 2020.
The crypto and equities markets have risen expecting that the pace of rate hikes by the Fed will slow down in the future. Arthur Hayes, ex-CEO of derivatives platform BitMEX, believes that the Fed will not increase rates further and may eventually return to accommodative monetary policy and more neutral rates.
Could Bitcoin and altcoins extend their recovery over the next few days? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin closed below the 20-day exponential moving average ($22,213) on July 25 but the bears could not sustain the lower levels. The bulls bought the dip below $21,000 and propelled the price back above the moving averages on July 27.
The moving averages have completed a bullish crossover and the relative strength index (RSI) is in the positive territory, indicating that bulls are in control. If buyers drive the price above $24,276, the BTC/USDT pair could pick up momentum and rally toward the pattern target of $28,171. If this level is crossed, the next stop could be $32,000.
Alternatively, if the price turns down from the current level or fails to sustain above $24,276, it will suggest that demand dries up at higher levels. In that case, the critical level to watch on the downside is the 20-day EMA. If this support cracks, it will suggest that the bullish momentum has weakened. The pair could then decline to the 50-day simple moving average ($21,589).
ETH/USDT
Ether (ETH) rebounded sharply off the 20-day EMA ($1,470) on July 27 and broke above the critical resistance at $1,700 on July 28. However, the bears are not willing to relent and are trying to pull the price back below $1,700 on July 29.
The bulls and the bears may engage in a tough battle near $1,700 but the upsloping 20-day EMA and the RSI in the positive zone indicate advantage to buyers. If bulls sustain the price above $1,700, the momentum could pick up and the ETH/USDT pair could rally to $2,000 and later to $2,200.
Conversely, if bears pull the price below $1,590, the aggressive bulls could get trapped and the pair may drop to the 20-day EMA. A strong rebound off this level will increase the possibility of a break above $1,700 but a break below the 20-day EMA could sink the pair to $1,280.
BNB/USDT
Binance Coin (BNB) has been trading inside an ascending channel for the past few days. The price bounced off the 50-day SMA ($239) on July 26 and rose above the downtrend line, indicating a potential change in trend.
The bullish momentum continued and the buyers have driven the price above the resistance line of the ascending channel. If bulls sustain the price above the channel, the BNB/USDT pair could rally to the overhead resistance at $350.
Alternatively, if bulls fail to sustain the price above the channel, it will suggest that bears are active at higher levels. The pair could then re-enter the channel and drop to the downtrend line. A strong rebound off this level could improve the prospects of a break above the channel. The bears will have to sink the price below the channel to gain the upper hand.
XRP/USDT
Ripple (XRP) is range-bound in a downtrend. The bears pulled the price below the moving averages on July 25 but could not sustain the lower levels and challenge the strong support at $0.30.
This suggests strong demand at lower levels. The buyers pushed the price back above the moving averages on July 27 and are attempting to clear the overhead hurdle at $0.39. If they succeed, it will suggest the start of a new up-move. The pair could then rally to the target objective at $0.48.
Contrary to this assumption, the price has turned down from $0.39. The bears will try to sink the XRP/USDT pair below the moving averages. If they do that, the pair could consolidate between $0.30 and $0.39 for a few more days.
ADA/USDT
The bulls pushed Cardano (ADA) above the moving averages on July 27, indicating strong buying near the $0.44 support. The price has reached the overhead resistance at $0.55 which could act as a stiff barrier.
If the price turns down from $0.55, the ADA/USDT pair could drop to the moving averages. A break below this support could…
cointelegraph.com