Bitcoin continues to face strong resistance at $31,000 but supportive macroeconomic factors could tilt the a
Bitcoin continues to face strong resistance at $31,000 but supportive macroeconomic factors could tilt the advantage in favor of the bulls.
Bitcoin (BTC) bulls are again having a go at the overhead resistance of $31,000. The bullish sentiment may get a boost from the United States inflation report, which showed signs of slowing down. Economists were expecting the year-on-year consumer price index to rise 3.1% but the June print came in at 3%.
The month-on-month increase of 0.2% was also less than forecast. This suggests that the Federal Reserve’s rate hikes are having the desired effect. That may limit future rate hikes by the Fed.
Supported by macroeconomic conditions, institutional investors seem to be turning positive on cryptocurrencies, especially Bitcoin. CoinShares report published on July 10 showed inflows of $136 million into digital investment products in the past week. That brings the total inflows of three consecutive weeks to $470 million, indicating a positive outlook.
Large investors could be turning positive on Bitcoin because they anticipate a huge inflow of traditional finance money if the U.S. Securities and Exchange Commission approves a spot Bitcoin exchange-traded fund. Bloomberg ETF analyst Eric Balchunas said in an exclusive interview with Cointelegraph that an ETF approval would unlock $30 trillion worth of capital for Bitcoin.
Could the tailwind of the positive triggers prove bullish for Bitcoin and the major altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin turned down from the overhead resistance at $31,000 on July 10 but a positive sign is that the bulls did not allow the price to dip below the 20-day exponential moving average ($30,012).
The upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside. If buyers drive and sustain the price above $31,000, the BTC/USDT pair is likely to start the next leg of the uptrend.
The pair could ascend to $32,400 where the bears are expected to again mount a strong defense. If bulls do not allow the price to fall below the 20-day EMA, the pair is likely to soar toward $40,000.
Time is running out for the bears. If they want to make a comeback, they will have to quickly pull the price below $29,500. That could start a decline to the 50-day simple moving average ($28,312).
Ether price analysis
Ether (ETH) once again bounced off the 50-day SMA ($1,843) on July 10, indicating that the bulls are fiercely guarding this level.
The price turned up and closed above the 20-day EMA ($,1874), indicating that the bulls are trying to make a comeback. If buyers drive the price above $1,906, the ETH/USDT pair could attempt a rally to the overhead resistance at $2,000. This level is likely to witness strong selling by the bears.
The crucial support to watch on the downside is the 50-day SMA. If this level gives way, it could pave the way for a deeper correction to $1,700.
BNB price analysis
The price action of the past few days has formed a symmetrical triangle in BNB (BNB). This suggests indecision between the bulls and the bears.
The symmetrical triangle usually behaves as a continuation pattern but in some cases, it turns into a reversal setup. If buyers kick and maintain the price above the triangle, it will suggest a possible trend reversal. The BNB/USDT pair could rise to $265 and thereafter sprint to the pattern target of $293.
Contrarily, if the price turns down and slips below the 20-day EMA ($242), it will suggest that the pair may spend some more time inside the triangle. The bears will have to yank the price below the support line to seize control.
XRP price analysis
The bulls tried to thrust XRP (XRP) above the 20-day EMA ($0.48) on July 10 but the bears held their ground.
The bulls will have to cross the roadblock at the 20-day EMA and then at the 50-day SMA ($0.49) to gain the upper hand. If they do that, the XRP/USDT pair could pick up momentum and surge to $0.53 and eventually to $0.56.
On the contrary, if the price turns down sharply from the current level, it could retest the strong support at $0.45. This level has held on two previous occasions, hence the bulls are expected to defend it aggressively. If the buyers fail in their endeavor, the pair may collapse to $0.41.
Cardano price analysis
Cardano (ADA) rose above the 20-day EMA ($0.29) on July 11, indicating that the bulls are buying at lower levels.
The flat 20-day EMA and the RSI near the midpoint indicate a balance between supply and demand. This advantage will tilt in favor of the buyers if they shove the price above the 50-day SMA…
cointelegraph.com