Several Bitcoin price indicators suggest that BTC’s narrow trading range could end soon, resulting in a vola
Several Bitcoin price indicators suggest that BTC’s narrow trading range could end soon, resulting in a volatile price move in BTC and altcoins.
Bitcoin continues to test investors’ patience, as it remains stuck inside a tight range. Although the near term is boring, traders need to be on their toes because narrow ranges are generally followed by a sharp increase in volatility. The only problem is that it is difficult to predict the direction of the breakout with certainty.
Glassnode’s latest weekly newsletter highlighted that Bitcoin’s (BTC) consolidation has shrunk the Bollinger Bands, which are separated by just 4.2%. Citing various on-chain indicators, the authors concluded that investors are unwilling to sell, and in several aspects, it looks similar to “periods like 2016 and 2019-20, characterized by choppy market conditions.”
Although Bitcoin’s near term may look uncertain, the long term remains bullish. Capriole Investments founder Charles Edwards said in an interview with Cointelegraph that access to BlackRock’s exchange-traded fund application could make it “easier for institutions to put Bitcoin on their balance sheet.”
Will Bitcoin plunge below the support of the range and start a new downward move, dragging several altcoins lower? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been sustaining below the 20-day exponential moving average (EMA) of $30,067 since July 17, which is a negative sign. It shows a lack of aggressive buying at current levels.
The bulls pushed the price above the 20-day EMA on July 20, but the long wick on the candlestick shows selling at higher levels. The bears will try to strengthen their position by pulling the price below the crucial support at $29,500.
If they succeed, it will indicate that the consolidation has resolved in favor of the bears. The BTC/USDT pair may then skid to the 50-day simple moving average (SMA) of $28,869 and thereafter to $27,500.
Conversely, if the price turns up sharply and breaks above the 20-day EMA, it will suggest that the pair may rise to $31,000. A new uptrend could be expected on a break and close above $32,400.
Ether price analysis
Ether (ETH) has been trading near the 20-day EMA ($1,896) for the past few days. This suggests a state of equilibrium between the bulls and the bears.
The important support to watch on the downside is the 50-day SMA ($1,854). If this support breaks down, the ETH/USDT pair may tumble to $1,800 and then to $1,700. Such a move will suggest that the pair may continue to oscillate inside the large range between $1,626 and $2,000.
Contrarily, if the price turns up from the current level or the 50-day SMA and rises above $2,000, it will signal that bulls are in the driver’s seat. The pair may then soar to $2,141 and eventually to $2,200.
XRP price analysis
The bulls propelled XRP (XRP) above the overhead resistance of $0.83 on July 19 and 20, but they could not build upon this strength.
That may have tempted short-term bulls to book profits and the aggressive bears to initiate short positions. The bears will try to pull the price toward the support at the 20-day EMA ($0.65).
If the price rebounds off this level, the XRP/USDT pair may continue its range-bound action between $0.65 and $0.85 for some time.
A break and close above $0.85 could open the doors for a possible retest of $0.94, while a drop below $0.65 could sink the pair to $0.56.
BNB price analysis
BNB (BNB) continues to trade inside the symmetrical triangle pattern, suggesting indecision between the bulls and the bears.
The symmetrical triangle typically acts as a continuation pattern, but in some instances, it could also behave as a reversal pattern. The flattish 20-day EMA ($243) and the relative strength index (RSI) near the midpoint do not give a clear advantage either to the bulls or the bears.
If buyers thrust the price above the triangle, the BNB/USDT pair may rise to the overhead resistance at $265. This is an important resistance to keep an eye on because a break above it will clear the path for a potential rally to $280 and then to $300.
The bears will have to sink and sustain the price below the triangle to seize control. The selling could intensify further if the $220 support gives way.
Cardano price analysis
Cardano’s (ADA) bounce off the 20-day EMA ($0.31) on July 19 fizzled out at $0.33 on July 20. This suggests that bears are selling on relief rallies.
The price has again returned to the 20-day EMA, which remains the key level to watch out for in the near term. If the price turns up sharply and breaks above $0.34, the ADA/USDT pair may advance to $0.38.
On the…
cointelegraph.com