Bitcoin and several major altcoins are trading inside a range, indicating that a strong catalyst is needed t
Bitcoin and several major altcoins are trading inside a range, indicating that a strong catalyst is needed to start the next trending move.
Bitcoin broke below the support of its narrow range on July 24, but the bears have not been able to capitalize on it and start a sharp downward move. This is a positive sign, as it shows a lack of aggressive selling at lower levels. The bulls will have to push and sustain the price back above $31,000 to trap the aggressive bears.
Bitcoin’s (BTC) volatility is likely to pick up following the Federal Reserve’s policy decision on July 26 and the subsequent commentary by Fed Chair Jerome Powell. Rather than the knee-jerk reaction to the event, it will be of interest to note where Bitcoin’s price settles down.
When the price enters and remains inside a range for an extended period, the breakout from it usually ends up with a strong trending move. It is difficult to predict the direction of the breakout with certainty. Hence, it is best to wait for the price to escape the range before initiating large bets.
Traders need to be careful because sometimes the first breakout tends to be a fake move. What are the important levels to watch out for in Bitcoin and the altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
The bulls have protected the 50-day simple moving average (SMA) of $29,134 for the past two days, but they have failed to start a strong rebound. This indicates that the bears are keeping up the pressure.
The downsloping 20-day exponential moving average (EMA) of $29,840 and the relative strength index (RSI) in the negative territory indicate that the path of least resistance is to the downside. If the 50-day SMA gives way, the BTC/USDT pair may tumble to $27,500 and then to $26,000.
If bulls want to prevent the decline, they will have to quickly kick the price above the 20-day EMA. If they do that, the pair may rise to the overhead resistance zone between $31,000 and $32,400. This zone may act as a major barrier, but if bulls overcome it, the pair may resume its uptrend.
Ether price analysis
Buyers are trying to guard the 50-day SMA ($1,853) in Ether (ETH), but they are struggling to achieve a strong rebound off it. This suggests a lack of demand at higher levels.
If the 50-day SMA support cracks, the ETH/USDT pair may start a downward move to $1,700 and subsequently to $1,626. Such a move will indicate that the pair may remain stuck inside the large range between $1,626 and $2,000 for a while longer.
The first sign of strength will be a break above the 20-day EMA ($1,883). That may clear the path for a possible rally to $2,000. The bulls will have to overcome this obstacle to indicate the start of a new up move.
XRP price analysis
XRP (XRP) rebounded off the 20-day EMA ($0.67) on July 25, but the bulls could not build upon this strength. This suggests that demand dries up at higher levels.
The bears will try to sink the price below the 20-day EMA and seize control. If they can pull it off, the XRP/USDT pair may plummet to the breakout level of $0.56. Such a deep fall may delay the start of the next leg of the uptrend.
Contrarily, if the price bounces off the 20-day EMA and rises above $0.75, it will suggest that bulls are buying the dips. The pair could then swing between the 20-day EMA and $0.86 for a few days.
BNB price analysis
BNB (BNB) is trading inside a symmetrical triangle pattern, indicating uncertainty among the bulls and the bears about the next directional move.
The bulls are likely to buy the dips to the support line. If the price rises from this level and breaks above the moving averages, it will suggest that the BNB/USDT pair may continue its stay inside the triangle.
On the contrary, if the price dips below the triangle, it will suggest that the bears have overpowered the bulls. The pair could then drop to the critical support at $220. This is an important level for the bulls to defend because a break below it may start the next leg of the downtrend.
Cardano price analysis
Cardano (ADA) skidded below the 20-day EMA ($0.30) on July 24 and reached the strong support at $0.30. The bulls are defending this level but have failed to achieve a strong bounce off it.
The bears will try to strengthen their position further by yanking the price below the uptrend line. If they succeed in doing that, the ADA/USDT pair could start a deeper pullback to $0.27 and then to $0.26.
Contrarily, if the price turns up from $0.30 or the uptrend line, it will suggest that lower levels continue to attract buyers. The first sign of strength will be a break and close above $0.32. That could start a recovery to $0.34, where the bears may again pose a strong…
cointelegraph.com