Bitcoin continues to range-trade and altcoin traders are starting to view BTC’s price consolidation as a positive sign for the rest of the crypto market.
Bitcoin (BTC) continues to frustrate traders who have been predicting a breakout on either side but investors should keep a close watch because the longer the time spent inside the range, the stronger is the eventual breakout from it.
The July jobs report released on Aug. 4 was a mixed bag, hence it could not shake out Bitcoin from its range. The report showed an addition of 187,000 jobs, fewer than the 200,000 expected by economists. But the average hourly wages remained strong, showing an increase of 0.4% for the month against expectations of a 0.3% rise.
Although the price remains stuck inside a range, analysts are putting out bullish projections for the second half of the year. A recent report from Matrixport projected a target of $45,000 by the end of this year and $125,000 by the end of 2024.
Bitcoin’s long-term story remains intact but traders should keep a close eye on any possible shocks from the regulators as that could cause a knee-jerk reaction to the downside. What are the important support and resistance levels to watch out for in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin’s price is getting squeezed between the 20-day exponential moving average ($29,523) and the horizontal support at $28,861.
The downsloping 20-day EMA and the relative strength index (RSI) in the negative zone indicate that bears have a slight edge. If the price plummets and sustains below $28,861, the BTC/USDT pair may collapse to $27,500 and then to $26,000.
On the contrary, if the price bounces off $28,861, it will indicate that the bulls are protecting this level with all their might. A break and close above $30,000 will signal a comeback by the bulls. The pair may then climb to the overhead resistance zone between $31,804 and $32,400.
Ether price analysis
Ether (ETH) slumped below the 50-day SMA ($1,871) on Aug. 2, which suggests that the bears are trying to gain the upper hand.
The bulls are trying to arrest the decline near the strong support at $1,816 but the failure to achieve a solid rebound suggests a lack of aggressive buying near the level. The downsloping 20-day EMA ($1,867) and the RSI just below the midpoint indicate that the path of least resistance is to the downside.
If the price skids below $1,816, the ETH/USDT pair may plunge to $1,698. This negative view will invalidate in the near term if bulls push and sustain the price above the 20-day EMA. In that case, the pair may swing between $1,816 and $2,000 for some time.
BNB price analysis
BNB (BNB) turned down from the resistance line of the symmetrical triangle pattern on Aug. 2 indicating that the bears are fiercely defending the level.
Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. This equilibrium will tilt in favor of the bulls if the price catapults above the triangle. The BNB/USDT pair could then attempt a rally to $265 where the bears may again pose a strong challenge.
Conversely, if the price turns down and breaks below the triangle, it will signal that bears are on the roll. The pair could then retest the crucial support at $220. If this level gives way, the pair may start the next leg of the downtrend.
XRP price analysis
XRP (XRP) tumbled below the 20-day EMA ($0.68) on Aug. 2 and followed that up with another slide on Aug. 3. That sent the price tumbling below the strong support at $0.67.
The bulls will try to protect the 61.8% Fibonacci retracement level of $0.64 because if this level breaks down, the XRP/USDT pair may collapse to the breakout level of $0.56. The 50-day SMA ($0.59) could act as a temporary support but it is likely to be broken.
Contrarily, if the bulls push the price back above the 20-day EMA, it will suggest solid demand at lower levels. That will increase the likelihood of the pair remaining inside the $0.67 to $0.85 range for a while longer.
Dogecoin price analysis
Dogecoin (DOGE) turned down and broke below the 20-day EMA ($0.07) on Aug. 2, indicating that higher levels are attracting sellers.
The bulls are trying to push the price back above the 20-day EMA on Aug. 4. If they succeed, the DOGE/USDT pair could rise to the downtrend line. This level is likely to attract selling by the bears.
If the price reverses direction from the downtrend line, it will signal that the trend is turning negative and the relief rallies are being sold. The bears will then again try to sink the price below the 20-day EMA and challenge the…
cointelegraph.com