Bitcoin’s sharp recovery to $30,000 proves that bulls are buying BTC and altcoins at lower support levels.
Bitcoin’s sharp recovery to $30,000 proves that bulls are buying BTC and altcoins at lower support levels.
Bitcoin’s rebound off $28,701 on Aug. 7 shows that lower levels continue to attract buyers. The recovery has kept the price stuck inside the range as traders await the start of a new trending move. A recent report by ARK Invest says that “Bitcoin’s volatility dropped to a 6-year low during July.”
Traders who expected a strong move in either direction have been disappointed by the ongoing range-bound action in August. If history repeats itself, then August and September may turn out to be washout months, as their average moves have been 0.73% and -5.01%, respectively.
Although the short-term is uncertain, the long-term continues to look attractive. Galaxy Digital CEO Mike Novogratz, citing sources at BlackRock and Invesco, said that the first spot Bitcoin (BTC) exchange-traded fund in the United States may be approved by the Securities and Exchange Commission in four to six months.
Such a move is expected to be hugely positive for the crypto space. In the meantime, important resistance levels continue to impact Bitcoin and altcoins. Could bulls overcome the roadblock? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin’s strong relief rally from the $28,861 support shows that the bulls have not yet given up and they continue to view the dips as a buying opportunity.
The BTC/USDT pair rose above the 20-day exponential moving average (EMA) of $29,455 on Aug. 8, and the bulls are trying to build upon the momentum by pushing the price above the 50-day simple moving average (SMA) of $29,981. If they manage to do that, the pair could pick up momentum and soar toward the overhead resistance zone between $31,804 and $32,400.
Contrarily, if the price turns down and skids below the 20-day EMA, it will suggest that the bears continue to sell on rallies. That could keep the pair stuck inside a tight range between $28,500 and $30,500 for a few days.
Ether price analysis
Buyers purchased the dip below the $1,816 support in Ether (ETH) on Aug. 7 and followed that up with another strong move on Aug. 8.
The bulls are facing resistance at the 50-day SMA ($1,881), but a minor positive is that they are trying to hold the 20-day EMA. The flattening 20-day EMA and the relative strength index (RSI) near the midpoint suggest that the bears are losing their grip.
If buyers drive the price above the 50-day SMA, the ETH/USDT pair could rally to $1,930 and eventually to the psychologically important level of $2,000. The bulls will have to surmount this level to start the next leg of the up move.
The advantage could tilt in favor of the bears if they yank the price below the crucial short-term support at $1,800.
BNB price analysis
BNB (BNB) turned up from the moving averages and reached the resistance line of the symmetrical triangle pattern on Aug. 8.
The bears are trying to defend the resistance line, but if bulls do not allow the price to slide back below the moving averages, it will increase the possibility of an upside breakout. The BNB/USDT pair could first climb to $265 and then make a dash to the pattern target of $288.
On the contrary, if the price turns down and skids below the moving averages, it will suggest that the pair may extend its stay inside the triangle for some more time. A break below the triangle could tilt the advantage in favor of the bears. The pair could then decline to $220
XRP price analysis
XRP (XRP) reversed direction from the 50-day SMA ($0.60) on Aug. 7 and reached the 20-day EMA ($0.66) on Aug. 9.
If the price turns down from the current level, it will suggest that the sentiment has turned negative and traders are selling on rallies. That will enhance the prospects of a fall to the breakout level of $0.56.
On the other hand, if the price rises above the 20-day EMA, it will suggest that bulls are attempting a comeback. The XRP/USDT pair could then rise to $0.73, which may prove to be a tough hurdle to cross.
Dogecoin price analysis
Dogecoin (DOGE) snapped back from the support line of the ascending channel on Aug. 7, indicating that bulls continue to buy on dips.
Buyers propelled the price above the 20-day EMA ($0.07), clearing the path for a possible rally to $0.08. This level may prove to be a difficult obstacle, but if the bulls surpass it, the DOGE/USDT pair could reach the resistance line of the channel.
This positive view will invalidate in the near term if the price turns down from the current level or the overhead resistance and plunges below the channel. That could sink the pair to $0.07. This is an important level to keep an eye…
cointelegraph.com