Bitcoin (BTC), despite having two catalysts, a favorable Consumer Price Index print and the news that BlackRock, the largest asset manager in the world with over $10 trillion in assets, had launched a spot Bitcoin investment product, could not surpass the $25,000 barrier on Aug. 11.
Ether (ETH), on the other hand, has held on to its gains after the Goerli testnet activated proof of stake. This cleared the way for Ethereum’s mainnet transformation scheduled for Sept. 15-16. Santiment data shows that Ether whale transactions have increased with the possibility of whale accumulation.
Everyday cryptocurrency market performance. Source: Coin360
Analysts remain divided on the future prospects for the current recovery. Some believe Bitcoin could rally to $28,000 but others don’t think so. They expect the price will fall and resume its downtrend.
Can buyers overcome the Bitcoin overhead hurdle and choose altcoins? Let’s look at the charts for the top 10 cryptocurrencies to see how we can find out.
Bitcoin climbed above $24,668 overhead resistance on Aug. 11, but the bulls couldn’t sustain higher levels. This means that bulls are still selling rallies and not giving up.
Daily chart of BTC/USDT Source: TradingView
The price is still below the 20-day exponential moving mean (EMA) of $23,151 and $24,668. A tight range of trading is usually followed by a range expansion, but it’s difficult to predict the direction and timing of the breakout.
The 20-day EMA is slowly moving up, and the relative strength indicator (RSI), is in positive territory. This indicates that the path of least resistance to the upside is possible.
Bullish momentum can pick up if buyers push and maintain the price above $25,000 and the pair could rally as high as $28,000, and then to $32,000.
If the price falls below the 20-day EMA, this positive outlook could be invalidated. The price could fall to the 50-day simple movement average (SMA), ($21,845).
Ether tried to climb above $2,000 on August 11, but the candlestick’s long wick suggests that bears are fighting for the level.
Daily chart of ETH/USDT Source: TradingView
Positive news is that the bulls are not giving ground to the bears. This indicates that traders aren’t rushing to make profits, as they expect the up-move will continue.
Buyers have an advantage due to the RSI close to the overbought territory and the upsloping moving Averages. The ETH/USDT pairing could rally if bulls push the price higher than $2,000 if that happens.
The bears may try to sink the pair to $1,700 if the price falls sharply below the current level. Bulls will likely buy the dip below this support.
BNB has faced stiff resistance at the overhead resistance area between $338 and $350. The bulls have failed to overcome this obstacle several times, but the bears are not giving up. This shows that bulls aren’t rushing to get out, as they anticipate a higher move.
Daily chart BNB/USDT TradingView
The likelihood of a break above the overhead resistance is increased by tight consolidation. The BNB/USDT pair may attempt to rally to $380, and then to $414 if that happens.
On the downside, the important support to be on the lookout for is the 20-day EMA (300). The pair could fall to $275 if bears lower the price below that level. After that, it could drop to the 50-day SMA ($261). Breaking below this support could tip the balance in the favor of bears.
Ripple (XRP), is still stuck between $0.39 overhead resistance and the $20-day EMA ($0.37). On Aug. 9-10, the bears tried to end this uncertainty but the bulls bought the dip and pushed it back above the 20 day EMA.
Daily chart of XRP/USDT Source: TradingView
On Aug. 11, the buyers attempted to push the price higher than $0.39, but the bears held firm. In the short-term, $0.39 and the 50 day SMA ($0.35) should be watched.
The XRP/USDT pairing could rise to $0.48 if buyers overcome the overhead hurdle. It may also rise to $0.54 if it does not. The pair could slide towards $0.30 if it falls below the 50-day SMA.
Cardano (ADA), a cryptocurrency, was pushed by buyers above $0.55 overhead resistance on Aug. 11, but the bears held it steady. The price could drop to the $20 EMA ($0.51)
Daily chart ADA/USDT Source: TradingView
It is unlikely that the tight trading range between $0.55 and the 20-day EMA will continue. If buyers push the price higher than $0.55, then the ADA/USDT pairing could rise to $0.63 before reaching the overhead resistance of $0.70.
Contrary to the assumption, bears will challenge $0.45 support if the price falls below the 20-day EMA. The pair could extend the consolidation between $0.45- $0.55 for a longer time if the support holds.
Solana (SOL), bounced off the 50 day SMA ($39), on Aug. 10, which indicates that bulls continue buying at lower levels. Although the bulls tried to push the price above the overhead resistance of $48, the bears stopped the recovery at $45.32 in August 11.
Daily chart of SOL/USDT Source: TradingView
SOL/USDT could trade within the ascending triangle formation for a while longer. To invalidate this bullish setup, the bears will need to lower the price below the support level.
To complete the bullish pattern, the bulls must push the price higher than $48. The pair could rally to $60, then move towards the pattern target at $71.
Dogecoin (DOGE), once again fell below the overhead resistance of $0.08 on August 11, which indicates that bears are continuing to defend the level.
Daily chart of DOGE/USDT Source: TradingView
The bears will try to lower the price below the moving ranges and challenge the ascending triangle pattern’s trendline. Breaking and closing below this support will cause the bullish setup to be invalidated, opening up the possibility of a retest at $0.06.
Contrary to the assumption, if prices rebound from the moving averages it will indicate that bulls continue buying at lower levels. To complete the ascending triangle pattern, the bulls must push the price higher than $0.08. The DOGE/USDT pair could rally to $0.10.
Related: Three cryptocurrencies that outperform the ETH price due to Ethereum’s Merge
The battle for the breakout level at $9 has been a constant battle in Polkadot. The bulls and bears are working together to bring the price down to $9, while the bulls try to turn the level into support.
Daily chart of DOT/USDT Source: TradingView
Buyers will be able to take advantage of the rising 20-day EMA (8.47 USD) and the RSI in positive territory. The DOT/USDT pair could rise to $10.80 if the price breaks above $9.65.
If the price falls below the $9 support level and the 20-day EMA it could indicate that the breakout of recent weeks may have been a bear trap. The price could fall to the 50-day SMA ($7.62).
Polygon (MATIC), which trades in a narrow range between the 20 day EMA ($0.88) to $0.96 over the past few days, indicating uncertainty among sellers and buyers.
Daily chart MATIC/USDT Source: TradingView
The MATIC/USDT pair may rally to $1.02 if this uncertainty is resolved to the upside. This barrier will be overcome by the bulls to signal the beginning of the next leg in the up-move from $1.26 to $1.50.
Contrary to the assumption, if the price falls below the 20-day EMA then the short-term advantage may tilt in favor the bears. The pair could fall to $0.75, which is the strong support.
Avalanche (AVAX), which has traded above $26.38 as a breakout level for the past few trading days, suggests that bulls don’t want to lose their advantage.
Daily chart of AVAX/USDT Source: TradingView
Buyers have an advantage due to the slowly rising 20-day EMA ($25.6), and the RSI close to the overbought area. The AVAX/USDT pairing could gain momentum if bulls push the price higher than $31. This would allow it to rally to $33 and then to its pattern target of $39.05.
If the price falls below the 20-day EMA, this positive outlook could be invalidated. The pair could fall to the 50-day SMA ($21.91), and then to support.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.