The bulls are trying to secure a strong weekly close for Bitcoin, while the bears attempt to regain their advantage. Analysts closely monitor the 200-week moving mean at $22,705 and BTC’s current setup to determine if a decisive move may be imminent.
Analysts expect a weekly close above 200-week MA to draw more buying, but a break below this could indicate that bears have returned. Analyst Caleb Franzen stated that Bitcoin has been in an accumulation area since May, despite the uncertain short-term picture.
Daily view of crypto market data. Source:Coin360
CryptoQuant, an on-chain analytics company, noted that Ether (ETH), was flowing more frequently from major exchanges. This totaled $1.87 million coins as of July 22. Outflows from crypto exchanges usually indicate that traders are bullish over the long-term and may be shifting their coins to safety.
Could Bitcoin see a rebound and attract more buyers to select altcoins. Let’s look at the charts for the top five cryptocurrencies.
On July 23, the bears attempted to sink Bitcoin into the symmetrical triangle, but the bulls had different plans. The buyers are aggressively defending the triangle breakout level. This is evident by the rebound.
Daily chart of BTC/USDT Source: TradingView
Buyers are able to take advantage of the gradually rising exponential moving average (20-days) ($21,865) as well as the relative strength index (RSI), which is in the positive territory.
Bulls should keep the price above the 50 day simple moving average ($22.384). If the price holds, the BTC/USDT exchange could rally to the overhead resistance zone of $23,363 to $24,276. Breaking and closing above this level could lead to a rally towards the target pattern at $28,171 then to $30,000.
However, if the price falls below the 20-day EMA the pair could fall to $20,500 as support.
BTC/USDT 4-hour chart. TradingView
On the 4-hour chart, the pair formed a falling wedge pattern. The pair could reach $24,276 if buyers push the price higher than the wedge. The resumption or acceleration of the uptrend could be signaled by a break and close above the wedge.
The 20-EMA is flat, while the RSI is close to the midpoint. This indicates a balance between supply/demand. The pair could fall to the support line if the price falls below the 50 SMA.
Ether faces stiff resistance at $1700, but buyers are not giving up much. The likelihood of Ether breaking above the overhead resistance is increased by tight consolidation.
Daily chart of ETH/USDT Source: TradingView
Bulls are favored by the upwardly moving 20-day EMA ($1,384) as well as the RSI in positive territory. The bullish momentum could increase if buyers push the price higher than $1,700. This could lead to a rise in the ETH/USDT pairs to $2,000 and then a rally to $2,000.
Contrary to what you might think, if the price drops below $1,700, bears will attempt to lower the pair below the 20 day EMA. The pair could fall to $1,280 if they succeed. This level could be reclaimed and the pair could remain between $1,280-$1,700 for a few more days.
ETH/USDT 4-hour chart. Source: TradingView
The price bounced off of the 50-SMA. This indicates that bulls are buying dips. The buyers will try to push the price above $1,700 overhead resistance. The moving averages are both rising and the RSI has moved into the positive zone, suggesting that the upside is the path of least resistance.
Bulls pushing the price higher than the $1,650-$1,700 resistance zone could cause momentum to pick up, and the pair may resume its upward trend. This positive view will be invalidated if the bears sink the pair below $11,450.
Binance Coin (BCH), is trying to find a bottom following an extended downtrend. Although the price fell from $135 overhead resistance on July 20, a positive sign was that bulls aggressively defended the 20-day EMA ($117).
Daily chart BCH/USDT Source: TradingView
The price action over the last few days has created a rounding bottom pattern. It will end on a break above $135. It could mean that the BCH/USDT pairing may have reached its bottom at $95. The pair could then move up to the pattern target of $175 or later to $200.
The pair could also consolidate between $135 and the 20-day EMA for a while. Breaking below the 20-day EMA can tilt the advantage in the favor of bears.
BCH/USDT 4-hour chart. Source: TradingView
Bulls have lifted the price above the resistance level on the 4-hour chart. This opens the door to a potential retest of $135. The upwardly moving averages are pointing to the upside, as is the RSI. The pair could gain momentum if buyers push the price higher than $135 and rally towards $157.
Contrary to popular belief, if the price falls below the 20-EMA, it could cause the pair to drop to the 50 SMA and then to $117. A fall below this level could tip the balance in the favor of bears.
Related: Axie Infinity has painted a huge bearish pattern — will the AXS price crash an additional 95%?
AxieInfinity (AXS), has been consolidating in an uptrend. This indicates that bulls are trying to find a bottom.
Daily chart of AXS/USDT Source: TradingView
The 20-day EMA ($15.55), has fallen and the RSI is still in the positive zone. This indicates a balance between supply/demand. If buyers push the price higher than the overhead resistance of $18.53, this balance could tip in their favor. The AXS/USDT pairing could rally to $25.21, and then to $28.20.
If the price falls below $18.53 or breaks below the moving averages it could indicate that the pair is likely to spend more time within the range. To gain the upper hand, the bears must sink the price to $11.85.
AXS/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that price fell sharply from $18.53 overhead resistance, which indicates aggressive selling by bears. The sellers will attempt to bring the pair below the 20-EMA. If the price bounces off of this level, buyers will attempt to clear the overhead resistance. If they succeed, it will signal the beginning of a new up-move.
The opposite is true. If the price falls below the 20-EMA the pair may slide to the 50 SMA. This level is important to watch because it could crack and cause the bullish momentum to weaken.
EOS broke above moving averages on Jul 18 and successfully retested the 20-day EMA ($1.05) July 21.
Daily chart EOS/USDT Source: TradingView
The bullish crossover of the moving averages and the RSI has reached the overbought territory indicates that bulls are in control. The price could reach $1.46, where bears might mount a strong defense.
It will indicate that traders aren’t selling their positions if the EOS/USDT pairs doesn’t lose much ground above $1.46. This could increase the chances of a rally higher than $1.46. This could signal a possible change in trend.
If the price falls below the moving averages, this positive outlook could be invalidated.
EOS/USDT 4-hour chart. TradingView
Both moving averages are trending upwards on the 4-hour chart, and the RSI is close to the overbought area, indicating an uptrend.
Although the pair is currently facing resistance at $1.26, buyers are not giving up. This indicates that bullish momentum is strong. The rally could be extended if the price rises and breaks above $1.26.
Contrary to the assumption, if the price falls below $1.20 the next stop could come at the 20EMA. The 50-SMA could be reached if this support is also broken.
You should research all aspects of trading and investment before making any decision.
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.