bitcoin cash

Bitcoin’s break above the 200-day SMA suggests that the downtrend could be over and that may pull buyers back into altcoins.

Bitcoin’s (BTC) recovery from $29,482.61 on July 21 has continued to surpass one resistance after another. Today, Bitcoin has risen above the 200-day simple moving average, an indicator watched by institutional investors to determine whether the asset is bullish or bearish.

A positive sign about today’s rally has been that Bitcoin was not affected by the flash crash in gold, which momentarily dipped to a four-month low. This suggests that traders are focusing on the fundamentals of the sector and are not affected by the performance of other asset classes.

Glassnode noted that investors holding Bitcoin for more than a year have not dumped their positions after the recent rally to $45,000. This is in contrast to the 2018 bear market “where old hands took exit liquidity on most relief rallies.”

Will Bitcoin enter a bull phase and pull the sector higher? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin’s breakout above the overhead resistance at $45,451.67 hit a wall at the 200-day SMA ($44,954) on Aug. 7. The bears tried to pull the price back below the breakout level at $42,451.67 on Aug. 8 but failed.

The BTC/USDT pair bounced off the $42,451.67 level today and the bulls have pushed the price above the 200-day SMA. If buyers sustain the price above the 200-day SMA, it will suggest an end of the downtrend.

The pair could then rally to the overhead resistance zone at $50,000 to $51,500 where the bears may mount a stiff resistance.

If the price turns down from this zone but stays above the 200-day SMA, it will increase the possibility of the continuation of the up-move. A break above $51,500 could clear the path for a rally to $60,000.

This bullish move will invalidate in the short term if the price turns down and breaks below the breakout level at $42,451.67. The pair could then drop to the next support at $36,670.

ETH/USDT

Ether (ETH) surged above the psychological level at $3,000 on Aug. 7, which suggests that the correction could be over. The bears tried to trap the aggressive bulls by pulling the price back below $3,000 but the buyers held their ground.

The bulls will now try to resume the uptrend and push the price to $3,500 and then to the psychological resistance at $4,000. However, the sharp rally of the past few days has pushed the relative strength index (RSI) into the overbought territory.

This suggests that the rally is overheated in the short term and a consolidation or correction is possible. The first sign of weakness will be a break and close below $2,893.23. That could result in a decline to $2,500.

BNB/USDT

Binance Coin (BNB) broke and closed above the $340 resistance on Aug. 6, which completed a bullish ascending triangle pattern. The bears tried to pull the price back below the breakout level but the altcoin bounced off the 200-day SMA ($328) today. This suggests that bulls are buying on dips.

The BNB/USDT pair could now start its march toward the overhead resistance at $433. The bears are again likely to mount a strong defense of this level.

If the price turns down from it, the pair could drop to $340 and remain range-bound for a few days. A breakdown and close below the 50-day SMA ($308) could tilt the advantage in favor of the bears.

On the other hand, a breakout and close above $433 will suggest that the correction is over. The pair may then attempt to start a new uptrend that could reach $520.

ADA/USDT

Cardano (ADA) turned down from $1.50 on Aug. 8 but the bulls are in no mood to relent. They purchased the dip and are currently attempting to push the price back above the overhead resistance.

If buyers propel the price above $1.50, the ADA/USDT pair could start its northward march toward the overhead resistance at $1.94. This level may act as a stiff resistance but if the bulls do not give up much ground, the pair could resume its up-move.

Conversely, if the price turns down from $1.50, the pair could drop to the moving averages. A break and close below the moving averages will signal that the bulls are losing their grip. The pair may then drop to the critical support at $1.

XRP/USDT

XRP soared above the $0.75 resistance and the 200-day SMA ($0.79) on Aug. 7, which completed a double bottom pattern. The price rebounded off the breakout level today, indicating that bulls have flipped the level to support.

If buyers push the price above $0.84, the XRP/USDT pair could start its journey toward the overhead resistance zone at $1 to $1.07. A breakout and close above this zone could signal the start of a new uptrend.

Alternatively, if the price turns down from the overhead resistance, the pair could drop to the 200-day SMA. A bounce off this support could keep the pair stuck between $1.07 and $0.75 for a few days. The bears will have to pull the price below the 50-day SMA ($0.65) to gain the upper hand.

DOGE/USDT

Dogecoin’s (DOGE) consolidation near the overhead resistance at $0.21 resolved to the upside on Aug. 7 as bulls established their supremacy. The bears posed a stiff challenge at $0.29 on Aug. 8 but the positive sign is that the bulls did not allow the price to break below $0.21.

The buyers will now make one more attempt to propel the price above $0.29. If that happens, the DOGE/USDT could rally to $0.35 where the bears may again mount a stiff resistance.

On the contrary, if the price turns down from $0.29, the pair may drop to $0.21 and remain range-bound between these two levels for a few days. A break and close below the 200-day SMA ($0.20) could sink the pair to the critical support at $0.15.

DOT/USDT

Polkadot (DOT) is facing stiff resistance at the overhead resistance at $21 but the positive sign is that the bulls have not given up much ground. This suggests that the bulls are not closing their positions as they anticipate the recovery to continue.

If bulls drive the price above the overhead resistance at $21, the DOT/USDT pair could start its journey to the next target objective at $26.50. The 200-day SMA ($27) is placed just above this resistance, hence the bears are likely to defend this level aggressively.

If the price turns down from this resistance, the pair could drop to $21. A strong bounce off this level will suggest that traders are buying on dips. Conversely, a break below $21 could pull the price down to the 50-day SMA ($15.46).

UNI/USDT

Uniswap (UNI) broke above the 200-day SMA ($25.81) on Aug. 6 and the bulls successfully defended the retest of the level on Aug. 8. This suggests that the 200-day SMA will now act as a support on future declines.

The buyers will now try to thrust the price above the overhead resistance at $30. If they manage to do that, it will suggest that the downtrend is over. The UNI/USDT pair could then start its journey to $37 and later to $44.

Contrary to this assumption, if the price turns down from $30, the pair could again drop to the 200-day SMA. A break below this support will suggest that the bulls may be losing their grip. The pair may then drop to $23.45.

Related: Ethereum could pave way for $100,000 Bitcoin, Bloomberg analyst asserts

BCH/USDT

Bitcoin Cash (BCH) broke above the $546.83 resistance on Aug. 6, which completed the double bottom pattern. The bulls have successfully held the breakout level for the past two days, which is a positive sign.

The BCH/USDT pair could now rise to the 200-day SMA ($639) where the bulls may again face a stiff resistance. A breakout and close above this level could clear the path for the pair to rally to the pattern target at $710.13.

Contrary to this assumption, if the price turns down from the 200-day SMA, the pair could oscillate between the moving averages for a few days. A break below the 50-day SMA ($493) could increase the likelihood of a decline to $450.

LINK/USDT

The bears attempted to pull Chainlink (LINK) back below the breakout level at $22.07 on Aug. 8 but failed. This suggests that the sentiment has turned positive and traders are buying on dips.

The bulls will now try to push the price to the overhead resistance at $26.48 where the bears may again mount a stiff resistance. If the price turns down from this level, the LINK/USDT pair could stay range-bound between $26.48 and $22.07 for a few days.

A breakout and close above the 200-day SMA ($27.83) will signal an end of the downtrend. The pair could then rally to $32 and later to $35.33. On the other hand, a break below $22.07 could result in a decline to the 50-day SMA ($18.90).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Bitcoin and most major altcoins are near critical overhead resistance levels, suggesting that the downtrend is very close to ending.

Bitcoin (BTC) has staged a smart recovery in the past few days and the interest in the crypto sector seems to be picking up. JPMorgan Chase has added access to a new Bitcoin fund created by New York Digital Investment Group (NYDIG) for its private banking clients. 

The increasing number of traditional financial institutions opening up crypto trading opportunities for their clients shows there is strong demand for the sector.

On-chain analyst Willy Woo said recently that strong holders had been scoping up Bitcoin and locking “them away for long-term investment”, resulting in a supply squeeze. Woo added that he had “not seen a supply shock opportunity like this since Q4 2020 when BTC was priced at $10,000 only to be repriced at $60,000 in the months thereafter.”

Billionaire hedge fund manager Ray Dalio said on CNBC that Bitcoin was “something like a digital gold” and an important asset to use for diversifying the portfolio. However, Dalio seemed to be more inclined towards gold if there was a need to choose only one asset among the two.

Andreessen Horowitz co-founder Marc Andreessen painted a more bullish view on Bitcoin calling it “one of the most amazing things I’ve ever seen” and a “fundamental technological breakthrough.”

With a pickup in demand, will Bitcoin and altcoins start a stronger rally? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin’s rebound off the 20-day exponential moving average ($38,111) suggests that the sentiment has turned positive and traders are buying the dips. The bulls are currently attempting to sustain the price above the critical overhead resistance at $42,451.67.

The BTC/USDT pair has formed an inverse head and shoulders pattern that will complete on a breakout and close above the neckline. If bulls sustain the price above the neckline, the pair could start its journey toward the pattern target at $55,778.

However, it may not be a straight rise to the target objective because the bears are likely to pose stiff resistance in the $50,000 to $51,500 zone.

Contrary to this assumption, if the price turns down from the current level, the pair could again retest the 20-day EMA. A break below this support will be the first sign that the bears are making a comeback.

ETH/USDT

Ether (ETH) rebounded off the downtrend line on Aug. 4, indicating that bulls have flipped it to support. The bulls are currently attempting to push the price to the psychological resistance at $3,000.

If the price turns down from $3,000, the ETH/USDT pair could again drop to the 20-day EMA ($2,428). A strong bounce off this support will suggest that the sentiment remains positive. The bulls will then make one more attempt to clear the hurdle at $3,000.

If they succeed, it will suggest the start of a new uptrend. The rising 20-day EMA and the RSI in the overbought territory indicate that the path of least resistance is to the upside. A break below the 20-day EMA will be the first sign that the bullish momentum may be weakening.

BNB/USDT

Binance Coin (BNB) bounced off the 20-day EMA ($320) on Aug. 4, indicating strong demand at lower levels. The bulls are currently attempting to thrust and sustain the price above the overhead resistance at $340.

A close above $340 will complete an ascending triangle pattern, which could open the gates for a rally to $380 and then $433. The gradually rising 20-day EMA and the RSI in the positive territory suggest the path of least resistance is to the upside.

Contrary to this assumption, if the price turns down from the current level and breaks below the moving averages, the BNB/USDT pair could drop to the trendline. A break below this support will invalidate the pattern and the pair may then drop to $211.70.

ADA/USDT

Cardano (ADA) broke and closed above the downtrend line on Aug. 3, which invalidated the developing descending triangle pattern. The bears tried to pull the price back below the downtrend line on Aug. 4 but failed.

The moving averages have completed a bullish crossover and the RSI is in the positive zone, suggesting advantage to the bulls. The ADA/USDT pair could now rally to $1.50 where the bears will again pose a stiff challenge.

A breakout and close above $1.50 may attract further buying, which could propel the price to $1.60 and then to $1.74. The bears will have to pull the price below $1.20 to gain the upper hand. If they manage to do that, the pair could again slide to $1.

XRP/USDT

XRP corrected to the 20-day EMA ($0.69) on Aug. 4 but the bulls purchased this dip. The bears again tried to pull the price down on Aug. 5 but the long tail on the day’s candlestick shows strong demand at lower levels.

The bulls will now try to drive and sustain the price above the overhead resistance at $0.75. If they succeed, the XRP/USDT pair will complete a double bottom pattern and start its journey toward the overhead zone at $1 to $1.07.

This positive view will be negated if the price turns down from the current level and plummets below the 50-day simple moving average ($0.65). Such a move will suggest that the pair could remain range-bound between $0.50 and $0.75 for a few more days.

DOGE/USDT

The bears tried to pull Dogecoin (DOGE) lower on Aug. 3 but the bulls bought the dip and pushed the price back toward the overhead resistance at $0.21 on Aug. 4.

A tight consolidation near the overhead resistance suggests that bulls are holding on to their positions as they anticipate a move higher. A stronger relief rally could begin if the bulls push and sustain the price above the 50-day SMA ($0.21).

If that happens, the DOGE/USDT pair could rally to $0.28 and then to $0.33. On the other hand, if the price turns down from the current level and breaks below $0.18, the pair could drop to the critical support at $0.15.

DOT/USDT

Polkadot (DOT) bounced off the $16.93 support on Aug. 4, suggesting strong demand at lower levels. The moving averages have completed a bullish crossover and the RSI is in the overbought territory, indicating that bulls are in control.

If buyers push the price above $21, the DOT/USDT pair could rally to the overhead resistance at $26.50 where bears are likely to mount a stiff resistance. The bulls will have to break above $26.50 to suggest the start of a new uptrend.

Alternatively, if the price turns down from $21, the pair could again drop to $16.93. This is an important level for the bulls to defend because if it cracks, the pair could again drop to the critical support at $13.

UNI/USDT

Uniswap (UNI) bounced off the 20-day EMA ($21.04) on Aug. 4 and broke above the overhead resistance at $23.45. This suggests that the sentiment remains positive and traders are buying on dips.

The bears tried to pull the price back below $23.45 on Aug. 5 but the long wick on the day’s candlestick suggests strong buying at lower levels. The UNI/USDT pair could now rally to the overhead resistance at $30.

This positive view will invalidate if the price turns down from the current levels and breaks below the moving averages. Such a move will suggest that the breakout above $23.45 was a bull trap.

Related: ‘Bitcoin fixes this’ — US Infrastructure Bill would add $250B to debt mountain

BCH/USDT

Bitcoin Cash (BCH) has been clinging to the $546.83 resistance for the past few days, which suggests that the bulls are not closing their positions in a hurry.

The 20-day EMA ($514) is moving up gradually and the RSI is in the positive zone, suggesting that bulls have a slight advantage. A breakout and close above $546.83 will complete a double bottom pattern, which could start the up-move towards the target objective at $710.13.

Contrary to this assumption, if the price turns down from the current level and breaks below the moving averages, it will indicate that short-term traders have given up and are dumping their positions. That could pull the price down to $383.53.

LINK/USDT

Although the bulls have held the support at $22.08 for the past few days, they are struggling to push Chainlink (LINK) to the overhead resistance at $26.48. This suggests that demand dries up at higher levels.

Repeat retests of a support tends to weaken it and the bears will now try to pull the price down to the 20-day EMA ($20.79). If the price rebounds off this support, the bulls will again try to push the LINK/USDT pair to $26.48.

A breakout and close above the overhead resistance could open the doors for a rally to $32.50. The first sign of weakness will be a break below the 20-day EMA. That could result in a decline to the next support at 50-day SMA ($18.72).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Bitcoin price has hit a few barriers but many altcoins appear positioned for continuation.

Bitcoin (BTC) dropped back below $39,000 on Aug. 2, suggesting that short-term traders were booking profits after the price failed to close above $42,451.67. 

However, lower levels could again attract buying as seen in late July. Data from Santiment showed that Bitcoin held on wallet addresses storing between 100 and 10,000 Bitcoin rose to a new all-time high at 9.23 million Bitcoin on Aug. 1. The previous all-time high for this group of investors was recorded on April 5, just over a week before Bitcoin hit an all-time high of $64,854 on April 14.

Santiment highlighted that the “addresses have accumulated approximately 170,000 more Bitcoin” in the last four weeks. A similar pace of purchase was seen in late December 2020, just before the start of the strong bull move in 2021.

CoinShares data showed that the assets under management in Bitcoin-focused funds dropped by $20 million last week, its fourth successive weekly decline. Over the past month, Bitcoin funds have witnessed cumulative outflows of $67.8 million.

The data was not all bearish because multi-asset funds attracted cumulative inflows of $7.5 million last week and $11.9 million over the past month.

Could Bitcoin break out of its range and lead the crypto markets higher? Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin peeked above the overhead resistance at $42,451.67 on Aug. 1 but the bulls could not sustain the higher levels. This shows that bears are attempting to keep the range-bound action intact.

The upsloping 20-day exponential moving average ($36,968) and the relative strength index (RSI) above 62 suggest that the sentiment is positive. If the price rebounds off the 20-day EMA, the bulls will again try to push and sustain the price above $42,451.67.

If they succeed, it will signal the start of a new uptrend. The first target on the upside will be a move to the overhead resistance zone at $50,000 to $51,500 where bears may again mount a stiff resistance.

This bullish view will invalidate if the price turns down from the current level and breaks below the $36,670 support. That will indicate that the BTC/USDT pair could extend its consolidation between $28,805 and $42,599 for a few more days.

ETH/USDT

Ether (ETH) broke above the downtrend line on July 31, invalidating the descending triangle pattern. The bears sold at higher levels on Aug.1 as seen from the long wick on the day’s candlestick but the positive sign is that bulls did not allow the price to drop below the downtrend line.

The upsloping 20-day EMA ($2,273) and the RSI in the overbought territory indicate that bulls are in control. The ETH/USDT pair could now rally to the psychological level at $3,000 where the bears may again mount a stiff resistance.

Contrary to this assumption, if the bears pull the price back below the 20-day EMA, it may trap the aggressive bulls. This could result in long liquidation, which may sink the pair to $2,000 and then to the critical support at $1,728.74.

BNB/USDT

Binance Coin (BNB) rose above the overhead resistance at $340 on Aug. 1 but the long wick on the day’s candlestick suggests that bears are attempting to defend this level.

Although the price dipped back below $340 on Aug. 1, the positive sign is that the bulls have not given up much ground. If the price consolidates between the moving averages and $340, it will improve the prospects of a break above $340.

If that happens, the BNB/USDT pair will complete a bullish ascending triangle pattern. This setup has a target objective at $454.58 but the climb may not be easy because the bears will erect roadblocks at $380 and then again at $433.

On the downside, if bears sink the price below the moving averages, the pair could drop to the trendline. This is an important support to watch out for because if it cracks, the next stop could be $211.70.

ADA/USDT

Cardano (ADA) rose above the downtrend line on Aug. 1 but the long wick on the day’s candlestick suggests that bears are defending the resistance aggressively.

The marginally rising 20-day EMA ($1.27) and the RSI above 56 suggest that bulls have a slight advantage. If buyers can push and sustain the price above the downtrend line, it will invalidate the descending triangle pattern.

The ADA/USDT pair could then rise to $1.50 where the bears may again pose a stiff challenge. If buyers can overcome this resistance, the pair could start its journey toward $1.94.

This positive view will be negated if the price turns down and plummets below $1.20. That could open the doors for a further slide to $1.14 and then $1.

XRP/USDT

XRP has been consolidating near the overhead resistance at $0.75 for the past few days, which suggests that bulls are not booking profits as they anticipate the relief rally to extend further.

The moving averages have completed a bullish crossover and the RSI is above 63, suggesting the path of least resistance is to the upside. If buyers drive and sustain the price above $0.75, the XRP/USDT pair will complete a double bottom pattern, which has a target objective at $1.

If bulls fail to sustain the price above $0.75, short-term traders may close their positions. That could drag the pair down to the moving averages. A break below this support will suggest that the pair may extend its stay inside the $0.50 to $0.75 range for a few more days.

DOGE/USDT

Dogecoin (DOGE) has been consolidating near the overhead resistance at $0.21 for the past few days. This suggests a state of uncertainty among the bulls and bears.

The flat 20-day EMA ($0.20) and the RSI near the midpoint indicate a balance between supply and demand. Usually, a tight consolidation near the stiff resistance resolves to the upside. If buyers thrust the price above the $0.21 to 50-day simple moving average ($0.22) resistance zone, the DOGE/USDT pair could rise to $0.28 and then to $0.33.

On the contrary, if bulls fail to clear the overhead hurdle, it could attract profit-booking. The pair could then gradually slide down to the critical support at $0.15. A bounce off this level may keep the pair range-bound between $0.15 and $0.21 for some more time.

DOT/USDT

The $16.93 level had acted as a stiff resistance between June 22 to July 8 but the bulls propelled Polkadot (DOT) above it on Aug. 1, which is a positive sign.

The moving averages are on the verge of a bullish crossover and the RSI is just below the overbought territory, suggesting that buyers have the upper hand. If bulls flip $16.93 to support, the DOT/USDT pair may continue its journey to $26.50.

On the other hand, if the bears pull the price below $16.93, the pair could drop to the 20-day EMA ($15.21), which may act as a support. If the price rebounds off this level, the buyers will again attempt to resume the relief rally. A break and close below the 20-day EMA could result in a retest of $13.

UNI/USDT

The long wick on Uniswap’s (UNI) candlestick on Aug. 1 suggests that bears are defending the overhead resistance at $23.45, but the positive sign is that bulls have not given up much ground.

The moving averages have completed a bullish crossover and the RSI is close to the overbought zone, indicating that buyers have the upper hand. A break above $23.45 will clear the path for a possible rally to $30.

If the price again turns down from the overhead resistance, the UNI/USDT pair is likely to find support at the 20-day EMA ($19.55). If the price rebounds off this support, it will improve the prospects of a break above $23.45.

Conversely, if the price turns down and breaks below the moving averages, it will suggest that the range-bound action may continue for a few more days.

Related: There’s no reason not to hold Bitcoin for 100 years, Michael Saylor says

BCH/USDT

Bitcoin Cash (BCH) has been trading between the 50-day SMA ($498) and the overhead resistance at $546.83 for the past four days. A tight consolidation near a stiff resistance suggests that buyers are not closing their positions as they anticipate a move higher.

If bulls sustain the price above $546.83, the BCH/USDT pair will complete a double bottom pattern. This bullish reversal setup has a target objective at $710.13. The moving averages are on the verge of a bullish crossover and the RSI is in the positive zone, which suggests that the path of least resistance is to the upside.

This bullish view will be invalidated if the price turns down from the current level and breaks below the moving averages. Such a move will suggest that the pair could extend its range-bound action between $383.53 and $546.83 for a few more days.

LINK/USDT

The bulls pushed Chainlink (LINK) above the overhead resistance at $22.07 on July 30 but the bears are not allowing the buyers to have a runaway rally.

The bears are attempting to pull the price back below $22.07 but the bulls have held the support for the past three days. The moving averages have completed a bullish crossover and the RSI is near the overbought territory, indicating that buyers have the upper hand.

If bulls drive the price above $24, the LINK/USDT pair could rise to $26.48. A break above this resistance could clear the path for a possible rally to $32.

Alternatively, if the price breaks below $22.07, the pair could drop to the 20-day EMA ($19.17). A strong rebound off this support will suggest that sentiment remains positive as traders are buying on dips. The bears will have to sink the price below the moving averages to gain the upper hand.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.