Crypto analyst Nicholas Merten is bullish on the altcoin market at large. The popular trader tells his 465,000 YouTube subscribers that altcoins have room to regain some dominance after Bitcoin’s big move to a recent high of about $46,500. “If you are in the belief that we’ve just gone through a mid-cycle correction, which is […]
The post Litecoin, Chainlink, Uniswap Could All Be Ready for Fireworks, According to Crypto Analyst Nicholas Merten appeared first on The Daily Hodl.
Bitcoin and most major altcoins remain above their respective 200-day moving average but the market's momentum will depend on whether BTC can pierce the $48,000 level.
Bitcoin’s (BTC) strong recovery and march toward the psychological level at $50,000 has improved the overall sentiment in the crypto sector. That has boosted the total crypto market capitalization to over $1.9 trillion.
Data from Glassnode shows a sharp increase in the dominance of Bitcoin transactions exceeding $1 million in the past few months. The on-chain analytics firm noted in its report that the transactions by the $1 million to $10 million group surged when Bitcoin corrected to $29,000 in July. This suggests that institutional investors may have been buying, which is “fairly constructive for price.”
Further evidence of possible institutional buying came from CryptoQuant data showing that Bitcoin reserves on derivatives exchanges have declined to 1.256 million Bitcoin, the lowest level since May 11. A similar drop in derivatives exchange balances was seen before the start of the bull run at the end of 2020.
With signs of institutional accumulation increasing, could the bullish momentum pick up further in the next few days or is it high time to book profits? Let’s study the charts of the top-10 cryptocurrencies to find out.
The bears have been attempting to pull the price back below the 200-day simple moving average ($45,091) for the past two days but the bulls have held their ground.
The 20-day exponential moving average ($41,010) has been sloping up and the relative strength index (RSI) is in the overbought zone, indicating that bulls are in control.
If buyers propel the price above $46,700, the BTC/USDT pair is likely to start its journey toward the $50,000 to $51,500 resistance zone. The bears will try to stall the rally in this zone but if the bulls can overcome the challenge, the pair could rise to $60,000.
If bears pull the price back below the 200-day SMA, the pair could drop to the 20-day EMA. If the price rebounds off the 20-day EMA, the bulls will make another attempt to start the uptrend.
Conversely, a break below the 20-day EMA could open the doors for a decline to the next support at $36,670. This is an important level for the bulls to defend because if it cracks, the bears will smell an opportunity.
Ether’s (ETH) strong rebound on Aug. 9 shows that bulls flipped the $3,000 level into support. This level is likely to act as a floor on future declines.
The bulls are attempting to resume the uptrend today. The ETH/USDT pair could now rally to the $3,4441.73 to $3,587.06 resistance zone where the bears are likely to pose a stiff challenge.
If the price turns down from this zone but rebounds off $3,000, it will suggest that bulls are buying on dips. That will improve the prospects of a rally to $4,000.
Alternatively, if bears pull the price below the 20-day EMA ($2,712), it will suggest that the current breakout was a bull trap. The pair could then drop to the 200-day SMA ($2,229).
Binance Coin (BNB) rebounded off the moving averages on Aug. 9 and started its upward journey toward the resistance of the large $211.70 to $433 range. The bears are likely to defend the $433 level aggressively.
However, if bulls do not give up much ground near $433 or if they buy the dips to the 20-day EMA ($338), the likelihood of a break above $433 increases. If that happens, the BNB/USDT pair could rally to $520 and later to $600.
On the contrary, if the price turns down from the current level or the overhead resistance and breaks below $340, it will suggest that the range-bound action may continue for a few more days.
The bears attempted to stall Cardano’s (ADA) relief rally at the $1.50 resistance but they could not pull the price back below the 20-day EMA ($1.42). This showed that bulls were not booking profits as they anticipated the recovery to continue.
The ADA/USDT pair surged above the $1.50 level on Aug. 10 and could now rally to the overhead resistance at $1.94. This level could attract profit-booking and if the price turns down from it, the bears will attempt to pull the price back to $1.50.
If that happens, the pair could extend its range-bound action for a few more days. On the contrary, if bulls thrust the price above $1.94, the pair could challenge the all-time high at $2.47. A breakout and close above this level will suggest the resumption of the uptrend.
The bulls successfully held the retest of the breakout level at $0.75 on Aug. 9 and pushed XRP back above the 200-day SMA ($0.80). The altcoin could now rally to the downtrend line of the descending channel where the bears may mount a stiff resistance.
If the price turns down from the downtrend line but rebounds off the 20-day EMA ($0.75), it will indicate that bulls are buying on dips. A breakout and close above the descending channel will signal a possible change in trend.
The first target on the upside is $1.07 and if bulls push the price above this resistance, the up-move may reach $1.26. Alternatively, if the price turns down from the current level or the downtrend line and breaks below $0.69, it will suggest that the downtrend remains intact.
Dogecoin (DOGE) turned down from the overhead resistance at $0.29 on Aug. 8 but the correction was short-lived as the price again bounced back on Aug. 9. The bulls will now try to push the price above the overhead resistance.
If they succeed, the DOGE/USDT pair could rally to $0.35. This level may act as stiff resistance but if bulls clear this hurdle, the up-move may reach $0.45. The 20-day EMA ($0.22) has started to turn up and the RSI is just below the overbought zone, suggesting that the path of least resistance is to the upside.
On the other hand, if the price turns down from $0.29, the pair could drop to the 20-day EMA. If the price rebounds off this support, the bulls will make one more attempt to propel the price above $0.29. Conversely, a break below the 20-day EMA could keep the pair range-bound between $0.21 and $0.29 for a few days.
The bears attempted to stall Polkadot’s (DOT) recovery at the overhead resistance at $21 for the past few days but the bulls did not give up much ground. This suggests that bulls are buying on every minor dip.
The rising 20-day EMA ($18.18) and the RSI in the overbought zone suggest that bulls are in control. If buyers sustain the price above $21, the DOT/USDT pair could start its journey to the overhead resistance at $26.50.
If the price turns down from $26.50, the pair could drop to $21 and remain range-bound between these two levels. A breakout and close above $26.50 will suggest the start of a new uptrend that may reach $31.28. The bears will have to pull the price back below $16.93 to tilt the advantage in their favor.
Uniswap (UNI) turned down from the overhead resistance at $30 on Aug. 10 but the bears have not been able to sustain the lower levels. This suggests that bulls are buying on every minor dip.
If bulls push and close the price above $30, the UNI/USDT pair could start its northward march toward $37. A breakout of this resistance could clear the path for a retest of the all-time high at $45.
However, the RSI is in the overbought territory suggests that the rally could be overextended in the short term. That may result in a pullback to the 200-day SMA ($26). A strong bounce off this support will suggest that bulls are in command. The bears will have to pull and sustain the price below $23.45 to gain the upper hand.
Related: US dollar downturn aids Bitcoin bulls before $50K BTC price showdown
The relief rally in Chainlink (LINK) has reached the critical overhead resistance zone at $26.48 and the 200-day SMA ($27.86) where the bears are likely to pose a stiff challenge.
If the price turns down from this zone, the LINK/USDT pair could again drop to the 20-day EMA ($22.37). A strong rebound off this support will suggest that the sentiment has turned positive and the bulls will then make one more attempt to clear the overhead hurdle.
A breakout and close above the 200-day SMA will suggest that bears have lost their grip. The pair could then rise to $32 and later to $35.33. Conversely, a break and close below the $22.07 support will suggest that the bullish momentum has weakened.
The failure of the bears to sustain Solana (SOL) below $38.10 on Aug. 9 attracted further buying, which has pushed the price to the overhead resistance at $44.
If bulls thrust the price above $44, the SOL/USDT pair could rally to the psychological resistance at $50 and then retest the all-time high at $58.38. A breakout and close above this resistance will signal the resumption of the uptrend.
The upsloping 20-day EMA ($35.59) and the RSI in the overbought territory suggest that bulls have the upper hand. This positive view will invalidate if the price turns down from the current level and breaks below the 20-day EMA. That could pull the price down to $32 and then to the 200-day SMA ($26.81).
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’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.
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.
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.
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.
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 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.
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.
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).
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
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.
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.
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.
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.
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.
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 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.
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.
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.
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
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.
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.
"Making reliable off-chain data available on decentralized networks is a critical success factor for the future development of digital assets,” said Dominic Vincenz.
Switzerland-based telecommunications company Swisscom has said it will join Chainlink’s oracle network as a node operator.
In a Thursday announcement, the telecommunications firm said it would be entering the decentralized finance, or DeFi, space by becoming an oracle node operator as part of a pilot program with the Chainlink network. The node, run by Swisscom’s digital asset division, will “continuously feed digital asset price data” to the network and allow applications on Chainlink to better settle financial contracts.
"Making reliable off-chain data available on decentralized networks is a critical success factor for the future development of digital assets,” said Swisscom Digital Business fintech innovation manager Dominic Vincenz.
Swisscom said the opportunities available in the DeFi space were important given the “increasing shift of transactions, contracts and assets to blockchain-based infrastructures.” Although the company only specified it would be acting as a Chainlink node operator, its digital asset team said it saw “no end in sight to the growth of decentralised financial applications.”
Related: Deutsche Telekom's T-Systems Is Now a Chainlink Node Operator
Cointelegraph reported in July that Chainlink had been onboarding partner integrations at a rate of more than 1.4 daily, with roughly 300 different crypto projects having joined the network this year. These third-party integrations include Coin Metrics as well as several blockchain-powered games which are likely allowing Chainlink to secure billions of dollars through smart contracts.
With 51% of it owned by the Swiss government, Swisscom currently has more than 19,000 employees and more than 6 million mobile subscribers.
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.
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.
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.
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.
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 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.
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.
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.
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
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.
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.
Bitcoin’s sharp rally brought out the bulls and if the momentum sustains UNI, LINK, SOL and XMR could move higher.
Bitcoin’s (BTC) 43% rally from $29,482.61 on July 21 to $42,316.71 on July 30 has invigorated the bulls who had been sitting on the sideli. After the sharp rise, some analysts are debating whether Bitcoin could repeat its sharp bull run seen in 2013 and 2017.
Vailshire Capital founder and CEO Jeff Ross highlighted that Bitcoin had rallied ten-fold in the second half of 2013 after facing three months of negative news. Ross said: "I still contend that 2021 will behave in similar fashion."
PlanB, the creator of the stock-to-flow price model, said Bitcoin’s comeback in July was “like clockwork.” He said that the stock-to-flow model will remain valid if Bitcoin closes August above $47,000.
Meanwhile, institutional investors continue to accumulate Bitcoin when the price is still depressed. Asset management firm GoldenTree, with about $45 billion in assets under management, has purchased an undisclosed amount of Bitcoin, according to The Street.
Bitcoin’s short-term sentiment has clearly turned bullish following the strong recovery of the past few days. Let’s study the charts of the top-5 cryptocurrencies that may participate in the up-move in the next few days.
Bitcoin’s sharp rally of the past few days is facing stiff resistance at $42,451.67 but the positive sign is that buyers have not given up much ground. This suggests that bulls are not dumping their positions as they anticipate the up-move to continue.
The rising 20-day exponential moving average ($36,800) and the relative strength index (RSI) near the overbought zone suggest that the path of least resistance is to the upside. If bulls drive the price above $42,451.67, the BTC/USDT pair could start a new uptrend, which could reach the psychological level at $50,000.
On the other hand, if the price turns down from the current level, the bulls will attempt to defend the support at $36,670. A strong rebound off this support could keep the pair range-bound between $36,670 and $42,451.67 for a few days.
The bears will have to pull the price below $36,670 to gain the upper hand. Such a move could unlock the possibility for a retest at $31,000.
The 4-hour chart shows that both moving averages are sloping up and the RSI is in the positive zone, indicating an advantage to buyers. If the price rebounds off the 20-EMA, the bulls will make one more attempt to clear the overhead hurdle at $42,451.67.
Alternatively, if the bears pull the price below the 20-EMA, the pair could drop to the 50-simple moving average. A strong bounce off this support will suggest that sentiment remains positive and traders are buying on dips.
The bullish momentum may weaken if the price dips below the 50-SMA. Such a move could result in a decline to $36,670.
Uniswap (UNI) rose above the downtrend line on July 30, invalidating the descending triangle pattern. This could result in a short squeeze as aggressive bears rush to cover their positions.
If bulls drive the price above the $23.45 to $25 resistance zone, the UNI/USDT pair could rally to the stiff overhead resistance at $30. The moving averages have completed a bullish crossover and the RSI has risen into the positive territory, suggesting that bulls are in command.
However, the bears may have other plans as they are likely to try to defend the overhead zone. If the price turns down from the zone but rebounds off the 20-day EMA ($19.25), it will suggest that traders are buying the dips. That will increase the possibility of a break above $25 and a rally to $30.
Contrary to this assumption, if the price turns down and plummets below the moving averages, several aggressive bulls may get trapped. That may result in a drop to $17.24 and then to $13.
The UNI/USDT pair could rise to $23.45 where the bulls may encounter stiff resistance from the bears. If the bulls do not give up much ground, it will suggest they anticipate a further rally. The upsloping moving averages and the RSI in the overbought zone also indicate that the sentiment favors a further rise.
This positive view will be negated if the price turns down from the overhead resistance and breaks below the 20-EMA. Such a move will suggest that traders booked profits near $23.45 aggressively. That may result in a deeper pullback to the 50-SMA.
Chainlink (LINK) broke above the 50-day SMA ($18.73) on July 27, suggesting that bears were losing their grip. After a minor hesitation near the psychological level at $20, the bulls resumed the relief rally on July 30.
However, the long wick on today’s candlestick suggests that the up-move may be losing steam.
If the price turns down from the current level but rebounds off the 20-day EMA ($18.83), it will suggest that the sentiment has turned bullish. The buyers will then attempt to push the LINK/USDT pair toward the stiff overhead resistance zone at $32.50 to $35.
Conversely, if the pair breaks below the moving averages, it will suggest that bears have not yet given up. They may then pull the price down to the critical support zone at $13.38 to $15.
Both moving averages are sloping up on the 4-hour chart and the RSI is in the positive zone, suggesting that bulls are in control. The bulls are likely to buy the dips to the 20-EMA. If that happens, the pair could resume its up-move with the next possible stop at $26.20.
On the other hand, if bears pull the price below $21, several aggressive bulls may get trapped. The price could then drop to the 50-SMA. This is an important level for the bulls because if it cracks, the pair may extend its decline to $15.
The bulls pushed Solana (SOL) above the downtrend line on July 31, invalidating the descending triangle pattern. The bears are currently attempting to pull the price back below the downtrend line and trap the aggressive bulls.
The 20-day EMA ($30.49) has turned up and the RSI has risen above 61, indicating that buyers have the upper hand. If bulls buy the dip to the downtrend line, it will suggest that the sentiment has turned positive. The buyers will then try to resume the up-move by propelling the price above the $37 to $38.10 resistance zone.
If they succeed, the SOL/USDT pair could rally to $44 where the bears are likely to mount a stiff resistance. This positive view will invalidate if the bears pull the price below the moving averages. Such a move could open the doors for a further fall to $26.50.
The bears are attempting to stall the relief rally near the overhead resistance at $38.10 but the upsloping moving averages and the RSI in the positive zone suggest that bulls have the upper hand.
If the pair rebounds off the 20-EMA, the buyers will again attempt to clear the overhead hurdle. If they manage to do that, the pair could start its journey toward $44.
A break below the 20-EMA will be the first sign of weakness. That may pull the price to the 50-SMA and delay the possible break above $38.10.
Related: 3 reasons why Ethereum price might not hit $5,000 anytime soon
Monero (XMR) broke above the downtrend line on July 26, which invalidated the developing descending triangle pattern. The failure of a bearish setup is a positive sign.
The XMR/USDT pair has been consolidating in a tight range for the past three days. If bulls drive the price above $250, the pair could start its journey toward $288.06 and later to $316.23. The moving averages are on the verge of a bullish crossover and the RSI is in the positive zone, indicating advantage to the buyers.
If the price turns down from the current level but finds support at the 20-day EMA ($220), it will suggest that traders are buying on dips. The bulls will then make one more attempt to resume the up-move.
This positive view will invalidate if the bears sink the price below the moving averages. Such a move will suggest that the current rally was a bull trap.
The 4-hour chart shows the pair had been stuck between $180 and $227.50 for the past few days. The breakout of this range gives the pair a target objective at $275 but the bears have other plans. They are aggressively defending the psychological resistance at $250.
The upsloping moving averages and the RSI in the positive territory suggest the path of least resistance is to the upside. If bulls thrust the price above $250, the upward march may pick up momentum.
On the downside, bears will have to sink and sustain the price below $227.50 to invalidate the bullish view.
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.
Popular crypto analyst Josh Rager is outlining the key bullish levels for Bitcoin, Chainlink and one low-cap altcoin. The crypto veteran tells his 179,600 Twitter followers that Chainlink might be flashing signals of a potential rally that breaks the $26.50 level. “If price gets a pullback soon, would like to buy a potential retest of […]
The post Prominent Analyst Outlines Key Bullish Levels for Bitcoin, Chainlink and One Low-Cap Altcoin appeared first on The Daily Hodl.
Cryptocurrency analyst Justin Bennett is scrutinizing the decentralized supply chain management platform VeChain (VET), smart contract blockchain leader Ethereum (ETH), oracle protocol Chainlink (LINK) and crypto king, Bitcoin (BTC). Using VeChain’s past price history as a guide, Bennett suggests the asset may have hit a bottom as he traces a bullish path that – if […]
The post Analyst Justin Bennett Outlines Massively Bullish Path for VeChain, Tracks Key Resistance Levels for Bitcoin, Ethereum and Chainlink appeared first on The Daily Hodl.
Data from Delphi Digital shows holding BTC and ETH was more profitable than investing in weighted average market cap crypto and DeFi index funds.
In the past two decades, index and exchange-traded funds (ETF) have become some of the most popular forms of investing because they offer investors a passive way to gain exposure to a basket of stocks as opposed to investing in individual stocks which increases risk of loss.
Since 2018, this trend has extended to the crypto sector and products like the Bitwise 10 Large Cap Crypto Index (BITX) tracks the total return of Bitcoin (BTC), Ether (ETH), Cardano (ADA), Bitcoin Cash (BCH), Litecoin (LTC), Solana (SOL), Chainlink (LINK), Polygon (MATIC), Stellar (XLM) and Uniswap (UNI).
The ability to access multiple top projects through one weighted average market cap index sounds like a great way to spread out risk and gain exposure to a wider range of assets, but do these products offer investors a better return in terms of profit and protection against volatility when compared to the top-ranking cryptocurrencies?
Delphi Digital took a closer look at the performance of the Bitwise 10 and compared it to the performance of Bitcoin following the December 2018 market bottom. The results show that investing in BTC was a more profitable strategy even though BITX was slightly less volatile.
According to the report, “indices aren’t meant to outperform individual assets, they’re meant to be lower-risk portfolios compared to holding an individual asset,” so it’s not surprising to see BTC outperform BITX on a purely cost basis.
The index did offer less downside risk to investors as the market sold-off in May but the difference was “trivial” as “BTC’s max drawdown was 53% and Bitwise’s was 50%.”
Overall, the benefits of investing in an index versus Bitcoin are not that great because the volatile nature of the crypto market and frequent large drawdowns often have a larger effect on altcoins.
Delphi Digital said:
“Crypto indices continue to be a work-in-progress. Choosing assets, allocations, and re-balancing thresholds is a difficult task for an emerging asset class like crypto. But as the industry matures, we expect more efficient indices to pop up and gain traction.”
Decentralized finance (DeFi) has been one of the hottest crypto sectors in 2021 led by decentralized exchanges like Uniswap (UNI) and SushiSwap (SUSHI) and lending platforms like AAVE and Compound (COMP).
The DeFi Pulse Index (DPI) aims to tap into this rapid growth and the DPI token has allocations to 14 of the top DeFi tokens, including UNI, SUSHI, AAVE, COMP, Maker (MKR), Synthetic (SNX) and Yearn.finance (YFI).
When comparing the performance of DPI to Ether since the inception of the index, Ether significantly outperformed in terms of profitability and volatility, as evidenced by a 57% drawdown on Ether versus 65% for DPI.
While this is an “imperfect comparison” according to Delphi Digital due to the fact that “the risk and volatility of DeFi tokens are higher than Ether’s,” it still highlights the point that the traditional benefits seen from indices are not mirrored by crypto-based baskets.
Delphi Digital said:
“You could’ve just HODL-ed ETH for a superior risk-return profile.”
For the time being, Bitcoin and Ether have proven to be two of the lower-risk cryptocurrency plays available when compared to crypto index funds that offer exposure to a larger number of assets.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
