Analyst Rakesh Upadhyay analyzes 4 altcoin projects that he expects to leap forward with Bitcoin. We start with the general situation of its market and continue with technical analysis for each cryptocurrency…
What happened in Bitcoin?
Bitcoin is preparing to test the $ 48,000 resistance once again, where the bears are struggling intensely. It rallied as high as $48,200 in its previous attempts, but corrected to $45,500. Thinking that these levels are critical, PlanB, the creator of the “stock-to-flow” Bitcoin price model, says that if BTC closes August above $ 47,000, $ 135,000 may come into play as the “worst case scenario” at the end of the year. Additionally, despite the slight thinking, Bitcoin continues to be adopted by institutional investors. Filings with the US and the SEC show that four asset management firms have purchased shares in Grayscale’s Bitcoin Investment Trust.
By the way, Cryptocoin. com
A survey of nearly 42,000 people in 27 countries by Finder, which we report as , shows a high adoption rate in Asia. Among the countries surveyed, it turns out that Vietnam recognizes 41%, India and Indonesia 30% recognize Bitcoin. Additionally, it was announced that UK and US respondents were very low in adoption, at 8% and 9%. After this data, we examine the charts of the top 5 cryptocurrencies that can increase the series of bullish movements in the coming days. Let’s start with BTC…
Bitcoin technical analysis
Bitcoin bounced back from the resistance line of the ascending wedge formation on August 14. This indicates that the bears are strongly defending the area. Should BTC break below this wedge, there may be strong buyer demand and if it bounces back from this level, the bulls will try to push the price up again. A break above the wedge and close will invalidate the bearish pattern for higher fiyadollarsars. After this zone, BTC’s initial targets are $50,000 and $60,000. Technical indicators RSI suggest bulls are strong for bullish momentum. However, if the price declines, a drop to the 20 EMA ($42,682) is possible. Should the price rebound from these levels, the bulls will make another upward attempt. However, if the price dips below the 20-day EMA, the BTC price could drop to $37,176.
On the bear side, a hard preparation is made between $ 46,743.47 and $ 48,144. They lowered the price to the 50-SMA on the 4-hour chart. If the price breaks down from this level, a test of $43,770, and then $42.51.67 can be observed. The 20-day EMA and RSI, flattening near the midpoint, suggest that the bullish momentum may weaken. If the price falls but rises with buyer pressure from the current level, it will confirm that the bulls are buying on the downtrend. In this case, it suggests a resumption of the upward move.
Altcoin Ethereum Classic (ETC)
Ethereum Classic (ETC) broke and closed above the overhead resistance at $63.56 on August 13, completing the ascending triangle pattern. This bullish setup has a formation target of $94.91. Usually, after breaking out of a pattern, the price drops and retests the breakout level. In this case, ETC might retest the $63.56 level in the next few days. Also, ETC could start a new uptrend if the bulls turn this level to support. The rising 20-day EMA ($57) and the RSI in the overbought zone suggest the bulls have prevailed. If the price drops below $63.56, altcoin ETC could drop to the 20-day EMA. A strong recovery from the 20-day EMA will indicate that the bullish sentiment remains intact. Buyers will then make another attempt to maintain the upward movement. This positive view will be rejected if the bears pull the price below the 20-day EMA. This could result in a drop to the 50-day SMA ($51).
4 saadollarsik chart shows that the pair is in an uptrend. The bears are trying to stop the rise at $76.16 but the positive sign is that the bulls are not giving up much ground. The rising trading averages and the RSI near the overbought zone point to the advantage for buyers. If the bulls push the price above $76.16, the next stop could be $84.16. Conversely, if the bears sink the price below $70, the pair could drop to the 20-EMA. A strong bounce from this level indicates that the sentiment remains positive, but a break below it could take the price to $63.56.
Altcoin Terra (LUNA)
LUNA has been trading in an ascending channel for the past few days. A break and close above the downtrend line indicates the start of a new uptrend. The bears have been defending the overhead resistance at $18 for the past four days. If the price rises from the current level or breaks out of the support line, the bulls will make another attempt to push LUNA above $18. If they do, the next stop could be $1.54 followed by $22. Alternatively, if the price breaks below the channel and the 20-day EMA ($14), it indicates that the bullish momentum is weakening. LUNA can then retest the breakout level on the downtrend line.
The bears have stopped the bullish move at $18 twice, making it an important level to watch out for. The 20-day EMA has flattened and the RSI is just above 50, indicating a possible consolidation in the near term. If the price bounces back from the 50-SMA, LUNA could trade between $15.81 and $18 for a while. A break and close above $18 could start the next leg of the uptrend that could reach $20.81. Conversely, a break below $15 could indicate the start of a deeper correction to $13.
Altcoin Klaytn (KLAY)
Klaytn (KLAY) broke above the $1.81 resistance on August 14 but the bulls failed to sustain higher. The long wick on the candlestick of the last two days shows that the bears are aggressively defending the overall resistance. The sharp rally over the past few days has pushed the RSI into the overbought territory, pointing to the possibility of a minor correction or consolidation in the next few days. Any dip is likely to find support at $1.60 followed by $1.40. If the price bounces back from both supports, the bulls will make another attempt to climb above $1.81. A break and close above this level will complete the rounding bottom pattern with a target target of $2.90. This positive view will be invalidated if the price falls and breaks below the 20-day EMA ($1.32). This could result in a drop to the 50-day SMA ($1.07).
4 saadollarsic chart shows that the bears are blocking the bulls’ attempt to push the price above the $1.81 resistance. If the bears continue the selling pressure and push the price below the 20-day EMA, the decline could extend to the 50-day SMA. Conversely, if the price bounces back from the 20-day EMA, the bulls will make another attempt to break through the hurdle at $1.81. If they are successful, KLAY could rise to $2.18. The rising movingollary averages and the RSI are in the positive zone, showing the advantage for the bulls.
Altcoin Axie Infinity (AXS)
Axie Infinity’s native token, AXS, has had a strong bull run over the past few weeks and hit ATH at $77.48 on August 11. The long wick on the day’s candlestick indicated that traders were posting profits at higher levels. AXS instantly corrected to support at $63. If the bears sink the price below this level, the pair could drop to the 20-day EMA ($51). The previous two corrections reversed the direction of the 20-day EMA. Therefore, the bulls are likely to buy the dip to the 20-day EMA again. A strong rebound from this level will show that the sentiment remains positive and traders are buying the lows. The bulls will then try to continue the uptrend again. A break and close above $77.48 could clear the path to a possible $91 and then psychological resistance at $100. Alternatively, a break and close below the 20-day EMA could indicate the start of a deeper correction.
4 saadollarsic chart shows the formation of a descending triangle pattern that will complete bearish and close below the support at $63. This reversal setup has a pattern target at $48.52. The 20-day EMA and RSI, flattening near the midpoint, indicate that the bullish momentum is weakening. Contrary to this assumption, if the price rises from the current level and breaks above the downtrend line, it will invalidate the bearish setup. This could increase the likelihood of a retest of the all-time high of $77.48.