In the saadollarser, where Bitcoin spent over $ 41,000, large altcoin projects such as ADA and XRP were also revived. However, currently, BTC has dropped as low as $38,000 and lagged behind ETH and LINK. We take a look at critical support and resistance levels that the biggest cryptocurrencies could record in the coming days.
What happened in Bitcoin?
Bitcoin managed to overcome several hurdles in the past week, with altcoins appearing to be ready to accompany the leading crypto. However, the break of $40,000 could be challenging. Bitcoin, which fell below $ 39,000 on August 2, shows that investors are buying profits in the short term. On the other hand, according to experts, Bitcoin may continue the downward momentum gained in July. In this regard, Santiment data reveals that wallets holding between 100 and 10,000 BTC hit an all-time high of 9.23 million Bitcoin on August 1. This was once again detected on April 5, when the previous ATH was recorded. Shortly before Bitcoin reached its all-time high of $64,854 on April 14.
In continuation of their on-chain analysis, Santiment highlighted that “addresses have accumulated about 170,000 more Bitcoins” in the past four weeks. Similar demand was seen in late December 2020 before the start of the strong bull run of 2021. Additionally, CoinShares data revealed that assets in BTC-focused funds dropped by $20 million last week, the 4th time in a row. Last month, Bitcoin funds recorded a total outflow of $67.8 million. Meanwhile, not all of the data was bearish as multi-asset funds attracted total inflows of $7.5 million last week and $11.9 million last month. Now one of the biggest questions; “Can Bitcoin break out of its stuck range and push the crypto market higher?” is happening. To answer, Cryptocoin. com, we examine the technical comments of “Rakesh Upadhyay”, whose analysis we have quoted. Let’s start with Bitcoin…
ADA and Bitcoin (BTC) correlation is important for altcoins
Bitcoin managed to surpass $ 42,000 after the resistance of $ 36,000, which it had been under for a long time, and recorded the top of the week at $ 42, 451.67. However, its bulls failed to sustain this rise and the price is trading again at $39,000. On the technical side, the RSI above $36,968 and 62 at the 20-day EMA indicates that the sentiment is positive. If it continues in this direction and the price bounces back from the 20-day EMA, the bulls will again try to hold above $42,451.67. If they are successful, it will signal an uptrend and the primary target on the upside is 50-51, where the bears can defend aggressively. It will be in the $500 range. On the upside, a drop to $36,670 could invalidate the bullish sentiment. After that, a certain amount of time can be spent between $28,805 and $42,599.
Ethereum broke the downtrend line on July 31 and managed to invalidate the descending triangle pattern formed. The bears continued to sell at higher levels, as seen from the long-tailed wicks on August 1, but the positive sign came as the bulls did not let the downtrend line below. On the technical side, $2,273 at the 20-day EMA and the RSI in the overbought zone suggest the bulls are in control. According to the analyst, ETH could rise to the psychological resistance of $ 3,000, which it can retest against the dollar. Conversely, if the bears pull the price below the 20-day EMA, the critical supports of $2,000 and then $1,728 could result in massive “long” liquidations.
Binance Coin (BNB)
BNB climbed above the $340 resistance on August 1, but the bears are trying to maintain these levels, as evidenced by the long tail candles. Despite the price dropping below $340 by the first day of the month, the positive sign came with Binance Coin, which managed to hold on to around $320. If he can spend time in the region, his chances of breaking above $340 will increase. If it happens, BNB will complete a triangle pattern and set off towards the $454 target as set by the analyst. However, climbing may not be easy. BNB bears can establish barriers at $380 and $433. And, if they succeed, BNB could fall under the train as the price drops below MS. At the next levels, BNB’s $211 support could be put on the table.
ADA and BNB managed to break out of the trend lines on the first day of the new month. However, the long-tail candles in both indicated that the bears were not strongly defensive. On the technical side, the RSI above $1.27 and 56 at the 20-day EMA indicates that the bulls are at the advantage. If the buyers can hold and sustain the price above the downtrend line, it will invalidate the descending triangle pattern. In the sequel, ADA could rise to $1.5, where it will be a tough challenge. Breaking this resistance could open the way towards $1.94. On the upside, however, the $1.20 support could be tested, which will drag $1.20 and then $1.14.
1 dollar critical for ADA and Ripple (XRP)
XRP has been spending the last few days near the overhead resistance at $0.75, which means the bulls are still in the field. On the technical side, the MAs have completed the bullish crossover and the RSI is above 63, indicating little upside resistance. If buyers can hold and sustain the price above $0.75, XRP could hit the $1 target.
Dogecoin has been spending time in the $0.21 region, which is its main resistance for the past few days. However, the bulls failed to rally and the price declined as low as $0.19. On the technical side, the 20-day EMA and the RSI near the midpoint indicate a balance between supply and demand. Usually in this case, the consolidation is resolved on the upside. If it continues on the positive side, the first levels awaiting buyers will be the $0.21 to $0.22 resistance zone at the 50-day SMA. Then $0.28 could reach $0.33. Conversely, if the bulls fail to break through these hurdles, take profits could occur and DOGE could gradually decline to the critical support of 0.15 later on. Therefore, we can see that Dogecoin has spent some time between the $0.15 and $0.21 levels.
The $16.93 level for DOT served as a stiff resistance from June 22 to July 8, but the bulls carried Polkadot close to 2% on August 1, which is a positive sign for the bulls. On the technical side, the MAs are on the verge of high and the RSI is just below the oversold zone, in which case new buyers have the upper hand. If the bulls can defend $16.93 as support, we could see the DOT reach $26.50. Conversely, if the price breaks this support and stays below it, $15.21 support can be expected at the 20-day EMA. This level will be the zone where the bulls will make a move for a rally. A break below the price again could test $13 with a close below the 20-day EMA.
ADA and Uniswap (UNI) determine the direction of altcoins
The long-tail candlestick recorded on Uniswap on August 1 shows that the bears are holding the resistance at $23.45. However, the positive sign is that the bulls are not giving up on the area. On the technical side, the MAs have completed the bullish crossover and the RSI is close to the overbought zone, indicating that the bulls have prevailed. According to the analyst, breaking above $23.45 will open the way to $30. If the price breaks down from this resistance again, support can be found on the 20-day EMA at $19.55. It will increase the odds of a close above $23.45 on the way back. Conversely, if the price drops and stays below the MAs, we could see UNI spending a few more days in this region.
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) has spent the past four days at the 50-day SMA between $498 and $546.83. A tight consolidation near a stiff resistance means that buyers are not closing their positions as they expect a higher move. If the bulls can sustain the price above $546.83, BCH will complete the double bottom pattern. Afterwards, the $710 target can be expected. On the technical side, the MAs are on the verge of a bullish crossover and the RSI is in the positive zone, indicating the path of least resistance to the upside. However, this bullish view will be invalidated if the price drops from the current level and dives below the MAs. Such a move indicates that BCH could spend a few more days between $383.53 and $546.83.
Finally, on Chainlink, the bulls managed to climb above the overhead resistance of $22.07 on July 30. However, the bears are not allowing LINK to rally and are trying to push the price below $22.07. On the other hand, the bulls have been holding support for the past three days. On the technical side, the bullish MAs and the RSI near the oversold zone suggest that the buyers have the upper hand. If the bulls can push the price above $24, LINK could reach $26.48. A break above this resistance will open the way for a possible rally to $32. Conversely, if the price dips below $22.07, LINK could slide back to $19.18 at the 20-day EMA. A strong rebound from this support would indicate that traders are buying on the dips. Afterward, the bears will have to push the price below the MAs to gain the upper hand.