Bitcoin (BTC) spending time above the 200-day SMA indicates that the downtrend may reverse and the demand for altcoins may increase along with it. Most of the top 10 cryptocurrencies managed to bring their weekly gains closer to 15% during this period. We take a look at the top cryptocurrencies, with support and resistance levels…
What happened in Bitcoin (BTC)?
Bitcoin’s recovery, which started at $29,482.61 on July 21, continues as critical resistance levels are overcome one after another. It broke above the 200-day SMA today and these levels are seen as levels that could attract the interest of institutional investors again. On a positive sign, it comes with gold falling to 4-month lows. Additionally, according to Glassnode data, it is observed that investors who have been holding BTC in their wallets for more than a year did not sell in the rally exceeding $45,000. This reveals the opposite result of the sales made in the 2018 bear market according to historical data. So, will the bull phase be entered at current levels and will the crypto market be pulled higher? For the answer to this question, we take a look at the top 10 cryptocurrencies, accompanied by analyst “Rakesh Upadhyay”…
Bitcoin (BTC) needs to surpass these levels for a $60,000 rally
After Bitcoin hit the wall at the $44,954 resistance on August 7, it created an opportunity for the bears to push the price down from $42,451.67 on August 8. However, the attempt failed and the bulls managed to push the price above this level. BTC is currently consolidating towards the $50,000 and $51,000 levels, where the bears may form resistance. If the price can stay above these levels, a break above $51,500 will open the doors for a 60,000 rally. Conversely, a downside breach of the $42,451.67 support could result in a test of the $36,670 support.
BTC and ETH approach critical resistance levels
Ethereum (ETH) rose above the psychological level on August 7 and reached $3,000 and continues to spend time in the region without experiencing a correction to drag it below. At these levels, the bears have had attempts to lure the bulls into the trap, but the buyers have managed to hold the level. The bulls are now trying to push the price towards $3,500. Afterwards, the other psychological resistance, $4,000, will be targeted. In this, the RSI is placed in the oversold zone with the rise in the technical part in the last days. According to the analyst, this indicates that the rally is overheating in the short term and consolidation or correction is possible. The first indicator of weakness will be a downside momentum targeting below $2,893.23. If this happens, it could lead to a drop to $2,500.
Binance Coin (BNB)
BNB broke the $340 resistance on August 6, a day ahead of BTC and ETH, and managed to stay above it. It completed the ascending triangle pattern with these levels. The bears then tried to push the price down to $328, but BNB is trading around $360 today, showing the bulls buying on the dips. Now BNB’s target is $433 and bears are likely to hold this level strongly. If it does, it could drop from the current $360 to $340 and spend time at this level. If it continues further down, a close below $208 at the 50-day SMA could turn the advantage in favor of the bears. On the other hand, maintaining $433 could help start a trend targeting $520.
Cardano (ADA) dropped as low as $1.50 on August 8, but the bulls continued to buy and they are currently trying to keep the price above the overhead resistance at $1.5. If they succeed, the journey towards the $1.94 resistance could begin. However, if the bulls fail to defend and the price drops below $1.5, a close below the MAs will indicate that the bears dominate. Afterwards, the price may drop to the critical support of $1.
XRP broke the $0.75 resistance on August 7 and formed a double bottom formation above $0.79. The price managed to stay above this level and it shows that the bulls have turned the level to support. If it spends time above the zone, it could reach the targets of $1 and $1.07 with the support of $0.84 exceeded. A break and close above this zone could signal the start of the uptrend. On the other hand, while XRP is holding at the $0.75 and $1.07 levels, the bulls will apply pressure to push the price down to $0.65.
Dogecoin (DOGE) managed to catch the last BTC rally
DOGE maintained consolidation near the $0.21 resistance and broke up to the upside on August 7. The bears posed a fierce challenge at $0.29 on August 8 but the positive sign came when the bulls did not allow the price to drop below $0.21. Buyers are now making an attempt to push DOGE price above $0.29. If it does, it could rally to $0.35, where the bears could form a stiff resistance. Conversely, if the price declines from $0.29, it could slide back to $0.21 and stay on the border between these two levels for a few days. A break and close below $0.20 will result in a test of the $0.15 support.
Polkadot (DOT) is struggling with stiff resistance at $21, but the positive sign is that the bulls are defending it strongly. This suggests that the bulls are not closing their positions as they expect the recovery to continue. If the bulls push the price above the overhead resistance at $21, the DOT could begin its journey to the next target target at $26.50. There will be second strong resistance pending at $27, so bears are likely to defend this level aggressively. If the price breaks down from this resistance, it could drop to $21. A strong bounce from this level will indicate that traders are buying on the dips. Conversely, a break below $21 could drag the price down to $15.46.
Uniswap (UNI) surpassed $25.81 on August 6 and successfully defended a retest of the level on August 8. This indicates that the 200-day SMA will now act as a support for future declines. Buyers will now try to push the price above the overhead resistance at $30. If they succeed, it will indicate the end of the downtrend. Then UNI can start its journey for $37 and $44. Contrary to this assumption, if the price drops from $30, the price could slide back to the 200-day SMA. A break below this support signals that the bulls are weakening. According to the analyst, $23.45 will serve as the next support.
Bitcoin Cash (BCH)
Bitcoin Cash (BCH) broke above the $546.83 resistance, which completed the double bottom formation on August 6. The bulls have successfully held the breakout level for the past two days, which is a positive sign. BCH can now climb higher to $639, where the bulls may face stiff resistance again. A break and close above this level could clear the way for BCH to rise to the formation target at $710.13. Contrary to this assumption, if the price drops from the 200-day SMA, it could swing between the MAs for a few days and a break below $492 would increase the probability of a decline to $450.
The bears tried to push Chainlink (LINK) below $22.07 on August 8 but failed. This shows that sentiment has turned positive and traders are buying on dips. The bulls will now attempt to push the price towards the overhead resistance at $26.48, where the bears could form a stiff resistance again. If the price drops from this level, LINK could spend a few days in a range between $26.48 and $22.07. A break and close above $27.83 will also signal the end of the downtrend. Later, the $32 and $35.33 resistances could be targeted. On the other hand, a break below $22.07 could result in a drop to $18.90.