Bitcoin price is aiming for $25,000 and holding this level could lead to breakouts in ADA, UNI, LINK and CHZ.
The S&P 500 rose for the fourth consecutive week as investors cheered on signs that inflation may have peaked. Bitcoin (BTC) and some altcoins are also picking up, suggesting investors are increasing their exposure to risky assets.
A similar trend can be seen in the cryptocurrency market. Ether (ETH)-led altcoins surpassed Bitcoin after the Ethereum merge became clear, according to Glassnode analysts.
However, trading house QCP Capital is cautious about the momentum of the altcoin market. They highlighted that his open interest in Ether options surged to $8 billion, surpassing his OI of $5 billion in Bitcoin options. Glassnode suggested that the trader is profiting on the spread between spot long Ether and quarterly short he Ether futures positions.
Can Bitcoin and Altcoins extend their recovery in the days to come?
Bitcoin broke above the overhead resistance of $24,668 on August 13 and 14, but the bulls failed to sustain the higher levels. This shows that the bears are selling in rallies, but they tend to turn bearish after breaking the overhead resistance too many times.
The 20-day Exponential Moving Average ($23,414) on a gradual upward trend and the Relative Strength Index (RSI) in the positive territory indicate that the path of least resistance is on the upside. If the bulls can sustain his price above $25,000, the momentum could pick up further and the BTC/USDT pair could rise to his $28,000 level.
This level could act as a stiff resistance, but the rally could extend to $32,000 if the bulls clear this hurdle. The key level to watch on the downside is his 20-day EMA. A bounce back from that shows that sentiment is still positive and traders have turned down.
Conversely, if the price turns down from the current level and breaks below the 20-day EMA, it suggests that the bears are continuing to move at higher levels. The pair can then fall to his 50-day simple moving average ($21,976).
At the $24,668 levels, there is a tight battle between the bulls and the bears. Rising moving averages point to buyers’ favor, while the negative divergence of the RSI suggests that momentum may be weakening.
If the price breaks below the 20-EMA, it presents a small advantage for the bears. The pair can then drop to the 50-SMA and then to $23,600. Alternatively, the rally may resume once the price rises from the 20-EMA and rises above $25,050.
Cardano (ADA) broke out of the overhead resistance at $0.55 on August 13 to close.
The rise in the 20-day EMA ($0.52) and the RSI in positive territory indicate that the bulls have the upper hand. The ADA/USDT pair can rise to $0.63 and then to the strong overhead resistance at $0.70. This level is likely to attract strong selling by the bears.
Contrary to this assumption, if the price turns down from the current levels and breaks below the 20-day EMA, it suggests that the breakout above $0.55 may have been a bullish trap. The pair can then drop to the 50-day SMA ($0.49) and then to $0.45.
The pair completed an ascending triangle pattern on the break and closed above the overhead resistance at $0.55. This may have pushed his RSI on the 4-hour chart to overbought levels, prompting short-term traders to book profits.
The price is likely to fall to the $0.55 breakout level. If the bulls turn this level to support, the pair is likely to continue rising to his target of $0.65 pattern. This positive view may be invalidated in the short term if the price breaks below the uptrend line.
Uniswap (UNI) has been consolidating between $8.11 and $9.83 for the past few days. This suggests that the bulls are buying the downside while the bears are defending the overhead resistance.
The longer the price stays inside the range, the stronger the breakout from it. The 20-day EMA ($8.54) is trending upwards and the RSI is in positive territory, which is favorable for buyers. If the bulls push the price above $9.83, the UNI/USDT pair could gain momentum and move towards $10.55 and then to $12.
Alternatively, if the price turns down from current levels and breaks below the 20-day EMA, it suggests that the pair may continue to move within the range for some time. For the bears to gain the upper hand, the price must sustain below $8.11.
The 4-hour chart shows that the bears are defending the zone between $9.50 and $9.83. A break below $8.74 will likely lead the sellers to attempt a drop to his strong support of $8.11. Buyers are expected to drop to this level.
The flattening of the moving averages and the RSI near the midpoint suggest that range-bound action may continue for some time. The next trend move could start above $9.83 or close below $8.11.
Related: Bitcoin hits $25,000 as bearish voices call BTC price a ‘double top’
Chainlink (LINK) has been trading in a wide range between $5.50 and $9.50 for the past few weeks. The bulls tried to push the price above the range on Aug. 12, but the bears held on.
The 20-day EMA ($8) is trending up and the RSI is in positive territory, which shows that the bulls have the upper hand. If the price bounces off the 20-day EMA, the bulls will make another attempt to clear the $9.50 overhead hurdle. If successful, the LINK/USDT pair could rise to $12.30 and then $13.50.
Instead, if the price breaks below the 20-day EMA, it indicates that the trader is securing profits near the resistance. That could sink the pair to his 50-day SMA ($7) and increase its stay inside the range for a few more days.
The price has turned down from the overhead resistance of $9.50 and has broken below the 20-EMA on the 4-hour chart. This suggests that traders may be posting profits. The pair could drop to his 50-SMA and could be a strong support.
If the price bounces off the 50-SMA, the bulls will try to push the pair above $9.50 again. If they succeed, the pair can start the next leg of the ascent. On the other hand, if the price breaks below the 50-SMA, the pair can drop to his $8.29.
Chiliz (CHZ) has shown a strong recovery in recent days, but the long core of the Aug 14 candlestick suggests that the bears are defending the overhead resistance at $0.19.
The rising 20-day EMA ($0.14) points in favor of buyers, while the RSI in overbought territory suggests a minor correction or correction in the short term. If the price turns down from the current level, the first significant level to watch on the downside is his 20-day EMA.
A strong rebound from this level suggests that the bulls see the drop as a buying opportunity. This will increase the likelihood of a breakout of the overhead resistance. In that case, the CHZ/USDT pair could rise to $0.22 and then to $0.24.
Alternatively, if the price breaks below the 20-day EMA, the pair can drop to the 50-day SMA ($0.12). Such a move suggests that the pair may form a range in the short term.
With the pair’s sharp rise, the RSI has entered deep into overbought territory on the 4-hour chart, indicating that a correction or correction is possible. The same could have started and it could drop to the 20-EMA, which is a key level to watch.
If the price bounces off the 20-EMA, it suggests that positive sentiment remains intact. Buyers try to resume the rise again. This bullish view will be negated in the short term if the price sustains below the 50-SMA.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. All investment and trading movements involve risk. You should do your own research when making a decision.
Top 5 cryptocurrencies to watch this week: BTC, ADA, UNI, LINK, CHZ
Source link Top 5 cryptocurrencies to watch this week: BTC, ADA, UNI, LINK, CHZ