Bitcoin (BTC) has climbed up to a critical 200-week moving average, as we reported on cryptokoin.com. Analysts are watching this level because a break and close above it could be the first sign that the bear market is coming to an end. Senior analyst Mike McGlone said that Bitcoin’s 50-week and 100-week moving averages show similar signs before the 2018 bear market trough. Therefore, McGlone expects Bitcoin to show a strong recovery in the second half of 2022. Can Bitcoin prolong its recovery by pushing major altcoins like XRP, DOGE, and SHIB higher?
Here are the trading levels for BTC, SHIB, DOGE and 7 altcoins:
Bitcoin (BTC) and Ethereum (ETH)
Bitcoin broke above the resistance line of the symmetrical triangle and the 20-day exponential moving average (EMA) ($21,233) on July 7, indicating that the bulls are making a comeback. The flattening 20-day EMA and the relative strength index (RSI) just below the midpoint suggest that selling pressure may be easing. If the price bounces back from the current level or the triangle breakout, it will indicate that sentiment has turned positive and traders are buying the lows. This could increase the likelihood of a rally to the 50-day simple moving average (SMA) ($25,015) and then to the $26,490 formation target. This positive view may be invalidated in the short term if the price drops below the 20-day EMA and re-enters the triangle. This will indicate the bears’ aggressive selling at higher levels.
Ethereum (ETH) broke above the 20-day EMA ($1,198) on July 7 and reached the overhead resistance of $1,280. The bears are defending this resistance aggressively and trying to push the price below the 20-day EMA. If they do, the ETH/USDT pair could drop to the support line of the ascending triangle. This is an important level to watch out for, as a break and close below it could invalidate the bullish setup. This could push the price towards the critical support at $881. Conversely, if the price rebounds from the 20-day EMA and rises above $1,280, it will complete the bullish ascending triangle pattern. The pair could then rise to the 50-day SMA ($1,470) and then climb to the formation target of $1,679.
BNB and Ripple (XRP)
BNB broke and closed above the 20-days EMA ($233) on July 6, but the bulls are struggling to push the price to the 50-days SMA ($262). This suggests that bears are active at higher levels. Sellers are trying to push the price below the 20-day EMA. If they manage to do so, the BNB/USDT pair could slide towards the strong support at $211. On the other hand, if the price rebounds from the 20-day EMA, it will indicate that sentiment has turned positive and the bulls are buying on the dips. The bulls will then try to push the price above the 50-day SMA and gain control. This could clear the way for a possible rally to $300.
Ripple (XRP) attempted a break above the resistance line of the symmetrical triangle, but the bears have defended the level aggressively and are trying to push the price below the 20-day EMA ($0.33). A break and close above the triangle could indicate the beginning of a new upward move. The pair could then rise to the $0.48 pattern target. Alternatively, a break below the triangle could open the doors for a retest of $0.28. If they are successful, the XRP/USDT pair may extend its stay in the triangle for a while. The flat 20-day EMA and the RSI index near the midpoint offer no clear advantage to either buyers or sellers.
Cardano (ADA) and Solana (LEFT)
Cardano (ADA) broke above the 20-day EMA ($0.47) on July 8, but the bulls were unable to sustain higher. This indicates that the bears are aggressively defending the moving averages. Sellers will try to develop their advantage by pulling the price below the strong support at $0.44. If they manage to do so, the ADA/USDT pair could drop to the key $0.40 level. A break and close below this support could indicate the start of the next leg of the downtrend. To invalidate this bearish view, buyers will have to push and sustain the price above the 50-day SMA ($0.51). If they manage to do so, the pair could rally to $0.60 and then to $0.70.
Buyers tried to push Solana (SOL) above the 50-day SMA ($38.79) on July 5 and 6, but failed to break through. This indicates that the bears are selling at the rallies. Price is stuck inside a symmetrical triangle. This signals a possible range expansion in the short term. If the price declines and breaks below the triangle, the SOL/USDT pair could slide towards the critical support at $26. Conversely, if the price rises and rises above the resistance line of the triangle, it will suggest that the bulls have the upper hand. The pair could then rise to the psychological level of $50, where the bears can again put up a strong defense.
Dogecoin (DOGE) and Polkadot (DOT)
Dogecoin (DOGE) attempted a break above the 50-day SMA ($0.07), but the bears did not give up. Sellers are trying to take the opportunity to push the price below the 20-day EMA ($0.07). The RSI indicator is near the midpoint, which indicates a balance between buyers and sellers. This balance could tip the price in favor of the bulls if they push and sustain the price above the 50-day SMA. Such a move could clear the way for a rally near $0.08 and $0.09. Conversely, if the price drops and dips below $0.06, the bears will try to pull the DOGE/USDT pair to the critical support at $0.05.
Polkadot (DOT) tried to break above the overhead resistance at the 20-day EMA ($7.38) on July 7, but the bears held their ground. This indicates that the bears are active at higher levels. The bears will try to pull the price towards the critical support of $6.36. This is an important support for the bulls to watch out for as a break and close below it could indicate a resumption of the downtrend. The DOT/USDT pair could then decline to the psychological $5 level. This negative view may be invalidated if the price rises and breaks above the 20-day EMA. If this happens, the pair may attempt a rally to the 50-day SMA ($8.38).
Shiba Inu (SHIB) and Avalanche (AVAX)
The bears on the Shiba Inu (SHIB) tried to push the price back below $0.000011 on July 8, but the long tail on the candlestick indicates strong buying at the bottoms. Buyers will try to push the price above the stiff resistance at $0.000012. The SHIB/USDT pair could then rally to $0.000014, where the bears could pose a strong challenge again. Conversely, if SHIB price declines from the current level and stays below $0.000011, it would suggest that the July 7 breakout could be a bull trap. The bears will then try to push the price back below the critical support at $0.000010. If that happens, the next stop could be $0.000009.
Avalanche (AVAX) has been trading between $13.71 and $21.35 for the past few days, which indicates a bottoming pattern. The 20-day EMA ($18.78) has flattened and the RSI is just above the midpoint, indicating a balance between the bulls and bears. If buyers push the price above the overhead resistance at $21.35, it will mark the start of a fresh upward move. The AVAX/USDT pair could rise to the target of the $29 pattern, where the bears could form strong resistance again. If the price declines from this level, it will suggest that a bottom at $13.71 may have been made. Contrary to this assumption, if the price drops from the current level and breaks below the 20-day EMA, it will indicate that range-bound action may continue for a few more days.
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