The S&P 500 rallied for the fourth week in a row with its support. Bitcoin (BTC) and selected altcoin projects are also expanding their recovery. It shows that investors are increasing their investment in risky assets. According to Glassnode analysts, altcoins outperformed Bitcoin after Ethereum became clear about Merge. So, can Bitcoin and altcoins prolong their recovery over the next few days? Here are analyst Rakesh Upadhyay’s weekly expectations for Bitcoin, Cardano (ADA), Uniswap (UNI), Chainlink (LINK), and Chiliz (CHZ)…
How will Bitcoin, the largest cryptocurrency, behave this week?
Bitcoin broke above the overhead resistance of $24,668 on August 13 and August 14. However, the bulls failed to sustain higher levels. According to the analyst, this indicates that the bears are selling in the rallies. But it does show that repeated breaking of the overall resistance tends to weaken it. The slowly rising 20-day exponential moving average is $23,414, and the relative strength index (RSI) in the positive zone shows the path of least resistance to the upside. If the bulls hold the price above $25,000, the momentum could increase further. According to the analyst, the BTC/Tether (USDT) pair spikes to $28,000.
This level has a chance to act as a stiff resistance. But if the bulls break this hurdle, the rally will be extended to $32,000. The critical level to watch on the downside is the 20-day EMA. A bounce will indicate that sentiment remains positive and traders are buying at the bottom. On the contrary, if the price drops from the current level and breaks below the 20-day EMA, it will be; will suggest that bears remain active at higher levels. The pair could then decline to the 50-day simple moving average of $21,976.
The $24,668 level is witnessing a tough battle between the bulls and bears. The rising moving averages point to the advantage for the buyers, but the negative divergence in the RSI indicates that the momentum may weaken. If the price breaks below the 20-EMA, it will signal a minor advantage for the bears. The pair then drops to the 50-SMA and later to $23,600, according to Upadhyay. Alternatively, the upward move could continue if the price rises from the 20-EMA and rises above $25,050.
Next up for the popular altcoin cardano (ADA)
Cardano (ADA) broke above the overhead resistance at $0.55 on August 13 and closed the week like this. According to the analyst, this indicates that the uncertainty has been resolved in favor of the bulls. The rising 20-day EMA of 0.52 and the RSI in the positive zone indicate that the bulls have the upper hand. The ADA/USDT pair rises towards the strong overhead resistance at $0.63 and then $0.70. According to the analyst, this level is likely to attract strong selling by the bears. Contrary to this assumption, if the price drops from the current level and breaks below the 20-day EMA, it suggests that a break above $0.55 could be a bull trap. According to the analyst, the trading pair could then drop to the 50-day SMA at $0.49 and later to $0.45.
The pair completed an ascending triangle pattern on a breakout and closed above the overhead resistance at $0.55. This pushed the RSI on the 4-hour chart to overbought levels, which may have encouraged short-term traders to record profits. The price drops to the breakout level of $0.55. If the bulls turn this level to support, the altcoin will continue to rise towards its formation target at $0.65. According to Upadhyay, if the price breaks below the bullish line, this positive view is likely to be invalidated in the short term.
DeFi altcoin project UNI is in consolidation phase
Uniswap (UNI) has been consolidating between $8.11 and $9.83 for the past few days, as we reported on Kriptokoin.com. This suggests that the bulls are buying the dips but the bears are defending the overall resistance. The longer the price stays in the range, the stronger the exit will be. The 20-day EMA of $8.54 is rising. The RSI is in the positive territory, which indicates an advantage for the buyers. If the bulls push the price above $9.83, the UNI/USDT pair gains momentum. It rises to $10.55 and then to $12.
Alternatively, if the UNI drops from the current level and falls below the 20-day EMA, it will suggest that the pair may continue its range-bound movement for a while. The bears will have to break and sustain the price below $8.11 to gain the upper hand. The 4-hour chart shows bears protecting the zone between $9.50 and $9.83. If the price dips below $8.74, sellers will attempt to push the pair down to the strong support at $8.11. Buyers are expected to buy the drop to this level. The analyst says the next trend could start above $9.83 or below $8.11.
Pay attention to these levels for Chainlink (LINK)
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 August 12. But the bears held their ground. The 20-day EMA of $8.00 is rising and the RSI is in the positive zone, which indicates that the bulls have prevailed. If the price bounces back from the 20-day EMA, the bulls will make another attempt to break the overhead barrier at $9.50. If they are successful, the LINK/USDT pair will rise to $12.30 and then $13.50.
Instead, if the price dips below the 20-day EMA, it will indicate that traders have booked profits near the resistance. This could bring the pair down to the 50-day SMA of $7.00. It may increase the dwell time within the range for a few more days. The price declined from the overhead resistance at $9.50 and declined below the 20-EMA on the 4-hours chart. This shows that traders can book profits. The pair drops to the 50-SMA, which can act as a strong support. If the price bounces back from the 50-SMA, the bulls will try to push the pair back above $9.50. If they are successful, the pair starts the next segment of the upward move. On the other hand, if the price drops below the 50-SMA, the pair will drop back to $8.29.
The last altcoin on the analyst’s list: Chiliz
According to Upadhyay, Chiliz (CHZ) has been on a strong rebound for the past few days. However, the long wick on the August 14 candlestick shows that the bears are holding the overhead resistance at $0.19. The RSI in the overbought zone is suggesting a minor correction or consolidation in the short term, although the rising 20-day EMA of $0.14 points to an advantage for buyers. If the price drops from the current level, the first critical level to watch on the downside is the 20-day EMA.
A strong rebound from this level will indicate that the bulls view the dips as a buying opportunity. This will increase the likelihood of a break above the overhead resistance. If this happens, the CHZ/USDT pair will rise to $0.22 and then to $0.24. Alternatively, if the price breaks below the 20-day EMA, the pair could slide to the 50-day SMA of $0.12. Such a move suggests that the pair could form a range in the near term.
The sharp rally in the pair pushes the RSI on the 4-hour chart into the overbought territory, suggesting that a correction or consolidation is possible. However, it could drop to the 20-EMA, which is an important level to watch out for. If the price bounces back from the 20-EMA, it indicates that the positive sentiment remains intact. If the price breaks and sustains below the 50-SMA, the bullish view will be rejected in the near term.
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