Most major altcoins, including Bitcoin and DOGE, have fallen to immediate support levels. According to crypto analyst Rakesh Upadhyay, this indicates that the bears remain active at higher levels. Can individual investors continue their frenzied buying pace and put a foothold under Bitcoin and altcoins? The analyst studies the charts of the top 10 cryptocurrencies to find out.
An overview of the cryptocurrency market
The bulls trimmed their positions ahead of the Federal Open Market Committee meeting from July 26 to July 27. That’s why Bitcoin (BTC) and most major altcoins are witnessing profit booking on July 25. This suggests that sentiment remains fragile and bulls are unsure of taking long positions to the event.
Several analysts remained bearish after Bitcoin failed to stay above the 200-week moving average of $22,780. CryptoQuant contributor Venturefounder expects the sale to continue. It also predicts Bitcoin to drop as low as $14,000 before a macro bottom is confirmed.
Daily cryptocurrency market performance / Source: Coin360
Institutional investors seem to be absent from the markets. The recovery is driven by individual investors. As you follow on Kriptokoin.com, data from on-chain analytics firm Glassnode has shown that investors holding one or less Bitcoin are aggressively accumulating ‘more than ever’. Now it’s time for analysis…
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC)
Bitcoin bounced back from the 20-day exponential moving average (EMA) ($21,857) on July 23. However, the bulls failed to break through the $23,363 barrier on July 24. This suggests that the bears are aggressively defending the overall resistance.
The price has returned to the 20-day EMA, which is an important level to watch out for. If this level is broken, BTC is likely to drop to $20,750. Such a move would invalidate the break from the symmetrical triangle. The 20-day EMA is flattening and the relative strength index (RSI) has dropped to the midpoint. This shows that there is a balance between supply and demand.
This advantage is likely to favor buyers if the price rises above $23,363. If this happens, BTC is likely to rally to $28,171 and then to $30,000. The bears will have to push the price below the support line to gain the upper hand.
Ethereum (ETH)
The bears have successfully defended the overhead resistance at $1,700 over the past few days. However, a minor positive is that the bulls are not allowing Ethereum to drop below $1,464. This indicates buying at lower levels.
If the price returns to $1,464 once again, ETH is likely to continue its tight range-bound action for a few more days. The ascending 20-day EMA ($1,397) and the RSI in the positive zone indicate the path of least resistance to the upside. A break and close above $1,700 could signal a resumption of the upward move. It is possible for ETH to rise to $2,000 later.
This positive view is invalidated if the price drops below the 20-day EMA. If this happens, ETH is likely to drop to $1,280. A strong recovery from this level is likely to hold ETH between $1,280 and $1,700 for a few days.
Binance Coin (BNB)
BNB bounced back from the downtrend line on July 23. This shows that the bears continue to defend the level vigorously. The bears will now try to push the price below the moving averages.
If successful, BNB is likely to test the support line of the ascending channel. If the price bounces back from this level, the bulls will try to push BNB back above the downtrend line and challenge the resistance line of the channel. Another possibility is that the bears are driving the price below the support line of the channel. If that happens, the advantage will be in favor of the bears. In this case, a drop to strong support at $211 is possible for BNB.
Ripple (XRP)
XRP has been consolidating between $0.30 and $0.39 for the past few days. Although the price bounced off the moving averages on July 23, the rally failed to reach the overhead resistance at $0.39. This indicates that demand is drying up at higher levels.
The bears are trying to push the price below the moving averages. If they succeed, XRP is likely to gradually drop to $0.30. Buyers are likely to defend this level with all their might. Because if support is broken, XRP is likely to resume its downtrend. Alternatively, if the price bounces back from the current level, the bulls will again attempt to break the overhead barrier at $0.39. Hence, it will start a new upward movement. XRP is likely to rise to $0.50 later.
Cardano (ADA)
ADA tried to break above the overhead resistance at $0.55 on July 24. But the bears successfully defended the level. This is likely to have attracted profit bookings from short-term traders.
The bears are trying to push the price below the moving averages. If they do, ADA is likely to drop to $0.44. If the price bounces back from this level, it is possible for ADA to swing between $0.44 and $0.55 for a few days. Another possibility is for the price to bounce back from the moving averages. If this happens, the bulls will again try to push ADA above the overhead resistance. If successful, ADA is likely to gain momentum and rally to $0.63 and then $0.70.
SOL, DOGE, DOT, MATIC and AVAX analysis
Left (LEFT)
The failure of the SOL to recover from the 20-day EMA ($39) suggests that the bullish momentum may weaken. The bears will try to push the price down to the support line, which is an important level to watch out for.
If the price breaks out of the support line, buyers will make another attempt to push the SOL towards the overhead resistance at $48. The bulls will have to break through this hurdle to signal the completion of the ascending triangle pattern. This bullish setup has a target of $71. Conversely, if the bears sink the price below the support line, the bullish pattern will be invalidated. It is possible for SOL to drop to $30 later. A break below this level will indicate that the bears are back in control.
Dogecoin (DOGE)
The bears pulled Dogecoin (DOGE) below the moving averages on July 25. This opens the doors for a drop in the DOGE trendline. The bulls are likely to defend this level aggressively.
If the price rebounds from the trendline, the bulls will try to push Dogecoin (DOGE) above the moving averages. If this happens, DOGE could rally to the overhead resistance at $0.08. A break and close above this level will complete an ascending triangle pattern with a target of $0.11. Conversely, if DOGE price breaks below the trendline, the bullish pattern will be rejected. It is possible that this will take the DOGE down to $0.06 and then to the critical support at $0.05.
Polkadot (DOT)
The bulls have been unable to push the DOT above the 50-day simple moving average (SMA) ($7.47) in the past few days. This shows that the bears are keeping the level aggressively.
The DOT broke below the 20-day EMA ($7.23) on July 25. If the bears sustain the price below this level, the DOT is likely to slide towards the strong support at $6. This is an important level to consider. Because a break and close below this is likely to signal a resumption of the downtrend. Another possibility is for the price to bounce off the current level and break above the 50-day SMA. If that happens, it will suggest lower levels of demand. It is possible for the DOT to rally to $8.79 later and then to the psychological $10 level.
Polygon (MATIC)
MATIC bounced back from the resistance line on July 25. This showed that the bears were selling in small rallies. The bears will try to push the price down to the next support at $0.75.
The ascending 20-day EMA ($0.75) and the RSI in the positive zone suggest that buyers have a slight advantage. If the price bounces back from $0.75, the bulls will again try to push the MATIC above the resistance line. If they are successful, it is possible for MATIC to rise to the psychological $1 level. The bulls will need to break through this hurdle to start rising to $1.26. Conversely, if the price dips below $0.75, it indicates that the bullish momentum is weakening. MATIC is likely to slide to $0.63 later.
Avalanche (AVAX)
AVAX forms a Doji candlestick pattern on July 23 and an intraday candlestick pattern on July 24, showing the indecision between the bulls and bears.
This uncertainty was resolved to the downside on July 25 and AVAX dropped to the breakout level at $21.35. If the price rises strongly from this level, it indicates that the bulls are buying on the dips. It is possible that this will increase the possibility of a retest at $26.50. A break above this resistance could clear the way for a rally to $29 and then $33. Contrary to this assumption, AVAX is likely to drop to the support line if the price drops below $21.35. The bulls are likely to defend this level aggressively.
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