Bitcoin is still trading in a narrow range, which is trying investors’ patience. Despite the dullness of the near term, traders must be alert because narrow ranges are typically followed by a rapid rise in volatility. The only issue is that it is challenging to confidently forecast the breakout’s path.
The Bollinger Bands, which are now separated by just 4.2%, have shrunk as a result of Bitcoin’s consolidation, according to Glassnode’s most recent weekly email. The authors came to the conclusion that investors are reluctant to sell, and in some ways, it resembles “periods like 2016 and 2019-20, characterized by choppy market conditions.” They supported this claim with a number of on-chain data points.
The long term remains favorable, even though the short term may appear unclear for bitcoin. In an interview with Cointelegraph, the founder of Capriole Investments, Charles Edwards, suggested that having access to BlackRock’s exchange-traded fund application may make it “easier for institutions to put Bitcoin on their balance sheet.”
Will Bitcoin break through the range’s support and begin a new downward movement, pulling many altcoins with it? To find out, let’s examine the top 10 cryptocurrency charts.
Analysis of the Bitcoin price
Since July 17, Bitcoin has consistently maintained below the 20-day EMA of $30,067, which is a bad sign. It demonstrates a lack of aggressive buying at the moment.
On July 20, the bulls drove the price over the 20-day EMA, but the candlestick’s extended wick indicates that selling occurred at higher levels. The price will be dragged below the critical support level of $29,500 in an effort by the bears to bolster their position.
If they are successful, it will show that the consolidation has turned in the bears’ favor. The BTC/USDT pair may then fall to $27,500 before reaching the 50-day SMA at $28,869 at that point.
On the other hand, if the price significantly increases and surpasses the 20-day EMA, it will indicate that the pair may increase to $31,000. On a break and closure above $32,400, a fresh upward trend may be anticipated.
For the past few days, the 20-day EMA ($1,896) has served as a benchmark for the price of ether. This means that the bulls and the bears are in a balanced state.
The 50-day SMA ($1,854) is a key support to keep an eye on on the downside. The ETH/USDT pair may fall to $1,800 and ultimately to $1,700 if this support fails. The pair may continue to bounce within the broad band of $1,626 and $2,000 if such a move occurs.
On the other hand, a price reversal from the current level or the 50-day SMA and a surge above $2,000 will indicate that bulls are in control. The pair might eventually reach $2,200 before rising to $2,141.
Pricing study of XRP
On July 19 and 20, the bulls drove XRP above the overhead resistance of $0.83, but they were unable to capitalize on this momentum.
That might have persuaded aggressive bears to start short positions and short-term bulls to book profits. The 20-day EMA ($0.65) will serve as support as the bears attempt to push the price there.
The XRP/USDT pair may remain range-bound between $0.65 and $0.85 for some time if the price bounces off of this level.
In contrast, a decline below $0.65 may push the pair as low as $0.56. A break and close above $0.85 might pave the way for a potential retest of $0.94.
The BNB price analysis indicates that the bulls and bears are still undecided as it continues to trade inside the symmetrical triangle pattern.
The symmetrical triangle normally behaves as a continuation pattern, although it can occasionally exhibit reversal behavior as well. The relative strength index (RSI) near the middle and the flattish 20-day EMA ($243) do not clearly favor the bulls or the bears.
The BNB/USDT pair may advance to the overhead barrier at $265 if buyers drive the price above the triangle. A break above this barrier will open the way for a potential rally to $280 and subsequently to $300, making it a crucial resistance to watch.
To gain control, the bears will need to drive the price below the triangle and keep it there. In the event that the $220 support crumbles, the selling might get worse.
Analysis of the Cardano price shows that the July 19
Recovery from the 20-day EMA ($0.31) fizzled out at $0.33 on July 20. The bears may be selling during relief rallies, according to this.
The 20-day EMA, which continues to be the critical level to watch out for in the near term, has been reached once more by the price. The ADA/USDT pair might rise to $0.38 if the price takes a sudden upward turn and breaks through $0.34.
On the other hand, it will indicate that the bears have returned if the price keeps falling and breaks below the moving averages. After that, the pair can drop to the uptrend line. Bulls may buy aggressively at this level.
Analysis of Solana prices
On July 19 and 20, the bulls attempted to push Solana above the overhead barrier at $27.12, but the bears stood their ground. This demonstrates that bears sell during rallies.
The price may drop to the 20-day EMA ($23.55) if it is unable to rise above $27.12. Bulls and bears are likely to engage in fierce combat on this level. The price declines below the 20-day exponential moving average (EMA), a sign that the short-term momentum has slowed. This might allow for a more significant correction to the 50-day SMA ($19.63).
The bulls must swiftly raise the price over $27.12 and hold it there in order to stop the fall. If they accomplish that, the SOL/USDT pair may rise to $29.12 and then $32.13 as a result.
Analyses of dogecoin prices
The 20-day EMA ($0.07) was well defended by the bulls in recent days, indicating that it is luring buyers at lower levels.
The path of least resistance appears to be to the upside, according to the rising 20-day EMA and the RSI reading above 63. A new upward movement will begin if buyers keep the price above $0.07. The DOGE/USDT pair could rise to $0.08 and then $0.10 in the future.
The bears will need to quickly push the price below the moving averages in order to disprove this optimistic outlook. A move like that would imply that the rise above $0.07 might have been a bull trap. The price of the pair may then fall below $0.06.
On July 20, Polygon price analysis rose from the 20-day EMA ($0.74), showing that the bulls are attempting to convert the level into support.
The bulls are in control because the RSI is in the positive zone and the 20-day EMA is going upward. The MATIC/USDT pair may increase to $0.90 if buyers pass through the overhead barrier at $0.80. This level might once again serve as a modest barrier, but if bulls pass it, the pair might increase to $1.04.
In contrast to this presumption, a downward shift and a drop below the 50-day SMA ($0.71) will indicate that the bears have returned to the fray. Afterward, the pair might decline to $0.60.
Price research on Litecoin
For the past few days, Litecoin has been trapped between the moving averages, demonstrating a lack of consensus between the bulls and the bears.
On July 19 and 20, the bulls attempted to raise the price over the 20-day EMA ($94), but the bears resisted. The bears are attempting to turn the 20-day EMA into resistance, as evidenced by this. The 20-day EMA has begun to decline, and the RSI has entered the negative zone, providing the bears with a minor advantage.
Selling might increase, and the LTC/USDT pair may fall to $80 if the price breaks and closes below the 50-day SMA ($90). In contrast, a break and close above the 20-day exponential moving average might pave the way for a support climb to $106.
Analysis of Polkadot prices
Indicating that lower levels continue to draw buyers, Polkadot bounced off the sturdy support at $5.15 on July 19 and surpassed the overhead resistance at $5.64 on July 21.
The July 21 candlestick’s lengthy wick indicates that the bears are actively selling the rallies to $5.64. As a result, it appears that the DOT/USDT pair may be trapped between $5.15 and $5.64 for some time.
The RSI has maintained positive territory, and the 20-day EMA ($5.25) is gradually rising, which is a slight benefit for the bulls. To begin the second phase of the rally toward $7, buyers must break through the resistance at $5.64.