bitcoin (BTC) attempted to break out of its boring sideways price action on July 13, following Ripple's legal victory over the US Securities and Exchange Commission, but the enthusiasm proved short-lived. The sellers moved the price back into the range on July 14, indicating that they remain active at higher levels. However, a positive sign is that the bulls have been holding the price of Bitcoin above $30,000.
Market watchers are expected to closely follow the review process of the various exchange-traded funds (ETF) proposals for a spot Bitcoin ETF, with one of the most prominent being BlackRock's proposal. Interestingly, of the 550 BlackRock ETF applications, only one has been rejectedaccording to Eric Balchunas and James Seyffart of Bloomberg Intelligence.
Even as Bitcoin consolidates, waiting for its next catalyst, several altcoins are seeing strong buying. this has thrown Bitcoin market dominance below 50%which suggests that the focus could be shifting to altcoins in the near term.
Could Bitcoin initiate a short-term trending move or will it remain range bound? What are the altcoins that are looking strong on the charts? Let's study the charts of the top five cryptocurrencies that could be on traders' radar in the coming days.
Bitcoin Price Analysis
Bitcoin closed above $31,000 on July 13, but it turned out to be a bull trap as the bears pulled the price below the July 14 level. This shows that the bears are fiercely defending the zone between $31,000 and $32,400.
The price action of the past few days has formed a bearish divergence on the Relative Strength Index (RSI). This indicates a weakening of the bullish momentum. The bears will try to seize their advantage by pulling the price below the 20-day exponential moving average ($30,187). If they manage to do that, the BTC/USDT pair could drop to the 50-day simple moving average ($28,631).
If the bulls want to avoid the dip, they will have to push quickly and hold the price above $31,000. The pair could then rally to $32,400. A break and close above this level will clear the way for a possible run to $40,000 as there are no major resistances in between.
The pair has dipped below the moving averages on the four-hour chart, indicating that demand is drying up at higher levels. The bears will have to sink in and hold the price below $29,500 to start a deeper correction. The pair could plummet to $27,500.
Alternatively, the bulls will have to push and hold the price above $31,000 to initiate an up move towards $32,400. If the price turns below $32,400 but bounces off $31,000, it will suggest that the bulls have shifted the level to support. . The pair may then start a rally to $40,000.
Uniswap Price Analysis
Uniswap (UNI) has been picking up support at the 20-day EMA ($5.41) during pullbacks, indicating that sentiment has turned positive and traders are buying dips.
The bulls will try to buy the current dip and push the price above the immediate resistance at $6.16. If they can pull it off, the UNI/USDT pair could rally to $6.50. This level can again act as strong resistance, but if the bulls don't give up too much ground, the pair could reach towards $6.70.
The important support to watch on the downside is the 20 day EMA. A break and close below this level will suggest that the bears are back in the game. The pair can then drop to the 50-day SMA ($5) and then to the crucial support at $4.72.
The correction on the four hour chart has reached the 20 day EMA. This is the first important support to consider. If the price bounces off this level, the pair could retest the overhead resistance at $6.17. Above this level, the pair can rise to the resistance line of the ascending channel.
Conversely, if the price breaks below the 20 day EMA, it will suggest that short-term traders may be taking profit. That could send the price down to the support line of the channel. If this level is broken, the pair can slide to $5.08.
Decision Price Analysis
Arbitrum (ARB) broke out and closed above the symmetrical triangle pattern on July 15, indicating that the bulls have beaten the bears.
The 20-day EMA ($1.16) has turned up and the RSI has reached close to the overbought zone, indicating that the path of least resistance is to the upside. There is minor resistance at $1.36, but if that level is crossed, the ARB/USDT pair can rally to $1.50. This level may present a strong challenge again, but if the bulls break above it, the rally can extend to $1.70.
This positive view will be invalidated in the short term if the price turns down and falls below the support line of the triangle. That can trap several aggressive bulls, resulting in a sharp drop to $0.90.
The bulls successfully retested the symmetrical triangle breakout level, indicating that the lower levels are attracting buyers. The bulls will try to take advantage of this strength by pushing the price above $1.36. If they are successful, the couple can gain momentum.
Conversely, if the price turns down from the current level or $1.36, the bulls will try again to drag the pair back into the triangle. If they do, it will suggest that the recent breakout may have been a bull trap. The pair could then drop to the 50-day SMA and subsequently to the support line of the triangle.
Related: Buy the dip? Record 3.8% Bitcoin Supply Last Moved to $30,200
Aave Price Analysis
Ghost (GHOST) broke out and closed above the descending channel pattern on July 3. The bulls successfully retested the breakout level on July 6 and again on July 10. This shows that the bulls have shifted the resistance line to support.
The rising 20-day EMA ($72) and the RSI in the positive territory indicate that the bulls are in control. If the price rally from the current level or bounce off the 20-day EMA, it will improve the prospects for a rally above $84.50. The AAVE/USDT pair could rally to $95.
Contrary to this assumption, if the price turns down and breaks below the 20 day EMA, it will suggest that the bulls may be losing control. The bears will again try to pull the price back into the descending channel.
The four hour chart shows that the bulls pushed the price above the overhead resistance at $84.50 but could not hold the breakout. The bears sold at higher levels and pushed the price below the 20 day EMA.
Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand.
If the price falls below the 50-day SMA, the advantage may shift in favor of the bears. The pair could then slide to $68. The advantage will shift in favor of the bulls if they hold the price above $84.50.
Manufacturer price analysis
maker (MSEK) broke above the downtrend line on July 2 and successfully retested the level on July 14. A bounce off this support suggests strong demand at lower levels.
The rising 20-day EMA ($878) and the RSI in the positive zone indicate that the bulls are in control. The buyers are trying to resume the bullish move but may face stiff resistance near $1100. If the bulls clear this hurdle, the MKR/USDT pair can skyrocket to $1,200.
Conversely, if the price turns below $1,080, it will suggest that the bears continue to sell rallies. The pair could then drop to the 20 day EMA. A break below this level will suggest that the bears are trying to come back.
The four hour chart shows that the bulls have pushed the price above the resistance line, indicating that the short-term correction may be over. The price can go down to the resistance line, which is an important level to watch.
A strong bounce from this level will suggest that the bulls have shifted the resistance line to support. That will improve the chance of a break above $1,080.
This positive view could be invalidated in the short term if the price falls below the moving averages. That could sink the pair to $831.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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