Crypto Bulls Flashing Bull Signals as Bitcoin Price Seeks Stability
HBAR, OP, INJ and RUNE flash bull signals as Bitcoin price looks for stability

Traders have become bearish in light of Bitcoin’s (BTC) 11% plunge this week. Although the crypto is holding up near $25,000, many experts are expecting a further decline towards the vital $20,000 level.

The downturn is not exclusive to the cryptocurrency markets either. The U.S. stock markets also experienced a losing week, with the S&P 500 Index dropping 2.1% and the Nasdaq Composite dropping 2.6%. Both indexes have been on a three-week losing streak, indicating that traders are in a risk-averse mode in the short-term.

The decrease in Bitcoin has pulled several altcoins lower, signifying a broad-based sell-off. Nevertheless, among the sea of red, some altcoins have stood out either by bouncing off robust support levels or by continuing their uptrend.

Let’s review the charts of the top-five cryptos that may buck the bearish trend and remain bullish over the coming days.

Bitcoin price analysis

The price of Bitcoin has been fluctuating between $24,800 and $31,000 in recent days, after failing to break through the resistance. This has caused the relative strength index (RSI) to move into the oversold range, hinting that a rebound may be near.

If the price rises from its current position, it could reach the 20-day exponential moving average ($28,309). However, crypto bears may sell off any rallies to this level.

On the other hand, if the price drops from the 20-day EMA, BTC/USDT may fall to the critical support at $24,800. If that support level is breached, the pair could move down to $20,000.

Meanwhile, a break and close above the 20-day EMA could indicate that Bitcoin is staying in the range for a few more days. Crypto bulls will need to push and maintain the price above $31,000 to start a new uptrend, but this appears unlikely at the moment.

Both moving averages are sloping down and the RSI is in the oversold zone on the four-hour chart, suggesting that the crypto bears are in control. If the price turns down from the 20-day EMA, the pair may retest the support zone between $25,166 and $24,800.

Conversely, if the price breaks and closes above the 20-day EMA, it could signal that the crypto bears may be losing their grip. This could lead to an increase to the 50% Fibonacci retracement level of $27,200 and then to the 61.8% retracement level of $27,680.

Hedera price analysis

Hedera (HBAR) saw a rejection from the $0.078 resistance on Aug. 15, indicating that bears are active at higher levels. However, bulls got a slight advantage as buyers stepped in to buy the dip to the 50-day SMA ($0.054).

Both moving averages are sloping up and the RSI is in the positive zone, suggesting that bulls have the upper hand. The bulls will try to push the HBAR/USDT pair to the overhead resistance at $0.078 again. If they can surmount this obstacle, the pair may surge to $0.093 and, eventually, to $0.099.

Alternatively, if the price turns down and breaks below the 20-day EMA, it will indicate that bears are still selling on rallies. The pair could then retest the support at the uptrend line. A break below this level could open the gates for a decline to $0.045 and then $0.040.

The recovery is facing resistance near the overhead resistance at $0.070, suggesting that bears have not given up and they are still selling on rallies. The price has turned down to the moving averages, which is an important level to watch.

If the price turns up from the current level, it will indicate that the bulls are trying to turn the moving averages into support. Buyers will then make one more attempt to conquer the barrier at $0.070. If they succeed, the rally may reach $0.075.

If the price drops below the moving averages, the pair may collapse to the uptrend line, a significant level for the bulls to defend. Crypto traders should keep an eye on the bullish and bearish signals for the crypto altcoins, buy the rumor sell the news, and the advantage of web 3.0 to make informed decisions.

Optimism price analysis

Optimism (OP) has dropped below the moving averages but found support at the uptrend line, indicating demand at lower levels.

The price has bounced off the uptrend line but is facing resistance at the 20-day EMA ($1.51). If the price does not break below the uptrend line, it could mean a potential bullish crypto rally above the 20-day EMA. If that happens, the OP/USDT pair could rise to the overhead resistance at $1.88.

Conversely, if the price turns down and drops below the uptrend line, it would suggest that bears have taken control. The pair may first fall to $1.21 and then to $1.09.

The four-hour chart shows that the bears are trying to stall the recovery at the 50-day SMA. If the price closes below the 20-day EMA, the next stop is likely to be the uptrend line. A break below this support could indicate the start of a deeper fall.

Contrary to this assumption, if the price turns up from the current level and breaks above the 50-day SMA, it could indicate the start of a relief rally to $1.61. If this level is crossed, the pair could reach $1.71.

Injective price analysis

The recent price action of Injective (INJ) has formed a bullish ascending triangle pattern, suggesting that buyers have a slight edge.

The bears pushed the price below the uptrend line of the triangle on Aug. 17, but the long tail on the candlestick indicates solid buying at lower levels. The bulls managed to push the price above the 20-day EMA ($7.73) on Aug. 18 and the bulls have been successfully defending this level since then. This suggests that the bulls are attempting to flip the 20-day EMA into a support level.

A strong move above the 50-day SMA ($8.16) could signal that the bulls are back in control. This could create a potential rally to $10. This bullish outlook could be invalidated in the near term if the price turns down and breaks the uptrend line. The INJ/USDT pair may then slump to $5.40.

The four-hour chart shows a strong bounce off the uptrend line, which indicates that the bulls are fiercely defending this level. The recovery is likely to be met with selling pressure at the overhead resistance at $8.33.

If the price turns down from the current level or the overhead resistance but rebounds off the 20-day EMA, it will suggest that the bulls are still buying on dips. This could increase the chances of a break above $8.33. If this resistance is conquered, the pair may rise to $8.83 and then to $9.50.

The first sign of weakness will be a break and close below the 50-day SMA. This could send the pair to the crucial level of the uptrend line. If this level is breached, the pair may tumble to $6.50.

THORChain price analysis

While most altcoins are reeling under pressure, THORChain (RUNE) has been in a crypto bullish trend for the past few days.

The up-move is facing selling at the overhead resistance at $2, as seen from the long wick on the Aug. 19 candlestick. The sharp rally of the past few days has pushed the RSI into deeply overbought territory, indicating that a consolidation or a minor correction is possible.

If bulls do not give up much ground from the current level, it will increase the possibility of a break above $2. If that happens, the RUNE/USDT pair could start its march toward $2.30 and then $2.60.

Contrarily, if the price dips below $1.41, it will signal the start of a deeper correction to the 20-day EMA ($1.33).

Both moving averages on the four-hour chart are sloping up and the RSI is in the overbought territory, indicating that bulls have the upper hand. If the price sustains above $1.80, the pair could retest the critical resistance at $2.

Contrarily, if the price skids below $1.80, a drop to the 20-day EMA is possible. A strong bounce off this level will indicate that the crypto sentiment remains positive and traders are buying on dips. That will increase the chances of a rally to $2.

If the price breaks below the 20-day EMA, it will signal that traders are selling on rallies, or in other words, buy the rumor sell crypto. That may sink the pair to the 50-day SMA and then to $1.38.

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