Investors’ patience is tested by Bitcoin, as it is still stuck in a tight range. Despite the dullness of the near term, traders should remain alert, since small ranges are usually followed by a sudden surge in volatility. The only difficulty is that it is hard to accurately forecast the way of the breakout.
The weekly newsletter of Glassnode pointed out that the Bollinger Bands of Bitcoin (BTC) have been compressed, with the two sides being separated by only 4.2%. According to various on-chain indicators, the writers concluded that investors are not willing to sell, and in many aspects, it is comparable to “periods like 2016 and 2019-20, characterized by choppy market conditions.”
Though the near future of Bitcoin may seem uncertain, the long term remains bullish. In an interview with Cointelegraph, Charles Edwards, the founder of Capriole Investments, mentioned that access to BlackRock’s exchange-traded fund application could make it “easier for institutions to put Bitcoin on their balance sheet.”
Will Bitcoin fall below the help of the range and initiate a new downward move, dragging several altcoins lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Since July 17, Bitcoin has been trading beneath the 20-day exponential moving average (EMA) of $30,067, which is a bearish signal, indicating a lack of active buying at these levels.
On July 20, the bulls drove the price above the 20-day EMA, but the long wick on the candle shows that selling pressure is still present at higher levels. If the bears are able to drag the price below the critical support at $29,500, it would suggest that the consolidation is in favor of the bears. The BTC/USDT pair could then jump crypto to the 50-day simple moving average (SMA) of $28,869 and later to $27,500.
On the other hand, if the price jumps crypto sharply and breaches the 20-day EMA, it would suggest that the pair may climb to $31,000. A new uptrend could be expected if the price closes and breaks above $32,400.
Ether price analysis
Ether (ETH) has been trading near the 20-day EMA ($1,896) for the past few days, keeping crypto traders in a state of equilibrium between the bulls and the bears.
The important support to watch on the downside is the 50-day SMA ($1,854). If this support breaks down, the ETH/USDT pair may tumble to $1,800 and then to $1,700, as the latest crypto news suggests that the pair may continue to oscillate inside the large range between $1,626 and $2,000.
Contrarily, if the price jumps crypto from the current level or the 50-day SMA and rises above $2,000, it will signal that bulls are in the driver’s seat. The pair may then soar to $2,141 and eventually to $2,200, as the latest voyager crypto news suggests.
XRP price analysis
The bulls pushed XRP (XRP) above the $0.83 resistance on July 19 and 20, but they couldn’t keep the momentum going.
This could have enticed short-term bulls to take profits and the more aggressive bears to initiate short positions. The bears will attempt to drive the price down to the 20-day EMA ($0.65).If the price rebounds from this level, the XRP/USDT pair could remain range-bound between $0.65 and $0.85 for a while.
Breaking and closing above $0.85 could potentially lead to a retest of $0.94, while dropping below $0.65 could bring the pair down to $0.56.
BNB price analysis
The BNB/USDT pair continues to trade inside a symmetrical triangle pattern, indicating no clear advantage for either the bulls or the bears.
The triangle is usually seen as a continuation pattern, but could also be a reversal pattern in some cases. The flat 20-day EMA ($243) and the relative strength index (RSI) near the midpoint are not providing any clues.
If buyers can push the price above the triangle, the BNB/USDT pair may jump to the overhead resistance at $265. A break above this level will open the door for a potential rally to $280 and then to $300.
On the downside, the bears need to sink and sustain the price below the triangle to gain an upper hand. The selling pressure could increase if the support at $220 fails.
Cardano price analysis
When Cardano’s (ADA) price bounced off the 20-day EMA ($0.31) on July 19, the rally was short-lived and it reached $0.33 on July 20, suggesting that bears were selling.
The 20-day EMA remains a key level to watch out for in the near term. If the price jumps and surpasses $0.34, the ADA/USDT pair could climb to $0.38.
Conversely, if the price drops below the moving averages, it will indicate that bears have taken control. The pair could then go down to the uptrend line, which may draw strong buying from the bulls.
Solana price analysis
The bulls attempted to drive Solana (SOL) above the overhead resistance at $27.12 on July 19 and 20, yet the bears stayed immovable. This demonstrates that bears are offloading on rallies.
The inability to climb above $27.12 may drag the price down to the 20-day EMA ($23.55). This level is likely to experience a fierce battle between the bulls and the bears. If the price slides beneath the 20-day EMA, it will indicate that the short-term momentum has weakened. That could open the way for a further correction to the 50-day SMA ($19.63).
If bulls want to forestall the decrease, they will have to rapidly push and maintain the price above $27.12. If they succeed, the SOL/USDT pair could jump crypto to $29.12 and then to $32.13.
Dogecoin price analysis
The bulls have been able to defend the 20-day EMA ($0.07) in recent days, which suggests that Dogecoin (DOGE) is attracting buyers at lower levels.
The increasing 20-day EMA and the RSI above 63 indicate that the path of least resistance is to the upside. If buyers can keep the price above $0.07, it will signal the start of a new uptrend. The DOGE/USDT pair may jump to $0.08 and then to $0.10.
If bears want to refute this positive view, they must quickly pull the price below the moving averages. Such a move will suggest that the rally above $0.07 may have been a crypto.com latest. The pair may then fall to $0.06.
Polygon price analysis
On July 20, bulls attempted to push the Polygon (MATIC) price above the 20-day EMA ($0.74), indicating that they are trying to transform it into a support level. The 20-day EMA is moving up and the RSI is in the positive zone, which suggests that the bulls are in control. If buyers can break through the resistance at $0.80, the MATIC/USDT pair could jump to $0.90. This level may act as a minor hurdle, but if the bulls surpass it, the pair could reach $1.04.
On the other hand, if the price drops and falls below the 50-day SMA ($0.71), it will be a sign that the bears are back in the game. The pair could then dip to $0.60.
Litecoin price analysis
Litecoin (LTC) has been trading between the moving averages for the past few days, indicating indecision between the bulls and the bears.
The bulls attempted to push the price above the 20-day EMA ($94) on July 19 and 20, but the bears maintained their ground. This demonstrates that the bears are attempting to turn the 20-day EMA into resistance. The 20-day EMA has started to move down and the RSI has dropped into negative territory, providing a slight advantage to the bears.
If the price breaks and closes below the 50-day SMA ($90), the selling could intensify and the LTC/USDT pair may jump to $80. Alternatively, a break and close above the 20-day EMA could open the doors for a relief rally to $106.
Polkadot price analysis
On July 19, Polkadot (DOT) bounced off the strong support at $5.15 and on July 21, it hit the overhead resistance at $5.64, suggesting that buyers continue to find lower levels attractive.
The long wick on the July 21 candlestick indicates that the bears are aggressively selling the rallies to $5.64, which implies that the DOT/USDT pair may stay stuck between $5.15 and $5.64 for a while.
In favor of the bulls, the RSI has stayed in positive territory and the 20-day EMA ($5.25) is gradually increasing. Buyers need to break through the barrier at $5.64 to initiate the next jump crypto in the uptrend towards $7.
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