Bitcoin, BNB, EOS, QNT and CHZ are showing bullish technical setups that could attract buyers as the broader market enters a recovery period this week.
The S&P 500 ended its four-week recovery last week after the minutes of the July meeting of the Federal Reserve showed that the central bank will continue to raise interest rates until inflation is brought under control. Fed members said there were no signs of easing inflationary pressures.
Another setback was the announcement by St. Louis Fed Chairman James Bullard, who said he would support a 75 basis point rate hike at the Fed’s September meeting. This reduced hopes that the era of aggressive rate hikes could end.
Daily view of cryptocurrency market data. Source: Coin360
Softer sentiment has sent the S&P 500 down 1.29% this week. Continuing its close correlation with the S&P 500, Bitcoin (BTC) also dropped sharply on August 19 and is likely to end the week with big losses.
Will bulls use dips to accumulate at lower levels? If so, let’s explore the charts of the top 5 cryptocurrencies that could attract buyers due to their bullish composition.
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Bitcoin moved below the 20-day exponential moving average (EMA) of $22,864 on August 17 and then below the 50-day simple moving average (SMA) of $22,318 on August 19. The bulls are trying to stop the decline at the support level. uplink line.
BTC/USDT daily chart. Source: Trading View
The 20-day EMA is gradually turning lower and the Relative Strength Index (RSI) is in negative territory, which indicates the advantage of the bears. When the price changes direction from the moving averages, it indicates that the bears are selling on the rally.
This may increase the likelihood of a break below the channel’s support line. In this case, the key support zone $18,626-$17,622 could be challenged.
To avoid this situation, the bulls should push and hold the price above the moving averages. If this happens, the BTC/Tether (USDT) pair may rise towards the channel resistance line.
4-hour BTC/USDT chart. Source: Trading View
Buyers are aggressively defending the channel’s support line, but falling moving averages and RSI in negative territory suggest that higher levels are likely to attract selling from the bears.
If the price turns down from the current level or the 20-EMA, the probability of a break below the channel increases. In this case, the bearish momentum could pick up and the pair could drop to $18,626.
The first sign of strength will be a break above the 20-EMA. This move suggests that selling pressure may ease. This could improve upside prospects towards the 50-SMA.
Binance Coin (BNB) has deviated from the upper resistance at $338, but the bulls have successfully defended the strong support at $275. This indicates a positive sentiment as the bulls see the decline as a buying opportunity.
BNB/USDT daily chart. Source: Trading View
The rebound could face resistance at the 20-day EMA at $301. If the price deviates lower from this level, the bears will make another attempt to push the BNB/USDT pair below $275. If this happens, it suggests that the pair could fluctuate in a wide range between $183 and $338 for a while.
Conversely, if the bulls push the price above the 20-day EMA, the pair could rise to $338. A break and close above this level could complete a bullish head and shoulders pattern. This could start rising to $413 and then to the $493 target.
BNB/USDT 4-hour chart. Source: Trading View
The 20-EMA is starting to turn up in the 4-hour chart and the RSI is nearing its midpoint, suggesting that selling pressure may be easing. If the price holds above the 20-EMA, the pair may rise to the 50-SMA. A break and close above this resistance could increase the likelihood of a rally to $338.
Conversely, if the price turns lower and falls below the 20-EMA, the pair could return to critical support at $275. If this level is broken, the pair will complete the bearish head and shoulders pattern and drop to $240.
EOS is bullish