The Consumer Price Index (CPI) report released on August 10 shows that annual inflation rose 8.5% in July, still high, although economists’ expectations were lower than the 8.7% rate. Although inflation remains well above the central bank’s 2% target, the marginal slowdown raises hopes that the central bank’s rate hike is starting to bear fruit. This lowered the probability of a 75 basis point rate hike at the September meeting to 37.5% from 68% on Aug. 9, according to CME Group data.
Risky assets, including the cryptocurrency markets, responded positively to the CPI pressure. compared to bitcoin
Altcoins are seeing a stronger rally. This brings Bitcoin’s dominance closer to yearly lows, while Ether
Approaching the peak of the year.
Daily cryptocurrency market performance. Source: Coin360
Ether-related products have seen $159 million in inflows in the past seven weeks, according to CoinShares data. This indicates that Ether is attracting the attention of institutional investors in anticipation of the merger, which is scheduled to take place on September 19th.
Can Bitcoin and altcoins sustain higher levels? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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Bitcoin fell from $24,245 on Aug. 8 and fell to the 20-day exponential moving average ($22.966) on Aug. 9. The bulls bought the drop on August 10th and are trying to push the price above overhead. The resistance is at $24,668.
BTC/USDT daily chart. Source: TradingView
If this succeeds, the BTC/USDT pair could gain momentum and rise to $28,000. The bears could face strong resistance at this level, but if the bulls break this hurdle, the pair could rise to $32,000. The gradual rise of the 20-day EMA and the Relative Strength Index (RSI) in positive territory indicate a path of least resistance to the upside.
Conversely, if the price drops from $24,668, the bears will try to push the pair below the 20-day moving average. If they can do so, the pair could drop to the 50-day simple moving average (SMA ($21,708)), and a break below that level could shift the advantage in favor of the bears.
Ether fell from $1,818 on August 8, but the bears failed to push the price below the 20-day moving average ($1,637). This indicates strong demand at lower levels.
ETH/USDT daily chart. Source: TradingView
The ETH/USDT pair rebounded from the 20-day moving average on August 10 and broke the general barrier at $1,818. If buyers maintain the price above this level, the pair may rise to the psychological level of $2,000 and then $2,200. The bullish moving averages and the RSI in the positive territory suggest that the bulls have the upper hand.
This uptrend will be invalidated if the price falls and breaks below the 20-day moving average. If this happens, the pair may fall towards the 50-day SMA ($1,388). This may delay the start of the next phase of the upward movement.
BNB dropped from the upper resistance area from $338 to $350 on August 8, but the bears failed to sustain the decline on August 10. This indicates that the bulls are aggressively buying dips.
BNB/USDT daily chart. Source: TradingView
The bulls will again attempt to clear the upper region. If they succeed, the BNB/USDT pair could gain momentum and rise towards $414. While the bullish moving averages indicate the advantage of the buyers, the overbought area on the RSI indicates that a small pullback or consolidation is possible in the near term.
If the price breaks the general area, the initial support is at $308. The bears will have to push the price below this level to challenge the 20-day moving average ($296). This is an important level to consider because a break and a close below could send the pair down to $275.
The bulls failed to push XRP above the overhead resistance of $0.39 on August 8. This attracted sharp selling from bears, which pushed the price below the 20-day moving average ($0.37) on August 9.
XRP/USDT daily chart. Source: TradingView
The secondary positive point is that the bulls bought the dip and pushed the price back above the 20-day moving average on August 10th. Buyers will try to push the price back above the general resistance area at $0.39 to $0.41. If they succeed, the XRP/USDT pair could rise to $0.48 and later to $0.54.
Contrary to this assumption, if the price breaks the upper resistance and drops below the 50-day SMA ($0.35), this indicates that the pair could hold between $0.30 and $0.39 for a few more days.
Cardano (ADA) rebounded from the overhead resistance at $0.55 on Aug. 8 and dropped to the 20-day moving average ($0.51) on Aug. 9, indicating that the bears continue to aggressively defend the overhead resistance.
ADA/USDT daily chart