Bitcoin price is attempting to break out of its current range and push $24,000 towards support, while altcoins follow an upward move to try to confirm their bottom patterns.
US stock and cryptocurrency markets started the week on a positive note, suggesting that traders are not nervous to buy ahead of the important July Consumer Price Index (CPI) data to be released on August 10.
Another positive sign is that Bitcoin’s (BTC) recent rally hasn’t prompted investors to close their positions amid fears of another drop. Glassnode data shows that the percentage of shipments that have not been used in three or more years rose to a new all-time high of 38.426% on August 8th.
Cryptocurrency market daily indicators. Source: Coin360
BlackRock CEO Larry Fink sold 44,000 BlackRock shares in August, the largest sale since the COVID-19 crash. Some analysts believe that the current recovery in stock markets is just a bear market rally. If so, a downturn in stock markets could also increase cryptocurrency sales as they are still closely related.
Can Bitcoin and some altcoins surge above their respective resistance levels and extend the recovery in the short-term? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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Bitcoin rebounded from the 20-day exponential moving average (EMA) of $22,846 on Aug. 7, with momentum picking up on Aug. 8. Buyers have propelled the price above $24,000 and it might challenge the upper resistance at $24,668.
BTC/USDT daily chart. Source: Trade View
The 20-day EMA is sloping up and the Relative Strength Index (RSI) is in positive territory, indicating that the bulls are in control. If the buyers push the price above the upper resistance, the BTC/USDT pair could gain momentum and rally to $28,000 as there is no significant resistance between the two. The bears might try to halt the rally at this level, but if the bulls break this barrier, the upside potential could reach $32,000.
Contrary to this assumption, if the price turns down from $24,668, the pair could drop to the 20-day EMA. This is an important level to watch out for as a break below this level could push the price towards the 50-day SMA ($21,594). A break below this level could put the bears back on top.
Buyers pushed ETH (ETH) above the upper resistance at $1,700 on August 5 and the bulls successfully defended the breakout level on August 6-7. Buying resumed on Aug 8 and the bulls pushed the price above the upper resistance at $1,785.
Daily ETH/USDT chart. Source: Trade View
If the bulls sustain the price above $1,785, the ETH/USDT pair could gain momentum and climb to the psychological $2,000 level. This level could attract selling from the bears, but if the bulls stop the next drop above $1,700, a break above $2,000 is more likely. In this case, the pair could rise to the downtrend line.
This positive view may not be valid in the short-term if the price turns down and falls below the 20-day EMA ($1,606). The pair could then slide towards the 50-day SMA ($1,362).
The BNB rally has reached an area of strong upside resistance between $338 and $350 where the bears are expected to provide strong protection.
BNB/USDT daily chart. Source: Trade View
If the price deviates from the current levels, the BNB/USDT pair could drop to the 20-day EMA ($289). This is an important level to watch as a strong rebound from it means the positive sentiment remains intact and traders see declines as a buying opportunity.
Then the bulls will make another attempt to clear the upper zone. If successful, the BNB/USDT pair could gain even more momentum and rally to $414. This bullish view may not hold in the near term if the price turns down and falls below the 20-day EMA.
Ripple (XRP) price has been bouncing between the 20-day EMA ($0.36) and the upper resistance at $0.39 for the past few days. Typically, such narrow ranges result in range expansion.
Daily XRP/USDT chart. Source: Trade View
The rising 20-ta