Bitcoin (BTC) hit a six-week high above $24,000 on July 29, extending a rally that gained momentum after the US Federal Reserve raised interest rates by 75 basis points on July 27. If the rally continues in the next couple of days, Bitcoin could be the target to close July with gains of more than 20%, according to data from Coinglass.
It wasn’t just cryptocurrency markets that saw a rally after the Federal Open Market Committee (FOMC) meeting. US stock markets are on track to post significant monthly gains in July. The S&P 500 and Nasdaq Composite rose about 8.8% and 12% in July, on track for their best monthly gain since November 2020.
Daily cryptocurrency market performance. Source: Coin360
Cryptocurrency and stock markets rose on the expectation that the pace of interest rate hikes by the Federal Reserve will slow in the future. Arthur Hayes, the former CEO of derivatives platform BitMEX, believes that the Fed will not increase rates further and may eventually return to an accommodative monetary policy and more neutral rates.
Can Bitcoin and altcoins extend their recovery over the next few days? Let’s study the charts of the top 10 cryptocurrencies to find out.
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BTC / USDT
Bitcoin closed below the 20-day exponential moving average (EMA) ($22,213) on July 25, but the bears were unable to sustain the lower levels. The bulls bought the dip below $21,000 and pushed the price back above the moving averages on July 27.
BTC/USDT daily chart. Source: TradingView
The moving averages completed a bullish cross and the Relative Strength Index (RSI) was in positive territory, indicating that the bulls are in control. If the buyers push the price above $24276, the BTC/USDT pair could gain momentum and rally towards the pattern’s target of $28171. If this level is exceeded, the next stop could be $32,000.
Alternatively, if the price drops below the current level or fails to sustain above $24276, this will signal that demand is drying up at higher levels. In this case, the critical level to watch on the downside is the 20 day moving average. If this support is broken, it will indicate weak bullish momentum. After that, the pair may decline to the 50-day simple moving average (SMA) ($21,589).
ETH / USDT
Ether (ETH) rebounded sharply from the 20-day EMA ($1,470) on July 27 and broke above the critical resistance at $1,700 on July 28. However, the bears are not ready to pull back and are trying to pull the price below $1,700. July 29.
ETH/USDT daily chart. Source: TradingView
The bulls and bears may engage in a tough fight near $1,700, but the bullish 20-day EMA and the RSI in positive territory point to an advantage for buyers. If the bulls maintain the price above $1700, the momentum could pick up and the ETH/USDT pair could rise to $2000 and later to $2200.
Conversely, if the bears pull the price below $1,590, aggressive bulls may get stuck and the pair could drop to the 20-day moving average. A strong bounce from this level would increase the likelihood of a break above $1,700, but a break below the 20-day moving average could bring the pair down to $1,280.
BNB / USDT
BNB has been trading inside an ascending channel for the past few days. The price bounced off the 50-day SMA ($239) on July 26 and rose above the descending trend line, which indicates a possible trend change.
BNB/USDT daily chart. Source: TradingView
The bullish momentum continued and the buyers pushed the price above the resistance line of the ascending channel. If the bulls maintain the price above the channel, the BNB/USDT pair could rise to the general resistance at $350.
Alternatively, if the bulls fail to keep the price above the channel, this will indicate that the bears are active at higher levels. The pair can then re-enter the channel and fall to the downtrend line. A strong bounce off this level may improve the odds of a breach above the channel. Bears will have to plunge the price below the channel to gain the upper hand.
XRP / USDT
Ripple (XRP) range bound in a downtrend. The bears pulled the price below the moving averages on July 25, but were unable to sustain the lower levels and challenge the strong support at $0.30.
XRP/USDT daily chart. Source: TradingView
This indicates strong demand at lower levels. Buyers pushed the price back above the moving averages on July 27 and are trying to remove the upper barrier at $0.39. If they succeed, they will suggest the start of a new upward movement. After that, the pair may rise to the target target at $0.48.
Contrary to this assumption, the price is down from $0.39. The bears will try to sink the XRP/USDT pair below the moving averages. If they do, the pair could consolidate between $0.30 and $0.39 for a few more days.
ADA / USDT
The bulls pushed Cardano (ADA) above the moving averages on July 27, indicating a strong buying near the $0.44 support. The price is real