Savita Subramanian, head of US equities and quantitative strategy at Bank of America Securities, said in a recent note that the stock market is usually at its lowest after earnings estimates have been revised lower, but that has not yet happened during the current downturn.
Cryptocurrency analysts also remain divided on whether the current rally is the rise of a bear market or the start of a new bullish phase.
Daily cryptocurrency market performance. Source: Coin360
However, one small positive thing is that the world’s first exchange-traded spot Bitcoin (ETF) fund, the Purpose Bitcoin ETF, has added 2,600 Bitcoin to its holdings. Although total assets under management is still well below its all-time high, the latest addition is a sign that some institutional investors may have started bottom fishing.
Could Bitcoin and altcoins find buyers at lower levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The bulls have repeatedly failed to hold Bitcoin above the upper resistance at $24,276 in the past few days, which indicates that the bears are defending the level with all their might.
BTC/USDT daily chart. Source: TradingView
The price retreated to the 20-day exponential moving average ($22,515), which is likely to act as a strong support. If the price rises from the 20-day moving average, the bulls will once again attempt to remove the upper barrier.
If they succeed, the BTC/USDT pair could gain momentum and a rally to $28171 is possible. The 20-day upward sloping EMA and the Relative Strength Index (RSI) in positive territory indicate the buyers advantage.
This positive view could be invalidated in the near term if the price drops below the 50-day simple moving average (SMA) ($21,310). The pair can then drop to the support line, which is an important level to be defended by the bulls.
ETH / USDT
Ether (ETH) is witnessing a tough battle between the bulls and the bears near the important $1700 level. Although the bulls have repeatedly pushed the price above this level in the past four days, they have not been able to sustain the upward movement.
ETH/USDT daily chart. Source: TradingView
The bears will try to drag the price to the 20-day moving average ($1,525) which is an important level to watch. If the price bounces here, it will indicate that sentiment has turned positive and that traders are buying on dips.
This could increase the possibility of a breakout above the $1,700 resistance area to $1,785. If that happens, the ETH/USDT pair could rise to $2000 and later to $2200.
Conversely, if the price breaks below the 20-day moving average, it will indicate that the pair may remain within the $1,280-$1,785 range for a few days.
BNB / USDT
BNB recovery faces strong resistance at $300 but the shallow pullback shows that the bulls are not closing their positions quickly as they expect the upward movement to continue.
BNB/USDT daily chart. Source: TradingView
The bulls will try to defend the $275-20 day area ($264). If the price rebounds away from this area, the bulls will once again attempt to push the BNB/USDT pair above $300. If they manage to do so, the pair could start its northward march towards the extreme resistance at $350.
This positive opinion may be invalidated in the near term if the price drops and breaks below the 20 day moving average. If that happens, the pair could drop to the 50-day simple moving average ($240).
XRP / USDT
XRP price rose above the general resistance at $0.39 on July 30 and 31 but the bulls were unable to sustain the higher levels. This indicates that the bears have not yet given up and continue to defend the $0.39 level aggressively.
XRP/USDT daily chart. Source: TradingView
The 20-day gradually sloping Exponential Moving Average (EMA) and the RSI in positive territory indicate a slight advantage for the buyers. If the price bounces off the 20-day moving average, it will improve the odds of a rally above the upper region between $0.39 and $0.41. If that happens, the XRP/USDT pair could rise to $0.48.
Conversely, if the price drops below the 20 day EMA, this will indicate that traders are booking profits as they expect the pair to remain range bound for a few more days. A break below the 50-day simple moving average ($0.34) could open the door to a drop to $0.30.
ADA / USDT
Cardano (ADA) dropped from the overhead resistance at $0.55 on July 30, indicating that the bears are not in a mood to allow the bulls to find their way.
ADA/USDT daily chart. Source: TradingView
If the price breaks below the moving averages, the ADA/USDT may drop to $0.45. This move will suggest that the pair may remain stuck within the large range between $0.40 and $0.55 for a few more days.
On the other hand, if the price bounces off the moving averages, it will indicate that bulls are buying on dips. The bulls will once again attempt to push the pair above $0.55. If they succeed, the may go up