Bitcoin (BTC) made a strong comeback in July and is on track for its best monthly gain since October 2021. The sharp recovery in Bitcoin and several altcoins pushed the Crypto Fear and Greed Index to 42/100 on July 30, the highest level since April 6.

Investors seem to be making the most of the lower levels in Bitcoin. Data from on-chain analytics firm Glassnode shows that Bitcoin in exchange wallets fell to 2.4 million BTC in July, down from March 2020 levels of 3.15 million BTC. This brought the metric to its lowest level since July 2018.

View daily crypto market data. Source: Coin360
Mike McGlone, chief commodity strategist at Bloomberg Intelligence, highlighted that the US Federal Reserve’s signal to consider raising interest rates on a “meet-by-meeting” basis could lay the groundwork for Bitcoin to outperform most assets. “Risk versus reward in bitcoin has skewed favorably for one of the biggest bull markets in history,” he said.

Could Bitcoin Extend Its Rally In The Short Term And Could This Lead To A Buying Of Certain Altcoins? Let’s study the charts of the top 5 cryptocurrencies that might outperform in the near term.

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The attempts of the bulls to sustain the price above $24276 failed in the past two days, indicating that the bears are aggressively defending the level. However, the small positive is that the bulls have not ceded ground to the bears.

BTC/USDT daily chart. Source: TradingView
This indicates that the bulls are not locking in profits in a hurry as they anticipate a breakout above the general resistance. If the price breaks and closes above $24276, the BTC/USDT pair could gain momentum and move higher towards $28171. This level may act as resistance but if the bulls overcome the barrier, the next stop could be $32,000.

The bullish 20-day exponential moving average ($22,480) and the relative strength index (RSI) are in positive territory, indicating that the bulls have the upper hand.

To negate this short-term uptrend, the bears will have to plunge the price below the 20-day moving average. That could pave the way for a possible decline to the 50-day SMA ($21,386) and then to the support line. A break below this level will signal that the bears are back in control.

4 hour BTC/USDT chart. Source: TradingView
The 4 hours chart shows that the bulls pushed the price above the upper resistance of $24276 but were unable to build on the breakout. The bears have pulled the price below the level but are struggling to sink the pair below the 20-EMA. This indicates that the bulls are buying on dips.

If the price bounces off the current level, the bulls will get another shot in the upper region between $24,276 and $24668. If this area is measured, the bullish momentum may rise further. Conversely, if the bears plunge the price below the 20-EMA, the pair may fall to the 50-SMA.

Binance Coin (BNB) broke above the descending trend line on July 28, indicating a possible change in trend. The bulls are facing resistance near the psychological level of $300, but the positive sign is that buyers have not given up much ground. This indicates that the bulls are not in a rush to take profits.

BNB/USDT daily chart. Source: TradingView
The bullish 20-day EMA ($263) and the RSI are in positive territory, indicating that the path of least resistance is to the upside. If buyers push the price above $300, BNB/USDT could resume its upward trend towards the general resistance at $350.

Alternatively, if the price breaks down and breaks below $285, the pair could drop to the downtrend line. The 20-day EMA is placed near this level, and then it becomes an important support to watch. If the price bears sink below the 20-day moving average, the pair could drop to the 50-day simple moving average ($239).

Source: CoinTelegraph