The bulls are trying to achieve a strong weekly close in Bitcoin (BTC), while the bears are trying to regain their advantage. Analysts are closely watching the 200-week moving average at $22,705 and the current setup for Bitcoin indicates that a decisive move is imminent.
Many analysts expect a weekly close above the 200-week moving average (MA) to attract more buying, but a break below that could signal the bears are back in the game. Although the short-term picture looks uncertain, analyst Caleb Franzen said that Bitcoin has been in an accumulation zone since May.
View daily crypto market data. Source: Coin360
Meanwhile, on-chain analytics firm CryptoQuant highlighted Ether (ETH) outflows from major exchanges, totaling $1.87 million on July 22. Typically, outflows from cryptocurrency exchanges indicate that traders are optimistic in the long-term, and therefore may move. their coins to stronger crypto wallets for security.
Can Bitcoin Resume Its Recovery, Attracting Buying In Select Altcoins? Let’s examine the charts of the top 5 digital currencies that look strong on the charts.
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BTC / USDT
The bears tried to dump Bitcoin again in the symmetrical triangle on July 23, but the bulls had other plans. A bounce off the breakout level of the triangle indicates that buyers are aggressively defending the level.
BTC/USDT daily chart. Source: TradingView
The 20-day gradually rising exponential moving average (EMA) at $21,865 and the Relative Strength Index (RSI) in positive territory indicate an advantage for buyers.
If the bulls maintain the price above the 50-day SMA at $22,384, the BTC/Tether (USDT) pair could rise to the overall resistance zone between $23,363 and $24276. A breakout and a close above this level could open the gates for a rally towards the pattern’s target at $28,171 and then $30K.
Conversely, if the price breaks below the 20-day EMA, the pair may decline to the next support level at $20,500.
4 hour BTC/USDT chart. Source: TradingView
This pair has formed a bearish wedge pattern on the 4 hour chart. If buyers push the price above the wedge, the pair could retest $24276. A breakout and a close above this level may indicate a resumption of the uptrend.
20-EMA is flat and the RSI is near its midpoint, indicating a balance between supply and demand. If the price drops and breaks below the 50-SMA, the pair may drop to the wedge support line.
ETH / USDT
Ether is facing heavy resistance at $1,700, but there is a positive sign that buyers have not given up much ground. Tight consolidation near general resistance increases the likelihood of a breakout above it.
ETH/USDT daily chart. Source: TradingView
The bullish 20-day EMA at $1,384 and the RSI are in positive territory indicating that the bulls have the upper hand. If buyers push the price above $1,700, bullish momentum could increase, and ETH/USDT could rise to $2000, followed by a rally to $2,200.
Contrary to this assumption, if the price drops from $1,700, the bears will attempt to pull the pair below the 20-day moving average. If they succeed, the pair could drop to $1,280. A bounce off this level may keep the pair stuck between $1280 and $1700 for a few days.
4-hour chart of ETH/USDT. Source: TradingView
The pair bounced off the 50-SMA, indicating that the bulls are buying on the dips. Buyers will try to push the price to the general resistance at $1,700. Both the moving averages and the RSI are sloping up in the positive territory, indicating that the path of least resistance is to the upside.
If the bulls push the price above the resistance zone between $1,650 and $1,700, the momentum could pick up and the pair could resume its upward trend. To negate this positive opinion, the bears will have to sink the pair below $1450.
BCH / USDT
Bitcoin Cash (BCH) is trying to bottom out after an extended downtrend. The price dropped from the upper resistance level at $135 on July 20, but the positive sign is that the bulls strongly defended the 20-day moving average at $117.