The 20-day moving average has flattened and the Relative Strength Index (RSI) is rising near its midpoint. This indicates a balance between supply and demand.
The first sign of strength will be a breakout and a close above the 50-day simple moving average ($23,445). That could pave the way for a potential rally to the pattern’s target at $28171. This move will indicate that the BTC/USDT pair may have bottomed at $17,622.
Alternatively, if the price drops and breaks below the 20-day moving average, the pair can extend its stay inside the triangle for a few more days. The price movement inside the triangle is likely to be random and choppy. A breakout and a close below the triangle may indicate the bears are back in the driver’s seat.
4 hour BTC/USDT chart. Source: TradingView
The moving averages cross each other for some time, indicating the formation of a range. Bears will try to pull the price below the moving averages. If they manage to do so, the pair could fall back to $20,000. A break below this support may open doors for a possible drop to the support line.
On the other hand, if the price bounces off the moving averages, it will indicate that bulls are buying on dips. This could improve the odds of a breakout from the triangle. The pair could then rise to the general resistance at $23,363.
ETH / USDT
Ether (ETH) completed the ascending triangle pattern when the bulls pushed the price above $1,280 on July 16. The bears are currently trying to pull the price below the breakout level and corner the bulls.
ETH/USDT daily chart. Source: TradingView
The critical level to watch on the downside is $1,280. If the price bounces away from this level, it will indicate that the bulls have flipped $1,280 into a support level. This could improve the odds of resuming the upward movement. ETH/USDT could then rise to $1,700 as the bears could pose a strong challenge once again.
Conversely, if the price drops and breaks below the 20-day EMA ($1,206), this will indicate that the bears are selling on rallies. This may cause the pair to sink towards the triangle support line.
4-hour chart of ETH/USDT. Source: TradingView
The 20-EMA on the 4-hour chart is sloping higher and the RSI near the overbought territory, indicating that the bulls have an advantage. If the price rises and rises above $1,423, the pair could gain momentum and rise to $1,550 and then to $1,700.
Conversely, if the price slips from the current level, the bulls will try to stop the decline at the 20-EMA. This is an important level to watch because a breakout and a close below it could plunge the pair into the 50-SMA.
Matic / USDT
Polygon (MATIC) completed the ascending triangle pattern when the price broke above the upper resistance at $0.63 on July 13. This was the first indication of the beginning of a new uptrend.
MATIC/USDT daily chart. Source: TradingView
The moving averages have completed a bullish cross, which indicates that the buyers have the upper hand. However, the price action of the past few days has pushed the RSI near the overbought territory, indicating the possibility of a slight pullback or consolidation in the near term.
The critical level to watch on the downside is $0.63. If the price bounces off this support, it will indicate that the lower levels are attracting buying by the bulls. This may increase the possibility of resuming the uptrend. The MATIC/USDT pair could then rise to the pattern target at $0.95.
This positive opinion may be invalidated if the price declines and falls below the 50-day simple moving average ($0.54).
4-hour chart MATIC/USDT. Source: TradingView
The recovery surged above the general resistance at $0.75 but that pushed the RSI into the overbought territory. This indicates a slight correction or consolidation in the near term.
Bears will try to pull the price below the 20-EMA. If that happens, the pair may fall to the 50-SMA.
Alternatively, if the price bounces off $0.75 or the 20-EMA, this will indicate that the bulls are in control. This will increase the likelihood that the uptrend will resume.
Related Topics: Ethereum Traders Measure the Risk of a Phantom Selling After Ethereum Price Increases 40%
FTT / USDT
The FTX Token (FTT) price action in the past few days has resulted in the formation of a symmetrical triangle. This usually works as a continuation pattern but in some cases, it also works as a reversal setup.
FTT/USDT daily chart. Source: TradingView
The moving averages are on the verge of a bullish crossover and the RSI has risen to positive territory, indicating that the buyers have a slight advantage. A breakout of the resistance line of the triangle will indicate that the uncertainty has been resolved in favor of the buyers.
This could signal the start of a new uptrend that could rise to $32 and later to the target pattern at $36.50. Contrary to this assumption, if the price drops from the resistance line, the FTT/USDT pair may extend its stay inside the triangle for a few more days.
4-hour chart of FTT/USDT. Source: Tradi
