Bitcoin (BTC) gave up ground over the weekend as investors remained cautious about US consumer inflation data due out on July 13. Analysts expect the June CPI to be above the 8.6% level in May.
Given the overall uncertainty, investors are not confident that the Bitcoin correction is over. However, Fidelity Investments’ global macro director, Jurrien Timmer, said that Bitcoin would return to the 2013 bull market levels “if the price per millions of non-zero addresses” were considered for its valuation. This means that “Bitcoin is cheap.”
View daily crypto market data. Source: Coin360
The Reserve Risk Index readings, which show long-term holder sentiment, fell to a new all-time low in July. Commentator Murad said this means “we are in a higher time frame bottom area” or the indicator may be broken.
Can Bitcoin turn around and start a new high, or will it continue falling? Are altcoins showing signs of bottoming? Let’s study the charts of the top 5 cryptocurrencies to find out?
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BTC / USDT
Bitcoin broke above the symmetrical triangle pattern on July 7, but the bulls were unable to sustain the momentum at the higher levels. This indicates that the bears did not give up and are trying to defend the upper resistance at $23,363.
BTC/USDT daily chart. Source: TradingView
The bears are trying to keep the price below the 20-day exponential moving average ($21,230). If they succeed, BTC/USDT may drop to the triangle support line.
If the price bounces off this level, it will indicate that the bulls continue to buy at lower levels. The bulls will once again seek to push the price above the general resistance at $23,363 and the 50-day simple moving average ($24,692). If they succeed, it could signal the start of a new upward movement.
Conversely, if the price breaks below the support line, the bears will attempt to pull the pair below $17,622.