Bitcoin (BTC) continued its dull price action over the weekend, suggesting that the bulls and bears are not making big bets as they are unsure of the next directional move. Nonetheless, traders should remain vigilant as a period of consolidation is usually followed by a spike in volatility.
While it’s difficult to predict the direction of the breakout with certainty, some analysts see bitcoin whales increasing their exposure as a positive sign. On-chain analyst Cole Garner believes the upside could last into September as the summer season kicks in and the market shakeout takes place.
Daily view of crypto market data. Source: Coin360
Bitcoin surged for the first few months of the year, but the major altcoins struggled to keep up. That could change as the current consolidation of the largest cryptocurrency offers select altcoins an opportunity to catch up.
What Are The Top 5 Cryptocurrencies Looking Positive In The Short-Term? Let’s look at their charts to determine the resistance levels to keep an eye on.
Bitcoin price analysis
Bitcoin formed an inside-day candlestick pattern on Aug. 5, indicating indecisiveness between bulls and bears. The price is coming under pressure between the 20-day exponential moving average ($29,430) and the horizontal support at $28,861.
BTC/USDT daily chart. Source: TradingView
The falling 20-day EMA and the Relative Strength Index (RSI) in negative territory suggest that the bears have a slight advantage. Sellers will attempt to sink the price below the $28,861-$28,585 support zone. If they succeed, the BTC/USDT pair could start a downtrend to $26,000.
On the other hand, if the price recovers from the current levels and breaks above the 50-day simple moving average ($29,840), it will indicate the start of a rally to the upper resistance zone between $31,804 and $32,400.
BTC/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the bulls have defended the support at $28,861, but a negative sign is that they have failed to stage a strong recovery from it. This suggests that demand is easing at higher levels.
The 20-EMA is gradually turning down and the RSI is just below the middle, suggesting that the bears have a small advantage. To continue the short-term downtrend, sellers need to lower the price and sustain it below $28,861.
If bulls want to initiate a recovery, they need to sustain and hold the price above the moving averages. If they do, the pair could scale to the strong overhead resistance at $30,000. A break and close above this level could open the door for another rally to $31,000.
Shiba Inu Price Analysis
Shiba Inu (SHIB) broke and closed above the overhead resistance of $0.0000085 on Aug 4, suggesting that the bulls are attempting to start a new uptrend.
SHIB/USDT daily chart. Source: TradingView
On August 5, the bullish momentum continued to build and the SHIB/USDT pair surged to $0.000010. This move sent the RSI into overbought territory, suggesting that a minor correction or consolidation is possible.
If the bulls do not shed much from the current levels, it would be a signal that traders will hold their positions as they anticipate further increases. If the price surges above $0.000010, the pair could rally to $0.000012 and then $0.000014.
SHIB/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows the bulls attempting to halt the decline at the 20-EMA. If the price rebounds sharply from the current levels, the bulls will make another attempt to push the price down to $0.000010. A break above this level could signal the resumption of the uptrend.
If the price instead continues lower and breaks below the 20-EMA, it will indicate that traders are aggressively booking profits. A break below the 61.8% Fibonacci retracement level of $0.000009 could open the door for a potential drop to $0.0000085.
Uniswap price analysis
Uniswap (UNI) has been in a correction for the past few days, but a positive sign is that the bulls are attempting to halt the decline near the 20-day EMA ($6.04).
UNI/USDT daily chart. Source: TradingView
If the price rebounds strongly from current levels, it will indicate that sentiment remains positive and traders are taking advantage of the dips to buy. The UNI/USDT pair might initially climb to $6.70 and if that level is breached, the next target could be $7.50.
Another possibility is that the price remains below the 20-day EMA. When that happens, it indicates that the upward movement has ended. The pair could then drop to the 50-day SMA ($5.58) where buying could occur.
The flat 20-day EMA and the RSI near the middle do not give a clear advantage to either the bulls or the bears.
UNI/USDT 4 hour chart. Source: TradingView
The 20-EMA has turned down and the RSI is in the negative territory, suggesting that the bears have the upper hand. If the price continues lower and breaks below $5.93, the correction could resume. The next support on the downside is $5.66.
On the other hand, when the bulls push the price above the 20-EMA, it indicates that the bears are losing control. The pair might initially scale up to the 50-SMA and if that level breaks, the upward move could reach $6.70.
Related: XRP Price Disappoints After Court Ruling, Deaton Remains Bullish
OKB price analysis
OKB (OKB) has been gradually falling into a wide range of $38-$59 for the past few weeks. The bulls pushed the price above the downtrend line on August 4th, suggesting that the short-term downtrend may be coming to an end.
OKB/USDT daily chart. Source: TradingView
The 20-day EMA (USD 43) is starting to rise and the RSI is floating in the positive territory, suggesting that the bulls have the upper hand. Buyers will try to push the price to $48 and then $50. This level could be a major hurdle, but if breached, the pair could quickly rally to $54.
Contrary to this assumption, a dip below the downtrend line indicates that the attempt to initiate an upward move has failed. The bears will continue to gain strength if they sink the OKB/USDT pair below the moving averages. The pair could then drop to $41.
OKB/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the bears have attempted to pull the price back below the downtrend line, but the bulls have been successful in holding the level. This suggests that the buyers have turned the downtrend line into a support line. The pair could initially climb to $46 and if this obstacle is cleared, the next target could be $48.
The 20-EMA is a key support to watch out for. If the price breaks below the 20-EMA and the downtrend line, it will indicate that the bears are back in charge. The pair could then drop to $42.
Ivy price analysis
Hedera (HBAR) broke the overhead resistance of $0.055 on Aug 6, suggesting that the bulls are attempting a comeback.
HBAR/USDT daily chart. Source: TradingView
If buyers sustain the price above $0.055, it will signal the start of a new upward move. There is a minor resistance at $0.062, but if this level is surpassed, the HBAR/USDT pair could gain momentum. The pair might initially scale to $0.065 and then attempt a move to $0.075.
The key level to watch on the downside is $0.055. If the bulls convert this level into support, it will indicate a switch in sentiment from selling on rallies to buying on downturns.
This bullish view will be invalidated in the near term if the price declines and falls below the 50-day SMA ($0.05). That could sink the pair to $0.045.
HBAR/USDT 4 hour chart. Source: TradingView
The 4-hour chart shows that the bulls have pushed the price above the overhead resistance of $0.055. This completed a bullish ascending triangle pattern that targets $0.07.
The strong rally has pushed the RSI into the heavily overbought territory, suggesting that a minor correction or consolidation is possible. On the upside, $0.055 is the crucial level to watch.
If the bears are to stop this uptrend, they need to sink the price below the $0.05 breakout level. The pair could then drop to $0.045.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risk and readers should do their own research in making their decision.
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