Bitcoin (BTC) is leading the recovery in crypto markets today after the price rebounded above the $32.000 level. Sam Trabucco, a quantitative trader at Alameda Research, said the firm bought the Bitcoin dip on July 20.
Trabucco said the sharp rally in equity markets, fewer long liquidations in the crypto derivatives market and the possible end of the FUD caused by China's mining ban and gray scale unlock could act as recovery catalysts that could boost the encryption even more.
However, analyst and podcast host Nebraskan Gooner sees Bitcoin's rally as a short selling opportunity. Veteran trader Peter Brandt also expects Bitcoin to witness another dip before a shift in trend.
The fix could open up opportunities for many new investors to enter the crypto markets.
JPMorgan's director of asset and wealth management, Mary Callahan Erdoes, said in a recent interview with Bloomberg that several of the bank's clients want to invest in Bitcoin because they consider it an asset class.
Let's study the graphs of the top 10 cryptocurrencies to determine the levels at which resistance can infiltrate.
In this article, we will discuss:
BTC / USDT
The aggressive selling by the bears pulled the price below $31.000 on July 19th and this was followed by another bearish move on July 20th. However, bulls bought the drop below $30.000 today, resulting in a strong rally.
The bears will try to lock in the rebound at the 20-day exponential moving average ($32.643). If the price breaks down from this resistance, sellers will again try to sink the BTC/ USDT below the critical support of $28.000.
If they are successful, the pair could initiate the next leg of the downtrend which could pull the price to $20.000.
On the other hand, if bulls raise the price above the 20-day EMA, the pair could challenge the 50-day simple moving average ($34.599). A break above that resistance will be the first sign of strength and will open the door for a possible high of $36.670.
ETH/USDT
The long tail on the July 20 candlestick suggests that the bulls have bought the dip to the strong support at $1.728,74. This is the third time that Ether (ETH) has recovered from this level since May 23.
The rally gained momentum today and buyers will now try to push the price above the 20-day EMA ($2.008). If they succeed, the ETH/USDT pair could rally towards the 50-day SMA ($2.213), which could act as strong resistance.
If the price drops from the 50-day SMA, the bears will again try to pull the price below $1.728,74. If they manage to do that, the pair could initiate the next leg of the downtrend, which could reach $1.536,92.
Buyers will have to break through the downtrendline hurdle to signal a possible shift in the trend.
BNB/USDT
Binance Coin (BNB) bounced from support at $251,41 today, which is a positive sign. This suggests that bulls are not waiting for a deeper correction to buy.
Buyers will now try to push and sustain the price above the downtrendline. If they manage to do this, it would suggest that the bears are losing control. The BNB/USDT pair could then begin its journey towards air resistance at $433.
On the other hand, if the price falls from the downtrendline, it indicates that bears are selling higher. Sellers will try again to pull the price down to critical support at $211,70. A break below this support could complete a bearish descending triangle pattern and initiate the next leg of the downtrend.
ADA/USDT
Cardano (ADA) fell to critical support at $1 on July 20, but bulls aggressively bought this fall, resulting in a strong rally today. The rally of relief may now reach the 20-day EMA ($1,25), where bears may offer strong resistance.
If bulls drive the price above the 20-day EMA, the ADA/USDT pair may rise to the 50-day SMA. If momentum overcomes this obstacle, the pair could rally towards the downtrendline. A break and close above this resistance will invalidate the bearish descending triangle pattern, which could open the door to a high of $1,94.
On the other hand, if the price drops from the 20-day EMA, the bears will try again to sink the pair below $1. If that happens, a panic selling could occur and the pair could begin its journey down to $0,80 and then to $0,68.
XRP/USDT
XRP has rebounded from the critical support at $0,50 today, indicating that bulls are trying to aggressively defend this level. The recovery could move up to the 20-day EMA ($0,61), which is likely to act as a hard hurdle.
If the price falls again in the 20-day EMA, it would suggest that sentiment remains negative and traders are selling higher. Bears will try to pull the price below the $0,50 support.
If this happens, the XRP/USDT pair may resume the downtrend. Next support is at $0,45 and then $0,40. Alternatively, if bulls raise the price above the 20-day EMA, it would indicate that bears are losing control. The pair may then rally towards general resistance at $0,75.
DOGE/USDT
Dogecoin (DOGE) once again rebounded from $0,15 support today, suggesting bulls are aggressively trying to defend this level. Relief rebound may now hit general resistance at $0,21.
The descending moving averages and the RSI in the negative zone indicate that bears will try to stagnate higher at $0,21. If the price drops from this resistance, the DOGE/USDT pair may fall back to $0,15 and stay within the range for a few days.
A break of $0,21 will be the first sign of strength and could result in a 50-day SMA rally ($0,26). Conversely, if the price drops and falls below $0,15, the pair may witness sales panic and drop to $0,10.
DOT/USDT
Polkadot (DOT) plummeted near the psychological $10 level on July 20 when the buy came into being. This resulted in a strong recovery today.
DOT/USDT daily chart. Source: TradingView
Buyers may face strong resistance in the 20-day EMA ($14). If the price drops from that resistance, the bears will try again to sink the DOT/USDT pair below $10. If they succeed, the downtrend could extend to $7,80.
Contrary to this assumption, if bulls push the price above the 20-day EMA, the pair could rise to the 50-day SMA ($17,82). A break and close above that resistance will signal a possible shift in the trend.
UNI/USDT
Uniswap (UNI) fell from overhead resistance at $16,93 on July 19 and began its march south towards the next critical support at $13, but the bulls had other plans. They bought at lower levels today, resulting in a strong recovery.
The bullish move may face strong resistance in the 20-day EMA ($17,89). If the price drops from this resistance, bears can imagine their chances and will try again to sink the UNI/USDT pair below $13.
If they succeed, the pair could start the next leg of the downtrend and slide into psychological support at $10. On the other hand, if bulls push the price above the 20-day EMA, the pair could hit the line of downtrend. A break of that resistance will indicate that bears are losing control.
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BCH/USDT
Bitcoin Cash (BCH) dropped as low as $383,53 on July 20, from where it is trying to start a relief recovery. This suggests that bulls are accumulating at lower levels.
The pullback may reach the 20-day EMA ($465), where bears will likely mount strong resistance. If the price drops from the 20-day EMA, sellers will make one more attempt to sink the BCH/USDT pair below $370.
If they manage to do that, the decline could extend to the next support at $330. On the other hand, if bulls push the price above the 20-day EMA, the pair could rally to the overhead resistance at $538,11 .
LTC/USDT
Litecoin (LTC) fell below the $118 support on July 19, completing a bearish descending triangle pattern. The decline pushed the RSI into oversold territory, suggesting that selling was overdone in the short term.
The LTC/USDT pair started a rally today and may retest the break level at $118. If bears turn this level into resistance, the pair may make one more attempt to resume the downtrend. A break below $100 psychological support could start the next leg of the downfall, which could reach $70.
Conversely, if bulls push and hold the price above $118, the pair could rally to the 20-day EMA ($127), where bears might again try to rein in the relief rally. If they succeed, the pair could fall again, but if bulls raise the price above the 20-day EMA, a rise to the 50-day SMA ($145) is possible.