Bitcoin (BTC) attempted to break away from its annoying sideways price action on July 13 after Ripple’s legal victory over the United States Securities and Exchange Commission, but the enthusiasm proved to be short-lived. The sellers brought the price back into the range on July 14, indicating that they remain active at higher levels. However, a positive sign is that the bulls have kept the price of Bitcoin above $30,000.
Market watchers should closely follow the review process of various exchange-traded fund (ETF) proposals for a spot Bitcoin ETF, with BlackRock’s proposal being the most prominent. Interestingly, out of 550 ETF applications from BlackRock, only one was rejected, according to Eric Balchunas and James Seyffart of Bloomberg Intelligence.
Even as Bitcoin consolidates awaiting its next catalyst, several altcoins are experiencing strong buying. This brought Bitcoin’s market dominance back below 50%, suggesting that the focus may shift to altcoins in the near term.
Could Bitcoin start a short-term trend move or will it get stuck inside the range? Which altcoins look strong on the charts? Let’s study the charts of the top 5 cryptocurrencies that might be on traders’ radar in the coming days.
bitcoin price analysis
Bitcoin closed above $31,000 on July 13, but this turned out to be a bullish trap as the bears pulled the price back below the level on July 14. This shows that the bears are fiercely defending the area between $31,000 and $32,400.
The price action of the past few days has formed a bearish divergence on the RSI. This indicates weakening bullish momentum. The bears will attempt to leverage their edge by pulling the price below the 20-day exponential moving average ($30,187). If they succeed, the BTC/USDT pair could go down to the 50-day simple moving average ($28,631).
If the bulls want to prevent the decline, they will need to quickly push and hold the price above $31,000. The pair could then climb to $32,400. A break and close above this level will pave the way for a potential run to $40,000 as there are no major resistances in between.
The pair has fallen below the moving averages on the 4-hour chart, indicating that demand is drying up at higher levels. The bears will need to sink and hold the price below $29,500 to initiate a deeper correction. The pair could then drop to $27,500.
Alternatively, the bulls will need to push and hold the price above $31,000 to initiate a rise towards $32,400. If the price drops from $32,400 but rebounds from $31,000, it will suggest that the bulls have tipped the level into support. The pair can then start a rally to $40,000.
Uniswap Price Analysis
Uniswap (UNI) supported the 20-day EMA ($5.41) on pullbacks indicating that sentiment has turned positive and traders are buying the dips.
The bulls will try to buy the current decline and push the price above the immediate resistance at $6.16. If they can pull it off, the UNI/USDT pair could hit $6.50. This level may again act as a strong resistance but if the bulls do not give much ground, the pair could reach $6.70.
The important support to watch on the downside is the 20-day EMA. A break and close below this level will suggest that the bears are back in the game. The pair may then fall to the 50-day SMA ($5) and later to the crucial support at $4.72.
The correction on the 4-hour chart has reached the 20-EMA. This is the first important support to watch. If the price bounces off this level, the pair could retest the broad resistance at $6.17. Above this level, the pair may rise to the resistance line of the ascending channel.
On the contrary, if the price slips below the 20-EMA, it will suggest that short-term traders could take profits. This could push the price down to the support line of the channel. If this level cracks, the pair may slide to $5.08.
Arbitrage Price Analysis
Arbitrum (ARB) broke and closed above the symmetrical triangle pattern on July 15, indicating that the bulls have mastered the bears.
The 20-day EMA ($1.16) rose and the RSI reached near the overbought zone, indicating that the path of least resistance is on the upside. There is a minor resistance at $1.36 but if this level is broken, the ARB/USDT pair could rise to $1.50. This level may pose a big challenge again, but if the bulls overcome it, the rally could extend to $1.70.
This positive view will be invalidated in the short term if the price declines and falls below the support line of the triangle. This could trap several aggressive bulls, leading to a sharp decline to $0.90.
The bulls passed the new test of the symmetrical triangle breakout level, indicating that the lower levels are attracting buyers. The bulls will try to take advantage of this strength by pushing the price above $1.36. If they succeed, the pair could gain momentum.
On the contrary, if the price declines from the current level or $1.36, the bulls will again try to pull the pair back into the triangle. If they do, it will suggest that the recent breakout may have been a bull trap. The pair could then drop to the 50-SMA and then to the support line of the triangle.
Related: Buy the dip? Bitcoin Supply Record 3.8% Last Seen at $30.2,000
Aave price analysis
Aave (AAVE) broke and closed above the descending channel pattern on July 3. The bulls passed the retest of the breakout level on July 6 and again on July 10. This shows that the bulls have reversed the resistance line into support.
The rising 20-day EMA ($72) and the RSI in positive territory indicate that the bulls are in charge. If the price rises from the current level or bounces off the 20-day EMA, it will improve the outlook for a rally above $84.50. The AAVE/USDT pair could then rally to $95.
Contrary to this assumption, if the price declines and breaks below the 20-day EMA, it will suggest that the bulls may be losing their grip. The bears will then try again to pull the price back into the descending channel.
The 4-hour chart shows that the bulls pushed the price above the broad resistance at $84.50, but they were unable to sustain the breakout. The bears sold to higher levels and took the price back below the 20-EMA.
Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand.
If the price breaks below the 50-SMA, the advantage may shift in favor of the bears. The pair could then slide to $68. The advantage will shift in favor of the bulls if they hold the price above $84.50.
Manufacturer Price Analysis
Maker (MKR) broke above the downtrend line on July 2 and successfully retested the level on July 14. The rebound from this support suggests strong demand at lower levels.
The upward sloping 20-day EMA ($878) and the RSI in the positive zone signal that the bulls are in control. The buyers are trying to resume the upward move but could face strong resistance near $1,100. If the bulls breach this hurdle, the MKR/USDT pair could rise to $1,200.
On the contrary, if the price declines from $1080, it will suggest that the bears continue to sell on the rallies. The pair could then fall to the 20-day EMA. A break below this level will suggest the bears are attempting a comeback.
The 4-hour chart shows that the bulls have pushed the price above the resistance line, indicating that the short-term correction may be over. The price may dip to the resistance line, which is an important level to watch.
A strong rebound from this level will suggest that the bulls have tipped the resistance line into support. This will improve the possibility of a break above $1,080.
This positive view could be invalidated in the short term if the price falls below the moving averages. This could send the pair down to $831.
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This article is for general informational purposes and is not intended to be and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.