Bitcoin (BTC) continued its boring price action over the weekend, indicating that bulls and bears are not making big bets as they are uncertain about the next directional move. Nevertheless, traders should continue to watch closely as a period of consolidation is usually followed by an increase in volatility.
Although it is difficult to predict the direction of the breakout with certainty, some analysts point to Bitcoin whales increasing their exposure as a positive sign. On-chain analyst Cole Garner thinks the bullish move could continue through September when the summer seasonality kicks in and the jolt occurs.
Bitcoin rose sharply in the first few months of the year, but major altcoins struggled to keep pace. This could change as the current consolidation of the largest cryptocurrency provides an opportunity for some altcoins to catch up.
What are the top 5 cryptocurrencies that look positive in the short term? Let’s study their charts to determine the resistance levels to watch.
bitcoin price analysis
Bitcoin formed an inside-day candlestick pattern on August 5, indicating indecision among bulls and bears. The price is stuck between the 20-day exponential moving average ($29,430) and the horizontal support at $28,861.
The downward sloping 20-day EMA and the Relative Strength Index (RSI) in negative territory indicate that the bears have a slight advantage. The sellers will try to pull the price below the $28,861-$28,585 support zone. If they can pull that off, the BTC/USDT pair could start lower to $26,000.
Conversely, if the price rebounds from the current level and breaks above the 50-day simple moving average ($29,840), this will suggest the start of a rally towards the overhead resistance zone between $31,804 and $32,400. .
The 4-hour chart shows the bulls defending the support at $28,861, but a negative sign is that they were unable to pull off a strong rebound. This suggests that demand is drying up at higher levels.
The 20-EMA is gradually declining and the RSI is just below the midpoint, suggesting that the bears have a minor advantage. The sellers will need to sink and hold the price below $28,861 to resume the short-term decline.
If the bulls want to initiate a rally, they will need to drive and hold the price above the moving averages. If they do, the pair could climb to the strong overhead resistance at $30,000. A break and close above this level could open the doors for a fresh rally to $31,000.
Shiba Inu Price Analysis
Shiba Inu (SHIB) broke and closed above the overhead resistance of $0.0000085 on August 4, indicating that the bulls are trying to start a new uptrend.
The bullish momentum accelerated further on August 5th and the SHIB/USDT pair climbed to $0.000010. This move sent the RSI into overbought territory, indicating that a minor correction or consolidation is possible.
If the bulls are not giving much ground from current levels, this will signal that traders are holding their positions as they anticipate another leg higher. If the price rises above $0.000010, the pair may rise to $0.000012 and then to $0.000014.
The 4-hour chart shows that the bulls are trying to stop the decline at the 20-EMA. If the price bounces off the current level with strength, the bulls will again try to push the price to $0.000010. A break above this level could signal the resumption of the bullish movement.
Instead, if the price continues to decline and breaks below the 20-EMA, it will suggest that traders are aggressively booking profits. A break below the 61.8% Fibonacci retracement level of $0.000009 could open the doors for a potential drop to $0.0000085.
Uniswap Price Analysis
Uniswap (UNI) has undergone a correction for the past few days, but a positive sign is that the bulls are trying to stop the decline near the 20-day EMA ($6.04).
If the price rebounds strongly off the current level, it will suggest that sentiment remains positive and traders are using the dips to buy. UNI/USDT might first reach $6.70 and if this level is broken, the next target might be $7.50.
Another possibility is that the price is holding below the 20-day EMA. If this happens, it will suggest that the upward movement is over. The pair could then descend to the 50-day SMA ($5.58) where buying could emerge.
The flat 20-day EMA and the RSI near the midpoint do not give a clear advantage to either the bulls or the bears.
The 20-EMA has fallen and the RSI is in negative territory, indicating that the bears have the upper hand. If the price continues to decline and breaks below $5.93, the correction may resume. The next downside support is $5.66.
On the contrary, if the bulls propel the price above the 20-EMA, it will suggest that the bears are losing their grip. The pair may first reach the 50-SMA and if this level is removed, the upside may reach $6.70.
Related: XRP price disappoints after court ruling, Deaton remains optimistic
OKB price analysis
OKB (OKB) has gradually fallen into a wide range between $38 and $59 over the past few weeks. The bulls pushed the price above the downtrend line on August 4, indicating that the short-term downtrend may end.
The 20-day EMA ($43) has started to rise and the RSI is in positive territory indicating that the bulls have the upper hand. Buyers will try to propel the price to $48 and then to $50. This level can be a major hurdle, but if breached, the pair could quickly climb all the way to $54.
Contrary to this assumption, a slip below the downtrend line will indicate that the attempt to start a bullish move has failed. The bears will gain strength if they push the OKB/USDT pair below the moving averages. The pair could then drop to $41.
The 4-hour chart shows that the bears attempted to pull the price back below the downtrend line, but the bulls managed to hold the level. This suggests that the buyers have reversed the downtrend line into support. The pair might rise to $46 first and if this hurdle is overcome, the next target might be $48.
The 20-EMA is an important support to watch. If the price dips below the 20-EMA and the downtrend line, it will suggest that the bears are back in command. The pair can then drop to $42.
Hedera price analysis
Hedera (HBAR) broke above the $0.055 overhead resistance on August 6, indicating that the bulls are trying to return.
If the buyers hold the price above $0.055, this will signal the start of a new upswing. There is a minor resistance at $0.062 but if this level is broken, the HBAR/USDT pair could gain momentum. The pair might rise to $0.065 first and then attempt a rally to $0.075.
The important level to watch on the downside is $0.055. If the bulls turn this level into support, it will indicate a shift in sentiment from selling on the rallies to buying on the declines.
This positive view will be invalidated in the short term if the price declines and drops below the 50-day SMA ($0.05). This could send the pair down to $0.045.
The 4-hour chart shows that the bulls have pushed the price above the broad resistance at $0.055. This completed a bullish ascending triangle pattern, which has a target objective of $0.07.
The strong rally has pushed the RSI into deep overbought territory, indicating that a minor correction or consolidation is possible. On the other hand, $0.055 is the critical level to watch.
If the bears want to prevent this bullish move, they will have to pull the price below the $0.05 breakout level. The pair could then plunge to $0.045.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.