The fact that the American stock markets bounced back from their intra-week lows the previous week indicates that there is still demand at lower levels. Similar to this, cryptocurrency Bitcoin’s (BTC) recovery from $18,910 last week shows that investors may be returning to riskier assets.
Analysts continue to hold divergent views on cryptocurrency Bitcoin’s resurgence, though. Others anticipate that the uptrend will retest the critical resistance at the 200-week moving average of $22,626, while some think that the relief rally is a bull trap. The Crypto Fear and Greed Index, which has been in the “severe fear” zone since May 6, indicates that the current bear trend has harmed sentiment. LookIntoBitcoin founder Philip Swift claims that the period of time spent in the “severe dread” category is longer than the period of the 2018 Bitcoin bear market. Could a change in sentiment lead to a rise in cryptocurrency prices? Let’s examine the top five cryptocurrency charts to find possible breakout assets. tonne.
On July 15, cryptocurrency Bitcoin broke beyond the $20,894 20-day exponential moving average (EMA), but the bulls have not been able to capitalize on this advantage. The symmetrical triangle’s resistance line is likely to be vigorously defended by the bears. The relative strength index (RSI) has increased almost to the midpoint and the 20-day EMA has flattened off. This shows that supply and demand are in balance. A break and closure above the $23,445 50-day SMA will be the first indication of strength. As a result, there may be room for a rally to the pattern goal price of $28,171 to occur. The BTC/Tether (USDT) pair may have bottomed out at $17,622 if it makes such a move. The pair may also continue inside the triangle for a few more days if the price declines and closes below the 20-day EMA. Inside the triangle, there will probably be erratic and turbulent price movement. Below the triangle, a break and closure could indicate that bears are back in the driver’s seat. Since the moving averages have been crossing one another for some time, a range formation is present. The price will be dragged below the moving averages by the bears. The duo could decrease to $20,000 if they are successful in doing that. Breaking through this support would allow a potential drop to the support line. On the other side, it will indicate that bulls are buying on dips if the price bounces off the moving averages. That might increase the likelihood of a triangle breakout. The overhead resistance at $23,363 may then be reached by the pair on a rally.
On July 16, bulls drove the price of Ether (ETH) above $1,280, completing an ascending triangle pattern. Currently, the bears are attempting to trap the aggressive bulls by bringing the price back down below the breakout level. $1,280 is the crucial mark to keep an eye on on the downside. If the price reverses direction off of this level, bulls may have turned $1,280 into support. This might increase the likelihood that the uptrend will resume. The ETH/USDT pair might then increase to $1,700, where the bears might once more present a significant obstacle. On the other hand, it will indicate that bears are selling on rallies if the price declines and breaks below the $1,206 level of the 20-day EMA. This can cause the pair to fall, approaching the triangle’s support line. On the 4-hour chart, the 20-EMA is sloping upward, and the RSI is close to the overbought zone, suggesting that bulls are in the lead. If the price reverses and moves above $1,423, the pair may gain momentum and rebound to $1,550 before settling above $1,700. On the other hand, if the price drops below its current level, the bulls will try to stop the collapse below the 20-EMA. A break and close below this level might push the pair down below the 50-SMA, making it a crucial level to monitor.
On July 13, the price of cryptocurrency MATIC/USDT Polygon (MATIC) crossed over the overhead resistance at $0.63, completing an ascending triangular formation. This was the first sign that a new rise was beginning. The completion of a bullish crossover in the moving averages suggests that buyers are in control. However, the recent price movement has brought the RSI dangerously close to overbought territory, suggesting that a little retreat or consolidation is expected in the near future. $0.63 is the crucial mark to keep an eye on on the downside. If the price bounces off of this support, it will imply that bulls are buying at lower levels. That might make the likelihood of the upswing picking up more likely. The cryptocurrencies MATIC/USDT pair may then surge to the $0.95 pattern target. The RSI entered the overbought region as a result of the recovery rising above the overhead barrier at $0.75. This points to a short-term small correction or consolidation. The price will be dragged below the 20-EMA by the bears. The pair may drop to the 50-SMA if that occurs. In contrast, a price bounce off $0.75 or the 20-EMA will signal that bulls are in charge. This will raise the possibility of the uptrend starting up again.
A symmetrical triangle has been formed as a result of the recent price movement of the cryptocurrency FTX Token (FTT). This frequently functions as a continuation pattern, but it can also serve as a prelude for a reversal. The RSI has climbed into positive territory and the moving averages are about to cross in a bullish direction, suggesting that buyers may have a tiny advantage. A breakout of the triangle’s resistance line will indicate that the buyers have prevailed in the face of uncertainty. That might be a sign of a fresh upswing beginning, one that could advance to $32 and then reach the pattern target at $36.50. The price has hit the triangle’s resistance line, which is where the bears are anticipated to launch a fierce defense, according to the 4-hour chart. The 20-EMA will serve as a signal that traders are buying on dips if the price declines from the current level but rises off of it. This might improve the likelihood of a break above the triangle. If the price keeps falling and breaks below the 20-EMA, this optimistic outlook may become short-lived. This would cause the pair to move toward the 50-SMA, indicating that the range-bound auction might last a few more days.
Over the past few days, Ethereum Classic (ETC) had remained trapped in the $12.50 to $18 area. It appears that bulls are attempting to create a double bottom pattern in light of this. Bulls are in control as the RSI has increased near to overbought territory and the 20-day EMA of $15.87 has begun to turn higher. $18 is the crucial mark to keep an eye on the downside. The ETC/USDT pair may begin its ascent toward $23.50 and then $25 if bulls keep the price above this support. In opposition to this premise, the pair may drop to the moving averages if the price reverses and declines below 18. If the 20-day EMA is broken, it may be a sign that the bears are still in the market at higher levels The RSI has entered the overbought area as a result of the quick upward movement above $18. This points to a short-term mild retreat or consolidation. The bulls will try to defend the breakout level while the bears try to bring the price back down below it. If the price moves back off $18, it will imply that the level has been turned into support by the bulls. This might make the likelihood of the upward movement picking back up higher. In contrast, a break below $18 would embolden the bears, who will attempt to push the pair down to $16.