Bitcoin (BTC) failed to break above the $25,000 barrier on August 11 despite two catalysts in the form of “favorable” Consumer Price Index data and news that BlackRock – the world’s largest asset manager world, which manages more than USD 10 trillion in total assets – had launched a spot Bitcoin investment product.
By comparison, Ether (ETH) has managed to maintain its recent gains on the back of news that the Goerli testnet had successfully activated proof-of-stake consensus, clearing the way for Ethereum’s mainnet transition planned for on September 15 or 16. Santiment data shows that Ether whale transactions have increased as well as starting to accumulate.
However, analysts remain divided on the prospects for the current recovery. While some believe that Bitcoin’s rally could break above $28,000, others are not so bullish and expect the price to turn lower and resume the negative trend.
Will the buyers be able to overcome the immediate resistances for Bitcoin and some altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
On Aug. 11, Bitcoin broke above the resistance of $24,668, but the bulls were unable to hold the higher levels. This indicates that the bears have not given up yet and are selling on the rallies.
The price remains choked between the 20-day exponential moving average ($23,151) and $24,668. Typically, a trade in a tight range is followed by a range expansion, but it is difficult to predict with certainty the direction of the breakout.
In this case, the 20-day EMA is gradually sloping up and the RSI is in the positive territory, indicating that the path of least resistance is to the upside.
If the buyers push and sustain the price above $25,000, the upside momentum could pick up and the pair could rally to $28,000 and then $32,000.
This positive view could be invalidated in the short term if the price turns down and breaks below the 20-day EMA. Then, the pair could drop to the 50-day SMA ($21.845).
ETH/USDT
Ether attempted to break above the $2,000 mark on Aug. 11, but the long wick of the daily candle suggests that the bears are vigorously defending the level.
However, a positive sign is that the bulls have not given way to the bears. This suggests that traders are not rushing to take profits as they anticipate the move higher to continue.
The moving averages up and the RSI close to the overbought territory indicate advantage for the buyers. If the bulls push the price above $2,000, the ETH/USDT pair could rally to the downtrend line.
On the other hand, if the price turns down sharply from the current level, the bears will try to sink the pair to the breakout level of $1,700. The bulls are expected to buy the dip to this support.
BNB/USDT
Binance Coin (BNB) has been facing a strong struggle at the upper resistance zone between $338 and $350. Although the bears have repeatedly thwarted the bulls’ attempts to overcome this hurdle, the buyers have not given up much ground. This indicates that the bulls are not rushing to the exit as they expect a move to higher levels.
A tight consolidation near overhead resistance increases the probability of a break above it. If this occurs, the BNB/USDT pair could attempt a rally to $380 and then $414.
The important support to watch on the downside is the 20-day EMA ($300). If the bears sink the price below this level, the pair could drop to $275 and then to the 50-day SMA ($261). A break below this support could tip the advantage in favor of the bears.
XRP/USDT
XRP remains stuck between the overhead resistance of $0.39 and the 20-day EMA ($0.37). The bears tried to work out this uncertainty in their favor on the 9th and 10th of August, but the bulls bought the dip and pushed the price back above the 20-day EMA.
The buyers tried to push the price above $0.39 on Aug. 11, but the bears held their ground. This indicates that $0.39 and the 50-day SMA ($0.35) are the critical levels to watch closely in the short term.
If the buyers clear the hurdle, the XRP/USDT pair could rally to $0.48 and subsequently to 0.54. Conversely, if the price breaks below the 50-day SMA, the pair could slide towards the crucial support at $0.30.
ADA/USDT
The buyers attempted to push Cardano (ADA) above the overhead resistance of $0.55 on Aug. 11, but the bears successfully held the level. The price could now drop to the 20-day EMA ($0.51).
The tight trading range between the 20 day EMA and 0.55 is unlikely to continue for long. If the buyers push the price above $0.55, the ADA/USDT pair could rally to $0.63 and then to the stiff overhead resistance of $0.70.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the bears will try to challenge the $0.45 support. If support holds, the pair could extend the consolidation between $0.45 and $0.55 for a while longer.
SOL/USDT
Solana (SOL) bounced off the 50-day SMA ($39) on Aug. 10, which indicates that the bulls are still buying lower levels. The bulls attempted to push the price to the overhead resistance of $48, but the bears stopped the rally at $45.32 on Aug. 11.
The SOL/USDT pair could continue to trade inside the ascending triangle formation for some time to come. The shorts will have to sink the price below the support line to invalidate this bullish setup.
On the other hand, the bulls will have to push and hold the price above $48 to complete the bullish pattern. If this happens, the pair could rally to $60 and then make a move towards the pattern target of $71.
DOGE/USDT
Dogecoin (DOGE) turned back down from the overhead resistance of $0.08 on Aug. 11, which indicates that the bears are still aggressively defending the level.
The bears will try to sink the price below the moving averages and challenge the trend line of the ascending triangle pattern. A breakout and close below this support will invalidate the bullish setup, opening the doors for a possible pullback to $0.06.
Contrary to this assumption, if the price bounces off the moving averages, it will suggest that the bulls are still buying lower levels. The bulls will have to push the price above $0.08 to complete the ascending triangle pattern. If this occurs, the DOGE/USDT pair could rally as high as $0.10.
DOT/USDT
Polkadot (DOT) has witnessed a close battle between the bulls and bears near the breakout level of $9. The bears are trying to drag the price back below $9, while the bulls are trying to turn the price down. support level.
The rising 20-day EMA ($8.47) and the RSI in the positive territory indicate an advantage for the buyers. If the price breaks out of the current level and breaks above $9.65, the DOT/USDT pair could rally to $10.80 and $12 thereafter.
On the other hand, if the price breaks below the strong support zone of $9 and the 20-day EMA, it will suggest that the recent breakout may have been a bull trap. In that case, the pair could drop to the 50-day SMA ($7.62).
MATIC/USDT
Polygon (MATIC) has been trading in a tight range between the 20-day EMA ($0.88) and $0.96 for the past few days, indicating indecision between buyers and sellers.
If this uncertainty resolves to the upside, the MATIC/USDT pair could rally to the tough overhead resistance of $1.02. The bulls will have to break through this barrier to signal the start of the next leg of the move up to $1.26 and subsequently $1.50.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the short-term advantage could tip in favor of the bears. The pair could then drop to the strong support at $0.75.
AVAX/USDT
Avalanche (AVAX) has been trading above the breakout level of $26.38 for the past few days, which suggests that the bulls are in no hurry to give up their advantage.
The gradually rising 20-day EMA ($25.6) and the RSI near the overbought zone indicate advantage for the buyers. If the bulls propel the price above $31, the AVAX/USDT pair could pick up momentum and rally to $33 and subsequently to the pattern target of $39.05.
This positive view could be invalidated in the short term if the price turns down and breaks below the 20-day EMA. If that happens, the pair could drop to the 50-day EMA ($21.91) and then to the support line.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Market data is provided by the exchange HitBTC.