EOS

Bitcoin price turns $28K to support, opening the door for ETH, MATIC, HBAR and EOS to breakout

BTC, ETH, MATIC, HBAR and EOS are likely to pick up momentum if they cross above their respective overhead resistance levels.

The market witnessed a major banking crisis in March as Silicon Valley Bank and Signature Bank failed and Silvergate Bank entered liquidation as a result of dire financial distress. In Europe, the government brokered a forced takeover of Credit Suisse by UBS. Still, the United States equities markets and the European stock markets closed the month on a positive note.

The cryptocurrency market was also shaken by volatility, but Bitcoin (BTC) gained about 23% in March. Going forward, the picture looks encouraging for Bitcoin bulls in April and data from Coinglass suggests that the month has largely favored the buyers.

*Crypto market data daily view. Source:* *Coin360*

Although altcoins reacted positively to Bitcoin’s rise, the rally has not been equal across the board. This suggests that market participants have been selective in their purchases. As a result, traders might focus on the movers rather than the laggards.

Let’s study the charts of five cryptocurrencies that look positive in the near term. If they break above their resistance levels, they may offer short-term trading opportunities.

Bitcoin price analysis

Bitcoin is facing stiff resistance at the $29,000 level but the bulls have not allowed the price to lose ground. This suggests that the bulls are being patient, anticipating a move higher.

*BTC/USDT daily chart. Source: TradingView*

The 20-day exponential moving average ($27,012) is trending up and the relative strength index (RSI) is above 61, indicating that the buyers are in control. The bullish momentum is likely to pick up after buyers overcome the obstacle at $29,200. That could start a rally to $30,000 and subsequently to $32,500.

Conversely, if the price turns down sharply from the current level, it will suggest that the short-term traders are selling. The BTC/USDT pair may slump to the 20-day EMA, which is an important level to keep an eye on.

If this support gives way, the pair could slide to the breakout level of $25,250. This is a make-or-break level for the pair because if it collapses, the selling could intensify and the decline could extend to the 200-day simple moving average ($20,424).

*BTC/USDT 4-hour chart. Source: TradingView*

Buyers pushed the price above the overhead resistance at $28,868 but could not sustain the higher levels. This suggests that bears are trying to keep the price below $28,868. If bears sustain the price below the 20-EMA, the pair may start its fall toward $27,500 and then to $26,500.

On the upside, a break and close above $28,868 will indicate that the bulls have overpowered the bears. That could signal the start of the next leg of the up-move. The target objective from the break above the $26,500 to $28,868 range is $31,236.

Ether price analysis

Ether (ETH) turned down from the overhead resistance of $1,857 on April 1 but the bulls are not giving up much ground. This suggests that the buyers are not rushing to the exit.

*ETH/USDT daily chart. Source: TradingView*

The upsloping 20-day EMA ($1,748) and the RSI in the positive area suggest that the path of least resistance is to the upside. If bulls drive the price above $1,857, the ETH/USDT pair may make a dash to the psychologically important level of $2,000.

The bears are likely to mount a strong defense at this level but if bulls overcome this barrier, the next stop could be $2,200. This positive view will invalidate in the near term if the price plunges below the 20-day EMA and the horizontal support at $1,680.

*ETH/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the pair turned down from the overhead resistance of $1,857, and the bears pulled the price below the 20-EMA. This suggests that the short-term bulls may be closing their positions. The pair could next fall to $1,743 and thereafter to $1,680.

Contrarily, if the price turns up and rises back above the 20-EMA, it will suggest that the break may have been a bear trap. A strong bounce off the current level could enhance the prospects of a rally above the overhead resistance.

Polygon price analysis

Polygon (MATIC) has been trading near the 20-day EMA ($1.11) for the past few days. Generally, a tight consolidation near an overhead resistance resolves to the upside.

*MATIC/USDT daily chart. Source: TradingView*

If buyers thrust the price above the 20-day EMA, the MATIC/USDT pair will attempt a rally to $1.25 and thereafter to $1.30. The bears are expected to guard this zone vigorously because if they fail, the pair could soar to $1.57.

Alternatively, if the price turns down from the current level and breaks below $1.05, it will suggest that the bears are back in the driver’s seat. The pair may then fall to the 200-day simple moving average (SMA) of $0.97, which is an important level to watch out for. If this support cracks, the pair may plummet toward $0.69.

*MATIC/USDT 4-hour chart. Source: TradingView*

The bears are trying to sustain the price below the 20-EMA. If they succeed, the pair could skid to $1.05 and then to $1.02. This is an important zone for the bulls to defend because if it gives way, the pair may continue its downward move to $0.94.

On the other hand, if the price turns up from the current level, it will suggest that every minor dip is being purchased. That will increase the likelihood of a break above the minor resistance at $1.15. The pair may then ascend to $1.25.

Hedera price analysis

Buyers foiled several attempts by the bears to sink and sustain Hedera (HBAR) below the 200-day SMA ($0.06) between March 9 to 28.

*HBAR/USDT daily chart. Source: TradingView*

The 20-day EMA ($0.06) has started to turn up and the RSI is in the positive territory, indicating that buyers have the upper hand. The HBAR/USDT pair is likely to continue its northward march to the $0.10 to $0.11 resistance zone. Sellers are likely to defend this zone with all their might but if buyers bulldoze their way through, the pair may start a new uptrend.

Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it will suggest that bears are selling on relief rallies. The pair may then retest the crucial support at the 200-day SMA. A break below this level will open the doors for a possible drop to $0.04.

*HBAR/USDT 4-hour chart. Source: TradingView*

The bulls started a strong recovery from the support near $0.06 but the relief rally is facing strong resistance in the zone between the 50% Fibonacci retracement level of $0.07 and the 61.8% retracement level of $0.08.

On the downside, the bulls are trying to defend the support at the 20-EMA. If the price rebounds off it, the pair may rally to $0.09 and then to $0.10. Conversely, if the price plummets below the 20-EMA, it will suggest that bears are still in the game. The pair could then descend to the support near $0.06.

EOS price analysis

EOS (EOS) is trying to complete a bullish cup and handle formation. Buyers pushed the price above the 20-day EMA ($1.15) on March 29, starting a comeback.

*EOS/USDT daily chart. Source: TradingView*

The 20-day EMA has started to turn up gradually and the RSI is in the positive territory, indicating a minor advantage to the bulls. The ETH/USDT pair is likely to rise to the overhead resistance zone between $1.26 and $1.34.

Sellers are likely to defend this zone aggressively but if bulls overpower the bears, the pair may start a new uptrend. The pattern target of the reversal setup is $1.74.

On the contrary, if the price turns down from the overhead zone, it will indicate that bears are selling on rallies. The pair could then slide to the 20-day EMA and later to the 200-day SMA ($1.05). A break below this level will suggest that the bears are back in command.

*EOS/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the bears are protecting the $1.22 level with vigor but a minor positive is that the bulls have not allowed the price to dip below the 20-EMA. This shows strong demand at lower levels.

The upsloping 20-EMA and the RSI in the positive territory indicate that bulls have a slight edge. If buyers propel the price above $1.22, the pair could rise to $1.26 and thereafter to $1.34.

Contrarily, if the price slumps below the 20-EMA, it will suggest that short-term traders may be booking profits. The pair could then drop to $1.14 and later to $1.06.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

EOS, STX, IMX and MKR show bullish signs as Bitcoin searches for direction

BTC price is attempting to stage a recovery, while EOS, STX, IMX and MKR are beginning to flash bullish signals.

The United States equities markets made a strong recovery this week but Bitcoin (BTC) failed to follow suit. This means that cryptocurrency investors stayed away and could be worried by the ongoing problems at Silvergate bank. These fears could be what is behind the total crypto market capitalization dropping to nearly $1 trillion.

The behavior analytics platform Santiment said in a report on March 5 that there was a “huge spike of bearish sentiment,” according to their bullish versus bearish word comparison Social Trends chart. However, the firm added that the “kind of overwhelmingly bearish sentiment can lead to a nice bounce to silence the critics.”

Another short-term positive for the crypto markets is the weakness in the U.S. Dollar Index (DXY), which fell by 0.70 in the past 7 days. This suggests that crypto markets may attempt a recovery over the next few days. As long as Bitcoin remains above $20,000, select altcoins may outperform the broader markets.

Let’s study the charts of Bitcoin and the four altcoins that are showing promise in the near term.

BTC/USDT

Bitcoin plummeted below the $22,800 support on March 3. Buyers tried to push the price back above the breakdown level on March 5 but the long wick on the candlestick suggests that bears are trying to flip $22,800 into resistance.

The 20-day exponential moving average ($23,159) has started to turn down and the relative strength index (RSI) is below 44, indicating that bears are trying to solidify their position. Sellers will try to sink the price below the support at $21,480. If they can pull it off, the BTC/USDT pair may retest the vital support at $20,000.

If bulls want to prevent the downside, they will have to quickly thrust the price above the 20-day EMA. Such a move will suggest aggressive buying at lower levels. The pair may then rise to $24,000 and thereafter rally to $25,250. A break above this resistance will indicate a potential trend change.

The moving averages are turning down on the four-hour chart and the RSI is near 39. This indicates that bears have the upper hand. If the price turns down from the 20-dayEMA and breaks below $21,971, the pair may retest the support at $21,480.

Instead, if bulls drive the price above the 20-EMA, it will suggest that the bears may be losing their grip. The pair could then climb to the 50-day simple moving average. This is an important level for the bears to defend because a break above it may open the gates for a rally to $24,000.

EOS/USDT

EOS (EOS) broke above the vital resistance of $1.26 on March 3 but the bulls could not sustain the higher levels. However, a positive sign is that the price has not dropped below the 20-day EMA ($1.17).

The gradually upsloping moving averages and the RSI in the positive zone indicate advantage to the bulls. The EOS/USDT pair has formed a rounding bottom pattern that will complete on a break and close above the $1.26 to $1.34 resistance zone. This reversal setup has a target objective at $1.74.

The important support to watch on the downside is the 50-day SMA ($1.10). Buyers have not allowed the price to tumble below this support since Jan. 8, hence a break below it may accelerate selling. The next support on the downside is $1 and then $0.93.

The bears pulled the price below the 20-EMA but a minor positive is that bulls have not allowed the pair to slide to the 50-SMA. This suggests that lower levels continue to attract buyers. If the price rises above the 20-EMA, the bulls will again try to clear the hurdle at $1.26. If they do that, the pair may surge to $1.34.

This positive view could invalidate in the near term if the price turns down and breaks below the 50-SMA. That may extend the fall to $1.11.

STX/USDT

Stacks (STX) rallied sharply from $0.30 on Feb. 17 to $1.04 on March 1, a 246% rise within a short time. Typically, vertical rallies are followed by sharp declines and that is what happened.

The STX/USDT pair plunged to the 20-day EMA ($0.69), where it is finding buying support. The 50% Fibonacci retracement level of $0.67 is also close by, hence the bulls will try to protect the level with vigor. On the upside, the bears will try to sell the rallies in the zone between $0.83 and $0.91.

If the price turns down from this overhead zone, the sellers will again try to deepen the correction. If the $0.67 cracks, the next support is at the 61.8% retracement level of $0.58.

Contrary to this assumption, if buyers thrust the price above $0.91, the pair may rise to $1.04. A break above this level will indicate a possible resumption of the uptrend. The pair may then rally to $1.43.

*STX/USDT 4-hour chart. Source: TradingView*

The four-hour chart shows that the 20-EMA is sloping down, and the RSI is in negative territory, indicating that bears have a slight edge. Sellers are likely to defend the moving averages during pullbacks. They will try to maintain their hold and sink the price to $0.65 and then to $0.56. The bulls will try to fiercely defend this support zone.

The first sign of strength will be a break and close above the 50-SMA. The pair may then rise to $0.94 and later to $1.04.

IMX/USDT

ImmutableX (IMX) rebounded off the 50-day SMA ($0.88) on March 3 and closed above the 20-day EMA ($1), indicating solid demand at lower levels.

The IMX/USDT pair could rise to $1.12 where the bears will again try to stall the recovery. If buyers bulldoze their way through, the pair could accelerate toward the stiff overhead resistance at $1.30. This is a crucial level to keep an eye on because a break and close above it may signal the start of a new uptrend. The pair may then soar to $1.85.

Contrarily, if the price turns down from the current level or $1.12, it will suggest that the bears have not yet given up. Sellers will then again try to sink the pair below the 50-day SMA and gain the upper hand. If they succeed, the pair could slump to $0.63.

IMX/USDT 4-hour chart. Source: TradingView

The four-hour chart shows the price is oscillating between $0.92 and $1.12. Usually, in a range, traders buy near the support and sell close to the resistance. The price action inside the range could be random and volatile.

If the price rises above the resistance, it suggests that the bulls have overpowered the bears. The pair may then rally toward $1.30. On the contrary, if bears sink the price below $0.92, the pair may turn negative in the near term. The support on the downside is at $0.83 and next at $0.73.

MKR/USDT

After a short-term pullback, Maker (MKR) is trying to resume its up-move. This suggests that the sentiment remains positive and traders are viewing the dips as buying opportunities.

The upsloping moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers sustain the price above $963, the MKR/USDT pair may start its journey to the $1,150 to $1,170 resistance zone.

If bears want to stall the bullish trend, they will have to pull the price below the 20-day EMA ($807). If they manage to do that, stops of several short-term traders may be hit. The pair may then decline to the 50-day SMA ($731).

MKR/USDT 4-hour chart. Source: TradingView

The pair had been trading between $832 and $963 for some time but the bulls are trying to kick the price above the range. The 20-EMA has turned up and the RSI is in the positive territory, indicating that bulls are in command.

If the price sustains above $963, the pair may attempt a rally to the target objective of $1,094. On the other hand, if the price turns down sharply below $963, it will suggest that the breakout may have been a bull trap. That could extend the consolidation for a while longer.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

Total crypto market cap takes a hit amid Silvergate Bank crisis

The total crypto market cap slipped below $1.025 trillion as concerns over Silvergate Bank’s solvency triggered a sharp sell-off in BTC, ETH and altcoins.

Cryptocurrency markets experienced a relatively calm month in February as the total market capitalization gained 4% in the period. However, the fear of regulatory pressure appears to be having an impact on volatility in March.

Bulls will undoubtedly miss the technical pattern that has been guiding the total crypto market capitalization upward for the past 48 days. Unfortunately, not all trends last forever, and the 6.3% price correction on March 2 was enough to break below the ascending channel support level.

*Total crypto market cap in USD, 12-hour. Source: TradingView*

As displayed above, the ascending channel initiated in mid-January saw its $1.025-trillion market cap floor ruptured after Silvergate Bank, a major player in crypto on- and off-ramping, saw its stock plunge by 57.7% at the New York Stock Exchange on March 2. Silvergate announced “additional losses” and suboptimal capitalization, potentially triggering a bank run that could lead to the situation spiraling out of control.

Silvergate provides financial infrastructure services to some of the world’s largest cryptocurrency exchanges, institutional investors and mining companies. Consequently, clients were incentivized to seek alternative solutions or sell their positions to reduce exposure in the crypto sector.

On March 2, the bankrupt cryptocurrency exchange FTX revealed a “massive shortfall” in its digital asset and fiat currency holdings, contrary to the previous estimate that $5 billion could be recovered in cash and liquid crypto positions. On Feb. 28, former FTX engineering director Nishad Singh pleaded guilty to charges of wire fraud along with wire and commodities fraud conspiracy.

With billions worth of customer funds missing from the exchange and its United States-based arm, FTX US, there is less than $700 million in liquid assets. In total, FTX recorded an $8.6 billion deficit across all wallets and accounts, while FTX US recorded a deficit of $116 million.

The 4% weekly decline in total market capitalization since Feb. 24 was driven by the 4.5% loss from Bitcoin (BTC) and Ether’s (ETH) 4.8% price decline. As expected, there were merely six out of the top 80 cryptocurrencies with positive performances in the past seven days.

*Weekly winners and losers among the top 80 coins. Source: Messari*

EOS gained 9% after the EOS Network Foundation announced the final testnet for the Ethereum Virtual Machine launch on March 27.

Immutable X (IMX) traded up 5% as the project became a “Unity Verified Solution,” reportedly allowing seamless integration with the Unity SDK.

DYdX (DYDX) traded down 14.5% as investors await a $17-million token unlock on March 14.

Leverage demand is balanced despite the recent price correction

Perpetual contracts, also known as inverse swaps, have an embedded rate that is usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

*Perpetual futures accumulated 7-day funding rate on March 3. Source: Coinglass*

The seven-day funding rate was marginally positive for Bitcoin and Ether, reflecting a balanced demand between leverage longs (buyers) and shorts (sellers) using perpetual futures contracts. The only exception was the slightly higher demand for betting against BNB’s (BNB) price, although it was far from an alarming level at 0.2% per week.

The options put/call ratio reflects traders’ optimism

Traders can gauge the market’s overall sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. Generally speaking, call options are used for bullish strategies, whereas put options are for bearish ones.

A 0.70 put-to-call ratio indicates that put options open interest lags the more bullish calls and is therefore bullish. In contrast, a 1.40 indicator favors put options, which can be deemed bearish.

*BTC options volume put-to-call ratio. Source: Laevitas.ch*

Apart from a brief moment on March 2 when Bitcoin’s price traded down to $22,000, the demand for bullish call options has exceeded the neutral-to-bearish puts since Feb. 25. Moreover, the current 0.71 put-to-call volume ratio shows that the Bitcoin options market is more strongly populated by neutral-to-bullish strategies that favor call (buy) options.

From a derivatives market perspective, the market showed resilience, so Bitcoin traders may not expect additional corrections despite the bearish indicator from the failed ascending channel. The 4% weekly decline in total market capitalization reflects the uncertainty brought by Silvergate Bank, and it is unlikely to have roots deep enough to cause systemic risk.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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.

Here is why a 0.75% Fed rate hike could be bullish for Bitcoin and altcoins

The Federal Reserve is set to raise interest rates this week. Here’s why traders expect a 0.75% hike to trigger a crypto market rally.

The S&P 500 and the Nasdaq Composite index suffered their worst weekly performance since June as investors remain concerned that the Federal Reserve will have to continue with its aggressive monetary policy to curb inflation and that could lead to a recession in the United States.

Bitcoin (BTC) remains closely correlated to the S&P 500 and is on track to fall more than 9% this week. If this correlation continues, it could bring more pain to the cryptocurrency markets because Goldman Sachs strategist Sharon Bell cautioned that aggressive rate hikes could trigger a 26% fall in the S&P 500.

The majority expect the Fed to hike rates by 75 basis points in the next meeting on Sept. 20 to Sept. 21, but the FedWatch Tool shows an 18% probability of a 100 basis point rate hike. This uncertainty could keep traders on edge, resulting in heightened short-term volatility.

If the Fed’s rate hike is in line with market expectations, select cryptocurrencies could attract buyers. Let’s study the charts of five cryptocurrencies that are positive in the near term.

BTC/USDT

Bitcoin recovered from $19,320 on Sept. 16 and rallied above $20,000 on Sept. 17, but the bulls are struggling to sustain the higher levels. This suggests that the bears are active at higher levels.

The 20-day exponential moving average (EMA) of $20,432 has turned down gradually and the relative strength index (RSI) is in the negative zone, suggesting that the sentiment remains negative and traders are selling near overhead resistance levels.

If the price continues lower and breaks below $19,320, the BTC/Tether (USDT) pair could decline to $18,510. Buyers are expected to defend this level with vigor.

On the upside, the 50-day simple moving average (SMA) of $21,605 is the key level to keep an eye on. If the bulls push the price above it, the pair could rally to $25,211. A break and close above this resistance could indicate the start of a new uptrend.

The 4-hour chart shows that the sellers are trying to stall the recovery at the 20-EMA. This indicates that the bears are in no mood to surrender their advantage. If the weakness persists and the price breaks below $19,320, the pair could slide to $18,510.

Conversely, if the price turns up from the current level and breaks above the 20-EMA, the recovery could extend to the 50-SMA. This level may again act as a resistance but if this obstacle is cleared, the next stop could be the 61.8% Fibonacci retracement level of $21,470.

XRP/USDT

Ripple (XRP) has been stuck inside a range between $0.30 and $0.39 for many days. The price has reached the resistance of the range, and if the bulls clear this hurdle, it could signal the start of a new uptrend.

In a range, traders usually buy near the support and sell close to the resistance. If the price turns down sharply from the current level and breaks below the moving averages, it will indicate that the XRP/USDT pair may extend its consolidation for a few more days.

Although the moving averages are crisscrossing each other, the RSI has jumped into positive territory, indicating that the bulls have a slight edge. If buyers drive and sustain the price above $0.39, the pair could rally to $0.48.

*XRP/USDT 4-hour chart. Source: TradingView*

The pair rallied sharply from $0.32 to $0.39, indicating strong buying by the bulls. The 20-EMA has turned up and the RSI is in the positive zone, suggesting that the path of least resistance is to the upside.

If the price continues higher and breaks above $0.39, the bullish momentum could pick up and the pair could rally to $0.41. This level may act as a resistance but if buyers flip the $0.39 level into support, the up-move could resume.

LINK/USDT

Chainlink (LINK) has been stuck inside a large range between $5.50 and $9.50 for the past several weeks, indicating that buyers are attempting to form a bottom. The bulls pushed the price above the moving averages and the RSI jumped into positive territory, indicating that the positive momentum could be improving.

There is a minor resistance at $8.30 and if the bulls push the price above it, the LINK/USDT pair could rally to the stiff resistance at $9.50. This level is likely to attract aggressive selling by the bears, but if the bulls pierce through the barrier, it could indicate the start of a new uptrend.

The moving averages are the important support to watch for on the downside because if they give way, the selling pressure may pick up. That could start a decline to $7.00 and thereafter to $6.20.

*LINK/USDT 4-hour chart. Source: TradingView*

Buyers are attempting to defend the moving averages on the 4-hour chart. That could start a recovery toward the overhead resistance at $8.20. If the price rises above this overhead resistance, the pair could rally to $9.00.

If bulls fail to push the price above $8.20, the bears may fancy their chances and try to sink the pair below the moving averages. That may tilt the advantage in favor of the bears. The pair could first decline to $7.50 and then to $7.00.

EOS/USDT

The bears pulled EOS below the 50-day SMA of $1.44 on Sept. 15, but they could not break the support at $1.34. This suggests that the bulls are buying on dips and are attempting to form a low near $1.34.

A minor negative is that the bulls are facing strong resistance at the 20-day EMA of $1.50. This indicates that the bears have not given up and are attempting to wrest control. This tussle between the bulls and the bears is likely to resolve with a strong breakout.

If the price breaks above the 20-day EMA, the bullish momentum could pick up and the EOS/USDT pair could rally to $1.86. Alternatively, if the price turns down and breaks below $1.34, the pair could decline to $1.24. A break below this support could sink the pair to $1.00.

The recovery faltered near $1.50, indicating that the bears continue to sell on rallies. The bears will try to further cement their edge by pulling the price below the strong support of $1.34, but that may not be that easy.

Buyers have defended the $1.34 level on three occasions and will again try to do so. If the price rebounds off $1.34, the bulls may again attempt a rally above the overhead resistance of $1.50. If they manage to do that, a rally to $1.70 and later to $1.86 is possible.

XTZ/USDT

Tezos (XTZ) broke below the 20-day EMA of $1.57 on Sept. 13, but the bears could not pull the price to the support line of the symmetrical triangle. This indicates that buyers are accumulating on dips and not waiting for a deeper correction to make an entry. This increases the likelihood of a recovery in the near term.

If the price breaks above the 20-day EMA, the XTZ/USDT pair could rise to the 50-day SMA of $1.66. This level has acted as a strong resistance on two previous occasions; hence it is an important level to keep an eye on. If the bulls overcome this barrier, the pair could attempt a rally to the resistance line of the triangle.

A break above the triangle will signal a potential trend change. The pair could then rise to $2.00 and later to $2.36.

Meanwhile, the bears are likely to have other plans. They will try to stall the recovery at the moving averages. If the price turns down from the current level and slips below the $1.50 to $1.40 support zone, the June low at $1.20 may be revisited.

*XTZ/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the bulls defended the support at $1.50 and pushed the price above the downtrend line, but they could not sustain the higher levels. If the bears sink the price below $1.50, the pair could decline to $1.40.

On the other hand, if the price rebounds off the $1.50 support once again, it will suggest that lower levels continue to attract buyers. The bulls will then try to push the price above the moving averages and challenge the resistance at $1.62. If this level gives way, the up-move could reach $1.70.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

A range-break from Bitcoin could trigger buying in ADA, ATOM, FIL and EOS this week

If BTC bounces from its key underlying support, ADA, ATOM, FIL and EOS could break out.

The decline in the United States equities markets last week extended the marketwide losing streak to three consecutive weeks. The Nasdaq Composite fell for six days in a row for the first time since 2019. The market’s negative reaction to a seemingly positive August jobs report suggests that traders are nervous about the Federal Reserve’s future steps and its effects on the economy.

Weakness in the U.S. equities markets pulled Bitcoin (BTC) back below $20,000 on Sept. 2 and the bears sustained the price below the level during the weekend. This pulled Bitcoin’s market dominance to just under 39% on Sept. 4, its lowest level since June 2018, according to data from CoinMarketCap.

Although the sentiment remains negative and it is difficult to call a bottom, investors who believe in the long-term prospects of cryptocurrencies could take the opportunity to gradually build positions at lower levels instead of trying to catch the bottom. However, investors could avoid chasing prices higher during bear market rallies and look to buy when the price falls to strong support levels.

If Bitcoin stages a recovery, select altcoins could move higher. Let’s study the charts of top-5 cryptocurrencies that are looking strong on the charts.

BTC/USDT

Bitcoin has been trading in a tight range between $19,520 and $20,576 for the past few days which shows a balance between the buyers and sellers in the near term. Although bulls are buying on dips, they have failed to overcome the selling at higher levels.

The downsloping 20-day exponential moving average (EMA) of $20,863 and the relative strength index (RSI) in the negative territory indicate an advantage to sellers. If the bears sink the price below $19,520, the BTC/Tether (USDT) pair could drop to the strong support zone between $18,910 and $18,626.

This zone is likely to attract strong buying by the bulls as that has been the case on two previous occasions. The bears will have to sink the price below $17,622 to signal the resumption of the downtrend.

On the other hand, buyers will have to push and sustain the price above the 20-day EMA to indicate that the bears may be losing their grip. The pair could then rise to the 50-day simple moving average (SMA) of $22,271.

The price rebounded off the strong support near $19,520 but the bears are attempting to stall the recovery at the moving averages. This shows that the bears are selling on every minor rally. If the bears sink the price below $19,520, the pair could resume the next leg of the downtrend.

Contrary to this assumption, if the bulls thrust the price above the moving averages, the pair could attempt a rally to the resistance of the range at $20,576. Buyers will have to clear this hurdle to signal a potential trend change in the near term.

ADA/USDT

Cardano (ADA) is in consolidation but it is attempting to rise above the moving averages. This indicates demand at lower levels and increases the chances of an up-move, which is the reason for its selection.

The 20-day EMA of $0.47 has flattened out and the RSI has jumped into positive territory, indicating that the selling pressure is reducing. If buyers sustain the price above the 50-day SMA of $0.50, the ADA/USDT pair could rally to the downtrend line.

This level could again act as a strong resistance but if the bulls overcome this barrier, the pair could rally to $0.70.

This positive view could be negated in the short term if the price turns down from the current level and slips below the 20-day EMA. If that happens, the pair could again slide to the strong support at $0.40.

*ADA/USDT 4-hour chart. Source: TradingView*

The 20-EMA on the 4-hour chart is sloping up and the RSI has risen into the overbought territory. This indicates that the bulls are in command, but a minor correction or consolidation is possible in the near term.

If buyers sustain the price above $0.48, or the 20-EMA, it will suggest a change in sentiment from selling on rallies to buying on dips. That could push the price to $0.54 and later to the downtrend line.

To invalidate this positive view, the bears will have to pull the price below $0.48. If that happens, the pair could slide to $0.44 and then to $0.42.

ATOM/USDT

Cosmos (ATOM) has not given up ground in the past few days and is trading near its overhead resistance at $13.45. This indicates that traders are not closing their positions as they anticipate the price to move higher. This is the reason for its inclusion in this list.

The ATOM/USDT pair dipped below the 50-day SMA of $11.08 on Aug. 29, but the bulls purchased at lower levels. That started a rebound which reached the overhead resistance at $13.45. The gradually rising moving averages and the RSI in the positive territory indicate the path of least resistance is to the upside.

If buyers propel the price above $13.45, the pair could pick up momentum and rally to $15.30 and then to $20. This positive view could invalidate if the price turns down sharply and plummets below the psychological support at $10.

*ATOM/USDT 4-hour chart. Source: TradingView*

The 20-EMA is sloping up and the bulls are buying the dips to this support. This suggests a positive sentiment in the short term. The bulls will attempt to push the price to the overhead resistance at $13.45. This is an important level to keep an eye on because a break and close above it could indicate the resumption of the up-move.

Conversely, if the price turns down from the current level or the overhead resistance and breaks below the 20-EMA, it will suggest that the bears are active at higher levels. The pair may then remain range-bound between $10 and $13.45 for some time.

FIL/USDT

Filecoin (FIL) had been trading in a tight range between Aug. 27 and Sept. 2, which resolved to the upside on Sept. 3. An expectation that buyers may continue their purchases led to the selection of this coin.

The FIL/USDT pair turned up sharply and broke above the 20-day EMA of $6.39 on Sept. 3. This is the first indication that buyers are attempting a comeback. However, the bears are unlikely to surrender easily and they are posing a strong challenge near the 50-day SMA of $6.92.

The bears pulled the price back below the 20-day EMA on Sept. 4. If they sustain the price below this level, the pair could decline to $5.50. Conversely, if the price turns up from the current level and breaks above the 50-day SMA, it will suggest strong buying on dips. The pair could then rally to $9.00 and thereafter to $9.50.

*FIL/USDT 4-hour chart. Source: TradingView*

The pair turned down from the overhead resistance zone between $6.80 and $6.60, but a minor positive is that the bulls have not allowed the price to slip below the 20-EMA. If the price rebounds off the current level, the possibility of a break and close above the zone increases.

If that happens, the pair will complete an inverse head and shoulders pattern. The pair could then pick up momentum and rally toward the pattern target of $7.60 and later to $8.30.

This positive view could invalidate in the near term if the price breaks and closes below the 20-EMA. The pair could then drop to the strong support at $5.50.

EOS/USDT

EOS has made it to the list because even in the mayhem, it has managed to stay above the moving averages. This indicates short-term outperformance and increases the likelihood of a rally if the sentiment in the cryptocurrency sector improves.

The EOS/USDT pair completed a rounding bottom pattern on Aug. 21, but the bulls could not sustain the higher levels. The bears pulled the price back below the breakout level on Aug. 28, indicating strong selling on rallies.

A minor positive is that the buyers aggressively purchased the drop to the 50-day SMA of $1.33. The 20-day EMA of $1.48 has flattened out and the RSI is near the midpoint, indicating a balance between buyers and sellers.

This balance could tilt in favor of the bulls if they push and sustain the price above $1.60. The pair could then rally to the overhead resistance near $2.00. Alternatively, a break and close below the 50-day SMA could open the doors for a possible drop to $1.15.

The bears sold the rebound near $1.60 and are attempting to pull the price back below the breakout level of $1.46. If they do that, the pair could decline to the uptrend line. This level has acted as a strong support on three previous occasions, hence the bulls will again try to defend it.

If the price rebounds off the uptrend line and breaks above $1.60, the pair could pick up momentum and rally to $1.80 and later to $2.00. Conversely, a break and close below the uptrend line will suggest that the short-term up-move could be over. The pair could then decline to $1.24.

Data shows Bitcoin and altcoins at risk of a 20% drop to new yearly lows

The total crypto market capitalization dropped to the $1 trillion support, and weak stablecoin demand and a largely absent funding rate reflect traders’ negative sentiment.

After the rising wedge formation was broken on Aug. 17, the total crypto market capitalization quickly dropped to $1 trillion and the bulls’ dream of recouping the $1.2 trillion support, last seen on June 10, became even more distant.

Total crypto market cap, USD billion. Source: TradingView

The worsening conditions are not exclusive to crypto markets. The price of WTI oil ceded 3.6% on Aug. 22, down 28% from the $122 peak seen on June 8. The United StatesTreasuries 5-year yield, which bottomed on Aug. 1 at 2.61%, reverted the trend and is now trading at 3.16%. These are all signs that investors are feeling less confident about the central bank’s policies of requesting more money to hold those debt instruments.

Recently, Goldman Sachs chief U.S. equity strategist David Kostin stated that the risk-reward for the S&P 500 is skewed to the downside after a 17% rally since mid-June. According to a client note written by Kostin, inflation surprises to the upside would require the U.S. Federal Reserve to tighten the economy more aggressively, negatively impacting valuations.

Meanwhile, extended lockdowns supposedly aimed at containing the spread of COVID-19 in China and property debt problems caused the PBOC led the central bank to reduce its five-year loan prime rate to 4.30% from 4.45% on Aug. 21. Curiously, the movement happened a week after the Chinese central bank lowered the interest rates in a surprise move.

Crypto investor sentiment is at the edge of ‘neutral-to-bearish’

The risk-off attitude brought by surging inflation led investors to expect additional interest rate hikes, which will, in turn, diminish investors’ appetite for growth stocks, commodities and cryptocurrencies. As a result, traders will likely seek shelter in the U.S. dollar and inflation-protected bonds during periods of uncertainty.

Crypto Fear & Greed Index. Source: Alternative.me

The Fear and Greed Index hit 27/100 on Aug. 21, the lowest reading in 30 days for this data-driven sentiment gauge. The move confirmed investors’ sentiment was shifting away from a neutral 44/100 reading on Aug. 16 and it reflects the fact that traders are relatively fearful of the crypto market’s short-term price action.

Below are the winners and losers from the past seven days as the total crypto capitalization declined 12.6% to $1.04 trillion. While Bitcoin (BTC) presented a 12% decline, a handful of mid-capitalization altcoins dropped 23% or more in the period.

Weekly winners and losers among the top-80 coins. Source: Nomics

EOS jumped 34.4% after its community turned bullish on the “Mandel” hard fork scheduled for September. The update is expected to completely terminate the relationship with Block.one.

Chiliz (CHZ) gained 2.6% after Socios.com invested $100 million for a 25% stake in the Barcelona Football Club’s new digital and entertainment arm.

Celsius (CEL) dropped 43.8% after a bankruptcy filing report on Aug. 14 displayed a $2.85 billion funds mismatch.

Most tokens performed negatively, but retail demand in China slightly improved

The OKX Tether (USDT) premium is a good gauge of China-based retail crypto trader demand. It measures the difference between China-based peer-to-peer (P2P) trades and the United States dollar.

Excessive buying demand tends to pressure the indicator above fair value at 100%, and during bearish markets, Tether’s market offer is flooded and causes a 4% or higher discount.

Tether (USDT) peer-to-peer vs. USD/CNY. Source: OKX

On Aug. 21, the Tether price in Asia-based peer-to-peer markets reached its highest level in two months, currently at a 0.5% discount. However, the index remains under the neutral-to-bearish range, signaling low demand from retail buying.

Traders must also analyze futures markets to exclude externalities specific to the Tether instrument. Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

Accumulated perpetual futures funding rate on Aug. 22. Source: Coinglass

Perpetual contracts reflected a neutral sentiment after Bitcoin and Ether held a relatively flat funding rate. The current fees resulted from a balanced situation between leveraged longs and shorts.

As for the remaining altcoins, even the 0.40% weekly negative funding rate for Ether Classic (ETC) was not enough to discourage short sellers.

A 20% drop to retest yearly lows is likely in the making

According to derivatives and trading indicators, investors are moderately worried about a steeper global market correction. The absence of buyers is evident in Tether’s slight discount when priced in Chinese yuan and the near-zero funding rates seen in futures markets.

These neutral-to-bearish market indicators are worrisome, given that total crypto capitalization is currently testing the critical $1 trillion support. If the U.S. Federal Reserve effectively continues to tighten the economy to suppress inflation, the odds of crypto retesting yearly lows at $800 billion are high.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Here’s 5 cryptocurrencies with bullish setups that are on the verge of a breakout

Bitcoin, BNB, EOS, QNT and CHZ are flashing bullish technical analysis setups which could lure buyers if the wider market enters a relief rally this week.

The S&P 500 ended its four-week-long recovery last week after minutes from the Federal Reserve’s July meeting hinted that the central bank’s rate hikes will continue until inflation is under control. Members of the Fed said there was no evidence that inflation pressures appear to be easing.

Another dampener was the statement by St. Louis Fed president James Bullard who said that he would support a 75 basis point rate hike in September’s Fed policy meeting. This reduced hopes that the era of aggressive rate hikes may be over.

Weakening sentiment pulled the S&P 500 lower by 1.29% for the week. Continuing its close correlation with the S&P 500, Bitcoin (BTC) also witnessed a sharp decline on Aug. 19 and is likely to end the week with steep losses.

Will bulls use the dips to accumulate at lower levels? If they do, let’s study the charts of the top-5 cryptocurrencies that may attract buyers because of their bullish setups.

BTC/USDT

Bitcoin slipped below the 20-day exponential moving average (EMA) of $22,864 on Aug. 17 and then below the 50-day simple moving average (SMA) of $22,318 on Aug. 19. The bulls are attempting to arrest the decline at the support line of the ascending channel.

The 20-day EMA has started to turn down and the relative strength index (RSI) is in negative territory, indicating advantage to bears. If the price reverses direction from the moving averages, it will suggest that bears are selling on rallies.

That could increase the possibility of a break below the support line of the channel. If that happens, the crucial support zone of $18,626 to $17,622 may come under attack.

To avoid this situation, the bulls will have to push and sustain the price above the moving averages. If they do that, the BTC/Tether (USDT) pair could rise toward the resistance line of the channel.

The buyers are aggressively defending the support line of the channel, but the downsloping moving averages and the RSI in the negative territory suggest that higher levels are likely to attract selling by the bears.

If the price turns down from the current level or the 20-EMA, the likelihood of a break below the channel increases. If that happens, the bearish momentum could pick up and the pair could drop toward $18,626.

The first sign of strength will be a break above the 20-EMA. Such a move will indicate that the selling pressure may be reducing. That could improve the prospects of a rally to the 50-SMA.

BNB/USDT

Binance Coin (BNB) turned down from the overhead resistance at $338 but the bulls successfully defended the strong support at $275. This indicates a positive sentiment as the bulls are viewing the dips as a buying opportunity.

The recovery may face resistance at the 20-day EMA of $301. If the price turns down from this level, the bears will again try to sink the BNB/USDT pair below $275. If that happens, it will suggest that the pair may oscillate in a large range between $183 and $338 for some time.

On the contrary, if bulls push the price above the 20-day EMA, the pair could rise to $338. A break and close above this level could complete a bullish head and shoulders pattern. That could start a rally to $413 and then to the pattern target at $493.

*BNB/USDT 4-hour chart. Source: TradingView*

The 20-EMA on the 4-hour chart has started to turn up and the RSI is near the midpoint, indicating that the selling pressure may be reducing. If the price sustains above the 20-EMA, the pair could rise to the 50-SMA. A break and close above this resistance could increase the possibility of a rally to $338.

Conversely, if the price turns down and breaks below the 20-EMA, the pair could again drop to the critical support at $275. If this level cracks, the pair will complete a bearish heads and shoulders pattern and drop toward $240.

EOS/USDT

EOS has formed the bullish inverse head and shoulders setup. The buyers pushed the price above the overhead resistance at $1.46 on Aug. 17 but the long wick on the day’s candlestick shows strong selling at higher levels.

The bears pulled the price back below the breakout level of $1.46 on Aug. 19 but the positive sign is that the buyers did not allow the EOS/USDT pair to sustain below the 20-day EMA ($1.32). This indicates that lower levels are attracting buyers.

If bulls sustain the price above $1.46, the positive momentum could pick up and the pair may rally to $1.83. If this resistance is also scaled, the rally could extend to the pattern target of $2.11.

This positive view could invalidate if the price turns down and breaks below $1.24. The pair could then decline to the 50-day SMA ($1.17).

The rally above $1.46 on Aug. 17 pushed the RSI on the 4-hour chart to deeply overbought levels. This may have tempted short-term buyers to book profits, which pulled the price to the strong support at $1.24. The bulls purchased the dip to this level and have again propelled the pair above the overhead hurdle at $1.46.

The pair could now rally to $1.56 and then to the important resistance at $1.83. Alternatively, if the price turns down from the current level and breaks below the moving averages, it will suggest that the pair could remain range-bound for a few days.

QNT/USDT

The series of higher highs and higher lows suggest that Quant (QNT) is in a short-term uptrend. The bulls purchased the drop to the 50-day SMA of $100 and are attempting to resume the up-move.

If the price sustains above the 20-day EMA of $111, it will suggest that the correction may be over. The QNT/USDT pair could first rise to $124 and then retest the important resistance at $133. If bulls clear this hurdle, the pair could rally to the overhead resistance zone between $154 and $162.

Contrary to this assumption, if the price fails to sustain above the 20-day EMA, it will indicate that traders may be closing their positions on rallies. The bears will have to sink the price below $98 to gain the upper hand and signal the start of a deeper correction to $79.

*QNT/USDT 4-hour chart. Source: TradingView*

The pair has been correcting inside a falling wedge pattern. The buyers pushed the price above the resistance line of the pattern but could not sustain the breakout. This suggests that bears are active at higher levels.

If the price sustains below the 50-SMA, the pair could slide to the 20-EMA. This is an important level to watch out for. If the price rebounds off this level, it will suggest that the short-term trend has turned in favor of the buyers.

A break and close above $118 could indicate that the corrective phase may be over. Conversely, if the price slips below the 20-EMA, the pair may drop to $100.

CHZ/USDT

Chiliz (CHZ) soared to $0.23 on Aug. 18 which pushed the RSI deep into the overbought territory. This may have tempted short-term traders to book profits and that pulled the price back below the breakout level of $0.20.

A minor positive is that the bulls are attempting to defend the 20-day EMA of $0.17 and push the price back above $0.20. If they succeed, it will suggest that the sentiment remains positive and traders are buying on dips. That increases the likelihood of a retest of $0.23. If bulls clear this hurdle, the CHZ/USDT pair could pick up momentum and rally to $0.26.

Contrary to this assumption, if the price fails to rise above $0.20, it will suggest that bears are selling on rallies. The bears will be back in the driver’s seat if they sink the pair below the 20-day EMA. The pair could then decline to the 50-day SMA of $0.13.

*CHZ/USDT 4-hour chart. Source: TradingView*

The bulls are trying to defend the uptrend line but the recovery is facing strong resistance at the moving averages. The moving averages completed a bearish crossover on the 4-hour chart and the RSI is in the negative territory, indicating a minor advantage to sellers.

If the price turns down and breaks below the uptrend line, the selling could intensify and the pair may drop to $0.16 and then to $0.14. Such a move will indicate that the bears remain in control.

Instead, if the price breaks above the moving averages, the bulls will try to push the pair to $0.21 and later challenge the resistance at $0.23.

EOS price jumps 20% for biggest gain in 15 months — What’s fueling the uptrend?

EOS attempts to become a fully decentralized network following a key hard fork in September.

EOS rose approximately 20% to reach $1.66 on Aug. 17 and was on track to log its best daily performance since May 2021.

Initially, the EOS rally came in the wake of its positive correlation with top-ranking cryptocurrencies like Bitcoin (BTC) and Ether (ETH), which gained over 2% and 3.75%, respectively. But, the upside move was also driven by a flurry of uplifting updates emerging from the EOS ecosystem.

*EOS/USD daily price chart. Source: TradingView*

EOS incentive program launch

On Aug. 14, the EOS Network Foundation (ENF), a nonprofit organization that oversees the growth and development of the EOS blockchain, opened registrations for its upcoming Yield+ incentive program.

The Yield+ is a liquidity incentive and reward program to attract decentralized finance (DeFi) applications that generate returns for their users. In doing so, the service attempts to compete with its top blockchain rivals in the DeFi space, namely Ether, Cardano (ADA), and Solana (SOL).

Since the beginning of Yield+ registration, the total value locked (TVL) inside the EOS pools has increased from 94.71 EOS to 102.18 EOS, showing a temporary spike in demand for the tokens. The TVL will likely increase in the days leading up to the reward activation on Aug. 28.

The Yield+ Launch Is Imminent!

Designed to build economic activity on $EOS through incentivizing DeFi dApps that increase TVL and generate yield.

August 14th — Registration opens
August 28th — Rewards for TVL begin

Get all the details here:
➡️ https://t.co/fFOZCOEG4y ⬅️ https://t.co/b6q4Xmlay7 pic.twitter.com/ePZPkEiu4I

— EOS Network Foundation (@EosNFoundation) August 10, 2022

EOS hard fork in September

In addition, EOS will rebrand to EOSIO later this week, followed by a v3.1 consensus upgrade called Mandel in September, according to Yves La Rose, the CEO of ENF.

The rebranding and upgrade serve as EOS’s symbolic divorce from Block.One, the company that originally designed the network, nine months after the EOS community elected to stop the issuance of 67 million EOS, or around $108 million, to it on malpractice concerns .

La Rose noted that the upgrade would occur via a hard fork, meaning that the new version (EOSIO) will not be backward compatible with the original chain and will follow new consensus rules.

Rebranding EOSIO and hardforking #EOS is a necessary part of the comeback, and represents the start of a new chapter: #TheNewEOS

Under the leadership of the @EOSNFoundation, $EOS can finally break through its glass ceiling and reach its full potential!

— Yves La Rose (@BigBeardSamurai) August 15, 2022

A hard fork also means that in the event of a possible chain split, all the existing EOS holders will receive an equal amount of tokens on both chains. In theory, that could increase EOS demand among speculators in the days leading up to the hard fork as witnessed in the case of Ethereum.

Technicals hint at more upside

From a technical perspective, EOS’s price eyes an extended bull trend in the coming weeks

The first major hint comes from a cup-and-handle formation on the EOS daily chart, confirmed by a U-shaped price trajectory followed by a downward channel trend. As a rule of technical analysis, a cup-and-handle breakout should send the price higher by as much as the pattern’s maximum height.

*EOS/USD daily price chart featuring cup-and-handle breakout setup. Source: TradingView*

As a result, EOS’s upside target comes to be near $2.45, up almost 50% from the price on Aug. 17.

Nevertheless, as a note of caution, the breakout risks losing its momentum near EOS’s 200-day exponential moving average (200-day EMA; the blue wave) at $1.79. Such a pullback could have EOS test the 50-day EMA (the red wave) at $1.21 as its next downside target, almost 25% below the current price.

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 conduct your own research when making a decision.

Top 5 cryptocurrencies to watch this week: BTC, ETH, BCH, AXS, EOS

If Bitcoin clears its overhead resistance level, ETH, BCH, AXS and EOS could resume their uptrend with surprising strength.

The bulls are attempting to achieve a strong weekly close for Bitcoin (BTC), while the bears are attempting to regain their advantage. Analysts are closely watching the 200-week moving average, which is at $22,705, and BTC’s current setup suggests that a decisive move is imminent.

Many analysts expect a weekly close above the 200-week moving average (MA) to attract further buying, but a break below it could signal that bears are back in the game. Although the short-term picture looks uncertain, analyst Caleb Franzen said that Bitcoin has been in an accumulation zone since May.

Meanwhile, on-chain analytics firm CryptoQuant highlighted increasing outflows of Ether (ETH) from major exchanges, totaling $1.87 million coins on July 22. Usually, outflows from crypto exchanges suggest that traders are bullish for the long-term, hence they may be moving their coins to stronger crypto wallets for safety.

Could Bitcoin resume its recovery, attracting buying in select altcoins? Let’s study the charts of the top-5 cryptocurrencies that look strong on the charts.

BTC/USDT

The bears tried to sink Bitcoin back into the symmetrical triangle on July 23, but the bulls had other plans. The rebound off the breakout level from the triangle indicates that buyers are defending the level aggressively.

The gradually rising 20-day exponential moving average (EMA) of $21,865 and the relative strength index (RSI) in the positive territory indicate an advantage to buyers.

If bulls sustain the price above the 50-day simple moving average of $22,384, the BTC/Tether (USDT) pair could rally to the overhead resistance zone between $23,363 and $24,276. A break and close above this level could open the gates for a rally to the pattern target at $28,171 and then to $30,000.

Conversely, if the price slips below the 20-day EMA, the pair could decline to the next support at $20,500.

The pair has formed a falling wedge pattern on the 4-hour chart. If buyers drive the price above the wedge, the pair could retest $24,276. A break and close above this level could signal the resumption of the uptrend.

The 20-EMA is flat and the RSI is near the midpoint, indicating a balance between supply and demand. If the price turns down and breaks below the 50-SMA, the pair could drop to the support line of the wedge.

ETH/USDT

Ether is facing stiff resistance at $1,700 but a positive sign is that buyers have not given up much ground. A tight consolidation near the overhead resistance increases the likelihood of a break above it.

The upsloping 20-day EMA of $1,384 and the RSI in the positive territory indicate that bulls have the upper hand. If buyers drive the price above $1,700, the bullish momentum could pick up, and the ETH/USDT pair could rise to $2,000, followed by a rally to $2,200.

Contrary to this assumption, if the price turns down from $1,700, the bears will try to pull the pair below the 20-day EMA. If they succeed, the pair could drop to $1,280. A bounce off this level could keep the pair stuck between $1,280 and $1,700 for a few days.

The pair bounced off the 50-SMA, indicating that bulls are buying on dips. The buyers will attempt to push the price to the overhead resistance at $1,700. Both moving averages are sloping up and the RSI is in the positive territory, suggesting that the path of least resistance is to the upside.

If bulls push the price above the $1,650 to $1,700 resistance zone, the momentum could pick up and the pair could resume its uptrend. To invalidate this positive view, the bears will have to sink the pair below $1,450.

BCH/USDT

Bitcoin Cash (BCH) is attempting to form a bottom after an extended downtrend. The price turned down from the $135 overhead resistance on July 20, but a positive sign is that the bulls defended the 20-day EMA of $117 aggressively.

The price action of the past few days has formed a rounding bottom pattern, which will complete on a break and close above $135. If that happens, it will suggest that the BCH/USDT pair may have bottomed out at $95. The pair could then rise to the pattern target at $175 and later to $200.

Another possibility is that the pair may consolidate between the 20-day EMA and $135 for some time. A break below the 20-day EMA could tilt the advantage in favor of the bears.

*BCH/USDT 4-hour chart. Source: TradingView*

The bulls have pushed the price above the resistance line on the 4-hour chart, opening the doors for a possible retest of $135. The upsloping moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers drive the price above $135, the pair could pick up momentum and rally toward $157.

Contrary to this assumption, if the price slips below the 20-EMA, the pair could drop to the 50-SMA and later to $117. A break below this level could tilt the advantage in favor of the bears.

AXS/USDT

Axie Infinity (AXS) has been consolidating in a downtrend. This suggests that the bulls are attempting to form a bottom.

The 20-day EMA of $15.55 has flattened out and the RSI is in the positive zone, indicating a balance between supply and demand. This balance could tilt in favor of the buyers if they propel the price above the overhead resistance at $18.53. If that happens, the AXS/USDT pair could start a rally toward $25.21 and then to $28.20.

Alternatively, if the price turns down from $18.53 and breaks below the moving averages, it will indicate that the pair may spend some more time inside the range. The bears will have to sink the price below $11.85 to gain the upper hand.

*AXS/USDT 4-hour chart. Source: TradingView*

The 4-hour chart shows that the price turned down sharply from the overhead resistance at $18.53, indicating aggressive selling by the bears. The sellers will now try to pull the pair to the 20-EMA. If the price rebounds off this level, the buyers will again attempt to clear the overhead resistance. If they manage to do that, it will indicate the start of a new up-move.

On the contrary, if the price breaks below the 20-EMA, the pair could slide to the 50-SMA. This is an important level to keep an eye on because if it cracks, the bullish momentum may weaken.

EOS/USDT

EOS (EOS) broke above the moving averages on July 18 and completed a successful retest of the 20-day EMA of $1.05 on July 21.

The moving averages have completed a bullish crossover and the RSI is near the overbought territory, indicating that bulls have the upper hand. The price could rise to $1.46 where the bears may mount a strong defense.

If the EOS/USDT pair does not give up much ground from $1.46, it will suggest that traders are not dumping their positions. That could improve the prospects of a rally above $1.46. Such a move will suggest a potential change in trend.

This positive view could invalidate if the price turns down from the current level and breaks below the moving averages.

Both moving averages are sloping up on the 4-hour chart and the RSI is near the overbought zone, indicating that the pair is in an uptrend.

The pair is facing resistance near $1.26, but the buyers have not given up much ground. This suggests that the bullish momentum remains strong. If the price turns up and breaks above $1.26, the rally could reach $1.33 and then $1.46.

Contrary to this assumption, if the price slips below $1.20, the next stop could be at the 20-EMA. If this support also cracks, the decline could extend to the 50-SMA.