Theta Network

THETA, LIDO, KLAY and EGLD flash bullish signs as Bitcoin recaptures $23K

BTC price is chasing after $24,000 again, raising the possibility of LDO, EGLD, THETA and KLAY targeting new year-to-date highs.

The cryptocurrency markets and the United States equities markets witnessed profit-booking this week as the macroeconomic data hinted toward continued rate hikes by the Federal Reserve. Bitcoin (BTC) is down more than 4% and the S&P 500 fell 2.7% to record its worst week of the year.

The CME FedWatch Tool shows a 73% probability of a 25 basis points rate hike by the Fed in the March meeting but after the hotter-than-expected inflation readings in two weeks, the probability of a 50 basis point rate hike has started to slowly gain traction.

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

During periods of uncertainty, some coins enter a deeper correction while a few buck the trend and continue to outperform. Hence, it becomes important to select the right coins to trade.

A few coins that have witnessed a shallow correction or have bounced sharply off the support have been selected in this list. Let’s see their charts and determine the levels to watch out for.

BTC/USDT

Bitcoin plunged below the 20-day exponential moving average ($23,391) on Feb. 24 but the bears could not build upon this advantage and sustain the price below the strong support at $22,800.

The price bounced off $22,800 on Feb. 25 and the bulls are trying to push the price above the 20-day EMA. If they manage to do that, it will indicate that the BTC/USDT pair may consolidate between $25,250 and $22,800 for a few days.

The flattening 20-day EMA and the relative strength index (RSI) near the midpoint also suggest a range-bound action in the near term.

Alternatively, if the price slips below $22,700, the selling could intensify and the pair may plummet to the next strong support at $21,480.

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

The 20-EMA has turned down on the four-hour chart and the RSI is in the negative territory. This indicates an advantage to the bears. Sellers will try to protect the 20-EMA, and if the price turns down from this level, the likelihood of a break below $22,800 increases. If that happens, the selling may intensify and the pair may slide to $21,480.

On the contrary, if the price breaks above the 20-EMA, it will suggest that bulls are buying on dips. That could push the pair to the 50-simple moving average and keep the price stuck inside the range for some more time.

LDO/USDT

Lido DAO (LDO) did not sustain below the 20-day EMA ($2.75) during the recent correction, which is a positive sign. Another bullish sign is the formation of the pennant near the local highs.

The bulls will try to propel the price above the resistance line of the pennant. If they succeed, the LDO/USDT pair could start the next leg of the up-move. The pair may first rise to $3.90 and thereafter attempt a rally to $4.24.

Conversely, if the price turns down from the resistance line, it will suggest that bears are selling on rallies. That could keep the price inside the pennant for a while longer. The bears will have to sink the price below the pennant if they want to signal a short-term trend reversal.

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

The strong bounce off the support line of the pennant indicates aggressive buying on dips. Buyers will have to overcome the obstacle at the resistance line to regain control. If they do that, the pair may resume its uptrend.

However, the bears are likely to have other plans as they will try to protect the resistance line. If the price turns down from this level, the state of equilibrium may continue for some more time.

A break below the pennant could attract profit-booking by short-term traders. That may tug the price to $2.20 and later to $2.

EGLD/USDT

MultiversX (EGLD) turned down from the resistance line but an encouraging sign is that the bulls are trying to defend the 20-day EMA ($47).

Both moving averages are sloping up and the RSI is above 54, indicating that buyers have a slight edge. The bulls will try to push the price toward the resistance line where they are again likely to face strong opposition from the bears.

This bullish view could invalidate in the near term if the price turns down and plummets below the 20-day EMA. That will indicate selling by the bears on every minor rally. The EGLD/USDT pair could then tumble to the 50-day SMA ($44) and later to $40.

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

The four-hour chart shows that the price is falling inside a descending channel pattern. Buyers purchased at lower levels and have pushed the price to the resistance line of the channel. If this resistance gives way, the pair could rise to the 50-SMA and thereafter attempt a retest of the strong barrier at $54.

Contrarily, if the price turns down from the resistance line, it will suggest that the bears have not given up. That could result in a drop toward the support line of the channel.

THETA/USDT

The bulls are trying to arrest Theta Network’s (THETA) pullback at the 20-day EMA ($1.15). Both moving averages are sloping up and the RSI is in the positive territory, indicating advantage to the bulls.

If buyers thrust the price above the downtrend line, the THETA/USDT pair could climb to the overhead resistance at $1.34. This is a formidable resistance and a break above it could open the gates for a possible surge to $1.70.

Instead, if the price turns down and plunges below the 20-day EMA, it will suggest that the short-term bulls may be rushing to the exit. That may start a deeper correction to the 50-day SMA ($1.05) and then to the psychological support at $1.

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

The four-hour chart shows the formation of a symmetrical triangle pattern. Both moving averages have flattened out and the RSI is oscillating near the center, indicating a balance between supply and demand.

A break below the triangle could tilt the short-term advantage in favor of the bears. The pair could first fall to $1.12 and then to $1.

If bulls want to prevent the decline, they will have to quickly propel the price above the triangle. That could start a journey to $1.27 and later to $1.30.

KLAY/USDT

Klaytn (KLAY) is attempting to break out from a basing pattern. The price rebounded off the 20-day EMA ($0.26) on Feb. 25, indicating solid buying on dips.

The bulls will try to pierce the overhead resistance at $0.34. If they do that, the KLAY/USDT pair could pick up momentum and soar to the psychological resistance at $0.50. Such a move will signal a potential trend change.

If the price turns down from $0.34, it will indicate that bears are fiercely protecting the level. That could again pull the price down to the 20-day EMA. A break below this level could indicate that the pair may spend some more time in the basing pattern.

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

The bulls arrested the pullback near the 61.8% Fibonacci retracement of $0.26 and started a recovery. There is a minor resistance at $0.32 but if this level is crossed, the pair could attempt a rally to $0.34 and thereafter to $0.37.

On the other hand, if the price turns down from the overhead resistance, it will suggest that bears are selling on rallies. That may enhance the prospects of a break below $0.26. If that happens, the pair may slide to $0.22.

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.

Top 5 cryptocurrencies to watch this week: BTC, FLOW, THETA, QNT, MKR

Select altcoins such as FLOW, THETA, QNT and MKR could rally if Bitcoin breaks above the stiff overhead resistance at $24,668.

The United States jobs data on Aug. 5 was above market expectations, indicating that inflation has not cooled down. The strong numbers reduce the possibility that the U.S. Federal Reserve will slow down its aggressive pace of rate hikes. After the release, the likelihood of a 75 basis points hike in September has risen to 68%, according to CME Group data.

However, analysts at Fundstrat Global Advisors have a different view. They highlighted that three out of six times, the S&P 500 bottomed out six months before the Fed’s last rate hike. Therefore, the firm anticipates the S&P 500 to witness a strong rally to 4,800 in the second half of the year.

If the tight correlation between the equities markets and the cryptocurrency markets maintain, the recovery in the crypto markets may have some more room to run. On-chain monitoring resource Material Indicators said in a Twitter update on Aug. 5 that if Bitcoin (BTC) rises above $25,000, there is no major resistance till the $26,000 to $28,000 range.

Could Bitcoin climb above the overhead resistance and extend its recovery, pulling select altcoins higher? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the near term.

BTC/USDT

Bitcoin has been trading close to the 20-day exponential moving average (EMA) of $22,719 for the past few days, indicating a tough battle between the bulls and the bears. Although the bulls have held the level, they have not been able to achieve a strong rebound off it. This indicates a lack of demand at higher levels.

Both moving averages have flattened out and the relative strength index (RSI) is just above the midpoint, indicating a balance between buyers and sellers. The advantage could tilt in favor of the buyers if they push and sustain the price above $24,668.

If they manage to do that, the BTC/Tether (USDT) pair could rally to $28,000 and then to the next overhead resistance at $32,000.

Contrary to this assumption, if bears pull the price below the 20-day EMA, the pair could decline to the 50-day simple moving average (SMA) of $21,719. If this support also gives way, the next stop could be the uptrend line.

The price is stuck between $22,400 and $23,648 on the 4-hour chart. Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If bulls drive the price above $23,648, the pair could rise to the overhead resistance at $24,668.

Conversely, if the price turns down and breaks below $22,400, it will tilt the short-term advantage in favor of the bears. The pair could then decline to the uptrend line, which could act as a strong support.

FLOW/USDT

The tight range trading in Flow (FLOW) resolved to the upside with the range expansion on Aug. 4. This indicates accumulation at lower levels and the start of a new up-move.

The bears are attempting to stall the up-move near $3.00 but a minor positive is that the bulls have not given up much ground. This indicates that traders are not hurrying to book profits after the recent rally.

The 20-day EMA of $2.07 has started to turn up and the RSI is near the overbought zone, indicating that bulls have the upper hand. If buyers drive the price above the $3.00 to $3.30 resistance zone, the FLOW/USDT pair could pick up momentum and rally toward $4.60.

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

The pair has turned down from the overhead resistance near $3.00 but is finding support at the 20-EMA on the 4-hour chart. If bulls push the price above $2.80, the pair could retest the overhead resistance at $2.99. A break above this level could signal the resumption of the uptrend.

Alternatively, if the price slips below the 20-EMA, the pair could drop to the 50% Fibonacci retracement level of $2.41, and then to the 61.8% retracement level of $2.27. A break below this level could tilt the advantage in favor of the bears and sink the pair to $2.00.

THETA/USDT

Theta Network (THETA) broke and closed above the stiff overhead resistance at $1.55 on Aug. 5, indicating that the range had resolved in favor of the bulls. The bears tried to sink the price back below the breakout level on Aug. 6 but the bulls held their ground.

The 20-day EMA of $1.39 has started to turn up and the RSI is in the positive territory, indicating advantage to buyers. If bulls sustain the price above $1.65, the THETA/USDT pair could start a new uptrend toward the pattern target of $2.10. This level may pose a strong challenge but if bulls clear this overhead hurdle, the pair could extend its rally to $2.60.

To invalidate this positive view, the bears will have to pull and sustain the price below $1.55. If that happens, the aggressive bulls may get trapped and the pair could slide to the moving averages.

The 4-hour chart shows that the bulls purchased the dip to the 20-EMA, indicating buying on dips. Both moving averages on the 4-hour chart are sloping up and the RSI is near the overbought territory, indicating that the path of least resistance is to the upside. If bulls maintain the price above $1.65, the up-move may resume.

The first sign of weakness will be a break and close below the 20-EMA. If that happens, the pair could drop to the 50-SMA. The bears will have to sink the price below this level to signal that the uptrend may have ended in the near term.

QNT/USDT

Quant (QNT) made a strong recovery from its intraday low of $40 made on June 13. The bears tried to stall the up-move at $115 but the bulls aggressively purchased the dip below the 20-day EMA of $103 on July 26.

The bulls maintained their momentum and pushed the price above the overhead resistance at $115 on Aug. 6. This indicated the resumption of the uptrend. The QNT/USDT pair could rally to the overhead resistance zone between $154 to $162 where the bears may mount a strong defense.

Alternatively, if the price turns down from the current level, the bulls will attempt to flip the $115 level into support. If that happens, the pair could resume its uptrend. The bears will have to sink and sustain the price below the 20-day EMA to gain the upper hand.

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

The pair is in an uptrend but the RSI on the 4-hour chart jumped into the overbought territory, indicating the possibility of a near-term correction. The bulls are expected to buy the dips to the 20-EMA. If they do that, it will suggest that the sentiment remains positive and traders are buying on dips. That will increase the likelihood of the resumption of the uptrend.

On the contrary, if the price turns down from the current level and breaks below the 20-EMA, the pair could slide to the 50-SMA. This is an important level to keep an eye on because a break below it could result in a fall to $100.

MKR/USDT

Maker’s (MKR) recovery is facing stiff resistance near $1,100 but a positive sign is that the bulls have not allowed the price to dip below the 20-day EMA of $1,044.

The moving averages are sloping up and the RSI is in the positive territory, indicating that buyers have the upper hand.

If bulls push and sustain the price above the overhead resistance zone between $1,100 and $1,188, the MKR/USDT pair could rally to $1,400 and then to the pattern target of $1,570. Such a move will suggest that the pair may have bottomed out.

Contrary to this assumption, if the price turns down from the overhead resistance and breaks below the 20-day EMA, the pair could slide to the trendline. A break and close below this level will invalidate the bullish setup.

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

The pair has formed a symmetrical triangle on the 4-hour chart. The 20-EMA is sloping up gradually and the RSI is in the positive zone, indicating a slight advantage to the bulls.

If buyers drive the price above the resistance line, the pair could rally to the overhead resistance at $1,188. A break and close above this level could indicate the resumption of the uptrend.

Conversely, a break below the support line of the triangle could tilt the advantage in favor of the sellers. The pair could then decline to the psychological level at $1,000.

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, BNB, UNI, FIL, THETA

Consolidation from BTC has opened the door for BNB, UNI, FIL and THETA to run higher.

Bitcoin (BTC) has made a strong comeback in the month of July and is on track for its best monthly gains since October 2021. The sharp recovery in Bitcoin and several altcoins pushed the Crypto Fear and Greed Index to 42/100 on July 30, its highest level since April 6.

Investors seem to be making the most of the depressed levels in Bitcoin. Data from on-chain analytics firm Glassnode shows that Bitcoin in exchange wallets has dropped to 2.4 million Bitcoin in July, down from the March 2020 levels of 3.15 million Bitcoin. This has sent the metric to its lowest level since July 2018.

Bloomberg Intelligence senior commodity strategist Mike McGlone highlighted that the United States Federal Reserve’s indication to consider rate hikes on a “meeting by meeting basis” may lay the groundwork for Bitcoin to outperform most assets. He said that Bitcoin’s “risk vs. reward tilted favorably for one of the greatest bull markets in history.”

Could Bitcoin extend its rally in the short term and could that trigger buying in select altcoins? Let’s study the charts of the top-5 cryptocurrencies that may outperform in the near term.

BTC/USDT

Attempts by the bulls to sustain the price above $24,276 have failed in the past two days, indicating that the bears are defending the level with vigor. However, a minor positive is that the bulls have not ceded ground to the bears.

This indicates that the bulls are not booking profits in a hurry as they expect a break above the overhead resistance. If the price breaks and closes above $24,276, the BTC/Tether (USDT) pair could pick up momentum and rally toward $28,171. This level may act as a resistance, but if bulls overcome the barrier, the next stop could be $32,000.

The upsloping 20-day exponential moving average (EMA) of $22,480 and the relative strength index (RSI) in the positive territory indicate that bulls have the upper hand.

To invalidate this bullish view in the short term, the bears will have to sink the price below the 20-day EMA. That could clear the path for a possible drop to the 50-day simple moving average (SMA) of $21,386 and then to the support line. A break below this level will suggest that bears are back in command.

The 4-hour chart shows that bulls pushed the price above the overhead resistance of $24,276 but could not build upon the breakout. The bears pulled the price back below the level but are struggling to sink the pair below the 20-EMA. This indicates that bulls are buying on dips.

If the price rebounds off the current level, the bulls will have another shot at the overhead zone between $24,276 and $24,668. If this zone is scaled, the bullish momentum could pick up further. Conversely, if bears sink the price below the 20-EMA, the pair could drop to the 50-SMA.

BNB/USDT

Binance Coin (BNB) broke above the downtrend line on July 28, indicating a potential trend change. The up-move is facing resistance near the psychological level of $300, but a positive sign is that the buyers have not given up much ground. This suggests that the bulls are not hurrying to book profits.

The upsloping 20-day EMA of $263 and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers drive the price above $300, the BNB/USDT pair could resume its uptrend toward the overhead resistance at $350.

Alternatively, if the price turns down and breaks below $285, the pair could drop to the downtrend line. The 20-day EMA is placed close to this level, hence it becomes an important support to keep an eye on. If bears sink the price below the 20-day EMA, the pair could decline to the 50-day SMA of $239.

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

The pair turned down from the overhead resistance at $300 but the bulls are attempting to defend the 20-EMA. This indicates buying on dips. The bulls may again attempt to push the price above $300. If they manage to do that, the uptrend could resume. The pair could rise to $311 and then to $322.

This positive view could invalidate in the short term if the price turns down and breaks below the 20-EMA. If that happens, the pair could slide to the 50-SMA. The buyers are expected to defend this level aggressively because a break and close below it could open the doors for a decline to $239.

UNI/USDT

Uniswap (UNI) rebounded off the breakout level of $6.08 on July 26, indicating strong buying on dips. The up-move reached near the psychological resistance at $10 on July 28 where the bears are mounting a strong defense.

The upsloping moving averages and the RSI in the positive territory indicate an advantage to buyers. If the price rebounds off $8.11, it will suggest that buyers are trying to flip this level into support.

A strong rebound off $8.11 could open the doors for a retest at $10. The bulls will have to clear this overhead hurdle to indicate the start of the next leg of the up-move to $12.

Conversely, if the price turns down and breaks below $8.11, the UNI/USDT pair could drop to the 20-day EMA of $7.48. A break and close below this level will suggest that the bullish momentum has weakened.

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

The 4-hour chart shows that the bulls are attempting to defend the 20-EMA. If the price turns up from the current level and rises above $9.18, the pair could challenge the overhead resistance zone between $9.83 and $10.

Alternatively, if the price breaks below the 20-EMA, it will suggest that supply exceeds demand. The pair could then drop to the zone between $8.11 and the 50-SMA. This is an important zone for the bulls to defend because if they fail to do that, the short-term momentum could tilt in favor of the bears.

FIL/USDT

After staying in a tight range for several days, Filecoin (FIL) broke out sharply on July 30, signaling a potential trend change. The RSI has risen into the overbought territory, which is another sign that the downtrend may be ending.

The up-move may face resistance at the overhead resistance at $9.50 but if bulls do not give much ground from this level, the likelihood of a breakout increases. If that happens, the FIL/USDT pair could start its northward march toward $16, which may again act as a strong resistance.

If the price turns down from the current level and breaks back below $6.55, it will suggest that bears are active at higher levels. The pair may thereafter oscillate in a large range between $5.00 and $9.50 for a few days.

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

The pair picked up momentum after breaking above $6.40. The bears tried to stall the up-move at $8.89 but the bulls had other plans. They aggressively bought the dip and have pushed the price near the stiff overhead resistance at $9.50.

If the price turns down from the current level, the bulls will attempt to arrest the pullback at the 38.2% Fibonacci retracement level of $8.04. A strong bounce off this level will increase the possibility of a break above $9.50. If that happens, the pair could rally to $10.82. This bullish view could invalidate below $7.70.

THETA/USDT

Theta Network (THETA) has been consolidating between $1 and $1.55 for the past several days. The bulls tried to push the price above the overhead resistance on July 30 but the bears held their ground.

If the price rebounds off the moving averages, the bulls will make another attempt to clear the overhead hurdle at $1.55. If they succeed, the THETA/USDT pair could start a new uptrend. The rally could first reach the pattern target of $2.10 and if this level is crossed, the rally may extend to $2.60.

Contrary to this assumption, if the price breaks below the moving averages, the bears will try to pull the pair to $1.00. Such a move could indicate that the range-bound action may continue for a few more days.

The 4-hour chart shows that the pair turned down from $1.50 and is struggling to rebound off the 20-EMA. This indicates that traders may be booking profits on every minor rise.

If the price sustains below the 20-EMA, the pair could drop to the 50-SMA. This is an important level for the bulls to defend because a break below it could sink the pair to $1.15.

Alternatively, if the price rebounds off the moving averages with strength, it will suggest that lower levels are attracting buyers. If bulls push the price above $1.42, a retest of the $1.50 to $1.55 resistance zone is possible.

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.