Bitcoin (BTC) and altcoins track US stock markets higher on August 3 as traders buy dips.
Small investors appear to be making the most of Bitcoin’s bear market as the number of local currency traders has risen by 40,000 since the sharp drop in June. By comparison, addresses for wallets with more than 1,000 bitcoins have fallen by 113 since May.
Some analysts believe that Bitcoin has not yet bottomed out. Trade firm QCP Capital expects bitcoin to gradually rise for most of the third quarter amid high volatility.
They believe that Bitcoin’s rally could reach a ceiling of around $28,700. In the long term, the company has not ruled out an eventual Bitcoin capitulation to around $10,000, which could mark the bottom of a bear market.
Daily cryptocurrency market performance. Source: Coin360
However, bitcoin miners appear to be in an optimistic mode as they increased their bitcoin holdings in July after capitulating in June. According to data from on-chain analytics firm CryptoQuant, bitcoin held by miners has reached all-time highs since then.
Can Bitcoin and Altcoins Resume Their Rise, or Will the Recovery Stall at Higher Levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin dropped to the 20-day exponential moving average (EMA) ($22,632) on August 2, which serves as a strong support. The 20-day gradually sloping Exponential Moving Average (EMA) and the Relative Strength Index (RSI) in positive territory indicate that the bulls have a slight advantage.
BTC/USDT daily chart. Source: TradingView
Buyers will now attempt to push the price above the general resistance at $24668. If they succeed, the BTC/USDT pair could rise to $28,000 as the bears may launch into a tight resistance. If the bulls cross this hurdle, the rally could extend to $32,000.
Contrary to this assumption, if the price falls below the current level or general resistance, this will indicate that higher levels continue to attract selling from the bears. A breakout and a close below the 20-day moving average could push the pair to the 50-day simple moving average (SMA) ($21,344) and then to the support line.
ETH / USDT
Ether (ETH) fell to the 20-day moving average ($1545) on August 2, but the long tail on the candlestick indicates that the bulls are aggressively buying the decline.
ETH/USDT daily chart. Source: TradingView
The bulls will once again attempt to clear the upper resistance area between $1,700 and $1,785. If they succeed, this will indicate a possible trend change. The ETH/USDT pair could rise to $2000 and later to $2200.
To negate this bullish view, the bears will have to plunge and hold the price below the 20 day moving average. That could open the door for a drop to the strong support level at $1280. A bounce off this level may keep the pair stuck between $1280 and $1700 for a few days.
BNB / USDT
Binance Coin (BNB) rebounded from the $275 support on August 2, indicating that sentiment has turned positive and traders are buying on dips.
BNB/USDT daily chart. Source: TradingView
The bulls will now make another attempt to push the price above the overhead resistance at $300. If they succeed, the BNB/USDT pair could gain momentum and rally towards the harsh upper resistance at $350.
The high of the 20-day EMA ($268) and the RSI in positive territory indicates that the path of least resistance is to the upside. This uptrend may be invalidated in the near term if the price breaks down and breaks below the 20 day EMA.
XRP / USDT
The long tail of the XRP candlestick on August 3 indicates that the bulls are trying to defend the 20-day moving average ($0.36). The 20-day gradually sloping Exponential Moving Average (EMA) and the RSI are in positive territory, indicating a slight advantage for the buyers.
XRP/USDT daily chart. Source: TradingView
If the bulls push the price above the $0.39 to $0.41 resistance area, the XRP/USDT pair may signal the start of a new bullish move. The pair could then rise to $0.48 as the bears may once again make a strong defense.
Contrary to this assumption, if the price falls below the current level or upper resistance, the probability of a break below the 20 day moving average increases. If that happens, the pair may continue its range-bound movement for a few more days.
ADA / USDT
Cardano (ADA) has been stuck in a large range between $0.40 and $0.55 over the past few days. The bulls are currently trying to defend the moving averages.
ADA/USDT daily chart. Source: TradingView
If they succeed, the ADA/USDT pair may climb to the upper resistance at $0.55. This remains an important level to pay attention to. If the bulls overcome this barrier, the pair could rise to $0.63 and then to $0.70.
Alternatively, if the price breaks below the moving averages, the pair may slide to the immediate support at $0.45. A bounce from this level could lead to the formation of a new narrower range between $0.45 and $0.55, while a break below $0.45 could pave the way for a drop to $0.40.
SOL / USDT
Solana (SOL) fell below the 20-day moving average