Bitcoin (BTC) is struggling to break above the $31,000 overhead resistance, but a small positive is that the bulls are not allowing the price to drop below the $29,500 support. This suggests that a catalyst may be needed for the price to break out of its range.
In terms of macroeconomics, the Federal Reserve meeting on July 25-26 is an important event worthy of attention.fed watch tool It shows a 99.2% chance of a 25 basis point rate hike at the meeting. If that happens, there may not be a knee-jerk reaction in the market, as a rate hike appears to be priced in. However, any surprise move by the Fed could push prices out of the range.
Some analysts expect the range to break out soon, but there is no consensus on the direction of the breakout. If the price breaks below this range, analysts expect a sharp price drop. Some are even predicting a drop closer to $20,000.
A select altcoin could attract buyers if bitcoin moves higher. Let’s examine the chart of the top 5 cryptocurrencies that are likely to turn positive in the coming days.
Bitcoin Price Analysis
Bitcoin has remained below the 20-day exponential moving average ($30,036) for the past few days, but in a positive sign, the bears failed to sink the price below the 50-day simple moving average ($28,979).
This shows that the bulls are not giving up, they are buying every minor dip. The repeated failure of the bears to pull the BTC/USDT pair lower may attract buyers.
If the price breaks above the 20-day EMA, the pair could rally towards the overhead resistance of $31,000. A break above the $31,000-$32,400 zone could clear the way for a possible move to $40,000.
On the other hand, if the price turns down and breaks below the 50-day moving average, it will indicate that the bears are making a comeback. The pair could then drop towards the $24,800 support.
The moving averages on the 4-hour chart are flattening out and the relative strength index (RSI) has risen towards the midpoint, suggesting that range-bound action may persist for some time.
If the bulls push the price above the 50 SMA, the pair could attempt a rally to $30,500 and then to $31,000. An important support level to watch on the downside is $29,500. If this level breaks down, the pair could drop to $27,500.
Chainlink price analysis
Chainlink (LINK) has been trading in a wide range between $5.50 and $9.50 for the past few months. On June 10, the bears pulled the price below the range, but they were unable to take advantage of it.
The bulls pushed the price back into the June 21 range and are currently attempting to push the LINK/USDT pair towards the overhead resistance of $9.50. Both moving averages have turned up and the RSI is in positive territory, suggesting that the bulls are in control.
Bears will attempt to arrest gains in the $8.50-$8.80 range, but if buyers break out strongly, the pair could surge to $9.50. Important supports to watch on the downside are $7.50 and then the 20-day EMA ($7.05).
The correction on the 4-hour chart has reached the 20-day EMA, which is an important level to watch. If the price rebounds strongly off the 20 EMA, the pair could surge to $8.46. A break above this level will signal the resumption of the uptrend. The pair could then reach $8.80.
This positive view will be negated in the short term if the price turns lower and breaks below the 20 SMA. This could tempt short-term bulls to take profits, dragging the price down to the 50 SMA and then to $6.50.
Filecoin price analysis
Filecoin (FIL) is attempting to form an inverse head and shoulders pattern that will complete on a breakout and close above the neckline.
The 20-day EMA ($4.36) has started to gradually rise and the RSI is in positive territory, suggesting that the path of least resistance is to the upside. If the buyers push the price above the neckline, the FIL/USDT pair may try to rally towards $6.50 and eventually reach the pattern target of $7.30.
Conversely, if the price declines sharply from the neckline and breaks below the 50-day moving average ($4.12), it will indicate that the bulls have lost control. The pair could then slide to $3.50 before falling to $3.29.
On the 4-hour chart, the 20 SMA is sloping up and the RSI is in positive territory, suggesting that the bulls have the upper hand. There is a minor resistance at $4.74, but if this level is breached, the pair may retest the neckline.
The bears are expected to defend this level aggressively, but if the bulls do not allow the price to break below the 20 SMA, the chances of a rally above the neckline increase.
Alternatively, if the price turns down and breaks below the 50 SMA, it will indicate that the bears are selling into rallies. This could drag the pair to $4.14.
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Comprehensive Price Analysis
Synthetix (SNX) is trying to break out of the fundamental pattern, but the bulls face stiff resistance between $3.40 and $3.56.
During the pullback, the bulls did not allow the price to fall below the 20-day EMA ($2.56), which is a positive sign. This suggests buying on dips. Buyers will again try to clear the upper area. If they can succeed, the SNX/USDT pair could start a rally towards the next resistance at $4.50.
The bears may have other plans. They will try to stop a relief rally in the upper zone and pull the price below the 20-day EMA. If they do, the pair could drop to the 50-day moving average ($2.19).
The 4 hours chart shows that the bears have pulled the price below the 20 SMA, but the bulls are trying to hold the 50 SMA. This suggests that lower levels continue to attract buyers.
If the bulls push the price above $3.15, momentum could pick up and the pair could retest the $3.30 resistance. This is an important level to watch because if it gives way, the pair could resume another leg higher and hit $3.82.
If the bears want to stop the rally, they will have to pull the price below the moving averages. The pair could then drop to $2.52.
Theta Network Price Analysis
The Theta Network (THETA) recovery faces a sell-off near the 38.2% Fibonacci retracement level at $0.83.
However, a positive sign in favor of the bulls is that they will not allow the price to sustain below the 20-day EMA ($0.77). This suggests that market sentiment is turning positive and traders are buying on dips.
A breakout and close above $0.83 could open the door for further gains to the 50% retracement of $0.91 and then the 61.8% retracement of $0.99.
This positive view will be invalidated if the price declines and breaks below the moving averages. The THETA/USDT pair could drop to $0.66.
The 4-hour chart shows that the price is trading within an ascending channel pattern. The bulls are trying to stop the pullback of the moving averages and resume the uptrend. Generally, in a channel, the price bounces off a support level and reaches a resistance level.
If the price sustains above the 20 SMA, the bulls will attempt to propel the pair above $0.85. If successful, the pair could climb towards the channel resistance near $0.90.
Conversely, if the price breaks below the 50 SMA, the bears will try to pull the pair to the support of the channel. A break below this level could tilt the short-term advantage in favor of the bears.
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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