On July 24, Bitcoin plummeted to $29,000, indicating that bears are trying to seize control. It appears that failure to hold higher levels could tempt short-term bulls to take profits, while aggressive bears initiate short positions.
Despite the bearish near-term look, long-term investors remain unmoved and continue to hold onto their positions. According to Glassnode data, the supply of Bitcoin (BTC) long-term holders hit a new high of 14.52 million BTC, “equivalent to 75% of the circulating supply.”
Despite the short-term weakness in the cryptocurrency market, the U.S. stock market remains on a strong footing.Dow Jones Industrial Average rise It has risen for 10 consecutive days, the longest streak since 2017. That could change this week, however, with a slew of key earnings releases and the Federal Reserve’s July 26 policy decision. The latter could also affect the U.S. dollar index (DXY), which is on a recovery path.
Could Lower Levels Attract Bitcoin Buyers And Select Altcoins? Will Stronger U.S. Stocks Limit Crypto Market’s Fall? Let’s analyze the graph to find out.
S&P 500 Index Price Analysis
The S&P 500 (SPX) is down from 4,578 on July 19, but a positive sign is that the bulls haven’t given up much ground. This shows that buyers are not selling their positions as they expect the uptrend to continue.
The rising 20-day exponential moving average (EMA) is at 4,471 and the relative strength index (RSI) is in overbought territory, suggesting bulls are in command. If the price rises from 4,513 or the 20-day EMA, it will indicate that lower levels continue to attract buyers.
This will enhance its prospects of breaking above 4,578. The index could then rebound to 4,650 and eventually 4,800.
This positive view will be negated if the price breaks below the 20-day EMA. This could open the door for a drop to the 50-day simple moving average (SMA) of 4,336.
US dollar index price analysis
The U.S. dollar index rose sharply on July 18 and fell back below 100.82 on July 20. This suggests that a break below 100.82 could be a bear trap.
Prices have touched the 20-day moving average, which is an important level to watch. If the price breaks down sharply from this base and breaks below 99.57, the downtrend may resume. The index could then fall to 97.50.
Conversely, if the price breaks above the 20-day EMA, it will signal that the bulls are back in the game. Afterwards, the index could climb to the 50-day moving average (102.66) before rising to the downtrend line.
Bitcoin Price Analysis
On July 23, Bitcoin bulls again pushed the price above the 20-day EMA ($29,957), but the long shadows on the candlesticks indicated strong selling at higher levels.
The sell-off intensified on July 24, with the price falling below the strong support at $29,500 that had held for the past few days. The BTC/USDT pair has dropped to the 50-day moving average ($29,021), a key level to watch.
If the price recovers from the current levels and rises above the 20-day EMA, it will indicate that the breakout could be a bear trap. The pair may then rally towards $31,000.
Conversely, if the price continues lower and breaks below the 50-day SMA, it will indicate that the bulls have given up. The pair could then drop to $27,500 and then to $26,000.
Ethereum Price Analysis
Ethereum (ETH) rebounded from the 50-day SMA ($1,852) on July 23, with the bulls attempting to push the price above the 20-day SMA ($1,888), but the bears held their ground.
The bears are attempting to pull and sustain the price below the 50-day moving average. If they succeed in doing so, the ETH/USDT pair could start a further pullback towards $1,700. Such a decline would suggest that the pair may stay in the $1,626-$2,000 range for a while. Price action within this range can be random and volatile.
If the price bounces off the 50-day SMA and rises above the 20-day SMA, it will indicate strong buying at lower levels. This could open the door for a rally towards $2,000. The next trend move could start on a break above $2,000 or below $1,626.
Ripple Price Analysis
After failing to hold above $0.83 on July 19 and 20, XRP (XRP) has turned towards the 20-day EMA ($0.67).
If the bulls want to keep the uptrend intact, they have to go all out to protect the 20-day EMA. If the price rebounds strongly from this level, the XRP/USDT pair could form a range in the short term.
The downside border of the range is likely to be $0.66 and the upside border is $0.86. The first sign of strength will be a break and close above the overhead resistance at $0.86.
Conversely, if the price breaks below the 20-day EMA, it will indicate that the bulls are in a hurry to exit. This could attract further selling and the pair could drop to the breakout level of $0.56.
BNB price analysis
The bulls have failed to propel BNB (BNB) above the 20-day EMA ($243) for the past few days. This attracted heavy selling from the bears, who attempted to drive the price below the support of the symmetrical triangle.
If they succeed, it would signal that the uncertainty between bulls and bears has been resolved in favor of sellers.
Subsequently, the BNB/USDT pair could drop to the critical support at $220. This level may attract aggressive buying from the bulls. A strong recovery from $220 would suggest that the pair may remain range-bound for some time.
Another possibility is that the price bounced off the support line of the triangle. In this case, the pair may extend its stay inside the triangle for a few more days. Buyers must push the price above the triangle to signal a rebound.
Cardano Price Analysis
Cardano (ADA) is witnessing an uphill battle between bulls and bears near the 20-day EMA ($0.31).
The flattening 20-day EMA and the RSI near the midpoint don’t give buyers or sellers a clear advantage. This uncertainty will favor the bears if the price breaks below $0.30. This could bring the price down to the uptrend line.
Conversely, if the buyers push the price above $0.33, it will signal that the bulls are back in the game. The ADA/USDT pair could then rise to the July 14 intraday high of $0.38. The bears are likely to defend this level vigorously.
related: Bitcoin whale exchange inflow share hits a one-year high — over 40%
Dogecoin Price Analysis
Bears attempted to pull Dogecoin (DOGE) back below the $0.07 breakout level on July 22, but the bulls held their ground.
The 20-day EMA ($0.07) has started to rise and the RSI is in the positive zone, suggesting that the path of least resistance is to the upside. There is a minor resistance at $0.08 where the bears are expected to mount a strong defense.
If the buyers do not allow the price to fall below the 20-day EMA, the chances of a rally to $0.10 increase. This positive view will be invalidated in the short-term if the price declines and sustains below $0.07.
Solana Price Analysis
Solana (SOL) continues to see short-term traders taking profits. This allowed the price to break below the 20-day moving average ($23.73) on July 24.
The bulls will try to stop the decline to $22.30. If the price bounces off this support, the bulls will make another attempt to clear the overhead hurdle at $27.12. If they are successful, the SOL/USDT pair could retest the July 14 high of $32.13.
On the other hand, a break below $22.30 would suggest that a break above $27.12 could be a bull trap. The pair could then drop to the 50-day moving average ($19.80). This move suggests that the pair may continue to trade within a wide range between $14 and $27.12 for some time.
Polygon Price Analysis
Polygon (MATIC) has been trading near the 20-day moving average ($0.74) for the past few days. This shows that the bulls are protecting the level but failing to start a recovery. This suggests that the bears are maintaining the pressure.
The 20-day EMA is flattening out and the RSI has fallen below 50, indicating a balance between supply and demand. The balance could tip in favor of the bears if the price breaks below the 50-day moving average. The MATIC/USDT pair could slip to $0.60.
Conversely, if the price rises from the current levels and rises above $0.80, it will indicate strong buying at lower levels. The pair may then retest the local high at $0.89. A break above this level could signal the resumption of the uptrend.
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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