Bitcoin (BTC) continues to trade near the $31,000 level, making it an important resistance to watch out for in the short term. Some analysts believe the current consolidation could result in an upside breakout in Bitcoin.
The institutional investors also seem to be positive about the prospects of a further rally in Bitcoin. CoinShares’ head of research James Butterfill said in a recent report that 98% of all the digital asset inflows of $334 million went into Bitcoin-related products.
Although the short-term price action on Bitcoin and select altcoins looks positive, market participants should stay cautious due to the uncertainty regarding the macroeconomic issues. The crypto markets are likely to be influenced by the United States inflation figures and the Federal Reserve’s monetary action over the next few weeks.
What are the important near-term support levels on Bitcoin and altcoins that need to hold for the recovery to continue? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin broke and closed above the $31,000 level on July 3 but the bulls could not build upon this strength. This suggests that the bears have not yet given up.
The 20-day exponential moving average ($29,673) is the important level to watch out for on the downside. If the price rebounds off this level, it will suggest that the bulls are buying the dips.
That will enhance the prospects of a break above the $31,000 to $31,432 overhead zone. The BTC/USDT pair may then rise to $32,400 where the bears may again pose a strong challenge.
This positive view will be negated in the near term if the price turns down and breaks below the 20-day EMA. That could sink the pair to the 50-day simple moving average ($27,849).
Ether price analysis
Ether (ETH) turned down from the overhead resistance at $2,000, indicating that the bears are actively guarding the level.
The bears will have to sink and sustain the price below the moving averages to indicate that the ETH/USDT pair may continue its consolidation between $2,000 and $1,626 for some more time.
Alternatively, if the price rebounds off the 20-day EMA ($1,876), it will suggest that the sentiment has turned positive and traders are buying the dips. That will enhance the prospects of a break above $2,000. The pair may then soar to the $2,142 to $2,200 resistance zone.
BNB price analysis
Buyers tried to stretch BNB’s (BNB) recovery above the 20-day EMA ($245) on July 3 but the bears aggressively sold near the 38.2% Fibonacci retracement level of $252.
The price skidded back below the 20-day EMA on July 4, indicating that the bears remain active at higher levels. The flattish 20-day EMA and the RSI in the negative territory indicate that the BNB/USDT pair may continue to oscillate between $257 and $220 for a few more days.
Instead, if the price turns up from the current level and breaks above $257, it will suggest that the sentiment is gradually turning positive and the bulls are buying the dips. The positive momentum could pick up after buyers thrust the price above the $257 to $265 resistance zone.
XRP price analysis
The bears have held off the attempts by the bulls to drive and sustain XRP (XRP) above the moving averages, indicating that higher levels continue to attract sellers.
The bears will try to strengthen their position further by pulling the price below the immediate support at $0.44. If they can pull it off, the selling may intensify and the XRP/USDT pair could plunge to the strong support at $0.41.
The first sign of strength will be a break and close above the moving averages. That could open the doors for a potential rally to the $0.56 to $0.59 resistance zone where the bears are expected to mount a strong defense.
Cardano price analysis
The narrow range trading in Cardano (ADA) resolved to the downside on July 5. This suggests that the short-term bulls have given up and are booking profits.
If the price sustains below the 20-day EMA ($0.29), the bears will try to sink the ADA/USDT pair to $0.26. Such a move will suggest that the pair may remain stuck inside the $0.30 to $0.24 range for a few more days.
Conversely, if the price turns up from the current level and breaks above $0.30, it will suggest the start of a sustained recovery. There might be a minor pit stop at the 50-day SMA ($0.32) but it is likely to be crossed. Above this level, the pair could surge toward $0.38.
Dogecoin price analysis
The bulls again tried to push and sustain Dogecoin (DOGE) above the overhead resistance of $0.07 on July 4 but the bears held their ground.
The 20-day EMA ($0.07) has started to turn up gradually but the RSI has dipped to the midpoint, indicating that the positive momentum may be weakening. If the price breaks and sustains below the 20-day EMA, it will suggest that the DOGE/USDT pair may spend some more time inside the range between $0.06 and $0.07.
If bulls want to gain the upper hand, they will have to propel and sustain the price above $0.07. That could start a recovery in the pair which could reach $0.08 and then $0.10.
Solana price analysis
The long wick on Solana’s (SOL) July 4 candlestick shows that the bears are strongly protecting the level. A minor positive in favor of the bulls is that they have not allowed the price to dip back below the immediate support at $18.70.
The 20-day EMA ($17.87) has started to turn up and the RSI is in the positive territory, indicating that buyers have the upper hand. The bulls will again try to overcome the barrier at the downtrend line. If they succeed, the SOL/USDT pair may jump to $22 and then to $24.
Contrary to this assumption, if the price continues lower and breaks below the moving averages, it will suggest the start of a deeper correction. The pair may then slump to the strong support zone between $16.18 and $15.28.
Related: Can Bitcoin repeat a 2017-like rally as dollar correlation reverses?
Litecoin price analysis
Litecoin (LTC) turned down sharply from the overhead resistance of $115 and slipped below the breakout level of $106. This suggests the start of a corrective phase.
The 50% Fibonacci retracement level of $98 is an important support to watch out for. A strong bounce off this level will be a positive sign as it will show that traders are buying on dips. That will increase the likelihood of a retest of $115. If this resistance gives way, the LTC/USDT pair may resume its uptrend toward $136.
On the contrary, if the price breaks below $98, it will suggest that short-term traders may be booking profits. The pair may then dump to the 20-day EMA ($94). A deeper correction is likely to delay the resumption of the up-move.
Polygon price analysis
Buyers pushed Polygon (MATIC) above the overhead resistance of $0.69 on July 3, which completed a bullish ascending triangle pattern.
However, the bulls could not sustain the higher levels as the bears pulled the price back below the breakout level of $0.69.
If the price bounces off the current level and rises above $0.72, it will suggest the start of a new up-move. The MATIC/USDT pair could then climb to the pattern target of $0.88. The 50-day SMA ($0.75) may act as a hurdle but it is likely to be crossed.
The important support to watch on the downside is the uptrend line. A break below it may sink the pair to $0.56.
Polkadot price analysis
Polkadot (DOT) turned down from the overhead resistance of $5.56 on July 3, indicating that the bears are fiercely defending the level.
The DOT/USDT pair has slipped to the immediate support at $5.15, which is an important level to keep an eye on. The moving averages are placed just below this support, hence the bulls will try to start a recovery.
If the price rebounds sharply off $5.15, the pair may form an inverse head and shoulders pattern, which will complete on a break and close above $5.56. That could start a strong up-move to the downtrend line and later to the pattern target of $6.90.
This positive view will invalidate in the near term if the price plummets below the moving averages. That could pull the pair to $4.74.
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This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.