Oh Bitcoin (BTC) saw a strong rebound in the month of July and is on track for its best monthly gains since October 2021. The strong rally 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 Bitcoin’s depressed levels. Data from on-chain analytics firm Glassnode shows that the Bitcoin on exchange wallets fell at 2.4 million BTC in July, down from March 2020 levels of 3.15 million BTC. This brought the metric to its lowest level since July 2018.
Bloomberg Intelligence’s senior commodities strategist Mike McGlone pointed out that the indication from the US Federal Reserve (Fed) to consider possible interest rate hikes in the US economy “meeting by meeting” could lay the groundwork for Bitcoin to achieve the best performance among all assets. He said that “Bitcoin’s risk-reward presents itself supportive of one of the biggest bull markets in history.”
Could Bitcoin extend its short-term rally and could this trigger some altcoins to buy? Let’s study the charts of the top 5 cryptocurrencies that can outperform in the short term.
Attempts by the bulls to hold the price above $24,276 have failed over the past two days, indicating that the bears are vigorously defending the level. However, a small bright spot is that the bulls have not given ground to the bears.
This indicates that the bulls are not taking profits in a hurry as they expect a break above the upper resistance. If the price breaks out and closes above $24,276, the BTC/USDT pair could gain momentum and rally to $28,171. This level may act as resistance, but if the bulls break through the barrier, the next stop could be $32,000.
The 20-day rising exponential moving average ($22,480) and the Relative Strength Index (RSI) in positive territory indicate that the bulls have the upper hand.
To invalidate this short-term bullish view, the bears will need to drive the price below the 20-day EMA. This could pave the way for a possible decline in the 50-day simple moving average ($21,386) and then the support line. A break below this level will suggest the bears are back in control.
The 4-hour chart shows that the bulls pushed the price above the resistance at $24,276 but failed to capitalize on the breakout. The bears have pulled the price back below the level but are struggling to push the pair down below the 20-EMA. This indicates that the bulls are buying the dips.
If the price recovers from the current level, the bulls will get another hit in the air zone between $24,276 and $24,668. If this zone is breached, the bullish momentum could increase further. On the other hand, if the bears cause the price to fall below the 20-EMA, the pair could fall to the 50-SMA.
A Binance coin (BNB) crossed above the downtrend line on July 28, indicating a possible trend change. The upside move is facing resistance near the psychological $300 level, but a positive sign is that the buyers haven’t given much ground. This suggests that the bulls are not rushing to take profits.
The ascending 20-day EMA ($263) and the RSI in positive territory indicate that the path of least resistance is to the upside. If the buyers push the price above $300, the BNB/USDT pair could resume its uptrend towards the $350 resistance.
Alternatively, if the price declines and falls below $285, the pair could drop to the downtrend line. The 20-day EMA is placed near this level, so it becomes an important support to watch. If the bears cause the price to drop below the 20-day EMA, the pair could drop to the 50-day SMA ($239).
The pair denied the overhead resistance at $300, but the bulls are trying to defend the 20-EMA. This indicates buying on dips. The bulls might again try to push the price above $300. If they succeed, the uptrend could resume. The pair may rally to $311 and then to $322.
This positive view could be invalidated in the short term if the price turns down and breaks below the 20-EMA. If this happens, the pair could slide towards the 50-SMA. Buyers should defend this level aggressively as a break and close below it could open the door for a decline to $239.
A Uniswap (United) rebounded from the breakout level of $6.08 on July 26, indicating strong buying on the downside. The upside move approached the psychological resistance at $10 on July 28, where the bears are mounting a strong defense.
Rising moving averages and RSI in positive territory indicate an advantage for buyers. If the price rebounds from $8.11, it will suggest that the buyers are looking to turn this level into support.
A strong rally to $8.11 could open the door for a retest at $10. Bulls will need to clear this hurdle to signal the start of the next leg up to $12.
On the other hand, if the price declines and breaks below $8.11, the UNI/USDT pair could fall to the 20-day EMA ($7.48). A break and close below this level will suggest that the bullish momentum has weakened.
The 4-hour chart shows that the bulls are trying to defend the 20-EMA. If the price rises from the current level and breaks 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 the supply exceeds the demand. The pair could dip into the $8.11-50-SMA area. This is an important area for the bulls to defend because if they fail, the short-term momentum can shift in favor of the bears.
After remaining in a tight range for several days, Filecoin (THREAD) broke out sharply on July 30, signaling a possible change in trend. The RSI has moved into the overbought territory, which is another sign that the downtrend may be ending.
The upside move may struggle at the $9.50 resistance, but if the bulls don’t give too much ground from this level, the likelihood of a breakout increases. If that happens, the FIL/USDT pair could start its march north towards $16, a level that could once again act as strong resistance.
If the price declines from the current level and breaks below $6.55, it will suggest that the bears are active at higher levels. The pair can fluctuate in a wide range between $5 and $9.50 for a few days.
The pair gained momentum after breaking above $6.40. The bears tried to stop the upward move at $8.89, but the bulls had other plans. They aggressively bought the dip and pushed the price near strong broad resistance at $9.50.
If the price declines from the current level, the bulls will attempt to stop the pullback at the 38.2% Fibonacci retracement level of $8.04. A strong rally from 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 Network (THETA) has consolidated between $1 and $1.55 in recent days. The bulls tried to push the price above the overhead resistance on July 30, but the bears held on.
If the price rebounds from the moving averages, the bulls will again attempt to overcome the $1.55 hurdle. If successful, THETA/USDT could start a new uptrend. The rally may first reach the standard target of $2.10 and if this level is exceeded, the rally may extend to $2.60.
Contrary to this assumption, if the price breaks below the moving averages, the bears will attempt to pull the pair to $1. Such a move could indicate that range-bound action may continue for a few more days.
The 4-hour chart shows that the pair has fallen from $1.50 and is struggling to rebound from the 20-EMA. This indicates that traders can take profits on every small rise.
If the price holds below the 20-EMA, the pair could drop to the 50-SMA. This is an important level for bulls to defend as a break below could send the pair down to $1.15.
Alternatively, if the price rebounds strongly from the moving averages, it will suggest that lower levels are attracting buyers. If the bulls push the price above $1.42, a retest of the $1.50-$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 do your own research when making a decision.