Bitcoin (BTC) has been in a sideways price action for several months. The bears have been pushing the price down the range, but the failure to sustain the breakdown on July 8 shows that selling is drying up at lower levels. This has attracted aggressive bulls who are trying to keep the price within the range for a longer period.
According to data from Farside Investors, US-based spot Bitcoin exchange-traded funds saw $310 million in inflows on July 12, the highest since June 5. The inflows suggest that market participants are building positions as they believe a short-term bottom has formed.
Bitcoin’s recovery is expected to improve sentiment and push the cryptocurrency market higher. Some altcoins that are close to or have crossed overhead resistance levels are likely to lead the rally.
What are the key resistance levels that Bitcoin and altcoins need to hold in order to gain momentum? Let’s take a look at the top five cryptocurrencies showing strength on the charts.
Bitcoin Price Analysis
Bitcoin bounced off the $56,552 support level on July 12 and rose above the 20-day SMA ($59,422) on July 14, showing that the bulls were attempting a rebound.
The positive divergence of the Relative Strength Index (RSI) suggests that selling pressure is decreasing. If buyers can hold the price above the 20-day SMA, a rally to the critical level of $64,602 is likely.
However, the bears are unlikely to surrender without a fight. They will defend the 20-day SMA and try to drag the price down below it. If they succeed in doing so, the BTC/USDT pair could retest the $56,552 support.
The bulls have pushed the price above the downtrend line on the 4-hour chart but are having trouble holding higher, which suggests that the bears are trying to trap the aggressive bulls by pushing the price lower.
The pullback is likely to find support at the 20-SMA. If the price bounces off the 20-SMA, it indicates that sentiment has changed from selling in the rally to buying in the dip. This increases the likelihood of a rally to $64,602.
Conversely, if the bears pull the price down below the moving average, it is a signal that the bears are still in control. The pair could crash to $56,552 and eventually to $53,485.
Caspar Price Analysis
Kaspar (KAS) bounced off its 50-day SMA ($0.16) on July 12, indicating that bulls are aggressively defending that level.
Both moving averages are rising, and the RSI is nearing its midpoint, suggesting a slight advantage for the bulls. If the price breaks above the 20-day SMA ($0.17), the KAS/USDT pair is likely to gain momentum and reach the overhead resistance level of $0.20.
This optimistic outlook will be invalidated in the short term if the price plunges and falls below the 50-day SMA. This could lead to selling, which could push the pair down to $0.14.
The price has fallen again from the resistance line, indicating that the bears are fiercely protecting the level. If the pair bounces off the moving average, the bulls will try to push the price above the downtrend line. If they can do that, the pair can go up to $0.18.
Instead, if the price continues to decline and falls below the moving average, it suggests that the odds are tilted in favor of the bears. The pair could then crash to $0.16.
Maker Price Analysis
Maker (MKR) surged above $2,000 levels on July 8, showing aggressive buying action from lower levels.
The moving averages are on the verge of completing a bullish crossover, and the RSI is in positive territory, indicating that bulls are in the ascendant. If buyers hold the price above $2,730, the MKR/USDT pair is likely to rise to $3,234, in which case the bears could be strongly challenged.
On the other hand, in a bear market, the price needs to fall below the moving average to trap an aggressive bull market, which would then take the pair to $2,000.
The rally on the 4-hour chart has pushed the RSI into overbought territory, signaling that a pullback could be around the corner. The pair is likely to find support in the $2,650-$2,730 zone. If the price bounces from this zone, the bulls will try to push the pair to $3,000.
Conversely, if the price breaks down and falls below the support area, it is a sign that the bears are acting at higher levels. The pair may then slide to the 20-SMA, which is an important level to watch. If this support is also broken, the next stop could be the 50-SMA.
Related: Why is the cryptocurrency market rising today?
Arweave Price Analysis
Arweave (AR) has been trading in a wide range between $22 and $49.55 over the past few weeks. Within a well-defined range, traders buy near the support line and sell near the resistance line.
The bounce from $22 has reached the 20-day SMA ($25), which is an important level to watch. If the price declines sharply from the 20-day SMA, the bears will try to push the AR/USDT pair below $22 again. If they succeed in doing so, the pair could start a downtrend towards $16.
Conversely, if buyers push the price above the 20-day SMA, the pair could rally to the 50-day SMA ($31). This level could again act as a hurdle, but if bulls prevail, the rally could reach $37.
The 4-hour chart shows that the pair is rising within a rising channel pattern. Both moving averages have started to rise and the RSI is in positive territory, indicating that the bulls have the upper hand. If buyers push the price above the channel, the momentum is likely to increase further, which could send the pair to $30.
The first sign of weakness is a break and close below the 20-SMA. This may be a signal that the pair may remain inside the channel for a longer period of time.
Notcoin Protocol Price Analysis
Notcoin (NOT) is trying to bounce off its 20-day SMA ($0.014), which suggests that bulls are trying to turn that level into support.
The RSI near the midpoint suggests that selling pressure is decreasing. The NOT/USDT pair is likely to gain momentum above $0.017 and rally to $0.021. If it breaks above this level, the rally could extend to $0.03.
Contrary to this assumption, if the price declines and falls below the 20-day SMA, it is a signal that the bears are still in control. Then, the pair can crash to the important support level of $0.009.
The pair is trying to form an inverse head and shoulders pattern on the 4-hour chart, which will complete with a break and close above the neckline near $0.018. If that happens, the pair could surge to $0.022, and then move higher to the pattern target of $0.025.
If the bears want to stop the decline, they will have to pull the price below the 50-SMA and hold it. If they do, the pair could slide to $0.013 and eventually $0.010. A sharp drop like that would invalidate the reversal pattern.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.