Bitcoin (BTC) has recovered sharply from its weekly low of $50,000, signaling aggressive buying at lower levels. This is a bullish signal, but veteran trader Peter Brandt thinks the selling is not over yet. Brandt said in a post on X that there is a 50% chance that Bitcoin will fall below $40,000.
However, the Bitcoin bull-bear market cycle indicators that had been turning negative have turned bullish again. “Several Bitcoin on-chain cycle indicators that were on the borderline have now turned bullish again,” CryptoQuant founder and CEO Kiyoung Joo said in a post on X.
Bitcoin’s recovery has prompted some altcoin buying as it looks to reverse and start a new uptrend. If Bitcoin holds above $60,000, the altcoin rally is expected to gain momentum.
What overhead resistance levels does Bitcoin need to overcome for the cryptocurrency recovery to gain traction? Let’s take a look at the top five cryptocurrencies that could lead the market higher once the uptrend begins.
Bitcoin Price Analysis
Bitcoin surged on August 8th and reached the moving average, indicating that the bulls were buying aggressively at lower levels.
The bears are trying to stop the recovery at the moving average, but the positive sign for the bulls is that they haven’t given up much ground to the sellers. This increases the likelihood of a break above the moving average. If that happens, the BTC/USDT pair could rise to $70,000. The bears are expected to make a strong defense in the $70,000 to $73,777 range.
Conversely, if the price declines from current levels and falls below $59,500, it suggests that the bears are attempting a comeback. The pair could then slide to the solid support level of $55,724.
The moving average has completed a bullish crossover on the 4-hour chart, and the RSI is above the midpoint, indicating a slight bullish edge. Buyers need to push the price above $62,745 to gain strength. This could push the pair to $66,850 and later to $70,000.
The bears will need to push the price below the moving averages to stop the uptrend. The pair could crash to the strong support level of $55,724, where buyers are likely to intervene.
Ether Price Analysis
Ether (ETH) is attempting to recover to the $2,850 level, which is likely to witness a fierce battle between bulls and bears.
If the price breaks $2,724, the ETH/USDT pair could reach the falling 20-day EMA ($2,864). This is an important level to watch out for, as a sharp decline from the 20-day EMA suggests that sentiment is still negative. The bears will then try to push the price down below $2,552.
Contrary to this assumption, if the price breaks above the 20-day EMA, it will be a signal that the bulls are back in the game. The pair can rise to the 50-day SMA ($3,162) and then to $3,400.
The moving average on the 4-hour chart is close to completing a bullish crossover, and the RSI is in positive territory, indicating a positive turn in the trend. There is some resistance at $2,724, but if it crosses over, the pair could reach solid overhead resistance at $2,850.
This positive outlook will be invalidated in the short term if the price falls below $2,550. The pair could then fall to $2,300, where the bulls will try to stop the decline.
Sui price analysis
SUI surged above its moving average and downtrend line on August 8, suggesting a possible short-term trend reversal.
The moving averages are on the verge of completing a bullish crossover, and the RSI is in positive territory, indicating that bulls are in control. If buyers keep the price above the downtrend line, the SUI/USDT pair could rally to $1.17 and then $1.44.
The moving average is an important support level to watch in a downtrend. A break and close below the moving average suggests that bears will continue to sell in the rally. This could lead to a plunge to $0.60.
The 4-hour chart shows that the bears are trying to stop the relief rally at the $0.95 resistance level. The 20-EMA is an important support level to watch in the downtrend. If the price bounces from this level, it will be a sign that the bulls are still in control. That will increase the chances of a break above $0.95. Then the pair can go up to $1.15.
Conversely, if the price breaks below the 20-EMA, it suggests that traders are taking profits. The bears will then try to push the price down to $0.80 and take advantage.
relevant: Bitcoin Indicator Calls ‘Wealth Bottom’ As Traders Eye BTC Price Below $60K
Bittensor Price Analysis
On August 8, the bulls pushed Bittensor (TAO) above its moving average, suggesting that selling pressure may be weakening.
A positive signal for the bulls is that the price has not been able to break below the moving average again. This suggests that the bulls are trying to turn the moving average into support. A break above $320 could open up a rally to $367. This level is likely to attract sellers again.
This optimistic outlook will be invalidated in the short term if the price plunges and stays below the moving averages. Then, the TAO/USDT pair can fall to $243 and then $200.
The 4-hour chart shows that the bulls are trying to hold the price above the 20-EMA. If successful, it will be a signal that sentiment has turned positive and traders are buying on the pullback to the 20-EMA. There is a minor hurdle at $320, but if the bulls overcome it, the pair can rise to $367.
The bears will need to push the price back below the 20-EMA to stop the uptrend. This could send the pair crashing to the 50-SMA, and then to $243. A drop below this level would tilt the odds in favor of the bears again.
Notcoin Price Analysis
The bears attempted to push the Notcoin (NOT) price below the $0.009 support level on August 5 and hold it, but the bulls were unwavering.
The NOT/USDT pair reached the 20-day EMA ($0.012) on August 6, but the bulls are having a hard time overcoming the barrier. However, the price is hanging on the 20-day EMA, which increases the possibility of a bullish breakout.
If buyers push the price above the moving average, it suggests that the bears are losing control. Then, the pair can reach $0.018.
On the other hand, if the price declines from current levels and falls below $0.009, it signals the start of a downtrend towards $0.005.
Both moving averages are flat and the RSI is just below the midpoint, indicating a slight advantage for sellers. The bears will try to push the price down to $0.010, which will likely act as support.
If they push the price above $0.013 and hold it, the odds will be tilted in favor of the bulls. That will signal the start of a new uptrend towards $0.15. Conversely, a break below $0.010 will suggest that the bears are in control.
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.