Bitcoin (BTC) continued its sideways price action this week as buyers successfully defended the $55,724 support level. Large fund managers used the consolidation period to add spot Bitcoin exchange-traded funds (ETFs) to their portfolios. According to analysis by CoinShares Research, Goldman Sachs has bought $419 million worth of Bitcoin ETFs since March, Capula Management has bought $470 million, and Avenir Tech has bought $388 million.
According to a report released by cryptocurrency exchange Coinbase, institutional investors classified as investment advisors increased their Bitcoin ETF holdings by 3% in the second quarter of 2024. Hedge fund holdings decreased slightly during the same period. Coinbase believes that the summer period in the United States (June to August) may delay “massive inflows,” which could lead to volatile price movements.
Crypto analyst Matthew Hyland said in a video analysis that Bitcoin is following a pattern similar to previous U.S. election years. According to him, Bitcoin could remain range-bound “a little longer” and will probably break out in October or November.
Bitcoin’s mixed price action has weighed on several altcoins. However, as Bitcoin attempts to break $60,000, some altcoins may see buying. Let’s take a look at the top five cryptocurrencies showing strength on the charts.
Bitcoin Price Analysis
Bitcoin bounced from the support at $55,724 on August 15 and reached the 20-day exponential moving average ($60,193) on August 18.
The downward moving average and the Relative Strength Index (RSI) just below the midpoint indicate a slight advantage for the bears. If the price breaks below the 20-day EMA, the bears will again try to push the BTC/USDT pair below the important $55,724 support. If successful, the pair could fall to $49,000.
If the bulls want to stop the decline, they will have to push the price above the 50-day simple moving average ($61,540). Then, the pair can attempt a rally to $65,660 and then $70,000.
The moving averages are flat and the RSI is just above the midpoint, indicating a balance between supply and demand. If buyers push the price above $62,000 and hold, the balance will tilt in favor of buyers. This will create a possibility of a rally to $65,660.
The bears will need to push the price below the $55,724 support level to gain the upper hand. If they do, the selling pressure could pick up and the pair could crash to the important $49,000 support level. The bulls are expected to defend this level strongly.
BNB Price Analysis
BNB (BNB) has recovered to the downtrend line, indicating that the bulls are attempting a rebound.
The 20-day EMA ($529) is flat and the RSI is nearing its midpoint, suggesting that selling pressure is waning. Buyers will try to push the price above the downtrend line and hold it. If that happens, the BNB/USDT pair could go up to $605.
Conversely, if the price breaks down sharply from current levels, it suggests that the bears are fiercely defending the downtrend line. The pair could drop to $495 and then to the important support level of $460.
The moving average on the 4-hour chart is gradually rising, and the RSI is in positive territory, suggesting that the bulls have a slight upper hand. If the price rises and stays above the downtrend line, it indicates that the short-term correction is over. The pair can rise to $578 and later to $592.
This positive outlook will be invalidated if the price declines and breaks below the moving average. Then, the pair may crash to the solid support level of $495.
Toncoin Price Analysis
Toncoin (TON) fell from the 50-day SMA ($6.85) on August 15, but is finding support at the 20-day EMA ($6.49).
The flat 20-day EMA and RSI near the midpoint suggest range-bound behavior in the short term. A breakout and close above the 50-day SMA would tilt the short-term advantage to the bulls. Then, the TON/USDT pair could move up to $7.65 and eventually to the strong overhead resistance at $8.29.
Alternatively, if the price closes below the 20-day EMA, it suggests that the bears have the upper hand. There is strong support at $6.05, but if this level breaks, the pair could fall to $5.26.
As the bears failed to push the price below $6.38, buyers gathered and pushed the pair above the moving average. There is some resistance at $6.88, but if it breaks above this level, the pair could reach $7.26.
Conversely, if the price declines from current levels and falls below $6.38, it will be a favorable signal for bears. The pair may crash to $6.18 and then to $6.05. This level is likely to attract buyers.
relevant: Bitcoin indicators align bullish signals as price breaks above 60.6K BTC level.
Aave Price Analysis
On August 17, bulls tried to push Aave (AAVE) above the $118 resistance level, but bears held on to the resistance level.
The rising 20-day EMA ($103) and the RSI in positive territory indicate that bulls are in the lead. If buyers do not give up much at current levels, a rally above $118 is likely. Then, the AAVE/USDT pair can go up to $134.
This bullish outlook will be invalidated in the short term if the price plunges and falls below the 20-day EMA. This move suggests that the pair could swing between $90 and $118 for some time.
The failure to push the price above $118 has led to a pullback to the 20-EMA on the 4-hour chart. If the price breaks below the 20-EMA, it suggests that the bulls are losing strength. The pair could drop to $104. This is a crucial level for the bulls to defend, as a break below this level could see the pair fall to $96.
Conversely, if the price rises from the current levels, the bulls will try to push the pair above $113.50. If they can do that, the pair could rally to $118.
Helium Price Analysis
Helium (HNT) has been on a gradual upward trend for the past few days, signaling the start of a new uptrend.
The rising 20-day EMA ($6.22) and the RSI near the overbought zone show that the bulls are in control. The HNT/USDT pair could rally to $9.74, which is likely to act as a strong resistance. Buyers are expected to buy the decline to the 20-day EMA, which indicates positive sentiment.
In order for the bears to take control, they will have to push the price below the 20-day EMA. If they can do that, the pair will likely crash to the 50-day SMA ($4.78) and eventually to $4.
The 4-hour chart shows that the pair is in an uptrend, with bulls buying the dip to the 50-SMA. The rising moving average signals the advantage for buyers, but the negative divergence in the RSI suggests that the bullish momentum may be weakening.
The correction will most likely find support at the 20-EMA and then the 50-SMA. Sellers will need to push the price below the 50-SMA to clear a path for a possible decline to $6.10.
Instead, if the price stays above the 20-EMA, it will be a signal that the uptrend is still intact. Then, the pair can go up to $9.
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.