Bitcoin (Bitcoin) Is knocking on the door of the key $50,000 level, even after the digital asset rose 70% from the low of $29,278 on July 20 to the intraday high of $49,757.04 on August 21, most traders remained optimistic.
Monitoring resource material indicators point to a A large number of put options at a strike price of $50,000 And “almost full active funding (overheating)”, which indicates rejection of current levels and a “September correction”.
Nikita Ovchinnik, Chief Business Development Officer of 1inch Network, said that several new iInstitutional investors are exposed to cryptocurrencies In the past year, “they did not come for short-term benefits.”
Another positive sign of the crypto industry is Growing list of unicornsAnalysts expect that as the adoption of cryptocurrencies and blockchains increases, more companies will join the list.
Could Bitcoin’s hesitation in the vicinity of US$50,000 divert attention to altcoins? Let’s study the charts of the top 5 cryptocurrencies that may attract traders’ attention in the short term.
Table of Contents
Bitcoin/USD
Bitcoin rebounded from the 20-day exponential moving average ($45,049) on August 19, and the bulls pushed the price above the upper resistance of $48,144 on August 20. The bears are currently trying to prevent a rise of $50,000 at psychological resistance.
If the bulls do not give up too much stance and flip the $48,144 level to support, it will show strength. Then the BTC/USDT currency pair may accelerate its momentum and start marching northward toward $58,000.
The rising 20-day EMA and the relative strength index (RSI) of the positive zone indicate that the path of least resistance is to the upside.
Or, if the bears pull the price below 48,144 USD, the currency pair may fall to the 200-day simple moving average (45,816 USD). This is an important level for bulls to defend, as a break below that level may encourage bears.
The seller will then try to push the price down below the breakout level of $42,451.67. If they succeed, it means that a deeper correction has begun.
The 4-hour chart shows that the bears are actively defending the area between $49,500 and $50,000. If they can drop the price below the 20-EMA, the currency pair may fall to $46,600 and then to $44,000.
If this happens, it indicates that the bulls are losing control, and then the currency pair may remain within a range of between 44,000 and 50,000 for a few days. The bears must pull the price below $42,451.67 to gain the upper hand.
ADA/USDT
Cardano (Have) Is in a strong upward trend. The bulls pushed the price above the all-time high of $2.47 on August 20, but the long wick on the candlestick that day showed a sell-off at a higher level. Altcoins formed an intraday candlestick pattern on August 21, indicating the hesitation between bulls and bears.
As the bulls once again pushed prices to record highs, the uncertainty dissipated today. If buyers maintain the price above the breakout level of $2.47, the ADA/USDT pair may rebound to $3.
However, the long wick on the candlestick today indicates that the bears are unlikely to retreat without a fight. They will try to bring the price back below $2.36 and trap aggressive bulls. If this happens, the currency pair may be revised to $2.20.
If the price rebounds from $2.20, the bulls will try again to resume the upward trend. Breaking and closing above US$2.47 to US$2.65 will enhance the prospects for the continuation of the upward trend. Or, a break below $2.20 may pull the price down to $1.94.
The 4-hour chart shows that the 20-EMA is sloping upward, but the RSI is forming a negative divergence. This suggests that the bullish momentum may be slowing. The first sign of weakness will be a break below the 20-EMA.
Contrary to this assumption, if the bulls do not give up too much from the current level, it indicates strong power. This may attract more buying, and then the currency pair may rebound to the psychological resistance of $3.
AVAX / USDT
Avalanche (AVAX) rose from $18.41 on August 17 to $50.27 on August 21, a short-term increase of 173%. This sharp rise has pushed the RSI above 92, indicating that the rise is excessive in the short term.
The long wick on the candlestick on August 21 indicates that the bears are trying to defend the $50 psychological resistance level. On the downside, the first support is at $40. If the price rebounds from this level, it indicates that the bulls will not actively profit because they expect the rebound to continue further.
A break and close above $44 may improve the prospects for retesting the all-time high of $60.30.
Conversely, if the bears pull the price below the 38.2% Fibonacci retracement of 38.09 USD, the AVAX/USDT currency pair may be corrected to the 50% retracement of 34.34 USD. A break below this support level will indicate that the bullish momentum may have diminished.
The 4-hour chart shows that the bears are trying to stop the relief rebound at the upper resistance of 44.60 US dollars, and the bulls are buying on dips to 40 US dollars. This indicates that the currency pair may maintain range fluctuations between these two levels in the short term.
If the bulls push the price above $44.60, the currency pair may rebound to $50.27. A break and close above this level will signal the resumption of the uptrend. Conversely, a break below the 20-EMA will indicate that traders are booking profits rather than buying on dips. This may mark the beginning of a deeper correction.
Cake/USDT
PancakeSwap (CAKE) is currently recovering strongly. Continued buying by the bulls pushed the price to above the 38.2% Fibonacci retracement level of $22.74 on August 20.
If the bulls maintain the price above $22.74, the relief rebound may reach the 50% retracement level of $26.85, and then reach the 61.8% retracement level of $30.96. The bears may create strong resistance in this area.
During the downward process, the key support that needs attention is the 20-day moving average (20.37 USD). If the price rebounds from this support level, it indicates that market sentiment is still optimistic and traders buy on dips. Conversely, a break below the 20-day moving average may open the door for a further decline to $16.
The 4-hour chart shows that prices are trading in a rising wedge pattern. If the bears maintain the price below the 20-EMA, the currency pair may fall to the wedge-shaped support line. This level may play a strong supporting role, and if it rebounds sharply, it indicates that traders are buying on dips.
A breakout and close above 24.65 USD will indicate a continued rise. The next upside target is the wedge resistance line. If the bulls push the price above the wedge, the bullish momentum may pick up.
Atom/dollar
Universe (Atomic energy) Since the end of May, it has been trading in a wide range between US$8.51 and US$17.56. The bulls pushed the price above the range resistance on August 18, paving the way for a possible rise to the pattern target of $26.61.
However, the long wick on the candlestick today and the RSI above 83 indicate that the rally is over-extended in the short term. This may attract bulls to take profits, leading to a slight correction or consolidation in the next few days.
If the bulls do not give up too much stance and turn the 17.56 dollar level into support, the ATOM/USDT currency pair will try to resume the upward trend again. A break of $26.61 may open the door for a rebound to $28 and then to $30.
The bears will have to pull the price down and maintain it below $17 to invalidate the bullish sentiment.
The 4-hour chart shows that shorts have formed strong resistance near $24. Although the bulls have pushed the price above this resistance level, it can be seen from the long wick on the candlestick that they cannot maintain a higher level.
A positive sign is that buyers are not in a hurry to sell their positions. The currency pair may consolidate for a period of time between 21 US dollars and 24 US dollars. A break and close above the $24 level would indicate strength and indicate a return to the rise.
Alternatively, a break below the 20-EMA would indicate the beginning of a deeper correction to $17.56.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, and you should conduct your own research when making a decision.
