Bitcoin (BTC) experienced a period of consolidation over the weekend, with little price action as both bulls and bears remained uncertain about the next directional move. However, traders should stay vigilant as consolidation periods are often followed by increased volatility. Some analysts suggest that the increasing exposure of Bitcoin whales could be a positive sign for a bull move, which may occur in September when the summer seasonality kicks in.
While Bitcoin saw significant gains in the first few months of the year, many major altcoins struggled to keep pace. However, this current consolidation phase in Bitcoin could provide an opportunity for select altcoins to catch up.
To determine the resistance levels to watch, let’s analyze the charts of the top five cryptocurrencies that are looking positive in the near term.
Bitcoin Price Analysis:
– Bitcoin formed an inside-day candlestick pattern on August 5, indicating indecision among traders.
– The price is currently squeezed between the 20-day exponential moving average ($29,430) and the horizontal support at $28,861.
– The downsloping 20-day EMA and the RSI in negative territory suggest that bears have a slight advantage.
– If bears succeed in pulling the price below the support zone of $28,861 to $28,585, the BTC/USDT pair could decline to $26,000.
– On the other hand, if the price rebounds and breaks above the 50-day simple moving average ($29,840), it would suggest a recovery to the overhead resistance zone between $31,804 and $32,400.
Shiba Inu Price Analysis:
– Shiba Inu (SHIB) broke and closed above the overhead resistance of $0.0000085 on August 4, indicating a potential new uptrend.
– The bullish momentum continued, sending the SHIB/USDT pair to $0.000010.
– However, the RSI in overbought territory suggests a minor correction or consolidation.
– If the price remains stable at current levels, it could indicate traders holding their positions for another leg higher.
– Breaking above $0.000010 could lead to a surge to $0.000012 and then $0.000014.
Uniswap Price Analysis:
– Uniswap (UNI) has been in a correction phase but is finding support near the 20-day EMA.
– If the price rebounded with strength, it would indicate positive sentiment and buying interest.
– The UNI/USDT pair could rise to $6.70, followed by $7.50.
– However, a sustained move below the 20-day EMA would suggest the end of the up-move, with potential support at the 50-day SMA.
OKB Price Analysis:
– OKB (OKB) has been falling within a large range between $38 and $59.
– Breaking above the downtrend line on August 4 suggests the short-term downtrend may be ending.
– The 20-day EMA is turning up, indicating bullish momentum.
– The target for the OKB/USDT pair could be $48 and potentially $54.
– However, sinking below the downtrend line would indicate a failed up-move, with support at the moving averages.
Hedera Price Analysis:
– Hedera (HBAR) broke above the resistance of $0.055, signaling a potential comeback for bulls.
– If the price sustains above $0.055, the HBAR/USDT pair could rise to $0.065 and then $0.075.
– Bulls flipping $0.055 into support would indicate a change in sentiment from selling on rallies to buying on dips.
– However, if the price falls below the 50-day SMA ($0.05), it could sink to $0.045.
Note: This article is not investment advice. Readers should conduct their own research before making financial decisions.