Bitcoin (BTC) made an attempt to break out of its sideways price action on July 13 following Ripple’s legal victory over the United States Securities and Exchange Commission (SEC). However, sellers quickly pulled the price back into the range on July 14, indicating their presence at higher levels. Despite this, there is a positive sign that the bulls have managed to keep Bitcoin’s price above $30,000.
Market observers are closely watching the review process for various proposals for a spot Bitcoin Exchange-Traded Fund (ETF), with BlackRock’s proposal being one of the most prominent. Interestingly, out of the 550 ETF applications submitted by BlackRock, only one has been rejected, suggesting a high likelihood of approval.
While Bitcoin continues to consolidate, several altcoins are seeing strong buying activity. This has caused Bitcoin’s market dominance to drop below 50%, indicating a potential shift in focus to altcoins in the near term.
The question now is whether Bitcoin will start a trending move in the short term or remain stuck in its range-bound phase. Let’s take a look at the charts of the top five cryptocurrencies that traders should watch in the coming days.
Bitcoin (BTC) Price Analysis:
On the daily chart, Bitcoin closed above $31,000 on July 13, but the bears quickly pulled the price back below that level on July 14. This shows that the zone between $31,000 and $32,400 is being fiercely defended by the bears. The recent price action has also formed a bearish divergence on the relative strength index (RSI), indicating weakening bullish momentum. If the bears manage to pull the price below the 20-day exponential moving average ($30,187), the next support level to watch is the 50-day simple moving average ($28,631). On the upside, if the bulls can push and sustain the price above $31,000, the next target is $32,400. A break and close above this level could pave the way for a potential rally towards $40,000.
Uniswap (UNI) Price Analysis:
Uniswap has been finding support at the 20-day exponential moving average ($5.41) during pullbacks, indicating positive sentiment and buying interest. The bulls will aim to push the price above the immediate resistance at $6.16, which could lead to a rise towards $6.50 and potentially $6.70. On the downside, the 20-day EMA is an important support level to watch, and a break below it could signal a return of bearish pressure, with further support at the 50-day simple moving average ($5) and $4.72.
Arbitrum (ARB) Price Analysis:
Arbitrum broke and closed above a symmetrical triangle pattern on July 15, indicating that the bulls have regained control. With the 20-day EMA turning up and the RSI nearing the overbought zone, the path of least resistance appears to be to the upside. The next minor resistance is at $1.36, but a break above that level could lead to a surge towards $1.50 and potentially $1.70. However, if the price reverses and falls below the support line of the triangle, it could invalidate the bullish view and result in a sharp drop to $0.90.
Aave (AAVE) Price Analysis:
Aave broke and closed above a descending channel pattern on July 3, with the bulls successfully holding the retest of the breakout level on July 6 and July 10. This suggests that the bulls have flipped the resistance line into support. The rising 20-day EMA ($72) and the RSI in positive territory indicate that the bulls are in control. Aave’s price may turn up towards $84.50, and if the bulls clear that level, it could rally towards $95. On the downside, a break and close below the 20-day EMA would suggest a weakening of the bullish momentum.
Maker (MKR) Price Analysis:
Maker broke above a downtrend line on July 2 and retested the level on July 14, showing strong demand at lower levels. With the 20-day EMA sloping upwards and the RSI in the positive zone, the bulls are in control. Resistance is anticipated near $1,100, and if it is overcome, the price could surge to $1,200. However, a turn down from $1,080 would indicate continued selling pressure from bears, possibly pulling the price back into the descending channel.
In conclusion, while Bitcoin faces resistance at higher levels, several altcoins, including Uniswap, Arbitrum, Aave, and Maker, are showing buying interest and potential for further upside. Traders should closely monitor these cryptocurrencies for potential trading opportunities in the coming days.