Bitcoin (BTC) is currently facing resistance at $31,000, but it has managed to hold above the $29,500 support level. This indicates that the price may need a catalyst to break out of its current range.
One event to watch out for is the upcoming Federal Reserve meeting on July 25 and 26. The FedWatch Tool shows a 99.2% probability of a 25 basis point rate hike during the meeting. While this rate hike seems to have already been priced in by the markets, any surprise move by the Fed could push the price of Bitcoin out of its range.
Although there is no consensus on the direction of the breakout, analysts expect a significant downside if the price breaks below the range. Some are even projecting a fall to around $20,000. On the other hand, if Bitcoin moves higher, it could attract buyers to select altcoins.
Taking a look at the charts, Bitcoin remains below the 20-day exponential moving average ($30,036), but the bears have been unable to push the price down to the 50-day simple moving average ($28,979). This suggests that the bulls are still actively buying on minor dips. If the price breaks above the 20-day EMA, the pair could rally towards the overhead resistance at $31,000. A breakthrough above the $31,000 to $32,400 zone could potentially lead to a rally to $40,000.
On the 4-hour chart, the moving averages are flattening out and the relative strength index (RSI) is at the midpoint, indicating that the range-bound action may continue for some time. If the bulls manage to push the price above the 50-SMA, the pair could attempt a rally to $30,500 and then to $31,000, with a strong support level at $29,500.
Moving on to other cryptocurrencies, Chainlink (LINK) has been trading within a range between $5.50 and $9.50 for several months. The bulls recently pushed the price back into the range and are now attempting to drive the pair towards the overhead resistance at $9.50. If buyers manage to break through the resistance, the pair could soar to $9.50. On the downside, the $7.50 support level is important to watch, followed by the 20-day EMA at $7.05.
Filecoin (FIL) is currently trying to form an inverse head and shoulders pattern, which will be confirmed on a break and close above the neckline. The 20-day EMA has started to turn up, indicating that the path of least resistance is to the upside. If buyers manage to thrust the price above the neckline, the FIL/USDT pair could rally to $6.50 and potentially reach the pattern target of $7.30. However, if the price breaks below the 50-day SMA, it will suggest that the bulls have lost control and the pair may decline to $3.50.
Synthetix (SNX) is attempting to break out from a basing pattern, but is facing strong resistance in the zone between $3.40 and $3.56. During the recent pullback, the bulls did not allow the price to dip below the 20-day EMA, indicating buying on dips. If they can clear the overhead resistance zone, the SNX/USDT pair could rally to $4.50. On the downside, if the price falls below the 20-day EMA, it may drop to the 50-day SMA at $2.19.
Lastly, the Theta Network (THETA) is currently facing selling near the 38.2% Fibonacci retracement level of $0.83. However, the bulls have managed to keep the price above the 20-day EMA, indicating a positive sentiment and buying on dips. A break and close above $0.83 could open the door for a further rise to $0.91 and eventually $0.99. On the downside, if the price falls below the moving averages, it could descend to $0.66.
In conclusion, Bitcoin is currently struggling to break above its overhead resistance, but has managed to hold above the $29,500 support level. The upcoming Federal Reserve meeting is an important event to watch, as a surprise move could potentially push the price out of its range. Other cryptocurrencies like Chainlink, Filecoin, Synthetix, and Theta Network are also showing signs of potential upside, but face resistance and critical support levels to watch. Traders should conduct their own research and exercise caution when making investment decisions.
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