Bitcoin (BTC) has experienced a period of consolidation over the weekend, as both bulls and bears remain uncertain about its next directional move. Despite this, traders should remain vigilant as consolidation is often followed by increased volatility.
Bitcoin whales, or large holders of the cryptocurrency, have been increasing their exposure, which some analysts see as a positive sign. On-chain analyst Cole Garner believes that the bullish movement could continue until September when the summer seasonality kicks in and a shakeout happens.
While Bitcoin has seen significant gains in the first few months of the year, major altcoins have struggled to keep up. However, the current consolidation in Bitcoin provides an opportunity for select altcoins to catch up.
Here are the top 5 cryptocurrencies that are looking positive in the near term:
1. Bitcoin (BTC):
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 negative relative strength index (RSI) suggest that bears have a slight advantage. If the price drops below the $28,861 to $28,585 support zone, it could start a downward move to $26,000. On the other hand, if the price rebounds and breaks above the 50-day simple moving average ($29,840), it could signal a recovery to the overhead resistance zone between $31,804 and $32,400.
2. Shiba Inu (SHIB):
Shiba Inu broke and closed above the overhead resistance of $0.0000085 on August 4, indicating a potential uptrend. The bullish momentum continued on August 5, pushing the SHIB/USDT pair to $0.000010. The RSI is in the overbought territory, suggesting a possible minor correction or consolidation. If the price breaks above $0.000010, the pair may surge to $0.000012 and then to $0.000014.
3. Uniswap (UNI):
Uniswap has been in a correction phase, but the bulls are trying to defend the 20-day EMA ($6.04). If the price rebounds with strength from this level, it could indicate positive sentiment and buying on the dips. The UNI/USDT pair could rise to $6.70 and potentially $7.50. However, if the price sustains below the 20-day EMA, it may indicate the end of the up-move and the pair could descend to the 50-day SMA ($5.58).
4. OKB (OKB):
OKB has been undergoing a gradual decline within a large range between $38 and $59. However, the bulls managed to push the price above the downtrend line on August 4, suggesting the end of the short-term downtrend. The 20-day EMA has started to turn up and the RSI is in positive territory, indicating the upper hand for bulls. If the price reaches $48 and subsequently $50, the pair could potentially jump to $54. On the other hand, a slide below the downtrend line would indicate a failed attempt to start an up-move, with the pair potentially dropping to $41.
5. Hedera (HBAR):
Hedera broke above the overhead resistance of $0.055 on August 6, signaling a potential new up-move. If the price stays above $0.055, it could rise to $0.065 and then attempt a rally to $0.075. On the downside, the critical level to watch is $0.055. If bulls can flip this level into support, it would indicate a change in sentiment. However, if the price drops below the 50-day SMA ($0.05), it could sink to $0.045.
It’s important to note that this article does not contain investment advice or recommendations. Traders should conduct their own research and exercise caution when making investment decisions.
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