bitcoin (BTC) Hit a six-week high above $24,000 on July 29, extending its rally which gained momentum after the US Federal Reserve raised rates by 75 basis points on July 27. If the rally continues for the next two days, Bitcoin could be on course to end July with gains of over 20%, according to data from Coinglass.
It’s not just the crypto markets that have seen a post-Federal Open Market Committee (FOMC) rally. US stock markets are on track for big monthly gains in July. The S&P 500 and Nasdaq Composite are up around 8.8% and 12% in July, on track to hit their best monthly gains since November 2020.
Crypto and equity markets rose on expectation of a slower pace of rate hikes by the Fed going forward. Arthur Hayes, former CEO of derivatives platform BitMEX, believes that the The Fed will no longer raise rates and could eventually return to an accommodating monetary policy and more neutral rates.
Could Bitcoin and altcoins extend their recovery over the next few days? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin closed below the 20-day exponential moving average (EMA) ($22,213) on July 25, but the bears were unable to sustain the lower levels. The bulls bought the decline below $21,000 and propelled the price above the moving averages on July 27.
The moving averages have completed a bullish crossover and the Relative Strength Index (RSI) is in positive territory, indicating that the bulls are in control. If the buyers push the price above $24,276, the BTC/USDT pair could gain momentum and rally towards the pattern target of $28,171. If this level is breached, the next stop could be $32,000.
Alternatively, if the price declines from the current level or fails to hold above $24,276, it will suggest that demand is drying up at higher levels. In this case, the critical level to watch on the downside is the 20-day EMA. If this support cracks, it will suggest that the bullish momentum has weakened. The pair could then decline to the 50-day simple moving average (SMA) ($21,589).
Ether (ETH) rebounded strongly off the 20-day EMA ($1,470) on July 27 and broke above critical resistance at $1,700 on July 28. However, the bears are unwilling to back down and attempt to bring the price back below $1,700 on July 29.
Bulls and bears can engage in an uphill battle near $1,700, but the rising 20-day EMA and RSI in the positive zone indicate an advantage for buyers. If the bulls hold the price above $1,700, the momentum could pick up and the ETH/USDT pair could rally to $2,000 and later to $2,200.
Conversely, if the bears pull the price below $1,590, the aggressive bulls could be trapped and the pair could drop to the 20-day EMA. A strong rebound from this level will increase the possibility of a break above $1,700, but a break below the 20-day EMA could send the pair down to $1,280.
BNB has been trading in an ascending channel for the past few days. The price bounced off the 50-day SMA ($239) on July 26 and broke above the downtrend line, indicating a potential trend change.
The bullish momentum continued and the buyers pushed the price above the resistance line of the ascending channel. If the bulls hold the price above the channel, the BNB/USDT pair could rally to the overhead resistance at $350.
Alternatively, if the bulls fail to hold the price above the channel, it will suggest that the bears are active at higher levels. The pair could then re-enter the channel and drop to the downtrend line. A strong rebound from this level could improve the outlook for a break above the channel. The bears will have to drive the price down below the channel to gain the upper hand.
Ripple (XRP) is bound to a range in a downtrend. The bears pulled the price below the moving averages on July 25, but were unable to hold the lower levels and challenge the strong support at $0.30.
This suggests strong demand at lower levels. The buyers pushed the price back above the moving averages on July 27 and are trying to break through the overhead hurdle at $0.39. If they are successful, it will suggest the start of a new upward movement. The pair could then rally to the target objective at $0.48.
Contrary to this assumption, the price fell by $0.39. The bears will attempt to sink the XRP/USDT pair below the moving averages. If they do, the pair could consolidate between $0.30 and $0.39 for a few more days.
The bulls pushed Cardano (ADA) above the moving averages on July 27, indicating strong buying near the $0.44 support. The price reached the overhead resistance at $0.55, which could act as a stiff barrier.
If the price drops $0.55, the ADA/USDT pair could fall to the moving averages. A break below this support could keep the pair in a range between $0.44 and $0.55 for a few days. The bears will need to drag the pair down below the $0.44-$0.40 support zone to signal the resumption of the downtrend.
Conversely, if the bulls push the price above $0.55, it will suggest the start of a new upswing. The pair could then rally to $0.63 and later to $0.70.
Solana (FLOOR) bounced off the support line on July 26, indicating strong buying at lower levels. The bulls took advantage of the momentum and pushed the price above the moving averages on July 27th.
The SOL/USDT pair could hit overhead resistance at $48, which is an important level to watch. If the bulls overcome this barrier, the pair will complete an ascending triangle pattern. The pair could then initiate an upward move towards the pattern target at $71.
On the contrary, if the price drops from $48, the pair may extend its stay inside the triangle for a few more days. A breakout and close below the support line could tip the advantage in favor of the bears.
Dogecoin (DOGE) bounced off the ascending triangle trendline on July 27 and broke above the moving averages. This indicates strong demand at lower levels.
The bulls will now try to push the price towards the overhead resistance at $0.08. The moving averages have completed a bullish crossover and the RSI has jumped into positive territory indicating an advantage for the buyers.
If the bulls push the price above $0.08, the bullish setup will end and the DOGE/USDT pair may rally towards the pattern target of $0.11. The bears will need to drop the price below the triangle trend line to invalidate the bullish view.
Spotted (POINT) appeared and crossed above the moving averages on July 27, indicating that the lower levels are attracting buyers. The price has reached the strong overhead resistance at $8.50 where the bears can mount a strong defense.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating that the bears may be losing their grip. If the bulls push and hold the price above $8.50, it will suggest the start of a new upside to $10 and later to $10.80.
Contrary to this assumption, if the price declines from $8.50 and slides below the moving averages, this will suggest that the DOT/USDT pair may oscillate within a range for a few more days. The bears will need to sink the pair below $6 to begin the next leg of the downtrend.
Polygon (MATIC) bounced off the 20-day EMA ($0.79) on July 26 and broke above the downtrend line on July 27. This indicated that the minor corrective phase was complete.
The bulls pushed the price to $0.98 on July 28-29, but the long wick on the candlesticks suggests that the bears are defending the level with vigor. The 20-day EMA sloping upwards and the RSI in positive territory indicates that the path of least resistance is to the upside.
If the bulls push the price above the psychological $1 level, the MATIC/USDT pair could extend its rally to $1.26. This bullish view could be invalidated in the short term if the price declines and falls below the 20-day EMA.
Avalanche (AVAX) bounced off the 50-day SMA ($19.48) on July 26 and is approaching overhead resistance at $26.38 on July 29. The bears will try to block the recovery at this level.
The gradually sloping 20-day EMA ($22.10) and the RSI in positive territory indicate an advantage for the buyers. If the bulls push the price above $26.38, the bullish momentum could pick up and the AVAX/USDT pair could rally to $33 and then to $38.
Contrary to this assumption, if the price declines from $26.38 and breaks below the 20-day EMA, the bears will make another attempt to sink the pair below the 50-day SMA and challenge the support line.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research before making a decision.
Market data is provided by HitBTC swap.