Bitcoin dropped to $29,000 on July 24, indicating that the bears are trying to take control. It looks like short-term bulls may be tempted to take profits and aggressive bears to initiate short positions as higher levels don’t hold.
While the short term seems bearish, long term investors remain unconcerned and hold their positions. Glassnode data shows that bitcoin (B T cSupply to long term holders created a new high of 14.52 million bitcoins, “equivalent to 75% of the circulating supply.”
While the cryptocurrency markets have weakened in the short term, the US stock market remains strong. Dow Jones Industrial Average is getting up For 10 consecutive days, which is the longest period since 2017. However, things could change this week with several key earnings reports and the Federal Reserve’s July 26 policy decision. The latter may also impact the US Dollar Index (DXY), which is on a recovery path.
Could Lower Levels Attract Bitcoin Buyers to Opt for Altcoins? Will the strength of the US stock markets limit the decline in the cryptocurrency markets? Let’s analyze the chart to find out.
S&P 500 Index Price Analysis
The S&P 500 Index (SPX) fell from 4,578 on July 19, but one positive sign is that the bulls haven’t lost much ground. This suggests that buyers are not reducing their positions as they expect the uptrend to continue.
The rising 20-day exponential moving average (EMA) at 4,471 and the relative strength index (RSI) in an overbought zone suggest that bulls are in charge. If the price moves above 4,513 or the 20-day EMA, it suggests that lower levels will continue to attract buyers.
This will increase the chances of a break above 4,578. Thereafter the index may move higher towards 4,650 and eventually 4,800.
This positive outlook is negated if the price breaks below the 20-day EMA. This could open the doors for further downside to the 50-day simple moving average (SMA) of 4,336.
us dollar index price analysis
The US Dollar Index rose sharply on 18 July and again rose above the breakout level of 100.82 on 20 July. This suggests that a break below 100.82 could be a bear trap.
The price has reached the 20-day EMA, which is an important level to watch. If the price declines sharply from this and breaks below 99.57, the downtrend could resume. Thereafter the index may fall further to 97.50.
Instead, if the price breaks above the 20-day EMA, it suggests that the bulls are back in the game. The index may then rise to the 50-day SMA (102.66) and then to the downtrend line.
bitcoin price analysis
Bitcoin bulls again pushed the price above the 20-day EMA ($29,957) on July 23, but the long wick on the candlestick shows strong selling at higher levels.
Selling intensified on July 24 and the price declined below the strong support at $29,500 that had formed over the past few days. The BTC/USDT pair has declined to the 50-day SMA ($29,021), which is an important level to watch.
If the price moves higher from its current levels and moves above the 20-day EMA, it suggests that the break could be a bear trap. Then the pair can rise to $31,000.
Conversely, if the price continues to decline and breaks below the 50-day SMA, it would suggest that the bulls have given up. The pair could then decline further towards $27,500 and later $26,000.
ether price analysis
ether (eth) bounced off the 50-day SMA ($1,852) on July 23 and the bulls tried to propel the price above the 20-day EMA ($1,888), but the bears held it.
The bears are trying to drag the price below the 50-day SMA and sustain it. If they succeed, the ETH/USDT pair could start a deeper correction towards $1,700. Such a decline would indicate that the pair could remain stuck in the range of $1,626 to $2,000 for some time to come. Price movement within the range is likely to be random and volatile.
If the price bounces off the 50-day SMA and rises above the 20-day EMA, it suggests a solid buy at lower levels. This could open the doors for a potential rally to $2,000. The next trending move is likely to start with a break above $2,000 or below $1,626.
xrp price analysis
After XRP (XRP) has declined towards the 20-day EMA ($0.67).
If the bulls want to sustain the bullish trend, they will need to defend the 20-day EMA strongly. If the price bounces strongly from this level, the XRP/USDT pair could form a range in the near term.
The range boundaries could be $0.66 on the lower side and $0.86 on the upper side. The first sign of strength would be a stop and close above the overhead resistance at $0.86.
Conversely, if the price breaks below the 20-day EMA, it will suggest that the bulls are running for the exit. This could attract further selling, and the pair could decline towards the breakout level of $0.56.
bnb price analysis
Bulls fail to propel BNB (bnb) above the 20-day EMA ($243) in the past few days. This attracted a lot of selling from the bears, who are trying to take the price below the support of the symmetrical triangle.
If they succeed, it suggests that the indecisiveness between bullish and bearish has been resolved in favor of the sellers.
After that the BNB/USDT pair could decline towards the important $220 support. This level is likely to attract aggressive buying by the bulls. If the price moves strongly towards $220, it would suggest that the pair could remain range-bound for some time.
Another possibility is that the price bounces off the support line of the triangle. In that case, the couple can extend their stay in the triangle for a few more days. To announce a pullback, buyers need to push the price above the triangle.
cardano price analysis
Cardano (ada) has seen a tough battle between the bulls and bears near the 20-day EMA ($0.31).
The flattening of the 20-day EMA and the RSI near the midpoint does not provide clear advantages for either the buyers or the sellers. The uncertainty will tilt in favor of the bears if the price declines below $0.30. This may cause the price to drop to the uptrend line.
On the other hand, if the buyers push the price above $0.33, it would suggest that the bulls are back in the game. After that the ADA/USDT pair could rise to the July 14 intraday high of $0.38. The bears are likely to vigorously defend this level.
dogecoin price analysis
The Bears Tried To Pull Dogecoin (Doge) below the breakout level of $0.07 on July 22, but the bulls persisted.
The 20-day EMA ($0.07) is starting to move up and the RSI is in positive territory, indicating that the path of least resistance is to the upside. There is a minor resistance at $0.08 and a strong defense of the bears is expected.
If the buyers do not allow the price to break below the 20-day EMA, the chances of a rally increase to $0.10. This positive outlook will be invalidated in the near term if the price declines and sustains below $0.07.
Solana Price Analysis
Solana (Fifth note of musical scale) Profit booking is being seen by short term traders. This took the price below the 20-day EMA ($23.73) on July 24.
The bulls will try to stop the decline at $22.30. If the price bounces off this support, the bulls will again attempt to overcome the overhead hurdle at $27.12. If they pull this out, the SOL/USDT pair could retest the July 14 high of $32.13.
On the other hand, if the price declines below $22.30, it could suggest that a break above $27.12 could be a bullish trap. The pair could then decline towards the 50-day SMA ($19.80). Such a move suggests that the pair may continue to range in a large range between $14 and $27.12 for some time to come.
polygon value analysis
polygon (diplomatic) has been trading near the 20-day EMA ($0.74) for the past few days. This shows that the bulls are protecting the level, but they have failed to initiate a correction. This shows that the bears are maintaining their pressure.
The 20-day EMA is flattening out and the RSI has dropped below 50, indicating a balance between supply and demand. The balance may shift in favor of the bears if the price breaks below the 50-day SMA. After this the MATIC/USDT pair may move towards $0.60.
On the other hand, if the price rises from its current levels and moves above $0.80, it will signal a solid buy at lower levels. The pair might then retest the local high at $0.89. A break above this level could signal the resumption of the uptrend.
This article does not constitute investment advice or recommendations. Every investment and trading move involves risk and readers should do their own research when making decisions.
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