Bitcoin’s (BTC) strong recovery and march toward the psychological level at $50,000 has improved the overall sentiment in the crypto sector. That has boosted the total crypto market capitalization to over $1.9 trillion.
Data from Glassnode shows a sharp increase in the dominance of Bitcoin transactions exceeding $1 million during the past few months. The on-chain analytics firm noted in a report that the transactions by the $1 million–$10 million group surged when Bitcoin corrected to $29,000 in July. This suggests that institutional investors may have been buying, which is “fairly constructive for price.”
Further evidence of possible institutional buying came from CryptoQuant data, showing that Bitcoin reserves on derivatives exchanges have declined to 1.256 million BTC, the lowest level since May 11. A similar drop in derivatives exchange balances was seen before the start of the bull run at the end of 2020.
With signs of institutional accumulation increasing, could the bullish momentum pick up further in the next few days, or is it high time to book profits? Let’s study the charts of the top 10 cryptocurrencies to find out.
The bears have been attempting to pull the price of Bitcoin (BTC) back below the 200-day simple moving average (SMA) of $45,091 for the past two days, but the bulls have held their ground.
The 20-day exponential moving average (EMA) of $41,010 has been sloping up and the relative strength index (RSI) is in the overbought zone, indicating that bulls are in control.
If buyers propel the price above $46,700, the BTC/USDT pair is likely to start its journey toward the $50,000 to $51,500 resistance zone. The bears will try to stall the rally in this zone but if the bulls can overcome the challenge, the pair could rise to $60,000.
If bears pull the price back below the 200-day SMA, the pair could drop to the 20-day EMA. If the price rebounds off the 20-day EMA, the bulls will make another attempt to start the uptrend.
Conversely, a break below the 20-day EMA could open the doors for a decline to the next support at $36,670. This is an important level for the bulls to defend because if it cracks, the bears will smell an opportunity.
Ether’s (ETH) strong rebound on Aug. 9 shows that bulls flipped the $3,000 level into support. This level is likely to act as a floor on future declines.
The bulls are attempting to resume the uptrend on Aug. 11. The ETH/USDT pair could now rally to the $3,4441.73 to $3,587.06 resistance zone where the bears are likely to pose a stiff challenge.
If the price turns down from this zone but rebounds off $3,000, it will suggest that bulls are buying on dips. That will improve the prospects of a rally to $4,000.
Alternatively, if bears pull the price below the 20-day EMA ($2,712), it will suggest that the current breakout was a bull trap. The pair could then drop to the 200-day SMA ($2,229).
Binance Coin (BNB) rebounded off the moving averages on Aug. 9 and started its upward journey toward the resistance of the large $211.70–$433 range. The bears are likely to defend the $433 level aggressively.
However, if bulls do not give up much ground near $433 or if they buy the dips to the 20-day EMA ($338), the likelihood of a break above $433 increases. If that happens, the BNB/USDT pair could rally to $520 and later to $600.
On the contrary, if the price turns down from the current level or the overhead resistance and breaks below $340, it will suggest that the range-bound action may continue for a few more days.
The bears attempted to stall Cardano’s (ADA) relief rally at the $1.50 resistance, but they could not pull the price back below the 20-day EMA ($1.42). This showed that the bulls were not booking profits, as they anticipated the recovery to continue.
The ADA/USDT pair surged above the $1.50 level on Aug. 10 and could now rally to the overhead resistance at $1.94. This level could attract profit-booking, and if the price turns down from it, the bears will attempt to pull the price back to $1.50.
If that happens, the pair could extend its range-bound action for a few more days. On the contrary, if bulls thrust the price above $1.94, the pair could challenge the all-time high at $2.47. A breakout and close above this level will suggest the resumption of the uptrend.
The bulls successfully held the retest of the breakout level at $0.75 on Aug. 9 and pushed XRP back above the 200-day SMA ($0.80). The altcoin could now rally to the downtrend line of the descending channel where the bears may mount stiff resistance.
If the price turns down from the downtrend line but rebounds off the 20-day EMA ($0.75), it will indicate that bulls are buying on dips. A breakout and close above the descending channel will signal a possible change in trend.
The first target on the upside is $1.07, and if bulls push the price above this resistance, the up-move may reach $1.26. Alternatively, if the price turns down from the current level or the downtrend line and breaks below $0.69, it will suggest that the downtrend remains intact.
Dogecoin (DOGE) turned down from the overhead resistance at $0.29 on Aug. 8, but the correction was short-lived, as the price again bounced back on Aug. 9. The bulls will now try to push the price above the overhead resistance.
If they succeed, the DOGE/USDT pair could rally to $0.35. This level may act as stiff resistance, but if bulls clear this hurdle, the up-move may reach $0.45. The 20-day EMA ($0.22) has started to turn up and the RSI is just below the overbought zone, suggesting that the path of least resistance is to the upside.
On the other hand, if the price turns down from $0.29, the pair could drop to the 20-day EMA. If the price rebounds off this support, the bulls will make one more attempt to propel the price above $0.29. Conversely, a break below the 20-day EMA could keep the pair range-bound between $0.21 and $0.29 for a few days.
The bears attempted to stall Polkadot’s (DOT) recovery at the overhead resistance at $21 for the past few days, but the bulls did not give up much ground. This suggests that bulls are buying on every minor dip.
The rising 20-day EMA ($18.18) and the RSI in the overbought zone suggest that bulls are in control. If buyers sustain the price above $21, the DOT/USDT pair could start its journey to the overhead resistance at $26.50.
If the price turns down from $26.50, the pair could drop to $21 and remain range-bound between these two levels. A breakout and close above $26.50 will suggest the start of a new uptrend that may reach $31.28. The bears will have to pull the price back below $16.93 to tilt the advantage in their favor.
Uniswap (UNI) turned down from the overhead resistance at $30 on Aug. 10, but the bears have not been able to sustain the lower levels. This suggests that bulls are buying on every minor dip.
If bulls push and close the price above $30, the UNI/USDT pair could start its northward march toward $37. A breakout of this resistance could clear the path for a retest of the all-time high at $45.
However, the RSI is in the overbought territory which suggests that the rally could be overextended in the short term. That may result in a pullback to the 200-day SMA ($26). A strong bounce off this support will suggest that bulls are in command. The bears will have to pull and sustain the price below $23.45 to gain the upper hand.
Related: US dollar downturn aids Bitcoin bulls before $50K BTC price showdown
The relief rally in Chainlink (LINK) has reached the critical overhead resistance zone at $26.48 and the 200-day SMA ($27.86) where the bears are likely to pose a stiff challenge.
If the price turns down from this zone, the LINK/USDT pair could again drop to the 20-day EMA ($22.37). A strong rebound off this support will suggest that the sentiment has turned positive, and the bulls will then make one more attempt to clear the overhead hurdle.
A breakout and close above the 200-day SMA will suggest that bears have lost their grip. The pair could then rise to $32 and later to $35.33. Conversely, a break and close below the $22.07 support will suggest that the bullish momentum has weakened.
The failure of the bears to sustain Solana (SOL) below $38.10 on Aug. 9 attracted further buying, which has pushed the price to the overhead resistance at $44.
If bulls thrust the price above $44, the SOL/USDT pair could rally to the psychological resistance at $50 and then retest the all-time high at $58.38. A breakout and close above this resistance will signal the resumption of the uptrend.
The upsloping 20-day EMA ($35.59) and the RSI in the overbought territory suggest that bulls have the upper hand. This positive view will be invalidated if the price turns down from the current level and breaks below the 20-day EMA. That could pull the price down to $32 and then to the 200-day SMA ($26.81).
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 when making a decision.
Market data is provided by HitBTC.