Square’s Cash App product has generated $875 million in revenue from Bitcoin (BTC) trading in the second quarter of this year. This is a 600% increase over the comparable quarter in the previous year. This shows increased trader interest, which could have been spurred by the cash heavy “government stimulus programs.”
The recent breakout of Bitcoin above the $10,000–$10,500 zone could spark further interest among traders. Twitter personality Dave Portnoy has shown interest in knowing about Bitcoin trading from the Winklevoss twins.
If Portnoy can influence his followers, then several new traders are likely to enter the crypto space. However, how many of them will stick around for the long-term is difficult to assess.
Daily cryptocurrency market performance. Source: Coin360
The derivatives markets give a good insight into the expectations of the larger traders. Although the sharp drop in Bitcoin’s price on Aug. 2 led to liquidations in futures contracts worth over $1 billion, the open interest quickly recovered within 48 hours, suggesting strong accumulation at lower levels.
While these are positive signs, Glassnode believes that a sharp reversal in the US stock markets could halt Bitcoin’s “bull run in its tracks.”
After forming an inside day candlestick pattern on Aug. 3 and 4, Bitcoin is attempting to resume its up move today, which suggests that the bulls have overpowered the bears.
BTC/USD daily chart. Source: TradingView
The upsloping moving averages and the relative strength index in the overbought zone suggest that the bulls are in command.
If the buyers can propel the BTC/USD pair above $12,113.50, the uptrend is likely to resume. The next target objective to watch on the upside is $13,000 and then $14,000. The bears are likely to defend the $14,000 levels aggressively, hence, a meaningful correction is possible at those levels.
Contrary to the assumption, if the pair turns down from the $12,113.50 resistance, it could enter a consolidation between $10,400–$12,113.50 for a few days. A break below $10,400 will be a huge negative as it is likely to catch several bulls off guard, resulting in liquidations of long positions.
Ether (ETH) has been sustaining above the $366 support and is attempting to gradually inch higher. If the bulls can propel the biggest altcoin above the $400–$415.634 resistance zone, a rally to $480 is possible.
ETH/USD daily chart. Source: TradingView
Although the upsloping moving averages suggest an advantage for the bulls, the deeply overbought reading on the RSI warrants caution.
The failure to break above the $415.634 level could attract profit booking by the short-term traders that could pull down the ETH/USD pair to $366 level. A break below this support will be the first sign that bears are making a comeback.
Below $366, the correction can extend to $346.857 and $325.612, which are 38.2% and 50% Fibonacci retracement levels of the most recent leg of the rally. A bounce from either support will be a positive sign as that will indicate buying interest at lower levels. However, if the bears sink the price below $304.367, a trend change is likely.
XRP has formed successive inside day candlestick patterns on Aug. 3 and 4, suggesting indecision among the bulls and the bears. However, the bulls have kept the altcoin above the $0.284584 support since Aug. 2, indicating buying on dips.
XRP/USD daily chart. Source: TradingView
Both moving averages are sloping up and the RSI is in the overbought territory, which suggests that the bulls are in command. If the bulls can push the price above $0.32, it will increase the possibility of a retest of the overhead resistance at $0.346727.
Contrary to this assumption, if the XRP/USD pair sinks below $0.284584, it will indicate that the momentum has weakened. The next support to watch on the downside is the 20-day exponential moving average ($0.249).
If the pair rebounds off this support, the bulls will again attempt to resume the uptrend. However, if the bears sink the price below the 20-day EMA, a deeper correction is likely.
Bitcoin Cash (BCH) has been sustaining above the $280 support for the past two days, but the failure to rebound sharply from this level signals a lack of demand at higher levels.
BCH/USD daily chart. Source: TradingView
The 20-day EMA ($272) is sloping up and the RSI is in the positive territory, which suggests that bulls have the upper hand. A break above the $305 level is likely to indicate that the up move has resumed. The next level to watch out for is $320 and then $353.
Conversely, if the bears sink the BCH/USD pair below $280 and the 20-day EMA, it will signal advantage to the bears.
Bitcoin SV (BSV) has been oscillating around the $227 level for the past two days, which suggests that both the bulls and the bears are trying to establish their supremacy.
BSV/USD daily chart. Source: TradingView
The 20-day EMA ($208.55) is sloping up and the RSI is in the positive territory, suggesting an advantage to the bulls. They will now try to carry the price to the overhead resistance at $260.86.
If the momentum picks up and the buyers are able to scale the BSV/USD pair above this resistance, a rally to $300 and then to $320 is likely.
However, if the pair turns down from $260.86, the range-bound action is likely to extend for a few more days. A break below the 20-day EMA will signal weakness.
Litecoin (LTC) has been trading in small ranges since the large outside day candlestick pattern on Aug. 2, which suggests a lack of clarity among the bulls and the bears about the next likely direction.
LTC/USD daily chart. Source: TradingView
If the bulls push the price above $60, a retest of the $64–$65.1573 resistance zone is possible. A breakout of this zone will signal resumption of the uptrend. The next target objective on the upside is $75 and then $80.
The rising 20-day EMA ($53) and the RSI in the positive territory indicate that the bulls have the upper hand.
Contrary to this assumption, if the LTC/USD pair breaks below $55, a drop to the critical support at $51 is possible. A break below this level will tilt the advantage in favor of the bears.
Cardano (ADA) is currently consolidating between $0.13–$0.15 levels. Both moving averages are sloping up, which suggests that the trend is up.
ADA/USD daily chart. Source: TradingView
If the bulls can propel the ADA/USD pair above the $0.15–$0.1543051 resistance zone, it will indicate that the bulls have absorbed the selling and have reasserted their dominance. The next target is $0.173 and then $0.20.
However, if the pair turns down from the overhead resistance zone, the range-bound action might extend for a few more days. A breakdown and close (UTC time) below $0.13 will signal weakness and can result in a deeper correction to $0.11.
Binance Coin (BNB) is in an uptrend and the momentum has picked up in the past few days. The bulls have pushed the price above the $22.93 resistance, which indicates demand at higher levels.
BNB/USD daily chart. Source: TradingView
The next level to watch out for is $24.4588 and if this resistance is also scaled, the rally can extend to $27.1905. Both moving averages are sloping up and the RSI is in the overbought zone, which shows that bulls are in command.
Contrary to this assumption, if the BNB/USD pair turns down from the $22.93–$24.4588 zone, it will suggest selling at higher levels. A break below the 20-day EMA ($20) could result in a deeper correction.
Chainlink (LINK) surged on Aug. 3 and broke above the $8.908 resistance, which is a positive sign as it shows strong demand at higher levels.
LINK/USD daily chart. Source: TradingView
Although the next target objective is at $11, the bears are currently attempting to stall the up move at $10. The moving averages are sloping up, indicating an advantage to the bulls. If the bulls buy the dip to $$8.908, that will increase the possibility of a resumption of the uptrend.
However, the RSI is forming a bearish divergence, which warrants caution. If the bears sink the price below $8.908, a deeper correction to the 20-day EMA ($7.96) is possible.
Crypto.com Coin (CRO) formed an outside day candlestick pattern on Aug. 2, which sometimes signals a reversal. That was followed by an inside day candlestick pattern on Aug. 3, which indicated that the bulls and the bears were indecisive about the next move.
CRO/USD daily chart. Source: TradingView
The bears sold aggressively on Aug. 4 and dragged the CRO/USD pair to the 20-day EMA ($0.155). The pair has not sustained below this support for more than a day since March 29, hence, the bulls are likely to defend it aggressively.
If the pair rebounds off the 20-day EMA aggressively, it will indicate that the bulls continue to buy the dips to this support. A break above $0.176596 will resume the uptrend.
Conversely, if the bears sink the price below the 20-day EMA, a deeper correction to the 50-day simple moving average ($0.139) is possible.
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 exchange.