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Bitcoin plummeted to $29,000 on July 24, suggesting that the bears are trying to take the lead. The failure to sustain higher levels may have tempted short-term bulls to secure profits and aggressive bears to initiate short positions.
Despite the near-term bearish look, long-term investors remain unfazed and continue to hold their positions. Bitcoin (BTC) long-term holder supply hit a new high of 14.52 million BTC, “equivalent to 75% of the circulating supply,” according to Glassnode data.
While the cryptocurrency market has been on a softening trend in the short term, the U.S. stock market remains strong. The Dow Jones Industrial Average is woke up That could change, however, with a number of significant earnings reports this week and a policy decision by the Federal Reserve on July 26th. The latter could also affect the US Dollar Index (DXY), which is on a recovery track.
Could lower levels attract Bitcoin buyers to opt for altcoins? Let’s analyze the chart to find out.
S&P 500 Index Price Analysis
The S&P 500 Index (SPX) has fallen from 4,578 on July 19, but it is a positive sign that the bulls are not conceding too much. This suggests that buyers are holding onto 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 the overbought region suggest that the bulls are in control. If the price rises from 4,513 or the 20-day EMA, it suggests that lower levels are still attracting buyers.
This will increase the chances of a breakout of $4,578. After that, the index could rise to 4,650 and eventually 4,800.
Our positive view will be canceled if the price breaks down below the 20-day EMA. This could lead to a drop to the 50-day Simple Moving Average (SMA) of 4,336.
USD Index Price Analysis
The US Dollar Index surged on July 18th and broke above its breakdown level of 100.82 on July 20th. This suggests that the breakdown below 100.82 may have been a bearish trap.
The price has reached the 20-day EMA, which is an important level to watch out for. From there, the price can drop sharply and resume the downtrend if it breaks below 99.57. After that, the index could crash to 97.50.
Rather, a breakout of the 20-day EMA will suggest that the bulls are back in the game. The index can then move up to his 50-day SMA (102.66) and then to the downtrend line.
Bitcoin price analysis
Bitcoin bulls once again took the price above the 20-day EMA ($29,957) on July 23, but the long core of the candlestick shows strong selling at higher levels.
Selling intensified on July 24, with the price breaking below the strong support of $29,500 that has lasted for the past few days. The BTC/USDT pair has fallen to the 50-day SMA ($29,021), a key level to watch.
If the price rises from the current levels and rises above the 20-day EMA, it suggests that the break may have been a bearish trap. After that, the pair can rally to $31,000.
Conversely, if the price continues to fall below the 50-day SMA, it would suggest that the bulls have given up. The pair can then drop to $27,500 and then to $26,000.
ether price analysis
Ether (ETH) bounced off the 50-day SMA ($1,852) on July 23. The bulls tried to push the price above the 20-day EMA ($1,888), but the bears held back.
The bears are trying to keep the price below the 50-day SMA. Once that happens, the ETH/USDT pair could start a deeper correction towards $1,700. Such a drop suggests that the pair could stay within the $1,626-$2,000 range for some time. Price movements within the range can be random and volatile.
If the price bounces off the 50-day SMA and rises above the 20-day EMA, it would suggest solid buying at the lower levels. This could open the door for a possible rally to $2,000. The next trend move is likely to start with a break above $2,000 or below $1,626.
XRP price analysis
After failing to sustain above $0.83 on July 19 and 20, XRP (XRP) has turned down towards the 20-day EMA ($0.67).
The bulls will have to defend the 20-day EMA vigorously if they want to sustain the uptrend. If the price rebounds strongly from this level, the XRP/USDT pair could form a range in the short term.
The range boundaries are likely to be $0.66 on the lows and $0.86 on the highs. The first sign of strength will be a breakout and close of the overhead resistance at $0.86.
Conversely, if the price breaks below the 20-day EMA, it suggests that the bulls are rushing for an exit. This could attract more selling and the pair can collapse to the $0.56 breakout level.
BNB price analysis
The bulls have failed to push BNB (BNB) above the 20-day EMA ($243) for the past few days. This has led to massive selling by the bears trying to push the price below the symmetrical triangle support.
If they succeed, it would suggest that the uncertainty between the bulls and bears has resolved in favor of the sells.
After that, the BNB/USDT pair can drop to the critical support of $220. This level is likely to attract aggressive buying by the bulls. A strong rebound from $220 would suggest the pair could stay range bound for a while.
Another possibility is that the price bounces off the triangle support line. In that case, the pair could extend their stay inside the triangle for a few more days. Buyers will need to push the price above the triangle to signal a comeback.
Cardano price analysis
Cardano (ADA) has witnessed 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 a clear advantage to either buyers or sellers. The uncertainty will tip in favor of the bears if the price breaks down below $0.30. When this happens, prices are likely to fall to the uptrend line.
Conversely, if buyers push the price above $0.33, it will suggest that the bulls are back in the game. After that, the ADA/USDT pair can rally to the intraday high of $0.38 on July 14. The bears are likely to defend this level vigorously.
Related: Bitcoin Whale Exchange Inflow Share Hits Highest Level in 1 Year – Over 40%
Dogecoin price analysis
The bears tried to push Dogecoin (DOGE) back below the July 22 breakout level of $0.07, but the bulls held back.
The 20-day EMA ($0.07) has started to turn up and the RSI is in the positive zone, indicating the path of least resistance to the upside. There is minor resistance at $0.08 and the bears are expected to mount a strong defense.
If the buyers do not allow the price to break below the 20-day EMA, the probability of a rally to $0.10 increases. Our positive view will be invalidated in the short term if the price turns down and breaks below $0.07.
Solana price analysis
Solana (SOL) continues to witness profit taking by short-term traders. This has pushed the price below the 20-day EMA ($23.73) on July 24.
The bulls will try to block a drop at $22.30. If the price bounces off this support, the bulls will try to cross the $27.12 overhead hurdle again. If so, the SOL/USDT pair could retest the July 14 highs of $32.13.
On the other hand, a break below $22.30 suggests a possible bullish trap above $27.12. The pair can then fall to the 50-day SMA ($19.80). Such moves suggest that the currency pair may continue to float within a large range between $14 and $27.12 for some time.
polygon price analysis
Polygon (MATIC) has been trading near the 20-day EMA ($0.74) for the past few days. This shows that the bulls are holding their levels but failing to initiate a recovery. This indicates that the bear is maintaining pressure.
The 20-day EMA is flat and the RSI is below 50, indicating that demand and supply are in balance. This equilibrium could tip in favor of the bears if the price plunges below the 50-day SMA. After that, the MATIC/USDT pair can drop to $0.60.
Conversely, if the price rises from the current level and rises above $0.80, it would indicate strong buying at the lower levels. The pair can then retest the local highs of $0.89. A breakout of this level could indicate a resumption of the uptrend.
This article does not contain investment advice or recommendations. Any investment or trading move involves risk and readers should conduct their own research before making any decision.
