Bitcoin’s strong rally disclosed the bulls and if this continues to move in the same pace and sustains UNI, LINK, SOL and XMR could go higher.
Bitcoin’s strong rally disclosed the bulls and if this continues to move in the same pace and sustains UNI, LINK, SOL and XMR could go higher. Bitcoin’s (BTC) 43% rally from $29,482.61 on July 21 to $42,316.71 on July 30 has given strength to the bulls who had been siting by the sidelines. Soon after the strong rise there have been analysts who have expressed their concern whether or not Bitcoin should repeat its sharp bull run seen in 2013 and 2017.
Jeff Ross Vallshire Capital Founder and CEO have said that Bitcoin had rallied ten-fold in the second half of 2013 after going through three months of negative news. “I still contend that 2021 will behave in similar fashion.” Said Ross. PlanB, the creator of the stock-to-flow price model said Bitcoin’s return in July was right at time. According to him the stock-to-flow model will continue being valid if bitcoin closes August above $47,000. Nevertheless, institutional investors are still trying to gather Bitcoin when the price is still down. Asset management firm GoldenTree with around $45 billion in assets under management has bought an undisclosed amount of bitcoin says the street.
Bitcoin’s short-term sentiment has gone bullish after the strong comeback from the past few days. These top major cryptocurrencies are worth a study:
Bitcoin’s strong rally during the past few days is going through some tough resistance at $42,451.67 but on the more optimistic side it seems like the buyers have not given up much ground. This proves that bulls are not throwing away their positions as they try to foresee the up-move to continue. The increasing 20-day moving average ($36,800) and the relative strength index (RSI) points out that the to get the least resistance you have to move to the upside. If the bulls increase the price above $42,451.67, the BTC/USDT pair could initiate a new uptrend which would then reach a level at $50,000. The bears will have to pull the price under $36,670 to achieve the upper hand. This could help in to achieve a retest at $31,000. If the price rebounds off the 20-day EMA, the bulls are capable of making one more try to clear the overhead hurdle at $42,451.67. The bullish moment can grow weaker if the price goes down the 50-SMA. This could turn into a rejection to $36,670.
Uniswap (UNI) increased above the downtrend line on July 30, disapproving the descending triangle pattern. This could go in to a short press as aggressive bears rush to cover their positions. If the bulls take the price higher the $23.45 to $25 resistance zone, the UNI/USDT pair could rally to the stiff overhead resistance at $30. The moving averages have finished a bullish crossover and the RSI has gone into the positive area, proving that bulls are in command. Nonetheless, the bears have another idea as they would most likely defend the overhead zone. If the price goes down from the zone but rebounds off the 20-day EMA ($19.25), this proves that traders are purchasing dips. This will increase the chances of a break above $25 and a rally to $30.
Chainlink (LINK) went above the 50-day SMA ($18.73) on July 27, proving that bears were losing their grip. After a small resistance near the psychological level at $20, the bulls continued the relief rally on July 30. Nevertheless, the candles end on today’s candlestick mentions that the up-move may be losing its energy. If the price goes down from the present level but rebounds off the 20-day EMA ($18.83) it points out that the sentiment has turned bullish. The buyers will try to push the LINK/USDT pair toward the stiff overhead resistance zone at $32.50 to $35. On the other hand, if the pair breaks under the moving averages, it says that bears have not yet given up. They might pull the price down to the critical support zone at $13.38 to $15. If the bulls go down to the 20-day EMA the pair could continue its up-move with the next best point at $26.20. Or if the price goes below $21 many aggressive bulls might get trapped. Also, the price might drop to the 50-SMA. This is a crucial level for the bulls as it cracks, the pair may extend its decline to $15.
The bulls pushed Solana (SOL) above the downtrend level on July 31, disapproving the descending triangle pattern. The bears are trying to attempt the pull back under the downtrend line and trap the aggressive bulls. The 20-day EMA ($30.49) has gone above and the RSI has increased above 61, pointing out that the buyers are ahead the game. This says that the sentiment has become positive. The buyers will try to initiate the up-move by increasing the price above the $37 to $38.10 resistance zone. If they triumph, the SOL/USDT pair could rally to $44 where the bears are likely to reach a tough resistance. The bears are attempting to stall the relief rally near the overhead resistance at $38.10 but the unsloping moving averages and the RSI in the positive zone mentions that the bulls are ahead the game. A break under the 20-day EMA will be initial sign of weakness. This will bring down the price to the 50-day SMA and detain the possible break above $38.10.