Bitcoin (BTC) has been trading within a tight range in recent days, indicating a consolidation phase for the cryptocurrency. This is a minor positive for Bitcoin as the range has formed near the recent local high, suggesting that the bulls are still holding on and anticipating an upward move. However, it’s worth noting that Bitcoin’s market dominance has dipped below 50%, indicating a gradual shift of focus from Bitcoin to select altcoins that are starting to gain momentum.
While select altcoins may provide trading opportunities, it is crucial for cryptocurrency traders to closely monitor Bitcoin’s price action. The overall strength or weakness of Bitcoin can heavily influence the performance of altcoins. If Bitcoin experiences a sharp downturn, it is highly likely that altcoins will follow suit and experience a sell-off. Therefore, traders should exercise caution and pay attention to Bitcoin’s movements in order to make informed decisions.
Bitcoin has been struggling to push above the 20-day exponential moving average (EMA) at $29,670, which is a negative sign for the cryptocurrency. If the bears manage to pull the price below the immediate support level at $28,861, it could indicate that Bitcoin may remain range-bound between $31,000 and $24,800 for an extended period. The downsloping 20-day EMA and the negative relative strength index (RSI) suggest that the advantage currently lies with the bears.
However, if the bulls can drive the price above the 20-day EMA, it would invalidate the bearish view. In that case, Bitcoin could potentially rise to the overhead resistance zone between $31,000 and $32,400. Breaking through this barrier would signal the start of a new uptrend, potentially leading to a price target of $40,000.
Dogecoin (DOGE) has been facing resistance just above the $0.08 level, but the bulls have managed to hold their ground. Despite the resistance, the sentiment remains positive as the bulls were quick to buy the dip on July 28. If the bulls can propel the price above the recent intraday high, the DOGE/USDT pair could gain momentum and potentially reach $0.10 and $0.11.
On the other hand, if the price turns down from the current level and breaks below the 20-day EMA, it would suggest that the bears are selling on rallies. This could lead to a slide in price towards the breakout level at $0.07.
After months of being stuck below $1,200, Maker (MKR) has finally cleared this stiff overhead resistance on July 29. Typically, after a breakout above a strong resistance level, the price tends to retest the breakout level before continuing higher. Therefore, there is a possibility of a price drop to $1,200 as a retest, followed by a sharp move upwards. If this scenario plays out, it would indicate that the bulls have successfully turned $1,200 into support.
Conversely, if the bears manage to sustain the price below $1,200, it would suggest that the recent breakout was a bull trap. In that case, the MKR/USDT pair could drop further towards the 20-day EMA at $1,079. A break and close below this level would confirm the bears’ control.
Optimism (OP) is starting to show signs of a new uptrend. The 20-day EMA has begun to turn up, and the RSI is in positive territory, indicating that the bulls currently have the upper hand. However, there is a minor resistance level at $1.66 that needs to be crossed for further upside potential. If this level is breached, the OP/USDT pair could rise to $1.88 and $2.
If the price turns down from $1.66, it would suggest that bears are selling on rallies. This could lead to a drop towards the 20-day EMA, a critical support level. If this support is broken, the pair may descend further to the 50-day SMA at $1.33.
The XDC Network (XDC) recently surged from $0.03 to $0.06, indicating a strong uptrend. However, a correction is expected at this point, with the price potentially dropping to the 38.2% Fibonacci retracement level at $0.05. The 20-day EMA becomes an essential zone to monitor as a strong bounce off this level would confirm the overall bullish sentiment.
A successful bounce could see the XDC/USDT pair resuming its upward move, potentially breaking above the intraday high of July 27 and reaching $0.10. On the other hand, a break and close below the 20-day EMA would negate the positive outlook and introduce the possibility of further downside.
While Bitcoin continues to consolidate, altcoins are starting to show strength. Traders should closely monitor Bitcoin’s price action as it can heavily influence the performance of altcoins. Technical analysis of various cryptocurrencies, such as Dogecoin, Maker, Optimism, and the XDC Network, provides insights into potential price movements and crucial support and resistance levels to watch out for.
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