Bitcoin (BTC) made an attempt to break out of its sideways price action on July 13, fueled by Ripple’s recent legal victory over the United States Securities and Exchange Commission (SEC). However, the enthusiasm was short-lived as sellers pulled the price back into the range on July 14. Despite this setback, the bulls managed to keep Bitcoin’s price above the $30,000 mark, which is a positive sign.
Market observers are closely watching the review process for various exchange-traded fund (ETF) proposals, particularly BlackRock’s proposal for a spot Bitcoin ETF. Interestingly, out of BlackRock’s 550 ETF applications, only one has been rejected, according to Bloomberg Intelligence. This indicates a strong interest in Bitcoin ETFs, which could potentially drive more institutional adoption.
While Bitcoin remains in consolidation mode, several altcoins are seeing strong buying pressure. As a result, Bitcoin’s market dominance has dropped below 50%, suggesting a shift in focus towards altcoins in the near future.
In terms of technical analysis, Bitcoin faced resistance at the $31,000 to $32,400 zone, as indicated by the bearish divergence on the Relative Strength Index (RSI) and the price action on the daily chart. If bears manage to push the price below the 20-day exponential moving average ($30,187), the next support levels to watch are the 50-day simple moving average ($28,631) and potentially even lower.
To prevent further decline, bulls need to quickly push and sustain the price above $31,000. If successful, the path towards $40,000 would likely be clear, as there are no major resistance levels in between. However, if the price remains stuck within the range, it’s uncertain whether Bitcoin will start a trending move in the short term.
Turning to altcoins, Uniswap (UNI) has been finding support at the 20-day exponential moving average ($5.41), indicating positive sentiment among traders. If bulls can push the price above the immediate resistance at $6.16, UNI could rise to $6.50 and potentially even higher. On the downside, a break and close below the 20-day EMA would suggest bearish pressure and a potential drop to the 50-day SMA and the crucial support at $4.72.
Arbitrum (ARB) broke and closed above a symmetrical triangle pattern on July 15, signaling bullish strength. The next minor resistance to watch is at $1.36, and if crossed, ARB could surge to $1.50 and potentially extend the rally to $1.70. However, a downside break below the support line of the triangle would invalidate this bullish view and could result in a sharp drop to $0.90.
Aave (AAVE) broke above a descending channel pattern on July 3 and has successfully held the retest of the breakout level multiple times. This indicates strong demand at lower levels. If the price turns up from the current level or bounces off the 20-day EMA ($72), the next target is a rally above $84.50 towards $95. However, a downside break below the 20-day EMA would suggest weakening bullish momentum.
Maker (MKR) broke above a downtrend line on July 2 and has retested the level on July 14, showing strong demand at lower levels. If bulls can clear the resistance near $1,100, MKR could soar to $1,200. On the other hand, a rejection at $1,080 would suggest ongoing bearish pressure, with potential support at the 20-day EMA.
In conclusion, Bitcoin’s price remains trapped within a range, and the altcoin market is showing signs of strength. Technical levels and market sentiment will play a crucial role in determining the next direction for Bitcoin and the top altcoins, including Uniswap, Arbitrum, Aave, and Maker.