Bitcoin (BTC) is currently facing resistance at $31,000 but is holding steady above the $29,500 support level. Analysts believe that the price needs a catalyst to break out of its current range. The upcoming Federal Reserve meeting on July 25 and 26 could be the event to watch, with a 99.2% probability of a rate hike. While the markets may not react strongly to an expected hike, any surprise move by the Fed could impact the price of Bitcoin.
There is no consensus among analysts on the direction of the breakout, but if the price breaks below the current range, a significant downside is expected. Some even predict a fall to as low as $20,000. On the other hand, if Bitcoin moves higher, select altcoins could attract buyers. Let’s take a look at the charts of the top 5 cryptocurrencies that could turn positive in the coming days.
Bitcoin remains below the 20-day exponential moving average ($30,036), but the bulls have not allowed the price to drop to the 50-day simple moving average ($28,979). This suggests that buyers are still active and the bears are struggling to gain control. If the price breaks above the 20-day EMA, it could rally towards the overhead resistance of $31,000. A move above this zone could pave the way for a possible rally to $40,000. On the other hand, if the price turns down and falls below the 50-day SMA, it will indicate a comeback by the bears and the pair may decline to support at $24,800.
Chainlink (LINK) has been trading within a range between $5.50 and $9.50 for several months. The recent attempt by bears to push the price below the range was quickly reversed by bulls, and now the price is aiming for the overhead resistance of $9.50. Moving averages have turned up, indicating bullish control. The bulls will face resistance in the $8.50 to $8.80 zone, but if they manage to break through, the pair could surge to $9.50. On the downside, support is seen at $7.50 and the 20-day EMA ($7.05).
Filecoin (FIL) is forming an inverse head and shoulders pattern, which will be complete on a breakout above the neckline. The 20-day EMA ($4.36) has started to turn up, indicating a possible upside movement. If the price breaks the neckline, the pair could rally to $6.50 and eventually to the pattern target of $7.30. However, if the price turns down sharply from the neckline and falls below the 50-day SMA ($4.12), it will suggest a loss of bullish control, with potential support at $3.50 and $3.29.
Synthetix (SNX) is attempting to break out from a basing pattern, but is facing resistance in the $3.40 to $3.56 zone. The fact that the bulls prevented the price from dipping below the 20-day EMA ($2.56) suggests that buyers are interested in dips. If the bulls successfully break the overhead zone, the pair may rally to the next resistance at $4.50. However, if the bears manage to pull the price below the 20-day EMA, the pair could fall to the 50-day SMA ($2.19).
The recovery in Theta Network (THETA) is facing selling near the 38.2% Fibonacci retracement level of $0.83. Despite this, strong support is seen at the 20-day EMA ($0.77), indicating a positive sentiment and buying on dips. If the price breaks above $0.83, it could rise further to the next resistance at $0.91 and $0.99. However, if the price falls below the moving averages, it could drop to $0.66.
In conclusion, the price of Bitcoin and other cryptocurrencies is currently range-bound, with the direction of the breakout still uncertain. The upcoming Federal Reserve meeting could be a key catalyst for Bitcoin’s price movement. In the meantime, analysts are closely watching the charts for signs of a breakout, both to the upside and the downside, in the top 5 cryptocurrencies.