Bitcoin has established a support level at lower prices, yet it may encounter considerable selling pressure within the range of $120,000 to $123,218. This ongoing dynamic highlights the tension between buyers and sellers in the cryptocurrency market.
On Monday, the cryptocurrency sector witnessed net inflows exceeding $1 billion into Ether exchange-traded funds (ETFs), indicating robust institutional interest and demand. This influx suggests that institutional investors are increasingly confident in the potential of Ether amidst the broader market fluctuations.
Bitcoin’s recent inability to breach the all-time high of $123,218 has resulted in bearish movements, signaling that sellers are not willing to concede easily. The retreat in Bitcoin’s price has led to a pullback in various altcoins, although some have shown resilience with strong rebounds.
Following the rejection at the all-time high, several analysts have adopted a more cautious stance on Bitcoin’s future trajectory. According to ZAYK Charts, utilizing the Wyckoff method, there are indications that Bitcoin may have entered a distribution phase. Should this be confirmed, it could lead to a decline in price toward the $95,000 mark.
Current Crypto Market Overview
In contrast to Bitcoin’s struggles, Ether has demonstrated remarkable strength. Data from Farside Investors reveals that Ether ETFs achieved their highest net inflows on record, totaling $1.01 billion on Monday. This illustrates a significant shift in market sentiment favoring Ether.
Could Bitcoin defy expectations and rally? Will Ether spearhead a resurgence among altcoins? Let’s delve into the technical charts of the top five cryptocurrencies that are currently showing promise.
Bitcoin Price Outlook
On Monday, sellers effectively halted buyers’ attempts to push Bitcoin above the previous all-time high of $123,218. The daily chart indicates a flat 20-day simple moving average (SMA) at $116,779, suggesting a balance between supply and demand. However, with the relative strength index (RSI) remaining positive, bullish momentum persists. If Bitcoin maintains its price above the 20-day SMA, buyers may attempt another push to exceed the $123,218 resistance. Success in this endeavor could propel Bitcoin towards $135,000.
On the other hand, if the price dips below the 20-day SMA, it might signal profit-taking by short-term traders, potentially dragging the price down to the 50-day SMA at $114,366. This could imply a consolidation phase in the near future, with sellers needing to push the price below $110,530 to gain control.
The 4-hour chart shows that the price has bounced off the 20-SMA, indicating a positive sentiment among buyers. If the $123,218 resistance is breached, Bitcoin could surge toward $127,735 and eventually to $135,000. Conversely, sellers will likely aim to pull the price below the downtrend line, which could result in Bitcoin fluctuating between $123,218 and $111,920 for a while.
Ether Price Forecast
Ether has initiated a new phase of its uptrend following a breakout above $4,366 on Tuesday. The daily chart reflects that the moving averages are trending upwards, and the RSI is in overbought territory, suggesting that the path of least resistance is upward. Buyers will likely strive to push the ETH/USDT pair toward $4,868.
The crucial support level to monitor on the downside is $4,094. A breach and closure below this level would indicate profit-taking at higher prices, which could lead Ether’s price to fall to the 20-day SMA at $3,833.
On the 4-hour chart, the price pullback from $4,366 found support at the 20-SMA, signifying strong buying interest. The pair could rally to $4,500 and subsequently to $4,868, where sellers are expected to present significant resistance. A drop below the 20-SMA could bring the price down to $4,094. A robust rebound from this level would indicate that buyers are attempting to establish it as support, increasing the possibility of an ongoing uptrend. However, a more pronounced decline could materialize if the $4,094 support is breached.
BNB Price Analysis
BNB has been fluctuating within a narrow range of $792 to $827 for the past three days, reflecting a standoff between buyers and sellers. If the price manages to break above $827, the BNB/USDT pair could rally to $861. However, sellers are anticipated to defend this level fiercely; if buyers can overpower them, the price may soar to $900.
To indicate the onset of a deeper correction, sellers must push the price below the 20-day SMA at $787, which could lead to a decline to $761 and ultimately to a strong support level at $732. Buyers are expected to defend the $732 mark vigorously, as a break below it may indicate a shift in trend.
On the 4-hour chart, both moving averages are trending upwards, but the RSI is hinting at a potential bearish divergence. If sellers manage to drive the BNB price below the 50-SMA, they will gain an advantage. Conversely, a sustained break and close above $827 would signal a continuation of the upward movement, potentially pushing the price to the resistance level of $861, where sellers are likely to re-emerge.
Chainlink Price Projection
Chainlink gained momentum after breaking through the $18 resistance level on Thursday, indicative of aggressive buying activity. The bears attempted to impede the upward movement at $22.70 but were ultimately surpassed by bullish sentiment on Tuesday. Should the LINK/USDT pair continue its momentum, it could reach $27, where strong selling pressure from bears is anticipated. If buyers manage to overcome this barrier, the rally could extend to $30.
This optimistic outlook may be challenged if the price sharply declines and falls below $20.83, potentially leading to a drop to $20 and further down to the solid support at $18.
The 4-hour chart illustrates that the recent pullback found support at the 20-SMA, indicating that buyers are stepping in at lower levels. Both moving averages are trending upwards, and the RSI is in the overbought range, suggesting buyers remain dominant. Initial support on the downside is at the breakout level of $22.70, followed by $21. A break and closure below $21 could signal that bulls are exiting the market, with the next downside target being the 50-SMA.
Uniswap Price Outlook
Uniswap experienced a rebound off the 50-day SMA at $9.05 on August 3, showcasing significant buying interest at lower price levels. However, the upward movement is currently facing resistance at $12, though bulls have managed to maintain their position without conceding much ground to bears. This indicates that buyers are hopeful for continued upward momentum. If they manage to push the price above $12, the UNI/USDT pair could surge towards $15.
The initial support level is at the 20-day SMA of $10.19. A break below this level could lead to a decline to the 50-day SMA. A significant drop below the 50-day SMA would signal a shift in the short-term trend.
On the 4-hour chart, the pair faced a downturn from the $12 resistance, but bulls are attempting to defend the 20-SMA. If buyers succeed in driving the price above $12, the pair could move towards $14 and subsequently to $15. Conversely, sellers will likely attempt to pull Uniswap’s price below the 50-SMA. If they succeed, the price could fall to $10 and then to $9.50, indicating a potential range-bound movement between $8.50 and $12 for a period.
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and readers are encouraged to conduct their own research before making decisions.
