Bitcoin (BTC) continued its boring price action over the weekend, indicating that the bulls and the bears are not waging large bets as they are uncertain about the next directional move. Nevertheless, traders should continue to keep a close watch because a period of consolidation is usually followed by an increase in volatility.
Although it is difficult to predict the direction of the breakout with certainty, some analysts point to the Bitcoin whales increasing their exposure as a positive sign. On-chain analyst Cole Garner believes the bull move could continue till September when the summer seasonality kicks in and the shakeout happens.
Bitcoin rose sharply in the first few months of the year but the major altcoins struggled to keep pace. That could change as the current consolidation in the largest cryptocurrency is giving an opportunity for select altcoins to play catch up.
What are the top-5 cryptocurrencies that are looking positive in the near term? Let’s study their charts to determine the resistance levels to keep an eye on.
Bitcoin price analysis
Bitcoin formed an inside-day candlestick pattern on Aug. 5, indicating indecision among the bulls and the bears. The price is getting squeezed between the 20-day exponential moving average ($29,430) and the horizontal support at $28,861.
The downsloping 20-day EMA and the relative strength index (RSI) in the negative territory indicate that bears are at a slight advantage. Sellers will try to yank the price below the $28,861 to $28,585 support zone. If they can pull it off, the BTC/USDT pair could start a downward move to $26,000.
Conversely, if the price rebounds off the current level and breaks above the 50-day simple moving average ($29,840), it will suggest the start of a recovery to the overhead resistance zone between $31,804 and $32,400.
The 4-hour chart shows that the bulls have been defending the support at $28,861 but a negative sign is that they haven’t been able to achieve a strong rebound off it. This suggests that demand dries up at higher levels.
The 20-EMA is turning down gradually and the RSI is just below the midpoint, suggesting that the bears have a minor advantage. The sellers will have to sink and sustain the price below $28,861 to resume the short-term down move.
If bulls want to start a recovery, they will have to drive and sustain the price above the…
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