Price Analysis 8/5: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, AVAX

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The labor market in the United States added 528,000 jobs in July, much better than the estimate of 258,000. Wages grew by 5.2% year-on-year and 0.5% over the month. This suggests that inflation remains high and that the US Federal Reserve could continue its rate hikes for the foreseeable future.

Having been closely correlated with US stock markets in recent months, the crypto space could be poised to chart a new course.

Bloomberg Intelligence senior commodities strategist Mike McGlone and senior market structure analyst Jamie Coutts said in a recent report that Bitcoin (BTC) has begun building a base comparable to that near $5,000 in 2018-2019. They expect the recovery to decouple from equities and behave more like US “treasury bonds or gold”.

Daily cryptocurrency market performance. Source: Coin360

While crypto prices have fallen sharply during the ongoing bear market, it hasn’t dampened investors’ appetites. A report from crypto analytics firm Messari and Dove Metrics showed that the crypto space raised $30.3 billion in funds in 2022, more than the total amount raised in 2021.

Can Bitcoin continue its recovery or will bears pose a strong challenge at higher levels? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

The bears pulled the price below the 20-day exponential moving average (EMA) ($22,630) on Aug. 4, but failed to sustain the lower levels. This indicates that the bulls are aggressively defending the level.

BTC/USDT daily chart. Source: TradingView

The gradually increasing 20-day EMA and the relative strength index (RSI) in the positive territory indicate a small advantage for buyers. If the price moves up from the 20-day EMA, the bulls will try to push the BTC/USDT pair towards the $24,668 overhead resistance.

This is an important level to watch because if the price moves above $24,668, the pair could gain momentum and climb to $28,000 and then $32,000. Such a move suggests that the pair has bottomed out.

Contrary to this assumption, if the price falls from current levels or overhead resistance and moves below the 20-day EMA, it will suggest bears continue to sell on minor rallies. That could open the doors for a drop to the 50-day simple moving average ($21,388).

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ETH/USDT

Ether (ETH) has been trading between the 20-day EMA ($1,560) and the $1,700 resistance for the past four days. Usually, tight range trading is followed by a range expansion.

ETH/USDT daily chart. Source: TradingView

The ascending 20-day EMA and the RSI in the positive zone point to an advantage for buyers. A break and close above the resistance zone between $1,700 and $1,785 could open the doors for a possible rally to $2,000 and later to $2,200.

Alternatively, if the ETH/USDT pair falls from current levels and moves below the 20-day EMA, it suggests that bears continue to defend the above-ground zone with all their might. That could result in a drop from the strong support at $1,280.

BNB/USDT

BNB bounced off the $275 support on Aug. 2 and broke above the immediate resistance at $302 on Aug. 3, signaling the resumption of upward movement.

BNB/USDT daily chart. Source: TradingView

The rising 20-day EMA ($277) and the RSI in the overbought zone indicate that bulls are in control. The BNB/USDT pair could rise towards the stiff overhead resistance of $350. This level is likely to attract strong bear sales.

To invalidate this bullish opinion, the bears will have to sink and keep the price below the 20-day EMA. If that happens, short-term traders could rush to the exit and that could pull the pair towards the 50-day SMA ($246).

XRP/USDT

The buyers have successfully held the 20-day EMA ($0.36) support for the past few days but failed to achieve a strong rally in XRP. This suggests bears are selling on rallies.

XRP/USDT daily chart. Source: TradingView

The XRP/USDT pair could be stuck between the 20-day EMA and the overhead resistance zone between $0.39 and $0.41. If bulls clear the overhead hurdle, positive momentum could build and the pair could rise towards $0.48 and then $0.54.

Alternatively, if the price falls and moves below the 20-day EMA, it suggests that demand has dried up. That could push the pair down towards the 50-day SMA ($0.34) and keep the pair tied between $0.30 and $0.39 for a few more days.

ADA/USDT

The bears have repeatedly attempted to lower Cardano (ADA) below the 20-day EMA ($0.50) over the past three days, but the bulls held out.

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ADA/USDT daily chart. Source: TradingView

The ADA/USDT pair has recovered from the 20-day EMA and buyers will be looking to push the price above the overhead resistance at $0.55. If they succeed, bullish momentum could pick up and the pair could rise towards $0.63 and later to $0.70.

Alternatively, if the price falls through the overhead resistance, it suggests that bears are active at higher levels. The sellers will then try again to push the price below the moving averages and keep the pair in the range between $0.40 and $0.55 for some time.

SOL/USDT

The bears tried to push the price below the support line on August 3, but the bulls successfully defended the level. Solana (SOL) formed an inside-day candlestick pattern on Aug. 4, then cleared up on Aug. 5.

SOL/USDT daily chart. Source: TradingView

If buyers hold the price above the 20-day EMA ($40), the SOL/USDT pair could rise to $44 and then retest stiff overhead resistance at $48. The bulls will have to overcome this hurdle to form the an ascending triangle pattern. This bullish setup has a target target of $71.

Contrary to this assumption, if the price falls and breaks below the support line, the bullish setup becomes invalid. The pair could then slide towards the strong support at USD 31.

DOGE/USDT

Dogecoin (DOGE) bounced off the 50-day SMA ($0.07) on Aug. 4 and the bulls extended its upward move above the 20-day EMA ($0.07) on Aug. 5.

DOGE/USDT daily chart. Source: TradingView

The bulls will try to push the price towards the $0.08 overhead resistance. This is an important level for the bears to defend as a pause and close above it will complete an ascending triangle pattern. The DOGE/USDT pair could then start an upward move towards $0.10 and then towards the pattern target of $0.11.

On the other hand, if the price falls from current levels and moves below the 50-day SMA, it suggests bears are selling on rallies. The pair could then fall to the support line of the triangle. A break below this level could wipe out the bullish setup.

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Related: Bitcoin Fails to Beat $23.4K Sellers as US Payrolls Turn Inflation Debate Upside Down

DOT/USDT

Polkadot (DOT) bounced off the 20-day EMA ($7.78) on Aug. 3, indicating lower demand. The buyers will try to push the price towards the overhead resistance zone between $9 and $9.21.

DOT/USDT daily chart. Source: TradingView

If the bulls cross this hurdle, the DOT/USDT pair could gain momentum and begin its march north towards $10.80 and then $12. The ascending 20-day EMA and the RSI in the positive zone indicate that buyers are in control.

To invalidate this bullish opinion, the bears will have to sell aggressively and drop the pair below the moving averages. If that happens, the pair could stay in the $6 to $9 range for a while longer.

MATIC/USDT

Buyers successfully held Polygon (MATIC) above the 20-day EMA ($0.85) during the correction, suggesting a change in sentiment from selling on rallies to buying on dips.

MATIC/USDT daily chart. Source: TradingView

Both moving averages are rising and the RSI is in positive territory, indicating an upside for buyers. If bulls push the price above the overhead resistance at $1.02, the MATIC/USDT pair could rise towards $1.26 and then $1.50.

Conversely, if the price falls and moves below the 20-day EMA, it suggests that the pair could extend its stay in the $0.75 to $1 range for some time. The sellers will gain the upper hand at a break below $0.75.

AVAX/USDT

Avalanche (AVAX) bounced off the 20-day EMA ($22.86), indicating that bulls are buying the dips ahead of this support.

AVAX/USDT daily chart. Source: TradingView

The buyers will push the price towards the stiff overhead resistance of $26.38. The gradually increasing 20-day EMA and the RSI in the positive territory indicate an advantage for buyers. If bulls push the price above $26.38, the AVAX/USDT pair will complete a bullish ascending triangle pattern. The pair could then move as high as $33 and later $38.

Contrary to this assumption, if the price falls against the overhead resistance and moves below the 20-day EMA, the pair could fall towards the support line.

Market data is provided by: HitBTC stock exchange.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TBEN.com. Every investment and trading move carries risks, you should do your own research when making a decision.