Bitcoin continues to face strong resistance at $31,000, but supportive macroeconomic factors could tilt the advantage in favor of the bulls.
Bitcoin bulls are again having a go at the overhead resistance of $31,000. The bullish sentiment may get a boost from the United States inflation report, which showed signs of slowing inflation. Economists were expecting the year-on-year Consumer Price Index to rise 3.1%, but the June print came in at 3%.
The month-on-month increase of 0.2% was also less than forecast. This suggests that the Federal Reserve’s rate hikes are having the desired effect. That may limit future rate hikes by the Fed.
Supported by macroeconomic conditions, institutional investors seem to be turning positive on cryptocurrencies, especially Bitcoin (BTC). A CoinShares report published on July 10 showed inflows of $136 million into digital investment products in the past week. That brings the total inflows of three consecutive weeks to $470 million, indicating a positive outlook.
Large investors could be turning positive on Bitcoin because they anticipate a huge inflow of traditional finance money if the U.S. Securities and Exchange Commission approves a spot Bitcoin exchange-traded fund (ETF). Bloomberg ETF analyst Eric Balchunas said in an exclusive interview with Cointelegraph that an ETF approval would unlock $30 trillion worth of capital for Bitcoin.
Could the tailwind of the positive triggers prove bullish for Bitcoin and the major altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin turned down from the overhead resistance at $31,000 on July 10, but a positive sign is that the bulls did not allow the price to dip below the 20-day exponential moving average (EMA) of $30,012.
The upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside. If buyers drive and sustain the price above $31,000, the BTC/USDT pair is likely to start the next leg of the uptrend.
The pair could ascend to $32,400, where the bears are expected to again mount a strong defense. If bulls do not allow the price to fall below the 20-day EMA, the pair is likely to soar toward $40,000.
Time is running out for the bears. If they want to make a comeback, they will have to quickly pull the price below $29,500. That could start a decline to the 50-day simple moving average (SMA) of $28,312.
Ether price analysis
Ether (ETH) once again bounced off the 50-day SMA ($1,843) on July 10, indicating that the bulls are fiercely guarding this level.
The price turned up and closed above the 20-day EMA ($1,874), indicating that the bulls are trying to make a comeback. If buyers drive the price above $1,906, the ETH/USDT pair could attempt a rally to the overhead resistance at $2,000. This level is likely to witness strong selling by the bears.
The crucial support to watch on the downside is the 50-day SMA. If this level gives way, it could pave the way for a deeper correction to $1,700.
BNB price analysis
The price action of the past few days has formed a symmetrical triangle in BNB (BNB). This suggests indecision between the bulls and the bears.
The symmetrical triangle usually behaves as a continuation pattern, but in some cases, it turns into a reversal setup. If buyers kick and maintain the price above the triangle, it will suggest a possible trend reversal. The BNB/USDT pair could rise to $265 and thereafter sprint to the pattern target of $293.
Contrarily, if the price turns down and slips below the 20-day EMA ($242), it will suggest that the pair may spend some more time inside the triangle. The bears will have to yank the price below the support line to seize control.
XRP price analysis
The bulls tried to thrust XRP (XRP) above the 20-day EMA ($0.48) on July 10, but the bears held their ground.
The bulls will have to cross the roadblock at the 20-day EMA and then at the 50-day SMA ($0.49) to gain the upper hand. If they do that, the XRP/USDT pair could pick up momentum and surge to $0.53 and eventually to $0.56.
On the contrary, if the price turns down sharply from the current level, it could retest the strong support at $0.45. This level has held on two previous occasions; hence, the bulls are expected to defend it aggressively. If the buyers fail in their endeavor, the pair may collapse to $0.41.
Cardano price analysis
Cardano (ADA) rose above the 20-day EMA ($0.29) on July 11, indicating that the bulls are buying at lower levels.
The flat 20-day EMA and the RSI near the midpoint indicate a balance between supply and demand. This advantage will tilt in favor of the buyers if they shove the price above the 50-day SMA ($0.31). The ADA/USDT pair could then start a rally to $0.38.
Alternatively, if the price turns down from the overhead resistance, it will suggest that the bears have not given up yet. The pair could then oscillate between the 50-day SMA and the uptrend line for some time. A slide below the uptrend line will give the edge to the bears in the near term.
Dogecoin price analysis
Dogecoin (DOGE) is struggling to rise above the 20-day EMA ($0.07), but a positive sign is that the bulls have not ceded ground to the bears.
The flattening 20-day EMA and the RSI just below the midpoint suggest range-bound action between $0.06 and $0.07 for some time. If bulls propel the price above the moving averages, the bulls will try to overcome the obstacle at $0.07. If they can pull it off, the DOGE/USDT pair may climb to $0.08.
The bears will gain the upper hand if they sink and sustain the price below the crucial support at $0.06. The pair may then tumble to $0.05.
Solana price analysis
Solana (SOL) is facing resistance at $22.30, but a positive sign is that the bulls have not given up much ground. This suggests that the buyers expect the rally to continue.
The upsloping 20-day EMA ($19.73) and the RSI in the overbought territory indicate that the bulls are in command. A break and close above $22.50 could start the next leg of the up move. The SOL/USDT pair could then attempt a rally to $27.12. There is a minor resistance at $24, but it is likely to be crossed.
The first support on the downside is at the 20-day EMA and then at the 50-day SMA ($18.55). Buyers are expected to defend this zone with vigor.
Litecoin price analysis
The long tail on Litecoin’s (LTC) July 10 candlestick shows that the bulls aggressively purchased the dip below the 20-day EMA ($95).
Buyers will have to overcome the barrier at the psychological level of $100 to signal the start of a sustained recovery. The LTC/USDT pair could then advance to $106 and subsequently strive to reach the overhead resistance at $115.
The important level to watch on the downside is the 20-day EMA. If this level fails to hold, the pair may descend to the 50-day SMA ($89). Such a move could delay the start of the next leg of the up move.
Polygon price analysis
Polygon (MATIC) soared above the overhead resistance of $0.73 on July 10, completing a bullish ascending triangle pattern.
The bulls have maintained the price above the breakout level, but they are facing stiff resistance from the bears at higher levels. If bulls sustain the price above $0.72, the MATIC/USDT pair could start a new uptrend to the pattern target of $0.94.
Conversely, if bears yank the price below $0.72, it may trap some aggressive bulls. The pair could then fall to the uptrend line, which is an important level to keep an eye on. If this support cracks, the pair could start a downward move to $0.60.
Polkadot price analysis
Polkadot (DOT) bounced off the moving averages on July 10, indicating a change in sentiment from selling on rallies to buying on dips.
The bulls will try to push the price to the overhead resistance of $5.64, while the bears will attempt to halt the recovery. The 20-day EMA ($5.11) is flattish, but the RSI above 52 shows that the bulls have a slight edge. A break and close above $5.64 will complete a bullish inverse head-and-shoulder pattern, signaling a potential trend reversal.
If bears want to prevent the up move, they will have to quickly yank the price below $4.97. The DOT/USDT pair may then drop to $4.74 and later to $4.50.
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