Bitcoin has been showing some sign of recovery this week. At the time of writing this post, the world’s most popular cryptocurrency is currently trading at $22,447.
However, some analysts and investors still think that the gain is a bull trap while others are positive that it is a move to retest the crucial resistance at the 200-week. As seen from the crypto fear and greed index, the bear market has damaged sentiments and made investors lose hope in recovery.
Creator of on-chain analytics platform LookIntoBitcoin has said that the time the market spends in the “extreme fear” category has lasted longer than the 2018 Bitcoin bear market.
We have put together a list of the top 3 cryptocurrencies to watch this week. The top 3 cryptocurrencies include Bitcoin, Ethereum and Ethereum Classic. Let us study their charts and see if these sentiments could turn the market around and furthermore boost crypto prices.
On July 15, Bitcoin rose to $20,894, rising above the 20-day exponential moving average (EMA). However, bull traders have not been able to take advantage of this rise, but the bears.
See daily chart from TradingView below:
Relative strength index (RSI) has been able to rise the midpoint while the 20-day EMA has flattened out. This clearly indicates a balance the between supply and demand.
If there is a break and close above the 50-day simple moving average (SMA) of $23,445, then that will be the first sign of strength. This could likely clear a path for a rally to the $28,171 target.
On the other hand, if the moves and breaks below 20-day EMA, BTC/USDT stay in the triangle could be extended. There is likely to be random and volatile price action inside the triangle. A sign that the bears are taking the lead will be when there is a break and close below the triangle.
If the bears manage to pull the pull the price below the moving average, then the BTC/USDT pair could drop to $20,000. Alternatively, if the price turns around on the moving average, then it will show that the bull traders are buying on the dip and this could possibly improve the market and rally the pair to the overhead resistance at $23,363.
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On July 16, the bulls pushed the price of Ethereum above $1,280 which made it complete an ascending triangle pattern. Meanwhile, the bear traders are trying to pull the price back below the breakout level.
$1,280 is a critical level to watch on the downside level. If the price bounces back on this level, it simply means that bull traders have flipped $1,280 into support and this could improve the hope of a bull run. This brings possibility that the ETH/USDT pair may rise to $1,700.
However, if the case is reversed and breaks below the 20-day EMA of $1,206, this could drop the pair towards the support line of the triangle.
Ethereum Classic (ETC)/USDT
Ethereum Classic rose from $12.50 to $18 and it has remained there in the past few days. This indicates that the bull traders are trying to form a double bottom pattern.
Its 20-day EMA of $15.87 has started to come up Relative strength index has also risen, showing that the bull traders have the front seat. $18 is a critical level to watch out for on the downside. If the bull traders keep the price above this support level, then the pair could start its bull run toward $23.50 and then $25.
Contradicting this presumption, goes the opposite and drops below $18, then the pair could also drop to the moving averages. Any break below the 20-day EMA could mean that the bear traders remain stronger at higher levels.
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