BTC, ADA, AVAX, CAKE, ATOM


Bitcoin (BTC) is knocking on the doors of the key $ 50,000 level and most traders are still bullish even after digital asset rose 70% from July 20 low to $ 29,278 to an intraday high at 49 $ 757.04 August 21.

The Material Indicators resource watch has highlighted many put options at the strike price of $ 50,000 and “positive funding almost everywhere (overheated)”, suggesting a rejection at current levels and a “pullback from” of September ”.

Daily view of crypto market data. Source: Coin360

Nikita Ovchinnik, director of business development for 1inch Network, said several new institutional investors have been exposed to crypto over the past year and “they haven’t come for short-term gains.”

Another positive sign for the crypto industry is the ever-growing list of unicorns. Analysts expect more companies to join the list as crypto and blockchain adoption increases.

Could Bitcoin’s reluctance to near $ 50,000 focus on altcoins? Let’s take a look at the charts of the top 5 cryptocurrencies that may catch the attention of short-term traders.

BTC / USDT

Bitcoin rebounded off the 20-day exponential moving average ($ 45,049) on August 19 and the bulls pushed the price above the high resistance at $ 48,144 on August 20. The bears are currently trying to block the rise in psychological resistance. to $ 50,000.

BTC / USDT daily chart. Source: TradingView

If the bulls don’t give up much ground and switch the $ 48,144 level towards support, that will indicate strength. The BTC / USDT pair could then gain momentum and begin its march north towards $ 58,000.

The rising 20-day EMA and the relative strength index (RSI) in the positive zone suggest the path of least resistance is on the upside.

Alternatively, if the bears pull the price below $ 48,144, the pair could drop to the 200-day simple moving average ($ 45,816). This is an important level for the bulls to defend, as a break below could embolden bears.

The sellers will then attempt to drop the price below the breakout level at $ 42,451.67. If they are successful, it will suggest the start of a deeper correction.

4 hour BTC / USDT chart. Source: TradingView

The 4 hour chart shows the bears aggressively defending the area between $ 49,500 and $ 50,000. If they can get the price down below the 20-EMA, the pair could drop to $ 46,600 and then down to $ 44,000.

If this happens, it will suggest that the bulls are losing their grip and the pair could then stay in a range between $ 44,000 and $ 50,000 for a few days. The bears will need to pull the price below $ 42,451.67 to gain the upper hand.

ADA / USDT

Cardano (ADA) is in a strong uptrend. The bulls pushed the price above the all-time high at $ 2.47 on August 20, but the long wick on the day’s candlestick showed selling at higher levels. The altcoin formed a candlestick pattern inside the day on August 21, indicating indecision among bulls and bears.

ADA / USDT daily chart. Source: TradingView

Uncertainty resolved higher today as the bulls once again pushed the price to a new all-time high. If the buyers hold the price above the breakout level at $ 2.47, the ADA / USDT pair could move up to $ 3.

However, the long wick on today’s candlestick suggests that the bears are unlikely to give up without a fight. They will try to bring the price below $ 2.36 and trap aggressive bulls. If this happens, the pair may correct to $ 2.20.

If the price rebounds from $ 2.20, the bulls will try to resume the uptrend again. A breakout and close above $ 2.47 to $ 2.65 will improve the outlook for a continuation of the uptrend. Alternatively, a breakout below $ 2.20 could push the price down to $ 1.94.

ADA / USDT 4 hour chart. Source: TradingView

The 4 hour chart shows that the 20 EMA is sloping but the RSI is forming a negative divergence. This suggests that the bullish momentum could slow down. The first sign of weakness will be a break below 20-EMA.

Contrary to this assumption, if the bulls do not give up much ground from the current level, it will suggest strength. This could attract new buys and the pair could then rally to the psychological resistance at $ 3.

AVAX / USDT

Avalanche (AVAX) rose from $ 18.41 on August 17 to $ 50.27 on August 21, a 173% increase in no time. This sharp rise pushed the RSI above 92, indicating that the rally is too prolonged in the short term.

AVAX / USDT daily chart. Source: TradingView

The long wick of the August 21 candlestick shows the bears trying to defend the psychological resistance at $ 50. On the downside, the first support is at $ 40. If the price rebounds to this level, it will suggest that the bulls are not profiting aggressively as they anticipate the further recovery.

A breakout and close above $ 44 could improve the outlook for a retest of the all-time high at $ 60.30.

On the contrary, if the bears pull the price below the 38.2% Fibonacci retracement level at $ 38.09, the AVAX / USDT pair could correct to the 50% retracement level at $ 34.34. A break below this support will indicate that the bullish momentum may have weakened.

AVAX / USDT 4 hour chart. Source: TradingView

The 4-hour chart shows the bears trying to block the relief rally at air resistance at $ 44.60 and the bulls buying on dips at $ 40. This suggests that the pair could stay in a range between these two levels in the near term.

If the bulls push the price above $ 44.60, the pair could climb back to $ 50.27. A breakout and close above this level will signal the resumption of the uptrend. Conversely, a break below the 20 EMA will indicate that traders are taking profits and not buying dips. This could signal the start of a deeper correction.

CAKE / USDT

PancakeSwap (CAKE) is currently experiencing a strong recovery. Bull-backed buying pushed the price above the 38.2% Fibonacci retracement level to $ 22.74 on August 20.

CAKE / USDT daily chart. Source: TradingView

If the bulls hold the price above $ 22.74, the relief rally could reach the 50% retracement level at $ 26.85, then the 61.8% retracement level at $ 30.96. Bears are likely to mount strong resistance in this area.

Moving down, the critical support to watch is the 20-day EMA ($ 20.37). If the price bounces off this support, it will suggest that sentiment remains positive and traders are buying if there is a dip. Conversely, a break below the 20-day EMA could open the door for a further decline to $ 16.

CAKE / USDT 4 hour chart. Source: TradingView

The 4 hour data chart shows the price is trading inside an ascending wedge pattern. If the bears keep the price below the 20-EMA, the pair may drop to the corner support line. This level is likely to act as a strong support and a strong rebound will indicate that traders are buying if there is a dip.

A breakout and close above $ 24.65 would suggest a resumption of the upside. The next upside target is the resistance line at the corner. The bullish momentum could accelerate if the bulls push the price above the corner.

Related: Walmart Seeks Crypto Product Manager, Dogecoin Foundation Returns, Coinbase Amounts $ 4 Billion War Chest: Holder’s Digest, August 15-21

ATOM / USD

Cosmos (ATOM) has been trading in a wide range between $ 8.51 and $ 17.56 since late May. The bulls pushed the price above the resistance of the range on August 18, paving the way for a possible move towards the setup target at $ 26.61.

ATOM / USDT daily chart. Source: TradingView

However, the long fuse on today’s candlestick and the RSI above 83 suggests the rally is too prolonged in the near term. This could attract profit taking by the bulls leading to a minor correction or consolidation in the coming days.

If the bulls don’t give up much ground and switch the $ 17.56 level in support, the ATOM / USDT pair will try to resume the uptrend again. A break above $ 26.61 could open the door for a rally to $ 28 and then $ 30.

The bears will need to pull and hold the price below $ 17 to invalidate the bullish sentiment.

ATOM / USDT 4 hour chart. Source: TradingView

The 4 hour chart shows the bears are building strong resistance near $ 24. Although the bulls pushed the price above this resistance, they were unable to maintain the higher levels as shown by the long wick on the candlestick.

A positive sign is that buyers are not in a hurry to get rid of their positions. The pair could consolidate between $ 21 and $ 24 for a while. A breakout and close above $ 24 will indicate strength and signal a resumption of the upside.

Alternatively, a break below the 20-EMA will signal the start of a deeper correction to $ 17.56.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move comes with risk, you should do your own research before making a decision.


Source link

Previous Credit growth in India, GDP of the United States
Next Paytm Partners with HDFC Bank to Provide Solutions on Payment Gateways, Point of Sale Machines and Credit Products