- Love This
- Yahoo Mail
- Facebook Messenger
- Copy Link
Bitcoin and the altcoins continue to correct but lower levels are likely to attract buyers as the bullish macro trend has not changed.
Bloomberg Intelligence senior strategist Mike McGlone is bullish on Bitcoin (BTC) as he believes that “something unexpected needs to happen for Bitcoin’s price to stop doing what it’s been doing for most of the past decade: appreciating.”
However, with the S&P 500 hitting a new all-time high today, traders are booking profits in gold and crypto assets. As U.S. markets surge to new highs, Bitcoin price has corrected sharply in the last two days but this is likely to be a short-term blip in a secular uptrend.
Veteran investor Jim Rogers thinks that the U.S. stock market is in a bubble and the recent monetary measures by numerous central banks could result in the worst economic meltdown in his lifetime.
Daily cryptocurrency market performance. Source: Coin360
In other news, crypto investment firm Pantera Capital has seen strong inflows into its Pantera Venture Fund III over the past twelve months, which shows that cryptocurrencies are attracting new investors.
However, as the bull market progresses, greed takes over and some traders take excessive risk in order to earn quick returns.
Although a few traders might get lucky, most tend to give back their hard-earned gains due to reckless trading. Therefore, traders should be disciplined and stick to their trading principles to generate long-term wealth.
Bitcoin completed the ascending triangle pattern on Aug. 17 when it closed (UTC time) above $12,113.50 but the bulls could not sustain the breakout and the price dipped back into the triangle on Aug. 18.
BTC/USD daily chart. Source: TradingView
The bulls are currently attempting to defend the 20-day exponential moving average ($11,515), which is an important level to watch out for because the bears have not been able to sustain the price below it since July 22.
A strong bounce off this support will show that the bulls continue to buy on dips and if they can propel the price above $12,460, the uptrend is likely to resume.
The moving averages are sloping higher and the relative strength index is in the positive territory, which suggests that the bulls have the upper hand.
However, if the bears sink and sustain the price below the 20-day EMA, a drop to $11,000 and then to $10,400 is possible.
The failure of the bulls to sustain Ether (ETH) above $444.15 on Aug. 17 attracted profit-booking, which has pulled the price below the breakout level of $415.634.
ETH/USD daily chart. Source: TradingView
If the ETH/USD pair rebounds off the 20-day EMA ($392), it will suggest that the bulls continue to buy on dips and if they can push the price above $415.64, a retest of $446.479 is possible.
A breakout above $446.479 can result in a rally to the $480–$500 resistance zone. The upsloping moving averages indicate an advantage to the bulls but the negative divergence on the RSI suggests caution.
If the bears sink the price below the 20-day EMA, it will indicate that the momentum has weakened and a drop to $366 is possible. Below this support, the correction could extend to the 50-day simple moving average ($314).
The bulls could not propel XRP above the overhead resistance zone of $0.326113–$0.346727 on Aug. 17, which attracted profit booking by the short-term traders. This has pulled the price down to the 20-day EMA ($0.285).
XRP/USD daily chart. Source: TradingView
If the XRP/USD pair rebounds off the 20-day EMA, the bulls will once again attempt to scale the price above the overhead resistance zone. If they succeed, the uptrend is likely to resume.
However, if the bears sink the price below the 20-day EMA, a drop to $0.268478 is possible. If the bulls defend this support, the pair could remain range-bound for a few days.
A break below the $0.268478 will be a negative sign that can result in a decline to the 50-day SMA ($0.238).
Chainlink (LINK) corrected to $14.69 on Aug. 18, which is just below the 38.2% Fibonacci retracement level of $15.053. The bulls have purchased this dip and are currently attempting to resume the uptrend.
LINK/USD daily chart. Source: TradingView
If the buyers can push the price above $17.6738, a retest of the highs at $20.1111 is possible. A breakout of this resistance will signal resumption of the uptrend.
The moving averages are sloping up and the RSI is in the positive zone, which suggests advantage to the bulls.
However, if the bulls fail to push the price above $20.1111, a few days of range-bound action is possible. The LINK/USD pair is likely to signal a deeper correction on a break below the $14.69 support.
The bulls could not propel Bitcoin Cash (BCH) above the $326.30 resistance on Aug. 17 and 18, which attracted profit booking. This has pulled the altcoin down to the 20-day EMA ($293) and has resulted in the formation of a symmetrical triangle.
BCH/USD daily chart. Source: TradingView
If the bears can sink and sustain the BCH/USD pair below the triangle, a drop to the 50-day SMA ($263) and then to $245 is possible. The 20-day EMA is flattening out and the RSI has dropped close to the midpoint, which suggests that the bulls are losing their grip.
However, if the pair rebounds off the current levels and breaks above the $326.30 resistance, a retest of $353 is likely.
Litecoin (LTC) scaled above the overhead resistance of $65.1573 on Aug. 17 but the bulls could not sustain the higher levels. The bears are attempting to fake this breakout and have pulled the altcoin back below $65.1573.
LTC/USD daily chart. Source: TradingView
The negative divergence on the RSI suggests that the momentum has weakened. If the bears can sink the price below the 20-day EMA ($58), a drop to $51 is possible.
However, if the bulls defend the 20-day EMA aggressively, the LTC/USD pair will make one more attempt to rise above the $65.1573–$68.9008 resistance. If they succeed, a rally to $80 is likely.
Bitcoin SV (BSV) turned down from $235.32 on Aug. 18 and broke below the 20-day EMA ($216), which suggests a lack of demand at higher levels.
BSV/USD daily chart. Source: TradingView
The bulls are currently attempting to defend the $200 support, which is just above the 50-day SMA ($198). If the BSV/USD pair rebounds off this level, the bulls will attempt to push the price above the $227–$235.32 resistance zone. If they succeed, a rally to $260 is possible.
However, if the bulls fail to push the price above $227, a few days of range-bound action between $200–$227 is likely. A break below $200 could signal weakness and result in a fall to $160.
Cardano (ADA) slipped below the $0.13–$0.15 zone today but the bears have not been able to sustain the lower levels, which suggests some buying at lower levels.
ADA/USD daily chart. Source: TradingView
The 20-day EMA ($0.137) has flattened out and the RSI has dipped below the 50 level, which points to a possible consolidation in the short-term.
A breakdown and close (UTC time) below $0.13 will signal a possible change in trend. Below this support, a drop to the $0.11–$0.10 zone is likely.
The next leg of the uptrend is likely to start after the bulls push the ADA/USD pair above the $0.15–$0.1543051 resistance.
Binance Coin (BNB) turned down from the $22.93–$24.4588 resistance zone on Aug. 17 and has dipped to the 20-day EMA ($22).
BNB/USD daily chart. Source: TradingView
If the BNB/USD pair rebounds off the 20-day EMA, the bulls will make one more attempt to push the price above the overhead resistance zone. If they succeed, a rally to $27.1905 is likely.
However, if the bears sink the pair below the 20-day EMA a fall to $20.50 is possible. Below this level, the correction could deepen to the 50-day SMA ($19.58). The negative divergence on the RSI signals a weakening momentum.
EOS could not sustain above the $3.8811 resistance on Aug. 17, which resulted in profit booking by the short-term traders. The altcoin corrected to $3.3086 today, which is just above the 61.8% Fibonacci retracement level of $3.2766 and the 20-day EMA ($3.264).
EOS/USD daily chart. Source: TradingView
Usually, in a strong uptrend, the corrections end between the 38.2% and 50% Fibonacci retracement levels because the bulls are in a hurry to buy and they do not wait for a deeper fall.
However, a sharper fall to the 61.8% Fibonacci retracement level or below it suggests that the momentum has weakened. The critical support to watch on the downside is $3.2766 and the breakout level of $3.1104. A break below this support will be a huge negative.
If the bulls defend the 20-day EMA, the EOS/USD pair will again attempt to rise to the $3.8811–$3.95 resistance zone. A break above this zone will signal the possible resumption of the uptrend.
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 involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.