Here’s 5 cryptocurrencies with bullish setups that are on the verge of a breakout

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The S&P 500 ended its four-week rally last week, minutes after the Federal Reserve’s July meeting hinted that the central bank’s rate hike would continue until inflation was under control. Fed members said there was no evidence that inflation pressures appeared to be abating.

Another damper is the statement of St. Louis Fed President James Bullard who said he would support a 75 basis point rate hike at the September Fed policy meeting. This dampened hopes that the era of sharp interest rate hikes might come to an end.

View daily crypto market data. Source: Coin360
Weak sentiment sent the S&P 500 down 1.29% for the week. Continuing its close relationship with the S&P 500 Index, Bitcoin (BTC) also saw a sharp decline on August 19 and is likely to end the week with heavy losses.

Will the bulls use the dips to accumulate at lower levels? If they do, let’s study the charts of the top 5 cryptocurrencies that might attract buyers due to their bullish setup.

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BTC / USDT
Bitcoin slipped below the 20-day exponential moving average ($22,864) on August 17 and below the 50-day simple moving average ($22,318) on August 19. The bulls are trying to stop the decline at the ascending support line. Channel.

BTC/USDT daily chart. Source: TradingView
The 20 day EMA has started to decline and the RSI is in negative territory, indicating a bears advantage. If the price reverses direction from the moving averages, this will indicate that the bears are selling on rallies.

This may increase the probability of a breach below the channel’s support line. If that happens, the crucial support area from $18,626 to $17,622 could be attacked.

To avoid this situation, the bulls will have to push the price and keep it above the moving averages. If they do, BNB/USDT could rise towards the channel resistance line.

4 hour BTC/USDT chart. Source: TradingView
Buyers are aggressively defending the channel’s support line but the bearish moving averages and the RSI are in negative territory indicating that higher levels are likely to attract selling by the bears.

If the price falls below the current level or the 20-EMA, the probability of a break below the channel increases. If that happens, the bearish momentum could pick up and the pair could drop towards $18,626.

The first sign of strength will be a break above the 20-EMA. Such a move will indicate that selling pressure may be declining. This could improve the odds of a rise to the 50-SMA.

BNB / USDT
Binance Coin (BNB) fell from the upper resistance at $338 but the bulls managed to defend the strong support at $275. This indicates a positive sentiment as the bulls view the dips as a buying opportunity.

BNB/USDT daily chart. Source: TradingView
The recovery could face resistance at the 20-day EMA ($301). If the price drops below this level, the bears will once again attempt to dump the BNB/USDT pair below $275. If that happens, it will indicate that the pair could swing in a large range between $183 and $338 for some time.

Conversely, if the bulls push the price above the 20-day moving average, the pair could rise to $338. A breakout and a close above this level could complete a bullish head and shoulders pattern. That could start to rise to $413 and then to the pattern target at $493.

4-hour chart of BNB/USDT. Source: TradingView
The 20 EMA on the 4-hour chart has started to rise and the RSI is near its midpoint, indicating that selling pressure may be easing. If the price stabilizes above the 20-EMA, the pair may rise to the 50-SMA. A breakout and a close above this resistance could increase the potential for a rally to $338.

Conversely, if the price declines and breaks below the 20-EMA, the pair may fall back to the critical support at $275. If this level breaks, the pair will complete a bearish head and shoulders pattern and drop towards $240.

EOS / USDT
EOS has formed a bullish inverse head and shoulders setup. Buyers pushed the price above the upper resistance at $1.46 on August 17, but the long wick in today’s candlestick is showing strong selling at higher levels.

EOS/USDT daily chart. Source: TradingView
The bears pulled the price below the breakout level of $1.46 on August 19 but the positive sign is that buyers did not allow the EOS/USDT pair to continue below the 20-day moving average ($1.32). This indicates that lower levels attract buyers.

If the bulls maintain the price above $1.46, the positive momentum could rise and the pair could rise to $1.83. If this resistance is also measured, the rally could extend to the pattern’s target at $2.11.

This positive opinion could be invalidated if the price drops below $1.24. After that, the pair may decline to the 50-day simple moving average ($1.17).

4-hour chart of EOS/USDT. source:

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