However, trading firm QCP Capital is cautious about the momentum in the altcoin market. They highlight that open interest on Ether options has risen to $8 billion, surpassing the $5 billion Bitcoin OI option. Glassnode suggested that traders book profits on the spreads between spot Ether futures trades versus quarterly short Ether futures trades.
Can Bitcoin and altcoins extend their recovery in the next few days? Let’s study the charts of the top 5 cryptocurrencies that might outperform in the near term.
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BTC / USDT
Bitcoin rose above the general resistance of $24,668 on August 13 and 14, but the bulls were unable to sustain the higher levels. This indicates that bears are selling on rallies but frequent breakouts of upper resistance tend to weaken it.
BTC/USDT daily chart. Source: TradingView
The 20-day gradually ascending exponential moving average at $23.414 and the RSI in positive territory indicates that the path of least resistance is to the upside. If the bulls maintain the price above $25,000, the momentum could rise further and the BTC/Tether (USDT) pair could rise to $28,000.
This level could act as severe resistance but if the bulls cross this hurdle, the rally could extend to $32,000. The critical level to watch on the downside is the 20 day moving average. The bounce will indicate that sentiment is still positive and that traders are buying on dips.
Conversely, if the price falls below the current level and breaks below the 20 day EMA, this will indicate that the bears remain active at higher levels. After that, the pair could drop to the 50-day simple moving average of $21,976.
4 hour BTC/USDT chart. Source: TradingView
The $24668 level sees a tough battle between the bulls and the bears. Bullish moving averages indicate an advantage for the buyers, but a negative RSI divergence indicates that the momentum may be weakening.
If the price breaks below the 20-EMA, this will indicate a minor advantage for the bears. After that, the pair could drop to the 50-SMA and later to $23,600. Alternatively, if the price rises from the 20-EMA and rises above $25,050, the upward movement may resume.
ADA / USDT
Cardano (ADA) broke and closed above the general resistance at $0.55 on August 13. This indicates that the uncertainty has been resolved in favor of the bulls.
ADA/USDT daily chart. Source: TradingView
The 20-day moving average at $0.52 and the RSI in positive territory indicate that the bulls have the upper hand. The ADA/USDT pair could rise to $0.63 and then to the strong resistance at $0.70. This level is likely to attract strong selling by the bears.
Contrary to this assumption, if the price breaks below the current level and breaks below the 20-day EMA, it will indicate that a break above $0.55 could be a bull trap. The pair could then move back to the 50-day simple moving average at $0.49 and later to $0.45.
ADA/USDT 4-hour chart. Source: TradingView
The pair completed the ascending triangle pattern on the breakout and close above the upper resistance at $0.55. This has pushed the 4-hour chart’s RSI to overbought levels, which may tempt short-term traders to take profits.
The price may go down to the breakout level of $0.55. If the bulls turn this level into a support level, the pair may continue its upward move towards the target pattern at $0.65. This positive opinion may be invalidated in the near term if the price breaks below the uptrend line.
UNI / USDT
Uniswap (UNI) has been consolidating between $8.11 and $9.83 in the past few days. This indicates that the bulls are buying the dips but the bears are defending the general resistance.
UNI/USDT daily chart. Source: TradingView
The longer the price stays in the range, the stronger the breakout will be. The 20-day moving average at $8.54 is sloping up and the RSI is in positive territory, indicating an advantage for buyers. If the bulls push the price above $9.83, UNI/USDT could gain momentum and rise towards $10.55 and thereafter to $12.
Alternatively, if the price breaks below the current level and breaks below the 20-day moving average, this will indicate that the pair may continue its range-bound movement for some time. The bears will have to plunge and hold the price below $8.11 to gain the upper hand.
UNI/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are defending the area between $9.50 and $9.83. If the price drops below $8.74, sellers will try to dump the pair at the strong support level at $8.11. Buyers are expected to buy on a dip to this level.
The flattening of the moving averages and the RSI near their midpoint indicates that the range-bound movement may continue for some time. The next directional move could start on a break above $9.83