Bitcoin (BTC) has continued to experience a period of consolidation, with both bulls and bears hesitant to make large bets as they remain uncertain about the next move. However, traders should closely monitor the situation as periods of consolidation often precede a rise in volatility. Some analysts believe that the recent increase in exposure by Bitcoin whales could be a positive sign for a continuation of the bull run, with on-chain analyst Cole Garner suggesting that this trend may continue until September when the summer seasonality kicks in.
While Bitcoin has seen a significant rise in price in the early months of the year, many major altcoins have struggled to keep up. However, this current consolidation period in Bitcoin could present an opportunity for select altcoins to catch up.
Let’s take a look at the top 5 cryptocurrencies that are looking positive in the near term, examining their charts to identify key resistance levels to watch.
Bitcoin Analysis:
Bitcoin formed an inside-day candlestick pattern on August 5th, indicating indecision among traders. The price is currently range-bound between the 20-day exponential moving average ($29,430) and the horizontal support at $28,861. The downsloping 20-day EMA and the negative relative strength index (RSI) suggest that bears have a slight advantage. A break below the support zone of $28,861 to $28,585 could trigger a downward move towards $26,000. On the other hand, a rebound from the current level and a break above the 50-day simple moving average ($29,840) could signal a recovery towards the resistance zone of $31,804 to $32,400.
Shiba Inu (SHIB) Analysis:
Shiba Inu broke above the overhead resistance of $0.0000085 on August 4th, indicating a potential new uptrend. The bullish momentum continued on August 5th, pushing the price to $0.000010. However, the overbought RSI suggests a possible minor correction or consolidation. If the bulls hold their ground and the price breaks above $0.000010, the pair may surge towards $0.000012 and $0.000014. On the downside, a break below the 61.8% Fibonacci retracement level of $0.000009 could lead to a fall towards $0.0000085.
Uniswap (UNI) Analysis:
Uniswap has been in a correction phase, but the bulls are attempting to hold the decline near the 20-day EMA ($6.04). A rebound from the current level could indicate positive sentiment and buying on dips. The resistance levels to watch are $6.70 and $7.50. A sustained move below the 20-day EMA would suggest the end of the up-move, potentially leading to a descent towards the 50-day SMA ($5.58).
OKB Analysis:
OKB has been gradually falling within a large range between $38 and $59, but the recent breakout above the downtrend line suggests a possible end to the short-term downtrend. The 20-day EMA turning up and the positive RSI indicate the bulls’ upper hand. The price could rise towards $48 and $50, with $54 acting as a major hurdle. However, a slide below the downtrend line would invalidate the up-move. The critical support level to watch is $41.
Hedera (HBAR) Analysis:
Hedera broke above the overhead resistance of $0.055, indicating a potential comeback by the bulls. Sustaining the price above $0.055 could signal a new up-move, with resistances at $0.062 and $0.065. The key support level is $0.055. On the downside, a drop below the 50-day SMA ($0.05) could push the price to $0.045.
It is important to note that this analysis does not provide investment advice or recommendations. Every investment and trading move carries its own risks, and individuals should conduct their own research before making any decisions.
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