Bitcoin (BTC) made an attempt to break out of its sideways price action on July 13 following Ripple’s legal victory over the United States Securities and Exchange Commission (SEC). However, the enthusiasm was short-lived as sellers pulled the price back into the range on July 14. Despite this setback, Bitcoin’s price has managed to remain above $30,000, which is a positive sign.
Market observers are eagerly watching the review process for various exchange-traded fund (ETF) proposals, particularly the proposal by BlackRock. It is worth noting that out of the 550 ETF applications submitted by BlackRock, only one has been rejected. This suggests a high likelihood of approval for BlackRock’s spot Bitcoin ETF proposal.
While Bitcoin continues to consolidate, waiting for its next catalyst, several altcoins are seeing strong buying interest. This has caused Bitcoin’s market dominance to fall below 50%, indicating a potential shift in focus towards altcoins in the near future.
The question now is whether Bitcoin will break out of its range and start a trending move in the short term. To gain insight into potential opportunities, let’s analyze the charts of the top five cryptocurrencies that may be of interest to traders in the coming days.
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Bitcoin Price Analysis
Bitcoin closed above $31,000 on July 13, but the bears quickly pulled the price back below that level the next day. This indicates a fierce defense of the zone between $31,000 and $32,400 by the bears. The price action over the past few days has also formed a bearish divergence on the relative strength index (RSI), signaling weakening bullish momentum.
If the bears manage to push the price below the 20-day exponential moving average ($30,187), the BTC/USDT pair could drop to the 50-day simple moving average ($28,631). On the other hand, if the bulls can sustain the price above $31,000, the pair could climb to $32,400. A break and close above this level would pave the way for a potential run to $40,000.
On the four-hour chart, the pair has dropped below the moving averages, indicating a lack of demand at higher levels. If the bears can sink and sustain the price below $29,500, it could trigger a deeper correction with a potential target at $27,500. Conversely, if the bulls can push and hold the price above $31,000, it would signal strength and could lead to an up-move toward $32,400.
Uniswap Price Analysis
Uniswap (UNI) has been finding support at the 20-day exponential moving average ($5.41) during pullbacks, suggesting a positive sentiment as traders buy the dips. The bulls will try to buy the current dip and push the price above the immediate resistance at $6.16. If they succeed, the UNI/USDT pair could rise to $6.50, with a potential further resistance at $6.70.
On the downside, the 20-day exponential moving average is an important support level to watch. A break below this level would suggest the return of bearish pressure, potentially pushing the pair down to the 50-day simple moving average ($5) and the crucial support at $4.72.
Arbitrum Price Analysis
Arbitrum (ARB) broke and closed above a symmetrical triangle pattern on July 15, indicating bullish dominance. The rising 20-day exponential moving average ($1.16) and the near-overbought levels on the RSI suggest that the path of least resistance is to the upside.
There is a minor resistance at $1.36, but if the bulls can surpass this level, the ARB/USDT pair may surge to $1.50, followed by a potential resistance at $1.70. However, if the price turns down and falls below the support line of the triangle, it could invalidate the bullish scenario and potentially result in a sharp drop to $0.90.
Aave Price Analysis
Aave (AAVE) broke and closed above a descending channel pattern on July 3, with the bulls successfully holding the retest of the breakout level. This indicates a strong demand at lower levels. The rising 20-day exponential moving average ($72) and positive RSI further support the bullish view.
If the price turns up from the current level or bounces off the 20-day exponential moving average, it would increase the likelihood of a rally above $84.50. The AAVE/USDT pair could then target $95. On the downside, a break below the 20-day exponential moving average would suggest weakening bullish momentum and potentially lead to a retest of the descending channel.
Maker Price Analysis
Maker (MKR) broke above a downtrend line on July 2 and successfully retested the level on July 14. The bounce off this support level indicates strong demand at lower levels. The rising 20-day exponential moving average ($878) and positive RSI further support the bullish outlook.
The bulls are attempting to resume the up-move and may face resistance near $1,100. If they manage to clear this hurdle, the MKR/USDT pair could surge to $1,200. On the downside, a turn down from $1,080 would suggest selling pressure from bears. The pair may then retest the 20-day exponential moving average, and a break below this level could potentially lead to a return to the descending channel.
In conclusion, Bitcoin’s attempt to break out of its range was short-lived, but the bulls managed to keep the price above $30,000. The focus now turns to altcoins, with several showing strong buying interest. Traders should closely monitor the price action of Bitcoin and top altcoins like Uniswap, Arbitrum, Aave, and Maker for potential trading opportunities.
