By James Davis
The volatility in Bitcoin has been low again this week, causing the coin to trade within a tight range. This is frustrating for traders as they still don’t know where BTC will head after it breaks out of the current range. And as it has been over the years, the longer Bitcoin stays in a particular trading range, the higher the volatility when a breakout is achieved. That said, traders should brace themselves for wild price swings when the current trading range breaks.
Meanwhile, bulls’ reluctance to book profits at higher levels suggests that they are optimistic about an upward price movement in the coming days.
Another positive sign for crypto assets is that the best-performing ETFs this year are crypto-related. That’s according to a report from exchange-traded fund analyst Eric Balchunas.
Will these positive signs propel Bitcoin and other top digital currencies toward key resistance levels in the short term? Let’s study various price charts to get the answers.
Bitcoin Price Analysis
On August 9, Bitcoin crossed the 50-day SMA (Simple Moving Average) of $29,952 to reach $30,000. However, this price proved tough for the bulls to sustain as the coin began trending down to hit its current price of $29,307. Despite the drop, BTC is up 1.6% this week. We anticipate it will continue trading between $28,590 and $30,260 for some time unless a strong macroeconomic factor comes into play.
If $28,590 cracks, Bitcoin could descend toward $26,230 and later to $24,769. On the contrary, a break above $30,260 could cause the coin to appreciate to $32,346 and then to $39,897.
Ethereum Price Analysis
Over the last few days, Ethereum’s price has been stuck between the $1,815.39 support level and the 50-day SMA of $1,876.83. This tight range shows uncertainty between the bears and the bulls regarding the next directional price movement. The Relative Strength Index (49.31) also suggests a balance between the two.
The bears must tug ETH below $1,815.39 to have the upper hand. If they do so, a sell-off could begin, and the crypto asset may reach $1,702 or even $1,627, depending on the selling pressure. Conversely, we are looking at Ethereum crossing above $2,000 if $1,876.83 breaks.
BNB Price Analysis
Buyers’ failure to thrust BNB above the downtrend line has attracted sellers to book profits, pulling the token below the 20-day Exponential Moving Average (EMA) of $242.32 and the 50-day SMA of $241.59 to trade at $240.04 as of this writing. The support at $239.43 is a key level to watch. If it cracks, we predict BNB plummeting to $221.94, where buying activity could increase. A rebound off this level could push the token to $265.07 and then to $277.38.
XRP Price Analysis
XRP’s price plunged below the 20-day EMA of $0.6537 on August 9, reaching $0.6286 as of Sunday afternoon. The 20-day EMA is now acting as a resistance level. Therefore, any possibility of a rally will require the bulls to thrust XRP above $0.6537. If achieved, the crypto asset could head toward $0.7352, where the bears could start selling.
Conversely, if XRP reaches the 50-day SMA of $0.6179 and fails to reverse, a decline to $0.5638 becomes possible.
Polkadot Price Analysis
DOT continues to trade near $5. The buyers’ attempts to thrust the token above the 20-day EMA of $5.07 have been subject to sell-offs. And with the Relative Strength Index almost reaching the negative zone, the bears may soon be at an advantage. They may then tug Polkadot to $4.82 or even to $4.61. Conversely, if the bulls overcome the barrier at $5.07, a rally to $5.32 could become possible.
Litecoin Price Analysis
Although the bulls have successfully fueled a rebound from the $81.37 support level, the Relative Strength Index (44.32) suggests that the bears won’t allow a massive upward price movement. The short rally is likely to encounter a sell-off at the 20-day EMA of $86.84. If Litecoin reverses from this price, it may drop to the second support at $76.28.
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