Bitcoin Sees Support But Faces Resistance Ahead
Bitcoin (BTC) has demonstrated resilience at lower price levels, yet it may encounter significant selling pressure within the range of $120,000 to $123,218. The recent sharp rejection near the previous all-time high of $123,218 indicates that sellers are not ready to back down. This inability to reach a new peak has prompted a pullback for many alternative cryptocurrencies, although certain coins have experienced notable rebounds.
Analysts Express Caution Following Bitcoin’s Rejection
In light of Monday’s price action, a number of analysts have adopted a more cautious stance on Bitcoin. According to insights from ZAYK Charts shared on social media platform X, the Wyckoff method indicates that Bitcoin might have entered a distribution phase, which, if confirmed, could drive the price down to around $95,000.
Ether Shows Strong Institutional Interest
In contrast, Ether (ETH) has shown remarkable strength. Data from Farside Investors reveals that spot Ether exchange-traded funds (ETFs) registered impressive net inflows exceeding $1 billion on Monday, suggesting robust institutional interest in the asset.
Analyzing Bitcoin’s Price Movements
Sellers effectively prevented buyers from pushing Bitcoin to a new all-time high above $123,218 on Monday. The daily chart for BTC/USDT illustrates a flat 20-day simple moving average (SMA) at $116,779, indicating a balance between supply and demand. However, the relative strength index (RSI) remains in positive territory, hinting that bullish momentum is still present. Should the price maintain its position above the 20-day SMA, buyers may attempt another push to breach the $123,218 resistance. Success in this endeavor could see Bitcoin’s price surge towards $135,000. Conversely, a drop below the 20-day SMA would indicate profit-taking by short-term traders, potentially dragging the price down to the 50-day SMA at $114,366 and establishing a range-bound trading pattern. A drop below $110,530 would give sellers a stronger grip on the market.
Short-Term Outlook for Bitcoin
The BTC/USDT pair has shown positive movement, bouncing off the 20-SMA on the 4-hour chart. With moving averages trending upward and the RSI in positive territory, buyers seem to hold the upper hand. If resistance at $123,218 is overcome, the pair could ascend to $127,735 and subsequently reach $135,000. However, sellers may try to reverse the trend by pulling the price back below the downtrend line, resulting in a potential trading range between $123,218 and $111,920.
Ether’s Uptrend Continues
Ether commenced a new phase of its upward movement on Tuesday after buyers successfully pushed the price above $4,366. The daily ETH/USDT chart reveals that the upward-sloping moving averages and an RSI that has entered the overbought territory suggest a prevailing bullish sentiment. Buyers are likely to push the ETH/USDT pair towards $4,868. On the downside, the $4,094 level is critical; if breached, it could signal profit-taking, potentially leading to a decline to the 20-day SMA at $3,833.
Short-Term Analysis for Ether
The pullback from $4,366 found support at the 20-SMA on the 4-hour chart, reflecting positive market sentiment. The pair may rally towards $4,500 and later to $4,868, where significant resistance from bears is expected. A decisive break below the 20-SMA could lead to a drop to $4,094, with a rebound from this level indicating that bulls are attempting to establish it as support, thereby increasing the chances of a continued uptrend. A more substantial pullback could occur if the support at $4,094 fails.
BNB’s Range-Bound Trading
BNB (BNB) has been trading within a narrow range of $792 to $827 over the past three days, reflecting indecision among bulls and bears. The daily BNB/USDT chart indicates that a breakout above $827 could propel the price to $861. Sellers are likely to defend this level vigorously; however, if buyers push through, BNB may soar to $900. Conversely, if the price falls below the 20-day SMA at $787, it could signal a deeper correction down to $761 and potentially to strong support at $732, which buyers are expected to defend fiercely to prevent a trend reversal.
BNB’s Short-Term Prospects
On the 4-hour chart, both moving averages exhibit an upward trend, although the RSI suggests the formation of a bearish divergence in the near term. If sellers manage to push BNB below the 50-SMA, they could gain an advantage. Conversely, a break above $827 would indicate a resumption of upward momentum, potentially leading to a climb toward the resistance at $861.
Chainlink’s Bullish Momentum
Chainlink (LINK) gained traction after surpassing the $18 resistance level, indicating strong buying activity from bulls. The daily LINK/USDT chart shows that although bears attempted to halt the price at $22.70, bulls broke through this resistance on Tuesday. The pair may rise to $27, where bears are likely to mount a strong defense. Should buyers successfully breach this level, the rally could extend to $30. However, if there’s a sharp downturn that pushes the price below $20.83, it could lead to further declines to $20 and subsequently to solid support at $18.
Chainlink’s Short-Term Chart Analysis
In the 4-hour chart, the pullback showed support at the 20-SMA, indicating buying interest on dips. With both moving averages trending upward and the RSI in overbought territory, buyers appear to be in control. The initial support on the downside is at $22.70, followed by $21. A break below $21 could suggest that bulls are exiting the market, with the next support level being the 50-SMA.
Uniswap Shows Resilience
Uniswap (UNI) rebounded from the 50-day SMA at $9.05 on August 3, indicating strong buying interest at lower price points. The upward movement is currently facing resistance at $12; however, the bulls have shown resilience, suggesting they believe the upward trend will continue. If buyers succeed in pushing the price above $12, the UNI/USDT pair could surge towards $15.
Uniswap’s Short-Term Outlook
The pair has faced resistance at $12, but bullish efforts are apparent as they attempt to defend the 20-SMA on the 4-hour chart. If they manage to surpass $12, a rally toward $14 and then $15 is likely. However, sellers may aim to pull Uniswap below the 50-SMA. Should they succeed, the price could drop to $10 and eventually to $9.50, potentially establishing a trading range between $8.50 and $12 for an extended period.
Conclusion
This article does not provide investment advice or recommendations. All investments and trading strategies carry inherent risks, and it is essential for readers to conduct thorough research before making any financial decisions.
