Bitcoin has been experiencing a period of consolidation, with its market dominance gradually decreasing as investors shift their focus to select altcoins. While this altcoin recovery is promising, it remains highly dependent on Bitcoin’s performance. If Bitcoin experiences a sharp decline, there is a high possibility of an altcoin sell-off. As traders look for trading opportunities in select altcoins, it is crucial to closely monitor Bitcoin’s price action.
In terms of support and resistance levels, Bitcoin has managed to stay above the 50-day simple moving average ($29,377), which is a positive sign. However, it has struggled to break above the 20-day exponential moving average ($29,670). If the bears manage to pull the price below the immediate support at $28,861, it could indicate a potential range-bound movement between $31,000 and $24,800. The downsloping 20-day EMA and the negative relative strength index (RSI) suggest an advantage for the bears. However, if the bulls can drive the price above the 20-day EMA, it may lead to a rise towards the overhead resistance zone between $31,000 and $32,400, which could signal the beginning of a new uptrend to $40,000.
Dogecoin (DOGE)
Dogecoin is currently facing resistance above the $0.08 level, but the bulls have not given up much ground. The recent dip on July 28 indicates positive sentiment and buying interest from traders. If the bulls can push the price above the intraday high from July 25, the DOGE/USDT pair could gain momentum and potentially reach $0.10 and $0.11. On the other hand, if the price turns down and falls below the 20-day EMA, it may indicate bearishness and a potential decline to the breakout level of $0.07.
Maker has finally broken above the $1,200 barrier after being stuck below it for several months. This breakthrough may lead to a retest of the breakout level, with a potential downturn to $1,200. If the price bounces back sharply from this level, it could indicate that $1,200 has become a new support. This may mark the start of a new uptrend towards $1,600 and $1,900. However, if the bears manage to sustain the price below $1,200, it could suggest a false breakout and potential return to the 20-day EMA ($1,079).
After a prolonged downtrend, Optimism is showing signs of a new uptrend. The turning up of the 20-day EMA ($1.46) and the positive RSI indicate bullish control. There is minor resistance at $1.66, and a successful crossing of this level may lead to a rise towards $1.88 and $2. However, if the price turns down from $1.66, it may indicate bearish sentiment, with a potential drop to the 20-day EMA. A break below this support level could result in a further descent to the 50-day SMA ($1.33).
The XDC Network has experienced a strong uptrend, surging from $0.03 to $0.06. Although a correction is expected, a bounce off the 38.2% Fibonacci retracement level at $0.05 and the 20-day EMA ($0.05) would suggest continued bullish sentiment. In this scenario, a rally above the July 27 intraday high could open the gates for an up-move towards $0.10. However, if the price falls below the 20-day EMA, the positive view will be invalidated.
Overall, Bitcoin and select altcoins are facing crucial support and resistance levels. Bitcoin’s performance will remain crucial for the altcoin market, and traders should closely monitor its price action.