Bitcoin (BTC) is gradually moving towards $70,000, indicating that market sentiment remains positive. According to data from Far Side Investors, a U.S.-based spot Bitcoin exchange-traded fund (ETF) saw inflows of $383 million on July 19, bringing cumulative net inflows into the ETF to more than $17 billion since its inception.
Bitcoin whales appear to be scaling back their sales as the price of Bitcoin remains above $65,000. Julio Moreno, head of research at CryptoQuant, said in a post on X that Bitcoin’s selling by large investors has dried up and “valuation metrics are showing positive momentum.”
Bitcoin’s strength has led to a recovery for several altcoins, and the launch of an Ethereum ETF, scheduled to begin trading on July 23, could further galvanize the cryptocurrency market.
Could Bitcoin continue to recover in the short term and spur some altcoin buying, and if so, what are the top 5 cryptocurrencies that look strong on the charts?
Bitcoin Price Analysis
Bitcoin bounced off the 50-day simple moving average ($63,792) on July 19 and rose above the resistance at $66,128, indicating that the recovery was continuing.
The 20-day SMA ($60,827) is turning up and the Relative Strength Index (RSI) is rising into the positive territory, suggesting that the bulls have the upper hand. If the price sustains above $66,128, the BTC/USDT pair can reach $70,000. We expect the bears to mount a strong defense in the $70,000 to $73,777 zone.
The key support to watch on the decline is the 50-day SMA, if this support breaks down, the pair can drop to the 20-day SMA.
On the 4-hourly chart, the moving averages are sloping up, indicating a favorable situation for the buyers, but the RSI is forming a negative divergence, indicating a possible weakening of the bullish momentum. If the price sinks below $66,128, the pair can drop to the 50-day SMA and then to $62,350.
Conversely, if the price bounces off $66,128, the uptrend will be more likely to resume, which could send the pair surging towards $70,000.
Solana Price Analysis
Solana (SOL) rose and closed above the descending trend line on July 20, invalidating the formation of a bearish descending triangle pattern. The failure of a bearish pattern is a bullish sign.
The upswing of the 20-day SMA ($148) and the RSI in the positive territory suggest that the bulls have the advantage. If the price sustains above the downtrend line, the SOL/USDT pair can rise to $189 and then to the overhead resistance at $210.
Conversely, if the price turns down and re-enters the triangle, it will suggest that the breakout may have been a bullish trap. This may send the SOL/USDT pair down to the 20-day SMA, which may act as strong support.
On the 4-hourly chart, both moving averages are sloping up while the RSI is showing a negative divergence. This indicates that although the trend is up, the positive momentum is slowing. The 20-SMA is a key support to watch on the downside. If the price bounces off the 20-SMA, it will suggest that the uptrend may extend to $189.
If the bears want to block the uptrend, they need to sink the price quickly below the 20-day moving average. If that happens, selling will intensify and the pair can fall to $155. A breakdown below this level will give the bears the advantage.
Internet Computer Price Analysis
Internet Computer (ICP) rose above the downtrend line on July 15, suggesting that the bears were losing momentum.
The moving averages are on the brink of a bullish crossover and the RSI is in the positive territory, indicating that the bulls are making a comeback. The bears tried to sink the price below the July 19 breakdown level of $9.36 but the bulls held on. If the price rises and sustains above $10.50, the ICP/USDT pair can rise to $13 and above $14.
On the other hand, the bears likely have other plans. They will try to sink the price below $9.36. If that happens, the pair can drop to the 20-day SMA. This is a key level for the bulls to defend and if it breaks below, the next stop could be at $6.
A look at the 4-hourly chart shows that the bears are trying to block a recovery at $10.50 but the bulls are not allowing the price to sink below $9.36, which suggests that the pair may stabilize between $10.50 and $9.36 for some time to come.
If the bulls can propel the price above $10.50, it will signal a resumption of the upside and the pair can rise to $11.25 and above $13. On the other hand, if the price sinks below $9.36, the pair can fall to $8.50 and above $7.
Related: DOGE open interest increases 19% as price ‘breaks’ to monthly high
Graph Price Analysis
Graf (GRT) has been trading inside a tight range between $0.22 and the 20-day SMA ($0.19) over the past few days.
The tight range is unlikely to last for long. If the buyers can push the price above $0.22, the GRT/USDT pair can reach the downtrend line. The bears will try to stop the relief rally at this level but if the bulls gain the upper hand, the pair can begin an uptrend to $0.27 and below that to $0.32.
Contrary to this assumption, if the price turns down from the current levels and sinks below the 20-day SMA, it will show that the bulls have given up, which can drag the price down to the next support at $0.15.
Taking a look at the 4-hourly chart, we can see that the bears are fiercely defending the resistance at $0.22. The key level to watch on the dip is the 50 SMA. If the price can surge off the 50 SMA, the chances of a rally above $0.22 will increase. If that happens, the pair can reach the downtrend line.
Conversely, if the price turns down and sinks below the 50-day SMA, it will show that the bulls are rushing for the exits. The pair can drop to $0.20 and then to $0.18.
Bonk Price Analysis
Bonk (BONK) has been fluctuating within a symmetrical triangle pattern for several days, indicating indecision between the bulls and bears.
The 20-day SMA ($0.000025) has started to gradually rise and the RSI is in the positive territory, indicating that buyers have the advantage. The bulls will then attempt to push the price to $0.000036 and then to the resistance line of the triangle. This level is likely to attract some solid selling by the bears.
The 20-day SMA is a key support to watch on the downside. A close below this can drag the BONK/USDT pair down to the support line. Buyers are expected to buy on the dip to the support line.
The 4-hourly chart shows that the bears are trying to block the upside at $0.000032 but the buyers are not giving much ground to the sellers. The first support on the downside is at the 20 SMA and then the 50 SMA. If the price bounces off the moving averages, it will increase the chances of a rise to $0.000036 and above that to $0.000042.
This positive view will be invalidated in the short term if the price sinks below the 50-day SMA, which could trigger further selling and send the price falling to $0.000022 and further to $0.000020.
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
