After spending weeks in a downtrend, Bitcoin (BTC) finally bottomed around the $55,500 mark and has rebounded, climbing above $58,000 during the current week.
However, its recovery faces a significant hurdle at the $60,000 mark, indicating that sellers are very active at higher levels. However, bulls have bought the dip, preventing the bears from resuming BTC’s downward trend.
Not Quite Ready For $60,000
While the Bitcoin (BTC) price recovered this week, it has yet to reclaim the key $60,000 level. Bears are quite active at higher levels and also attempted to restart a downward trend. However, with bulls buying the dip, BTC was able to stabilize. According to Farside Investor data, spot Bitcoin ETFs saw inflows of over $650 million since July 5, indicating strong demand at lower levels.
However, with Arkham Intelligence reporting that the German government is preparing to sell an additional 6000 BTC, it looks like selling pressure is here to stay, at least for the moment. Markets will also be watching the extent of selling by the creditors of Mt. Gox once they receive their payments, as it could significantly impact the price of BTC.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has rebounded strongly this week after reaching a low of $53,591 on Friday before recovering on Saturday and settling at $58,309. However, it was back in the red on Sunday, dropping over 4% to $55,909. The current week began with BTC experiencing significant volatility as buyers and sellers attempted to exert control over the market. As a result, BTC saw a low of $56,312 and a high of $58,282 before settling at $56,762. Tuesday saw BTC continue its upward trajectory, rising by 2.32% to settle at $58,801.
Buyers attempted to overwhelm sellers on Wednesday, with BTC reaching a high of $59,473. However, with buyers very active around the $60,000 mark, BTC fell back to register a drop of 0.44% to settle at $57,826. The current session sees BTC trading at $58,068, up by 0.41%. Bitcoin’s price movements show that bears are defending the resistance level around $60,000, while bulls are defending the support zone between $56,000 and $53,000. Buyers have attempted to push BTC above the 200-day SMA but have so far been unable to do so.
Source: TradingView
If BTC cannot move above the 200-day SMA and turns bearish, it would indicate that overall sentiment is negative, and traders are selling their BTC when the price is rallying. A prolonged downturn may see sellers attempt to push BTC below its support levels. A drop to $50,000 could be a realistic outcome if they are successful. However, if BTC can go above the 200-day SMA, it would indicate changing sentiments. In such a scenario, BTC could rally towards the 20-day SMA and $60,000. A break above this level could see BTC surge towards the 50-day SMA, currently at $64,752.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has also seen a steady recovery during the current session, allowing it to climb above $3,000. The recovery comes after bulls successfully defended ETH’s support level of $2,850 twice over the past week. ETH dropped below $3,000 on Friday as sellers pushed it to a low of $2,824. However, with demand at lower levels, it was able to recover and close at $2,983. Buyers pushed ETH back above $3,000 on Saturday, but it fell back in the red on Sunday to end the weekend back below $3,000 at $2,932. Monday saw ETH’s support level be tested again as sellers attempted to push the price below $2,800. However, ETH was able to recover, eventually registering an increase of just over 3% to settle at $3,020.
Source: TradingView
ETH continued to push higher on Tuesday, rising to $3,067. Buyers attempted to push the price above the 200-day SMA, as seen in the chart but were unsuccessful. Wednesday saw ETH register an increase of 1.14% and move to $3,103, but once again, selling pressure did not allow ETH to push above the 200-day SMA. Whether ETH can push above the 200-day SMA during the current session remains to be seen.
Currently, ETH is trading at $3,107, with resistance at the 200-day SMA. If ETH can break above this level, we could see ETH move towards $3,250, another key level of resistance. However, if ETH turns bearish, sellers will look to push the price back below $3,000 and test the $2,850 support level once again. Buyers must ensure ETH stays above $3,000 for any sustained upward momentum. However, some bearish signals exist, such as a significant drop in open interest. According to Coinglass, ETH open interest fell from nearly $15 billion to around $11.9 billion. A reduction in open interest indicates decreased confidence from investors and a decline in liquidity.
Solana (SOL) Price Analysis
Solana (SOL) demonstrated immense resilience during the recent market downturn, consolidating above crucial support levels and showing tremendous potential for a price rally. SOL has strong support at $120, with support also building around the 20-day SMA. If SOL can stay above $140, we could see a break above the $150 resistance. The cryptocurrency has spent most of this week in the green after registering a sharp drop on Sunday. Monday saw an increase of 6.23% as SOL pushed back above the 20 and 200-day SMAs to settle at $139.88. Tuesday saw significant volatility as sellers attempted to push SOL back towards $130. However, buyers won out, and SOL registered an increase of 1.15% to settle at $141.49. Buyers attempted to push SOL towards $150 on Wednesday, with SOL reaching a high of $146.24. However, with sellers defending the resistance levels, SOL settled at $142. The current session sees SOL marginally down as buyers look to push SOL below $140.
Source: TradingView
So, which direction will SOL go? As we can see from the price chart, SOL faces significant resistance at $150. If buyers are able to push SOL above this level, we could see the price move above $150. However, sellers are expected to defend $150 fiercely, and should SOL’s momentum break, we could see sellers attempt to push SOL down to its support level of $120.
Ripple (XRP) Price Analysis
Ripple (XRP) started the week facing significant volatility as bears attempted to push the price below its support level of $0.40. However, buyers were able to defend this level successfully. Despite hitting a low of $0.40, XRP recovered and registered an increase of 2.76% and moved to $0.43. The asset remained in the green on Tuesday and Wednesday, moving to $0.43. Some analysts have predicted that XRP could see significant bullish momentum should it clear the resistance at $0.45. However, bears are expected to defend this level aggressively, and if XRP fails to push above the $0.45-0.46 levels, we could see the price consolidate between $0.41 and $0.45.
Source: TradingView
If XRP can push above $0.45, we could see a move towards the next resistance level at $0.46. Continued bullish sentiment could put XRP in line to test the next level of resistance at $0.48 and move towards $0.50.
Toncoin (TON) Price Analysis
Toncoin (TON) made a strong recovery after bears pushed it to a low of $6.38 on Friday. With bulls buying the dip, TON was able to reverse the bearish sentiment, rising by 1.66% to climb back above $7 and settle at $7.26. TON’s bullish sentiment persisted on Saturday, as it registered an increase of almost 5% to move above the 20-day SMA and settle at $7.61. However, with strong selling pressure at higher levels, TON dropped by 7.32% on Sunday to $7.05.
Source: TradingView
The current week began with buyers attempting to push TON back above the 50-day SMA. However, they could not sustain momentum, and after rising to a high of $7.39, TON fell back below the 50-day SMA to $7.12. Despite the intense selling pressure at higher levels, TON was able to stay above $7, thanks to investors buying the dip and supporting its trading range. The price pushed above the 20-day SMA on Sunday, as it rose by 3% to $7.34. However, TON fell back in the red on Wednesday after sellers thwarted a move above the resistance at $7.50, falling by 2.01% to $7.19. The current session sees TON still in the red as bears look to push the price below the 50-day SMA.
If sellers can drive TON below $7, we could see a drop towards $6.50. If this level is broken, the price could be dragged down to $6. However, if buyers can reverse the selling pressure, keep TON above $7, and break above the resistance at $7.50, it could move towards $8. However, sellers are expected to defend these resistance levels vigorously.
Polkadot (DOT) Price Analysis
Polkadot (DOT) lost the crucial $6 support level last week when it slumped by 8.40% on Thursday to $5.56. However, it was quick to recover, and after facing intense volatility on Friday, it surged by almost 10% on Saturday to push back above $6 and the 20-day SMA to settle at $6.25. Sellers were able to push back on Sunday, and DOT registered a fall of 5.44% to settle at $5.91. The current week began with buyers pushing towards $6.50 and moving past the resistance. However, sellers pushed back and pushed DOT back down, with the cryptocurrency eventually settling at $5.95.
Source: TradingView
On Tuesday, DOT was back in the green, rising by almost 3% to push above $6 and settle at $6.12. After a marginal drop on Wednesday, DOT is currently trading at $6.12, up by 0.33%. If buyers can mount sustained pressure, we could see DOT retest the resistance at $6.50. However, so far, sellers have defended this level successfully. If sentiment turns bearish, DOT could drop below $6 and possibly see sellers test its support at $5.
Cosmos (ATOM) Price Analysis
Cosmos has seen a steady push above $6 this week after being in the red for most of the previous week. ATOM dropped below $6 on Friday when it sank to a low of $5.09. However, with strong demand around the $5 level, it was able to recover to a certain extent, registering a drop of 4.73% and settling at $5.70. The weekend saw ATOM recover and push back above $6, rising to $6.07. However, the markets turned bearish on Sunday, with ATOM dropping by 4.59% to $5.79.
Source: TradingView
ATOM began Monday with buyers attempting to push the price towards the 20-day SMA. However, with bears active at this level, the price fell back, registering only a marginal increase to $5.82. Tuesday saw a steady increase of 1.82%, pushing the price to $5.92, while Wednesday’s increase saw ATOM back above $6, settling at $6.03. The current session sees ATOM up by 1.27% as buyers consolidate and prepare for a move toward the 20-day SMA. Looking at the price chart, we can see ATOM has strong support at $5. If it is able to stay above $6, we could see support build at this level as well.
Its immediate resistance level lies at $6.40, where the 20-day SMA is present. If it can push above this level, we could see a move towards $7 and the 50-day SMA at $7.31.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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