BTC is currently facing a fierce battle between the bulls and the bears as they struggle to control its price. The buyers are working hard to keep the price within the range of $56,552 to $73,777, while the bears are attempting to push it lower. Despite sellers bringing the price down to around $53,500 on July 5, the bulls stepped in to buy at lower levels.
Spot Bitcoin exchange-traded funds in the United States saw a significant increase in net inflows of $143.1 million on July 5, the highest in a month, according to Farside Investors. Bitwise Asset Management CEO Hunter Horsley mentioned in a post on X that investors who have not yet invested in Bitcoin have a great opportunity to do so as its future prospects are very promising.
The recent decline in Bitcoin has led to increased selling pressure in several altcoins, but a few have managed to maintain strong support levels. These altcoins could potentially lead the market recovery if Bitcoin makes a move towards $60,000.
To identify key resistance levels that need to be overcome for buying interest to pick up in Bitcoin and altcoins, let’s analyze the top 5 cryptocurrencies that appear strong based on their charts.
Bitcoin Analysis:
Bitcoin fell below the $56,552 support on July 5, but the bulls managed to defend this level on a closing basis after buying the dip. However, the bears are not likely to give up easily and may attempt to push the price below $56,552 again. If successful, the BTC/USDT pair could drop to $53,485 and potentially to solid support at $50,000.
The downward 20-day exponential moving average ($61,231) favors the bears, but a positive divergence on the relative strength index (RSI) suggests that bearish momentum may be slowing down. Buyers will need to push the price above the 20-day EMA to indicate that the price range between $56,552 and $73,777 could persist for a while longer.
On the 4-hour chart, the 20-EMA is leveling out, and the RSI indicates reduced selling pressure. Breaking above the downtrend line will signal the end of the correction, potentially leading the pair to climb to $64,602.
Conversely, a break below $56,552 could indicate continued bearish sentiment, risking a breakdown below $53,485.
Solana Analysis:
Solana is forming a bearish descending triangle pattern, which could complete on a break below $116. Despite this, there is a slight advantage for the bulls as the RSI shows signs of a positive divergence, hinting at reduced selling pressure. If the price surpasses the 20-day EMA, it may rally towards the 50-day SMA and the downtrend line.
A downturn below $116 could confirm the bearish setup, potentially leading the pair to $80.
Polkadot Analysis:
Polkadot saw a sharp decline to $4.91 on July 5, but strong buying at lower levels prevented further losses. Bulls managed to push the price above the 20-day EMA, indicating weakening bearish pressure. A break above the 50-day SMA could lead to a rally towards $7.29 and $7.77.
On the 4-hour chart, a V-shaped recovery indicates bulls attempting a comeback. Breaking above $6.60 could drive momentum towards $7.29.
NEAR Protocol Analysis:
NEAR Protocol has been trading within a range of $4.28 and $8.58, with bears briefly breaking below support on July 5. Despite a downward trend, a positive divergence on the RSI suggests weakening selling pressure. A break above the 20-day EMA could lead the pair to $5.63 and potentially $6.11.
A downturn below $4 could signal a new downtrend towards $3.50.
Kaspa Analysis:
Kaspa closed above the $0.19 resistance on June 29, but failed to sustain the breakout. Despite a pullback, strong support near the 50-day SMA shows bullish defense. Breaking above the 20-day EMA could signal a climb to $0.19.
A break below the 50-day SMA could pull the price to $0.13 and eventually $0.10.
This article does not provide investment advice, and readers should conduct their own research before making any decisions as all investments carry risks.