Cryptocurrency investment is not limited to the wealthy. According to a recent Gallup poll, Bitcoin ownership among U.S. investors with $10,000 or more invested in stocks, bonds, or mutual funds has increased from 2% in 2018 to 6% by June 2021.
JPMorgan Chase’s retail wealth clients may soon be able to invest in cryptocurrencies. Although bank advisers are not permitted to recommend cryptocurrency to their clients, they are permitted to execute trades on their behalf.
All of this indicates that investor interest in the crypto sector is growing. Could this result in a long-term recovery? To find out, let’s look at the charts of the top ten cryptocurrencies.
Cryptocurrency investment is not limited to the wealthy. According to a recent Gallup poll, Bitcoin ownership among U.S. investors with $10,000 or more invested in stocks, bonds, or mutual funds has increased from 2% in 2018 to 6% by June 2021.
JPMorgan Chase’s retail wealth clients may soon be able to invest in cryptocurrencies. Although bank advisers are not permitted to recommend cryptocurrency to their clients, they are permitted to execute trades on their behalf.
All of this indicates that investor interest in the crypto sector is growing. Could this result in a long-term recovery? To find out, let’s look at the charts of the top ten cryptocurrencies.
BTC/USDT
Bitcoin is witnessing a tough battle between the bulls and the bears near the 20-day exponential moving average ($32,569). The bulls did not give up much ground on July 22, which is a positive sign.
The relative strength index (RSI) has risen to just below the midpoint, implying that the bearish momentum is fading. If buyers push the price above the 20-day EMA and keep it there, the BTC/USDT pair could reach the 50-day simple moving average ($34,352).
This level may attract bearish selling, but if bulls can overcome it and push the price above it, the relief rally could reach $36,670.
In contrast to this assumption, if the price falls below the 20-day EMA or the 50-day SMA, the bears will attempt to sink the pair below $28,000 once more. If they are successful, the pair may experience panic selling, paving the way for a possible drop to $20,000.
ETH/USDT
Ether’s (ETH) bounce off the critical support at $1,728.74 rose above the 20-day EMA ($2,014) on July 22. This suggests that bears may be losing their grip. The 20-day EMA has flattened out and the RSI has risen to the midpoint, indicating that bulls are attempting to make a comeback.
Buyers will now attempt to challenge the 50-day simple moving average ($2,184), where the previous relief rally had failed on July 7. If the price falls again from this resistance, the bears will try to pull it down to $1,728.74. A break below this support level could signal the start of the next leg of the downtrend.
If bulls push the price above the 50-day SMA, the ETH/USDT pair could rally to the downtrend line. A break and close above this resistance will indicate a possible trend change. If the pair breaks above $3,000, it may gain momentum.
BNB/USDT
The bears are attempting to stall the relief rally in Binance Coin (BNB) near the downtrend line but a minor positive is that bulls have not given up much ground. The altcoin formed an inside day candlestick pattern on July 22, indicating indecision among bulls and bears.
If bulls push the price above the downtrend line and the 50-day SMA ($319), it could indicate a shift in short-term sentiment. The BNB/USDT pair may then rise to $380, and then to $433.
On the other hand, if the price falls from its current level, the bears will attempt to pull it down to $251.41. A break below this support indicates that bears have absorbed the demand, and the pair could then fall to the critical support level of $211.70.
ADA/USDT
Cardano’s (ADA) rebound off $1 is struggling to rise and sustain above $1.19. This indicates the bears have not given up and are attempting to stall the recovery at this level.
If the price falls from its current level, the ADA/USDT pair could fall to the critical support level of $1. If the pair bounces off this level, it may remain range-bound between $1 and $1.19 for a few days.
A break and close above the 20-day exponential moving average ($1.23) will pave the way for a possible rally to the downtrend line.
If bears sink and keep the price below $1, the pair will turn negative and begin a new downtrend. On the downside, $0.80 is the next support to watch, followed by $0.68.
XRP/USDT
XRP’s rebound off the critical support at $0.50 has reached the 20-day EMA ($0.61). This may prove to be a difficult hurdle for the bulls to cross as the altcoin has not closed above the 20-day EMA since May 18.
If the price falls below the 20-day EMA, the XRP/USDT pair could fall to the critical support level of $0.50. This is a critical level for the bulls to defend because if it is breached, the decline could extend to $0.45 and $0.40.
In contrast, if bulls push the price above the 20-day EMA, the pair could rally to the 50-day SMA ($0.70) and then to $0.75. A break and close above this level indicates the beginning of a move back towards the descending channel’s downtrend line.
DOGE/USDT
Dogecoin (DOGE) formed an inside day candlestick pattern on July 22, indicating indecision among the bulls and the bears. The sellers are aggressively defending the overhead resistance at $0.21 but the bulls are not giving up much ground.
If the tight consolidation near the overhead resistance at $0.21 continues, it will indicate that bulls are not closing their positions as they anticipate a move higher. A breakout and close above $0.21 could open the doors for a move to the 50-day SMA ($0.25).
Alternatively, if the bulls fail to clear the hurdle at $0.21, the DOGE/USDT pair could again drop to $0.15. If the support holds, the pair may extend its stay between $0.15 and $0.21 for a few more days.
A breakdown and close below $0.15 will signal the resumption of the downtrend. The next support on the downside is $0.10.
DOT/USDT
The bulls pushed Polkadot (DOT) above the breakdown level at $13 on July 22 but they are facing stiff resistance at the 20-day EMA ($13.78). If the price turns down from this resistance, it will suggest that the sentiment remains negative.
The bears will then try once more to push the DOT/USDT pair below the psychological support level of $10. If they are successful, the pair may resume its downtrend and fall to the next support level at $7.80.
In contrast to this assumption, if bulls push the price above the 20-day EMA, it will indicate that bears are losing control. This could lead to a move to the overhead resistance level of $16.93. A break and close above this level could kick-start a long-term relief rally to $20 and then to $26.50.
UNI/USDT
Uniswap’s (UNI) rebound has risen to the 20-day EMA ($17.85) where the bears may mount a stiff resistance. If the price turns down from this level, it will suggest that the sentiment remains negative.
The bears will then make one more attempt to drive the price down to the key support level of $13. A breakdown and close below this support level will complete the descending triangle pattern, kicking off the next leg of the downtrend.
If bulls push the price above the 20-day EMA, the UNI/USDT pair may reach the downtrend line. A break and close above this resistance will render the bearish setup invalid. This could pave the way for an increase to $25 and then $30.
BCH/USDT
The rebound in Bitcoin Cash (BCH) has reached the 20-day EMA ($461), which has acted as a stiff resistance in the past few days. The bears will again try to stall the relief rally at this resistance.
If the price falls below the 20-day EMA, the BCH/USDT pair could retest the critical support level of $370. The resumption of the downtrend will be indicated by a breakdown and close below this support.
If bulls push the price above the 20-day moving average, the pair could rally to the stiff overhead resistance at $538.11. If the price falls below this level, the pair may remain trapped in the large range of $370 to $538.11 for the foreseeable future.
LTC/USDT
Litecoin (LTC) rose above the $118 level on July 22, suggesting aggressive buying at lower levels. The bulls will now try to extend the relief rally and push the price back above the 20-day EMA ($126).
If they succeed, it will indicate that the downtrend may be losing steam. The LTC/USDT pair may then rally to the 50-day simple moving average ($142), where the bears may once again mount a strong resistance. A break above this resistance level could signal the start of a more powerful relief rally.
In contrast to this assumption, a price decline from the 20-day EMA will indicate that sentiment remains negative. The bears will then attempt to extend the downtrend one more time. A break below $100 could pave the way for a drop to $70.