Bitcoin and altcoins met selling at key overhead resistance levels and investors are unsure whether traders will buy the current dip
Bitcoin (BTC) has been witnessing a tough battle between the bulls and the bears near the $25,000 level. A clear winner may not emerge in the short term due to a lack of a catalyst and because there is no major macroeconomic data scheduled for this week in the United States. Data points from Asia or Europe may increase volatility, but they are unlikely to start a new directional move.
Anthony Scaramucci, founder and managing partner of Skybridge Capital, in an interview with CNBC, advised investors to ride out the current uncertainty in cryptocurrencies and “stay patient and stay long term.” He expects Bitcoin to reward investors immensely with a sharp uptrend over the next six years.
BTC/USDT
The bulls tried to resume the up-move in Bitcoin but the bears sold aggressively at $25,211 and pulled the price down to the 20-day exponential moving average (EMA) ($23,483). This resulted in the formation of an outside-day candlestick pattern on Aug. 15.
The gradually upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate advantage to buyers. If the price rebounds off the 20-day EMA, it will suggest that bulls are buying the dips to this level. That could improve the prospects of a break and close above $24,668.
If that happens, the pair could start its northward march toward $28,000 where the bears may again pose a strong challenge.
Another possibility is that the bears sink the price below the 20-day EMA. If that happens, the pair could drop to the 50-day simple moving average (SMA) ($22,037) and later to the uptrend line.
ETH/USDT
Ether repeatedly rose above the psychological resistance at $2,000 for the past two days but the bulls could not sustain the higher levels. This suggests that bears are posing a stiff challenge at this level.
The ETH/USDT pair could decline to the breakout level at $1,700. This is an important level to watch out for because if bulls flip $1,700 into support, it will increase the likelihood of a break above $2,000. If that happens, the pair could rally to the downtrend line.
The upsloping 20-day EMA ($1,756) and the RSI in the positive territory indicate that bulls are in control. To invalidate this bullish view, bears will have to sink and sustain the price below the 20-day EMA. That could sink the pair to the 50-day SMA ($1,465).