Bitcoin (BTC) is knocking on the doors of the key level of $ 50,000 and most traders are still bullish even after the digital asset went from the July 20 low of $ 29,278 to an intraday high of $ 49,757.04 on August 21 increased by 70%.

The surveillance resource’s material indicators indicated many puts at the strike price of $ 50,000 and the “almost consistently positive funding (overheated)” suggesting a rejection at current levels and a “pullback into September”.

Daily view of crypto market data. Source: Coin360

Nikita Ovchinnik, 1inch Network’s chief business development officer, said several new institutional investors got into crypto over the past year and that “they didn’t come for short-term gains”.

Another positive sign for the crypto sector is the ever-growing list of unicorns. Analysts expect more companies to join the list as the adoption of crypto and blockchain increases.

Bitcoin’s hesitation near the $ 50,000 mark could shift the focus to altcoins? Let’s look at the charts of the top 5 cryptocurrencies that are likely to attract traders’ attention in the short term.

BTC / USDT

Bitcoin rebounded from the 20-day exponential moving average ($ 45,049) on August 19th and the bulls pushed the price above the stiff overhead resistance at $ 48,144 on August 20th. The bears are currently trying to stop the upward move on psychological resistance at $ 50,000.

BTC / USDT daily chart. Source: TradingView

Unless the bulls give up much ground and flip the $ 48,144 level for support, it indicates strength. The BTC / USDT pair could then gain momentum and begin its march north towards USD 58,000.

The rising 20-day EMA and Relative Strength Index (RSI) in positive territory suggest that the path of least resistance is up.

Alternatively, if bears pull the price below $ 48,144, the pair could fall to the 200-day simple moving average ($ 45,816). This is an important level for the bulls to defend as a break below it could encourage the bears.

The sellers will then attempt to bring the price below the breakout level of $ 42,451.67. If successful, it will suggest the beginning of a deeper correction.

BTC / USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that the bears are aggressively defending the zone between $ 49,500 and $ 50,000. If they manage to get the price below the 20 EMA, the pair could fall to $ 46,600 and then $ 44,000.

If that happens, it suggests that the bulls are losing their footing and then the pair could stay in a range between $ 44,000 and $ 50,000 for a few days. The bears will have to pull the price below $ 42,451.67 to get the upper hand.

ADA / USDT

Cardano (ADA) is on a strong uptrend. The bulls pushed the price above the all-time high of $ 2.47 on August 20th, but the long wick on the daily candle showed sales at higher levels. The altcoin formed an inside-day candlestick pattern on August 21, indicating indecision between bulls and bears.

ADA / USDT daily chart. Source: TradingView

The uncertainty cleared to the top today as the bulls pushed the price to new all-time highs again. If buyers hold the price above the breakout level at $ 2.47, the ADA / USDT pair could rise to $ 3.

However, the long wick of today’s candlestick suggests that bears are unlikely to give up without a fight. They will try to push the price back below $ 2.36 and trap the aggressive bulls. If so, the pair could correct to $ 2.20.

If the price recovers from $ 2.20, the bulls will try again to continue the uptrend. A breakout and close above $ 2.47 to $ 2.65 will improve the prospect of a continuation of the uptrend. Alternatively, a break below $ 2.20 could lower the price to $ 1.94.

ADA / USDT 4 hour chart. Source: TradingView

The 4 hour chart shows that the 20 EMA is trending up, but the RSI is forming a negative divergence. This suggests that the bullish momentum may slow. The first sign of weakness will be a break below the 20 EMA.

If contrary to this assumption the bulls don’t give up much ground from current levels, it will indicate strength. This could attract more buying and the pair could then climb to $ 3 psychological resistance.

AVAX / USDT

Avalanche (AVAX) rebounded from $ 18.41 on August 17 to $ 50.27 on August 21, a 173% rally in a short period of time. This sharp upward move has driven the RSI above 92, suggesting that the rally is overdrawn in the short term.

AVAX / USDT daily chart. Source: TradingView

The long wick on the August 21st candle shows that the bears are trying to defend the psychological resistance at $ 50. On the flip side, initial support is at $ 40. If the price rebounds from these levels, it suggests that the bulls are not posting gains aggressively as they anticipate another rally.

A breakout and close above $ 44 could improve the prospect of retesting the all-time high at $ 60.30.

On the contrary, if bears drag the price below the 38.2% Fibonacci retracement level at $ 38.09, the AVAX / USDT pair could correct to the 50% retracement level at $ 34.34. A break below this support suggests that bullish momentum may have weakened.

AVAX / USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bears are trying to stop the relief rally on the overhead resistance at $ 44.60 and the bulls buy on drops to $ 40. This suggests that the pair could stay between these two levels for the short term.

If the bulls push the price above $ 44.60, the pair could rise to $ 50.27. A breakout and close above this level signals the resumption of the uptrend. Conversely, a break below the 20 EMA indicates that traders are booking profits rather than buying drops. That could signal the beginning of a deeper correction.

CAKE / USDT

PancakeSwap (CAKE) is currently in a strong recovery. Ongoing buying by the bulls pushed the price above the 38.2% Fibonacci retracement level of $ 22.74 on August 20th.

CAKE / USDT daily chart. Source: TradingView

If the bulls hold the price above $ 22.74, the relief rally could reach the 50% retracement level at $ 26.85 and then the 61.8% retracement level at $ 30.96. The bears are likely to build strong resistance in this zone.

On the way down, the 20-day EMA ($ 20.37) is the critical support to look out for. If price rebounds from this support, it suggests sentiment remains positive and traders buy on dips. Conversely, a break below the 20-day EMA could open the doors for further decline to $ 16.

CAKE / USDT 4 hour chart. Source: TradingView

The 4 hour chart shows that the price is trading within a rising wedge pattern. If bears keep the price below the 20-EMA, the pair may fall to the support line of the wedge. This level is likely to act as strong support and a sharp rebound from it will indicate that traders are buying on dips.

A breakout and a close above $ 24.65 will indicate a resumption of the upside move. The next target on the upside is the resistance line of the wedge. Bullish momentum could pick up if the bulls push price above the wedge.

Related: Walmart Seeks Crypto Product Leader, Dogecoin Foundation Returns, Coinbase Raises $ 4 Billion War Chest: Holder’s Digest, May 15-21 August

Atom / USD

Cosmos (ATOM) has traded in a wide range between $ 8.51 and $ 17.56 since late May. The bulls pushed price above range resistance on August 18, clearing the way for a possible move towards the pattern target at $ 26.61.

ATOM / USDT daily chart. Source: TradingView

However, the long wick of today’s candlestick and the RSI above 83 suggest that the rally is overdrawn in the short term. This could lead to profit booking by the bulls which could result in a minor correction or consolidation over the next few days.

Unless the bulls give up much ground and turn the $ 17.56 level into support, the ATOM / USDT pair will try again to continue the uptrend. A break above $ 26.61 could open the doors to a rally to $ 28 and then to $ 30.

The bears will need to pull and hold the price below $ 17 to break bullish sentiment.

ATOM / USDT 4 hour chart. Source: TradingView

The 4-hour chart shows that bears are reaching stiff resistance near $ 24. Although the bulls had driven price above this resistance, they were unable to hold the higher levels as indicated by the long wick on the candle.

A positive sign is that buyers are not in such a hurry to give up their items. The pair could consolidate between $ 21 and $ 24 for some time. A breakout and a close above USD 24 indicate strength and signal the resumption of the upward move.

Alternatively, a break below the 20 EMA indicates the beginning of a lower correction to $ 17.56.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk, so you should do your own research when making a decision.

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