Key points:
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Bitcoin is preparing for a range expansion in the next few days, and the trend favors the bulls.
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ETH, BNB, AVAX, and PENGU are looking set for a possible upside move.
Bitcoin (BTC) has failed to breach the $120,000 resistance, but the bulls have staunchly defended the price. Notably, investors have resumed inflows into BTC exchange-traded funds, with net inflows recorded in the last three trading days according to Farside Investors data.
American hedge fund luminary Ray Dalio opined that a 15% allocation to either Bitcoin or gold could optimize the “best return-to-risk ratio” and serve as a hedge against fiat currency devaluation during an appearance on the Master Investor podcast.
The consolidation of Bitcoin near its recent highs has shifted market attention towards Ether (ETH) and select alt-coins. Firms focusing on Ethereum have acquired roughly 1% of the total ETH supply since early June, potentially reaching 10x current levels by the end of the year, as per a report from Standard Chartered shared with Cointelegraph.
Several other financial institutions have announced intentions to include select alt-coins in their treasuries, highlighting growing institutional interest in the cryptocurrency sector.
Analysts will now delve into charts for the top five cryptocurrencies anticipated for potential near-term upside.
Bitcoin Price Analysis
Buyers have consistently failed to sustain a break above the $120,000 resistance level, signaling a pause in demand at elevated prices. However, support appears resilient with the 20-day moving average stabilizing around $118,170 and the RSI favoring a bullish posture.
Clearance of the $123,218 barrier could unlock significant upside momentum towards $135,729 and potentially reach the higher target at $150,000 as per the ongoing inverse head-and-shoulders pattern (assuming validity). Conversely, a decisive breakdown below $115,000 might indicate short-covering or profit-taking by day traders, risking a dip to the pattern neckline around $110,530. The critical $110,530 level is vital as a breach would open the door lower towards $100,000.
The flattening nature of major moving averages on the 4-hour chart, coupled with an RSI near balanced territory, points to short-term consolidation or sideways movement. A sustained break and close above $120,000 would reinforce bullish control, potentially targeting the $123,218 resistance.
Downside scenario, however, requires monitoring a break below $114,723, which could progressively test the significant $110,530 barrier.
Ethereum Price Analysis
Ethereum (ETH) retreated below $3,941 from recent highs but maintains support above $3,745. The 20-day SMA near $3,473 and the positive RSI suggest underlying buying pressure.
Breaching the pivotal $3,941 level could signal a resumption of the upward trajectory, challenging the $4,094 hurdle and potentially extending towards the substantial $4,868 resistance.
A breakdown below the $3,745 support, once reinforced or if the 20-day SMA is breached (~$3,473), could signal a corrective phase, possibly deepening down to $3,250.
Encountered resistance at $3,941 prevented a sustained rally; recent attempts rally from $3,745 face this wall. Consolidation might follow, but a credible break above $3,941 is key for further upside.
Support clusters near $3,500, a significant psychological barrier also correlating with the 20-day SMA. A breach below this could escalate the correction towards $3,250.
BNB Price Analysis
BNB experienced profit-taking last Monday, pulling back from around $861.
Currently testing the $794 breakout level, a successful rebound from here could offer momentum for a re-test of the previous high around $861, potentially aiming higher for $900 and ultimately $1,000.
Alternatively, if bears successfully breach $794, rapid deterioration could occur, challenging the next crucial support area around $761.
The move below the 20-day SMA signals intensified selling, pointing towards potential further drops towards the 50-day SMA at or around $761.
The 50-day SMA itself (~$761) acts as a critical pivot point. A holding pattern or recovery above it could encourage bulls attempting a re-pricing higher above the 20-day SMA, targeting the $861 resistance.
Avalanche Price Analysis
Avalanche (AVAX) has entered a consolidating phase between approximately $15.27 and $27.38, characterized by buying dips and selling rallies.
The ascending 20-day SMA near $23.52 and the RSI indicating positive momentum favor a potential upside breakout should conviction materialize. Piercing the $27.38 overhead could initiate a new ascent targeting $36 before eventually approaching the objective of $39.49.
A failed challenge near $27.38 pushing the price below the 20-day SMA might delay the next significant up-move, potentially keeping prices contained around the $20.48 50-day moving average.
Post the initial drop from $27.38, the pair breached support structures on the 4-hour chart, breaking the 50-day SMA. The immediate 4-hour support is stepping down towards the $23.00 area.
A counter-trend rally and clearance above the 20-day moving average (currently near $23.52) signifies strength near the $23.00 floor. This could underpin attempts to re-challenge the $27.38 resistance.
Pudgy Penguins Price Analysis
Pudgy Penguins (PENGU) demonstrated sharp gains recently, but faces notable resistance clustering around the $0.046 price point.
Favorable positioning, with an ascending moving average and positive RSI, suggests buying interest remains. A decisive move above $0.046 could kickstart a new phase targeting $0.054 before potentially reaching $0.065.
The crucial short-term support lies at the 20-day SMA around $0.033. A loss of this daily floor could indicate capitulation, inviting a decline towards $0.028.
The previous attempt to surpass $0.046 triggered a breakdown below the 50-day SMA on the 4-hour chart. The immediate support resides at the $0.035 price level. A recovery from here could initiate a lower timeframe bottoming process.
Should the price rebound off $0.035 back above the daily $0.033 SMA, PENGU could attempt to reestablish its position near $0.046 for renewed upside potential. A breakdown below $0.035, however, intensifies bearish pressure, casting $0.028 as the next significant barrier.
This article is not intended to provide investment advice or recommendations. Investment and trading activities involve substantial risk, and readers are strongly encouraged to conduct comprehensive personal research before making any decisions.
