Bitcoin has undergone a sharp correction after reaching $ 12,000. However, the strong leap from BTC and altcoins shows that bulls intend to push prices higher.
It attracted a few traders waiting to start a trending movement as a result of the rally in Bitcoin (BTC) over the $ 10,000 - $ 10,400 region. Yusuke Otsuka, co-founder of the Japanese crypto exchange Coincheck, said that a few sleepy Japanese traders started trading again this week.
Oki Matsumoto, CEO of Monex Group, said that many traders who missed buying lower levels of gold are interested in Bitcoin because they have just started the bullish trend.
It should be noted, however, that traders have different goals and trade with different time periods. After the sharp rise in the past few days, some short-term investors pressed the sales button while Bitcoin intends to exceed $ 12,000.
This resulted in a huge drop in Bitcoin and some other altcoins, but the positive sign is that buyers appear at lower levels. This shows that investors who did not buy the break are willing to enter.
The next few days are critical as they will give you a deeper idea of ??whether Bitcoin is starting a steady move or whether this is a big bull trap.
BTC / USD
Bitcoin (BTC) started a bullish trend after leaving the resistance level of $ 10,000 - $ 10,400 on July 27. This move also completed the reverse head and shoulder pattern, a price target of $ 16,997.
Since the pair is in a prone movement, the 20-day exponential moving average and directional motion indicator are used in the charts.
The average directional motion index (ADX) is above the level of 41, which indicates that the trend is strong. The positive direction indicator (+ DI) is above the negative direction indicator (-DI), which suggests bulls have superiority.
Today, the BTC / USD rate reached the intraday level of $ 12,113.50, which was slightly below the $ 12,304.37 resistance. This attracted aggressive profit realization from some short-term bulls that dropped the price to $ 10,525.
This resulted in a large outer day candlestick pattern, which sometimes shows a reverse turn. For the tendency to be negative, the bears will need to keep the price below $ 10,400.
However, today, the price recovered sharply from the $ 10,525 level, indicating that traders are using the drops to buy. As long as the price stays above $ 10,400, the least resistance path is likely to be upward.
On the 4-hour chart, the ADX is above 44, which indicates that the short-term trend is strong as well, but -DI rises above + DI, indicating that the bears have a small advantage. If the bears can drop the price below $ 10,800, the cards will be retested for $ 10,400.
A break below $ 10,400 will reveal a major negative situation, so if traders stay below this level, traders can avoid bottoms.
Conversely, if the pair remains above the $ 10,800 - $ 10,400 support zone, the bulls are likely to take another attempt to raise the price to $ 12,113.50. A break above this level will continue the upward movement.
ETH / USD
Ethereum (ETH) climbed from $ 253,556 on July 22, and today reached $ 415,634 with a rally of 62.92%. This pace of the uptrend is unsustainable, so a retreat is guaranteed.
Today, traders have aggressively realized profit, and the price has dropped rapidly and fell to $ 328,507, which was slightly above the 50% Fibonacci recovery level of the last leg of the rally. However, bulls aggressively bought this drop, which showed strong demand at lower levels.
Unless the price closes below the wide range of today, the outside candlestick chart will not give a return signal. ETH / USD exchange can trade in a small range for several days as both bears and bulls expect clarity.
It is above ADX 52 and above + DI -DI. This shows that the advantage is in the bulls. If the bulls could keep the price above the $ 386.857 38.2% Fibonacci correction level, a retest of $ 415.634 is possible. Above this level, the bullish trend is likely to continue with the next target of $ 480.
Contrary to the assumption, if bears could drop the price below $ 320, a drop to the 20-day EMA ($ 302) is possible. A break below this region will reveal a major negative situation and will indicate that a short-term ceiling was made at $ 415,634.
The 4-hour chart shows that the bulls are trying to keep the price above 20-EMA, which is a positive sign. The short-term trend is strong with ADX above 42 levels. + DI and -DI are close together, indicating that both bulls and bears are trying to establish their supremacy.
If the bulls can raise the price above $ 366, it will reveal a big positive situation as it will show strong demand at low levels. Such a move would raise a probability of bullish to $ 415,634, with an upward trend likely to continue. Therefore, as long as the price stays above 20-EMA, it will be a positive environment for bulls.
However, if the price drops below 20-EMA, the bears will attempt a break below $ 320 under critical support. Investors can stay cautious as long as the price remains below $ 20-EMA and $ 366.
INK / USD
Chainlink (LINK) has been merging across a wide range from $ 6,8221 to $ 8,9080 over the past few days. This dragged the ADX a little above 31, which indicates that the trend is marginally weakening.
+ DI and -DI are close together, indicating that both bulls and bears are trying to take advantage.
Today, the LINK / USD pair dropped sharply from the close range to the overall resistance of the price range. However, the bears were not able to lower the price, and the pair recovered sharply from the low of the day low of $ 6.87.
This indicates that bulls are buying aggressively at lower levels. The bullish trend will continue at $ 11 with the next target if the bulls can raise the dry above $ 8.9080.
The 4-hour chart shows that the bulls aggressively bought the drop for $ 6.87 and then tried to push the price above $ 8.908 but faced hard resistance just below this level. This shows that bears have other plans.
However, if the bulls could keep the price above the upward 20-EMA, this would increase the likelihood of a break above $ 8.908. A close (UTC time) above this level indicates that the upward trend continues.
In contrast, if the price drops below 20-EMA, the bears will once again try to lower the price below $ 6,8221. If they succeed, a major negative situation will arise.
VET / USD
VeChain (VET) is currently traded in a bull flag pattern. The 20-day EMA ($ 0.016) is flat and + DI and -DI are close together, indicating a balance between buyers and sellers.
A break and closing above the resistance line will bend the advantage in favor of the buyers and complete the bull setup with the target $ 0.031398.
However, if the bears reduce the VET / USD rate below the 50% Fibonacci retracement level of $ 0.015279, the correction could deepen to the 61.8% Fibonacci retracement level of $ 0.01369898.
A break below this level will put a big negative situation and cause a deeper correction. Therefore, traders can expect the price to explode and remain on the flag before returning positively.
The bulls have been aggressively supporting the $ 0.015279 support over the past few days. Today, the price has risen just below this level. The bulls will now try to push the price above the resistance line. If successful, the price is likely to pass to $ 0.020 and then to $ 0.021978.
Contrary to this assumption, if the bears move and lower the price below $ 0.015279, a drop to the flag's support line is possible. -DI rose above + DI, indicating bears have a small advantage.
A break below the flag will reveal a huge negative situation, so traders can avoid buying if the price is below $ 0.013.
LTC / USD
Litecoin (LTC) reached its first target target of $ 64, resulting in a few short-term investors' profit realizations. This pulled the altcoin to $ 51.8850.
The ADX is above 38 levels and above + DI -DI, ??which indicates that the bulls have the upper hand. If the bulls could keep the price closer to the $ 60 levels, this would increase the likelihood of a break above $ 65.1573.
If the bears drop the price below $ 50.7864, this bullish view will be overridden. Such a move will show a possible change in trends because the bulls no longer buy the drops. Therefore, if the price drops below $ 50, traders can avoid starting long positions.
The 4-hour chart shows that ADX is over 34 and + DI and -DI are close together, indicating that bulls and bears are trying to defend their superiority.
If the bulls can raise the price above 20-EMA, it will be the first indicator of strength and will increase the probability of moving the price to $ 65.1573. A break above this level will indicate that the bullish trend may start again. However, if the bears lower the price below $ 55, the LTC / USD rate may retest critical support at $ 50,7864.
