Bitcoin price advance toward $68K sets a bullish path for SOL, ICP, GRT and BONK
2024.07.21 17:27
Bitcoin (BTC) has been gradually inching higher toward the $70,000 mark, indicating that the sentiment remains positive. United States-based spot Bitcoin exchange-traded funds witnessed inflows of $383 million on July 19, per Farside Investors data. That pushed the cumulative net inflows into the ETFs to more than $17 billion since their launch.
As Bitcoin’s price maintains above $65,000, Bitcoin whales seem to have reduced their selling. CryptoQuant head of research Julio Moreno said in a post on X that selling by large Bitcoin investors has exhausted and “valuation metrics suggest positive momentum.”
Crypto market data daily view. Source: Coin360
Bitcoin’s strength has resulted in a recovery in several altcoins. The cryptocurrency markets may receive a further boost from the launch of Ethereum ETFs, which are expected to start trading on July 23.
Could Bitcoin extend its recovery in the near term, boosting buying in altcoins? If that happens, what are the top 5 cryptocurrencies that look strong on the charts?
Bitcoin price analysis
Bitcoin bounced off the 50-day simple moving average ($63,792) on July 19 and rose above the $66,128 resistance, indicating that the recovery remains intact.
BTC/USDT daily chart. Source: TradingView
The 20-day SMA ($60,827) has turned up, and the relative strength index (RSI) has risen into positive territory, indicating that the bulls are in command. If the price maintains above $66,128, the BTC/USDT pair could reach $70,000. The bears are expected to mount a vigorous defense in the $70,000 to $73,777 zone.
The crucial support to watch on the downside is the 50-day SMA. If this support gives way, the pair may drop to the 20-day SMA.
BTC/USDT 4-hour chart. Source: TradingView
The moving averages are sloping up on the 4-hour chart, indicating advantage to buyers, but the RSI is forming a negative divergence, signaling that the bullish momentum could be weakening. If the price skids below $66,128, the pair may drop to the 50-SMA and later to $62,350.
Contrarily, if the price rebounds off $66,128, it will increase the possibility of resuming the up move. The pair could then climb to $70,000.
Solana price analysis
Solana (SOL) rose and closed above the downtrend line on July 20, invalidating the developing bearish descending triangle pattern. The failure of a bearish pattern is a bullish sign.
SOL/USDT daily chart. Source: TradingView
The rising 20-day SMA ($148) and the RSI in the positive territory suggest that the bulls are at an advantage. If the price sustains above the downtrend line, the SOL/USDT pair could rally to $189 and subsequently to the overhead resistance at $210.
On the contrary, if the price turns down and re-enters the triangle, it will suggest that the breakout may have been a bull trap. That could sink the SOL/USDT pair to the 20-day SMA, which is likely to act as a strong support.
SOL/USDT 4-hour chart. Source: TradingView
Both moving averages are sloping up on the 4-hour chart, but the RSI is showing a negative divergence. This indicates that the trend remains up, but the positive momentum is slowing down. The 20-SMA is the crucial support to watch on the downside. If the price rebounds off the 20-SMA, it will signal that the uptrend may reach $189.
If bears want to prevent the up move, they will have to swiftly yank the price below the 20-SMA. If they do that, the selling could pick up, and the pair may slump to $155. A break below this level will tilt the advantage in favor of the bears.
Internet Computer price analysis
Internet Computer (ICP) broke above the downtrend line on July 15, indicating that the bears are losing their grip.
ICP/USDT daily chart. Source: TradingView
The moving averages are on the verge of a bullish crossover, and the RSI is in the positive zone, signaling that the bulls are on a comeback. The bears tried to pull the price below the breakdown level of $9.36 on July 19, but the bulls held their ground. If the price rises and maintains above $10.50, the ICP/USDT pair could climb to $13 and later to $14.
Meanwhile, the bears are likely to have other plans. They will try to yank the price below $9.36. If they manage to do that, the pair may dip to the 20-day SMA. This is an essential level for the bulls to defend because if it cracks, the next stop could be $6.
ICP/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are trying to stall the recovery at $10.50, but the bulls have not allowed the price to dip below $9.36. This suggests that the pair may consolidate between $10.50 and $9.36 for a while.
If bulls shove the price above $10.50, it will signal the resumption of the up move. The pair may rise toward $11.25 and then $13. Alternatively, if the price tumbles below $9.36, the pair may fall to $8.50 and then $7.
Related: DOGE open interest up 19% amid price ‘breaking out’ to monthly high
The Graph price analysis
The Graph (GRT) has been trading inside a narrow range between $0.22 and the 20-day SMA ($0.19) for the past few days.
GRT/USDT daily chart. Source: TradingView
The tight-range trading is unlikely to continue for long. If buyers propel the price above $0.22, the GRT/USDT pair could reach the downtrend line. The bears will try to halt the relief rally at this level, but if the bulls prevail, the pair could start an uptrend to $0.27 and then to $0.32.
Contrary to this assumption, if the price turns down from the current level and plummets below the 20-day SMA, it will indicate that the bulls have given up. That may tug the price to the next support at $0.15.
GRT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are fiercely defending the $0.22 resistance. The crucial level to watch on the downside is the 50-SMA. If the price turns up sharply from the 50-SMA, it will improve the prospects of a rally above $0.22. If that happens, the pair may reach the downtrend line.
Conversely, if the price turns down and plummets below the 50-SMA, it will indicate that the bulls are rushing to the exit. The pair may drop to $0.20 and later to $0.18.
Bonk price analysis
Bonk (BONK) has been swinging inside the symmetrical triangle pattern for several days, indicating indecision between the bulls and the bears.
BONK/USDT daily chart. Source: TradingView
The 20-day SMA ($0.000025) has started to turn up gradually, and the RSI is in the positive territory, indicating advantage to buyers. The bulls will try to push the price to $0.000036 and later to the resistance line of the triangle. This level is likely to attract solid selling by the bears.
The 20-day SMA is the important support to watch on the downside. A break and close below it could pull the BONK/USDT pair to the support line. Buyers are expected to buy the dips to the support line.
BONK/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are trying to stall the up move at $0.000032, but the buyers have not ceded much ground to the sellers. The first support on the downside is the 20-SMA and then the 50-SMA. If the price rebounds off the moving averages, the possibility of a rally to $0.000036 and later to $0.000042 increases.
This positive view will be invalidated in the near term if the price breaks below the 50-SMA. That may attract further selling, pulling the price to $0.000022 and then to $0.000020.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
