Bitcoin recovery fizzles, but SOL, DOT, NEAR and KAS could rally
2024.07.07 16:17
Bitcoin (BTC) is witnessing a tough battle between the bulls and the bears. The buyers are trying to keep the price inside the $56,552 to $73,777 range, while the bears are attempting to yank the price lower. Sellers pulled the price near $53,500 on July 5, but lower levels attracted buying by the bulls.
According to Farside Investors, United States-based Spot Bitcoin exchange-traded funds witnessed net inflows of $143.1 million on July 5, the largest in one month. Bitwise Asset Management CEO Hunter Horsley said in a post on X that investors who do not have exposure to Bitcoin have a “chance to buy the dip” as its outlook “has never been stronger.”
Crypto market data daily view. Source: Coin360
Bitcoin’s recent fall has intensified selling in several altcoins, but a few have managed to hold on to their strong support levels. These altcoins could lead the recovery if Bitcoin starts a move toward $60,000.
What important resistance levels need to be crossed for buying to pick up in Bitcoin and altcoins? Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin plunged below the $56,552 support on July 5, but the bulls purchased the dip and managed to defend the level on a closing basis.
BTC/USDT daily chart. Source: TradingView
However, the bears are unlikely to give up easily and will make one more attempt to sink and sustain the price below $56,552. If they do that, the BTC/USDT pair could slide to $53,485 and eventually to solid support at $50,000.
The downsloping 20-day exponential moving average ($61,231) indicates advantage to bears, but the positive divergence on the relative strength index (RSI) suggests that the bearish momentum could be slowing down.
Buyers will have to shove the price above the 20-day EMA to indicate that the range-bound action between $56,552 and $73,777 may continue for some more time.
BTC/USDT 4-hour chart. Source: TradingView
The 20-EMA on the 4-hour chart is flattening out, and the RSI is just below the midpoint, suggesting that the selling pressure is reducing. The downtrend line is the crucial level to watch for on the upside. A break and close above the line will signal that the correction could be over. The pair may then climb to $64,602.
Contrarily, a break and close below $56,552 will suggest that the bears continue to sell on relief rallies. That could put the $53,485 level at risk of a breakdown.
Solana price analysis
Solana (SOL) is forming a bearish descending triangle pattern, which will complete on a break and close below $116.
SOL/USDT daily chart. Source: TradingView
A minor advantage in favor of the bulls is that the RSI is showing signs of forming a positive divergence. This suggests that the selling pressure could be reducing. If bulls push the price above the 20-day EMA ($141), the SOL/USDT pair could attempt a rally to the 50-day SMA ($153) and then the downtrend line.
Instead, if the price turns down from the 20-day EMA and breaks below $116, it will complete the bearish setup. The pair may then plummet to $80.
SOL/USDT 4-hour chart. Source: TradingView
The pair’s solid pullback from $121 shows that the bulls are fiercely defending the $116 support. If the price turns up from the current level and rises above $145, the next stop is likely to be $155. This level may again act as a solid barrier, but if overcome, the pair could rise to the downtrend line.
On the downside, the bears will gain the upper hand if they sink the price below $130. That will put the $121 support at risk of breaking down. If that happens, the pair may slump to $116.
Polkadot price analysis
Polkadot (DOT) plummeted to $4.91 on July 5, but the long tail on the candlestick shows solid buying at lower levels.
DOT/USDT daily chart. Source: TradingView
The bulls continued their purchase on July 6 and pushed the price above the 20-day EMA ($6.08). This suggests that the bears are losing their grip. If buyers clear the hurdle at the 50-day SMA ($6.54), the DOT/USDT pair may attempt a rally to $7.29 and thereafter to $7.77.
On the contrary, if the price turns down from the 50-day SMA, it will signal that the bears are active at higher levels. The selling could pick up if the pair skids below the $5.38 to $4.91 support zone.
DOT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows a V-shaped recovery from $4.92. The 20-EMA has started to turn up, and the RSI has risen into positive territory, indicating that the bulls are trying to make a comeback. If buyers drive the price above $6.60, the pair is likely to pick up momentum and dash toward $7.29.
Contrary to this assumption, if the price turns down and breaks below the 20-EMA, it will suggest that the bulls are tiring out. The selling could intensify below $5.60, and the pair could retest the solid support at $4.91.
Related: Bitcoin traders hope bottom is in after BTC price bounces 9% from lows
NEAR Protocol price analysis
NEAR Protocol (NEAR) has been trading between $4.28 and $8.58 for several days. The bears pulled the price below the support on July 5 but could not sustain the lower levels.
NEAR/USDT daily chart. Source: TradingView
Although the downsloping moving averages indicate advantage to bears, the positive divergence on the RSI suggests that the selling pressure could be weakening. The first sign of strength will be a break and close above the 20-day EMA ($5.17).
The NEAR/USDT pair could then rise to $5.63. This level may act as a resistance, but if crossed, the pair will complete a short-term double bottom pattern, which has a target objective of $6.11.
Alternatively, if the price turns down and breaks below $4, it will signal the start of a new down move. The pair could tumble to $3.50 and then to $3.
NEAR/USDT 4-hour chart. Source: TradingView
The 20-EMA on the 4-hour chart is flattening out, and the RSI is just below the midpoint, indicating a balance between supply and demand. If bulls push the price above the 50-SMA, the pair could rise to $5.63. This level may act as a stiff resistance, but if crossed, the pair may start its journey to $6.71.
The bears will seize control if the price turns down sharply from the current level and nosedives below $4. That could start a new downtrend toward $3.50.
Kaspa price analysis
Kaspa (KAS) closed above the $0.19 overhead resistance on June 29, but the bears could not build up on this breakout.
KAS/USDT daily chart. Source: TradingView
The price turned down on June 30, but found support just below the 50-day SMA ($0.15) on July 5. This shows that the bulls are aggressively defending the 50-day SMA. Buyers are trying to push and maintain the price above the 20-day EMA ($0.17). If they manage to do that, it will signal that the pullback may be over. The KAS/USDT pair may then climb to $0.19.
This positive view will be invalidated in the near term if the price turns down and breaks below the 50-day SMA. That could tug the price to $0.13 and eventually to $0.10.
KAS/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are trying to stall the recovery at the 50-SMA. If the price turns up from the current level or $0.16, the bulls will again try to overcome the barrier at the 50-SMA. If they succeed, the pair may jump to $0.19.
On the contrary, if the $0.16 support cracks, it will indicate that the bears have not given up and are selling on rallies. That could sink the pair toward the solid support at $0.14. The bulls are expected to vigorously protect the level.
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.
