Bitcoin’s range-bound price action could kickstart BNB, TON, AAVE and HNT
2024.08.19 18:58
Bitcoin (BTC) continued its sideways price action as buyers successfully defended the $55,724 support this week. Large fund managers have used the period of consolidation to add spot Bitcoin exchange-traded funds (ETFs) to their portfolios. According to an analysis by CoinShares Research, Goldman Sachs bought $419 million, Capula Management acquired $470 million, and Avenir Tech purchased $388 million worth of Bitcoin ETFs since March.
A report published by cryptocurrency exchange Coinbase shows that institutional investors labeled as investment advisers increased their Bitcoin ETF holdings by 3% in the second quarter of 2024. During the same period, the hedge fund holdings declined slightly. Coinbase believes that the summer period in the United States (June to August) may delay “large inflows,” keeping the price action choppy.
Crypto market data daily view. Source: Coin360
Crypto analyst Matthew Hyland said in a video analysis that Bitcoin is following patterns similar to those in previous US election years. According to that, Bitcoin may remain in the range for “a little bit longer” and break out probably in October or November.
Bitcoin’s choppy price action has kept several altcoins under pressure. However, buying may emerge in select altcoins as Bitcoin attempts to climb above $60,000. Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin bounced off the $55,724 support on Aug. 15 and reached the 20-day exponential moving average ($60,193) on Aug. 18.
BTC/USDT daily chart. Source: TradingView
The downsloping moving averages and the relative strength index (RSI), just below the midpoint, indicate a minor advantage to the bears. If the price turns down from the 20-day EMA, the bears will again try to yank the BTC/USDT pair below the crucial $55,724 support. If they succeed, the pair may move downward toward $49,000.
If bulls want to prevent the downside, they will have to push the price above the 50-day simple moving average ($61,540). The pair may then attempt a rally to $65,660 and subsequently to $70,000.
BTC/USDT 4-hour chart. Source: TradingView
The moving averages have flattened out, and the RSI is just above the midpoint, indicating a balance between supply and demand. The balance will tilt in favor of the buyers if they push and maintain the price above $62,000. That will clear the path for a possible rally to $65,660.
The bears will have to sink the price below $55,724 support to gain the upper hand. If they do that, the selling could pick up, and the pair may plunge to the vital support at $49,000. The bulls are expected to vigorously defend this level.
BNB price analysis
BNB (BNB) has recovered to the downtrend line, indicating that the bulls are attempting a comeback.
BNB/USDT daily chart. Source: TradingView
The 20-day EMA ($529) has flattened out, and the RSI is near the midpoint, suggesting that the selling pressure is reducing. Buyers will try to push and sustain the price above the downtrend line. If that happens, the BNB/USDT pair may climb to $605.
Contrarily, if the price turns down sharply from the current level, it will suggest that the bears are fiercely defending the downtrend line. The pair may slide to $495 and after that to the crucial support at $460.
BNB/USDT 4-hour chart. Source: TradingView
The moving averages on the 4-hour chart are gradually sloping up, and the RSI is in the positive territory, suggesting that the bulls have a slight edge. If the price rises and maintains above the downtrend line, it will indicate that the short-term correction could be over. The pair may rally to $578 and later to $592.
This positive view will be invalidated if the price turns down and breaks below the moving averages. The pair may then slump to the solid support at $495.
Toncoin price analysis
Toncoin (TON) turned down from the 50-day SMA ($6.85) on Aug. 15, but is finding support at the 20-day EMA ($6.49).
TON/USDT daily chart. Source: TradingView
The flattish 20-day EMA and the RSI near the midpoint suggest a range-bound action in the near term. A break and close above the 50-day SMA will tilt the short-term advantage in favor of the bulls. The TON/USDT pair may then climb to $7.65 and eventually to the stiff overhead resistance of $8.29.
Alternatively, if the price closes below the 20-day EMA, it will suggest that the bears have an edge. There is strong support at $6.05, but if this level breaks down, the pair may tumble to $5.26.
TON/USDT 4-hour chart. Source: TradingView
The failure of the bears to sink the price below $6.38 attracted buyers, who have pushed the pair above the moving averages. There is a minor resistance at $6.88, but if this level is crossed, the pair may reach $7.26.
Conversely, if the price turns down from the current level and breaks below $6.38, it will signal advantage to bears. The pair may slump to $6.18 and then to $6.05. This level is likely to attract buyers.
Related: Bitcoin metrics line up bull signals with $60.6K BTC price level to beat
Aave price analysis
The bulls attempted to push Aave (AAVE) above the overhead resistance of $118 on Aug. 17, but the bears held their ground.
AAVE/USDT daily chart. Source: TradingView
The rising 20-day EMA ($103) and the RSI in the positive territory indicate that the bulls have the upper hand. If buyers do not give up much ground from the current level, it will increase the likelihood of a rally above $118. The AAVE/USDT pair may then climb to $134.
This optimistic view will be negated in the near term if the price turns down sharply and breaks below the 20-day EMA. Such a move will suggest that the pair may oscillate between $90 and $118 for some time.
AAVE/USDT 4-hour chart. Source: TradingView
The failure to push the price above $118 has pulled the pair to the 20-EMA on the 4-hour chart. If the price breaks below the 20-EMA, it will suggest that the bulls are losing their grip. The pair may slide to $104. This is an important level for the bulls to defend because if it cracks, the pair may tumble to $96.
On the contrary, if the price rises from the current level, the bulls will try to push the pair above $113.50. If they can pull it off, the pair may rally to $118.
Helium price analysis
Helium (HNT) has been gradually moving higher for the past few days, indicating the start of a new up move.
HNT/USDT daily chart. Source: TradingView
The upsloping 20-day EMA ($6.22) and the RSI near the overbought zone show that the bulls are in control. The HNT/USDT pair could rally to $9.74, which is likely to act as a stiff resistance. Buyers are expected to purchase the dips to the 20-day EMA, indicating a positive sentiment.
If bears want to seize control, they will have to tug the price below the 20-day EMA. If they manage to do that, the pair is likely to plummet to the 50-day SMA ($4.78) and eventually to $4.
HNT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is in an uptrend, and the bulls are buying the dips to the 50-SMA. The upsloping moving averages signal advantage to buyers, but the negative divergence on the RSI suggests that the bullish momentum could be weakening.
Corrections are likely to find support at the 20-EMA and then at the 50-SMA. Sellers will have to drag the price below the 50-SMA to clear the path for a drop to $6.10.
Instead, if the price maintains above the 20-EMA, it will signal that the uptrend remains intact. The pair may then climb to $9.
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.
