Price analysis 7/21: BTC, ETH, XRP, BNB, ADA, SOL, DOGE, MATIC, LTC, DOT
Bitcoin continues to test investors’ patience, as it remains stuck inside a tight range. Although the near term is boring, traders need to be on their toes because narrow ranges are generally followed by a sharp increase in volatility. The only problem is that it is difficult to predict the direction of the breakout with certainty.
Glassnode’s latest weekly newsletter highlighted that Bitcoin’s (BTC) consolidation has shrunk the Bollinger Bands, which are separated by just 4.2%. Citing various on-chain indicators, the authors concluded that investors are unwilling to sell, and in several aspects, it looks similar to “periods like 2016 and 2019-20, characterized by choppy market conditions.”
Although Bitcoin’s near term may look uncertain, the long term remains bullish. Capriole Investments founder Charles Edwards said in an interview with Cointelegraph that access to BlackRock’s exchange-traded fund application could make it “easier for institutions to put Bitcoin on their balance sheet.”
Will Bitcoin plunge below the support of the range and start a new downward move, dragging several altcoins lower? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin has been sustaining below the 20-day exponential moving average (EMA) of $30,067 since July 17, which is a negative sign. It shows a lack of aggressive buying at current levels.
The bulls pushed the price above the 20-day EMA on July 20, but the long wick on the candlestick shows selling at higher levels. The bears will try to strengthen their position by pulling the price below the crucial support at $29,500.
If they succeed, it will indicate that the consolidation has resolved in favor of the bears. The BTC/USDT pair may then skid to the 50-day simple
Read more on cointelegraph.com
