Price analysis 7/5: BTC, ETH, BNB, XRP, ADA, DOGE, SOL, LTC, MATIC, DOT
Bitcoin continues to trade near $31,000, making it an important resistance level to watch out for in the short term. Some analysts believe the current consolidation could result in an upside breakout in Bitcoin.
The institutional investors also seem to be positive about the prospects of a further rally in Bitcoin (BTC). CoinShares head of research James Butterfill said in a recent report that 98% of all the digital asset inflows of $334 million went into Bitcoin-related products.
Although the short-term price action on Bitcoin and select altcoins looks positive, market participants should stay cautious due to the uncertainty regarding macroeconomic issues. The crypto markets are likely to be influenced by the United States inflation figures and the Federal Reserve’s monetary action over the next few weeks.
What are the important near-term support levels on Bitcoin and altcoins that need to hold for the recovery to continue? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin broke and closed above the $31,000 level on July 3, but the bulls could not build upon this strength. This suggests that the bears have not yet given up.
The 20-day exponential moving average (EMA) of $29,673 is the important level to watch out for on the downside. If the price rebounds off this level, it will suggest that the bulls are buying the dips.
That will enhance the prospects of a break above the $31,000 to $31,432 overhead zone. The BTC/USDT pair may then rise to $32,400, where the bears may again pose a strong challenge.
This positive view will be negated in the near term if the price turns down and breaks below the 20-day EMA. That could sink the pair to the 50-day simple moving average (SMA) of $27,849.
Ether (ETH)
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