BTC, BNB, UNI, FIL, THETA

Bitcoin (BTC) has made a strong comeback in the month of July and is on track to post its best monthly gains since October 2021. The strong recovery of Bitcoin and several altcoins brought the Crypto Fear and Greed Index to 42/100 on Jan 30. July, its highest level since April 6.

Investors appear to be making the most of Bitcoin’s depressed levels. Data from on-chain analytics firm Glassnode shows Bitcoin in exchange wallets dropped to 2.4 million Bitcoin in July, down from March 2020 levels of 3.15 million Bitcoin. This has sent the metric to its lowest level since July 2018.

Daily view of cryptocurrency market data. Font: Coin360

Bloomberg Intelligence senior commodity strategist Mike McGlone highlighted that the US Federal Reserve’s indication to consider rate hikes on a “meeting-by-meeting” basis may set the stage for Bitcoin to outperform most assets. He said Bitcoin’s “risk vs. reward” was tipped favorably for one of the biggest bull markets in history.

Could Bitcoin extend its near-term rally and could that trigger buying in select altcoins? Let’s study the charts of the top 5 cryptocurrencies that may outperform in the short term.

USDT/BTC

Attempts by the bulls to sustain the price above $24.276 have failed for the past two days, which indicates that the bears are vigorously defending the level. However, a minor positive is that the bulls have not given way to the bears.

Daily chart of the BTC/USDT pair. Source: TradingView

This indicates that the bulls are not making profits in a hurry as they await a break above the overhead resistance. If the price breaks out and closes above $24.276, the BTC/USDT pair could pick up momentum and move higher towards $28.171. This level can act as a resistance, but if the bulls break out of the barrier, the next stop could be $32,000.

The 20-day rising exponential moving average ($22,480) and the RSI in the positive territory indicate that the bulls have the upper hand.

In order to invalidate this short-term bullish view, the bears will have to sink the price below the 20-day EMA. That could pave the way for a possible drop to the 50-day simple moving average ($21,386) and then to the support line. A break below this level will suggest that the bears are back in command.

4-hour chart for the BTC/USDT pair. Source: TradingView

The 4-hour chart shows that the bulls pushed the price above the overhead resistance of $24.276 but failed to take advantage of the breakout. The bears pushed the price below the level but are struggling to sink the pair below the 20-day EMA. This indicates that the bulls are buying the dips.

If the price bounces off the current level, the bulls will get another chance at the upper zone between $24.276 and $24.668. If this zone is scaled, the upside momentum could increase further. Conversely, if the bears sink the price below the 20-day EMA, the pair could drop to the 50-day EMA.

USD/USDT

Binance Coin (BNB) broke above the downtrend line on July 28, signaling a possible trend reversal. The move up is facing resistance near the psychological level of $300, but a positive sign is that the buyers have not given up much ground. This suggests that the bulls are not rushing to book profits.

BNB/USDT daily chart. Source: TradingView

The rising 20-day EMA ($263) and the RSI in positive territory indicate that the path of least resistance is to the upside. If the buyers push the price above $300, the BNB/USDT pair could resume its uptrend towards the overhead resistance at $350.

Alternatively, if the price turns down and drops below $285, the pair could drop to the downtrend line. The 20 day EMA is placed close to this level, so it becomes an important support to watch. If the bears sink the price below the 20-day EMA, the pair could drop to the 50-day SMA ($239).

BNB/USDT 4-hour chart. Source: TradingView

The pair turned down the resistance above $300 but the bulls are trying to defend the 20-day EMA. This indicates buying dips. The bulls can once again try to push the price above $300. If they manage to do that, the uptrend might resume. The pair could rally to $311 and then $322.

This positive view could be invalidated in the short term if the price turns down and breaks below the 20-day EMA. If that happens, the pair could slide to the 50 day EMA. Buyers are expected to defend this level aggressively because a break and close below it could open the doors for a drop to $239.

UNI/USDT

Uniswap (UNI) rebounded from the breakout level of $6.08 on Jul 26, indicating strong buying on the dips. The up move reached near the psychological resistance of $10 on Jul 28, where the bears are mounting a strong defense.

Daily chart of the UNI/USDT pair. Source: TradingView

The rising moving averages and the RSI in positive territory indicate an upside for the buyers. If the price bounces off $8.11, it will suggest that the buyers are trying to turn this level into support.

A strong bounce off $8.11 could open the doors for a retest of $10. The bulls will need to clear this higher hurdle to signal the start of the next leg of the move up to $12.

Conversely, if the price turns down and drops below $8.11, the UNI/USDT pair could drop to the 20-day EMA ($7.48). A breakout and close below this level will suggest that the bullish momentum has weakened.

UNI/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are trying to defend the 20-day EMA. If the price turns up from the current level and rises above $9.18, the pair could challenge the overhead resistance zone between $9.83 and $10.

Alternatively, if the price falls below the 20-day EMA, it will suggest that supply exceeds demand. The pair could then drop to the area between $8.11 and the $50 SMA. This is an important zone for the bulls to defend because if they do not, the short-term momentum could tip in favor of the bears.

FILE/USDT

After remaining in a tight range for several days, Filecoin (FIL) broke out sharply on July 30, signaling a potential trend reversal. The RSI has risen into overbought territory, which is another sign that the downtrend may be ending.

Daily chart of the FIL/USDT pair. Source: TradingView

The move up may face resistance at the overhead resistance of $9.50, but if the bulls do not give up much ground from this level, the probability of a breakout increases. If that happens, the FIL/USDT pair could start its march north towards $16, which can again act as a strong resistance.

If the price turns down from the current level and drops back below $6.55, it will suggest that the bears are active at higher levels. Thereafter, the pair can oscillate in a wide range between $5 and $9.50 for a few days.

FIL/USDT 4-hour chart. Source: TradingView

The pair gained momentum after breaking above $6.40. The bears tried to stop the move higher at $8.89, but the bulls had other plans. They aggressively bought the dip and pushed the price close to the stiff overhead resistance at $9.50.

If the price turns down from the current level, the bulls will try to stop the retracement at the 38.2% Fibonacci retracement level of $8.04. A strong bounce off this level will increase the possibility of a break above $9.50. If that happens, the pair could rally to $10.82. This bullish view could invalidate below $7.70.

THETA/USDT

Theta Network (THETA) has been consolidating between $1 and $1.55 for the past few days. The bulls tried to push the price above the overhead resistance on Jul 30, but the bears held their ground.

THETA/USDT daily chart. Source: TradingView

If the price bounces off the moving averages, the bulls will make another attempt to break out of the overall hurdle at $1.55. If they are successful, the THETA/USDT pair could start a new uptrend. The rally could first reach the pattern target of $2.10 and if this level is crossed, the rally could extend to $2.60.

Contrary to this assumption, if the price breaks below the moving averages, the bears will try to push the pair to $1. Such a move could indicate that the range bound action may continue for a few more days.

THETA/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair has turned down from $1.50 and is struggling to recover from the 20-day EMA. This indicates that traders may be recording profits on every minor increase.

If the price sustains below the 20-day EMA, the pair could drop to the 50-day EMA. This is an important level for the bulls to defend because a break below it could sink the pair to $1.15.

Alternatively, if the price bounces off the moving averages strongly, it will suggest that the lower levels are attracting buyers. If the bulls push the price above $1.42, a retest of the $1.50-$1.55 resistance zone is possible.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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