Is Bitcoin’s Stagnation in Price Good News for Altcoins?
Cryptocurrency exchange Coinbase has recently published a report indicating that investment advisers have increased their holdings in Bitcoin ETF by 3% in the second quarter of 2024. However, hedge fund holdings slightly declined during the same period. This development has the potential to impact the price of other altcoins such as BNB, TON, AAVE, and HNT. Nevertheless, the volatile price action in the United States during the summer might delay significant market movements, leading to Bitcoin’s price remaining range-bound for a little longer.
Renowned crypto analyst Matthew Hyland has proposed that Bitcoin’s price patterns appear to be following trends similar to those of previous US election years. According to Hyland, the cryptocurrency may remain stagnant for a while longer and potentially break out in October or November.
The current price action of Bitcoin has resulted in pressure on several altcoins; nonetheless, purchasing interest may emerge in selected altcoins once Bitcoin endeavors to surpass the $60,000 mark. Let’s examine the top 5 cryptocurrencies that are demonstrating strength on the charts.
Bitcoin Price Analysis
After bouncing off the $55,724 support on August 15th, Bitcoin reached the 20-day exponential moving average ($60,193) on August 18th. The downward trend of the moving averages and the position of the relative strength index (RSI) slightly below the midpoint indicates a minor advantage for the bears. If the price turns down from the 20-day EMA, bears may attempt to push the BTC/USDT pair below the crucial $55,724 support, causing a potential downward movement towards $49,000.
On the other hand, if the bulls manage to push the price above the 50-day simple moving average ($61,540), there might be a rally attempt to $65,660 and subsequently to $70,000. Currently, the moving averages have flattened out, and the RSI is just above the midpoint, symbolizing a balance between supply and demand. The balance seems likely to tilt in favor of buyers should the price be pushed and maintained above $62,000, potentially indicating a rally to $65,660.
However, failure to prevent the price from sinking below the $55,724 support might trigger selling, causing the pair to plummet to the vital support at $49,000. It is expected that the bulls will robustly defend this level.
BNB Price Analysis
The 20-day EMA ($529) has flattened out, and the RSI is near the midpoint, suggesting that selling pressure is diminishing. Should buyers manage to push and uphold the price above the downtrend line, the BNB/USDT pair may ascend to $605. Conversely, a sharp downturn from the current level would imply intense bearish defense of the downtrend line, possibly leading to a slide to $495 and subsequently to the crucial support at $460.
The moving averages on the 4-hour chart are gradually sloping upward, and the RSI is in the positive territory, indicating a slight edge for the bulls. A rise and maintenance above the downtrend line could signal the end of the short-term correction, potentially leading to a rally to $578 and eventually to $592. However, a downturn and break below the moving averages would invalidate this positive view, possibly causing a slump to $495.
TON Price Analysis
On August 15th, Toncoin (TON) turned downwards from the 50-day SMA ($6.85) but is currently finding support at the 20-day EMA ($6.49). The flat 20-day EMA and the RSI near the midpoint suggest a range-bound action in the short term. An upward break and close above the 50-day SMA may tilt the short-term advantage in favor of the bulls, potentially resulting in a climb to $7.65 and eventually to the stiff overhead resistance of $8.29.
Failure to close above the 20-day EMA, however, may suggest an edge for the bears, with strong support at $6.05. Following a break below this support level, a possible tumble to $5.26 may ensue. Conversely, a break above the moving averages indicates buyer interest, possibly leading to a minor resistance at $6.88, with further potential to reach $7.26.
It is important to note that the content of this article should not be considered as investment advice or recommendations. When making any investment or trading decisions, it is crucial that readers conduct their own research and analysis accurately.
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