Bitcoin’s sharp rally brought out the bulls and if the momentum sustains UNI, LINK, SOL and XMR could move higher.
Bitcoin’s (BTC) 43% rally from $29,482.61 on July 21 to $42,316.71 on July 30 has invigorated the bulls who had been sitting on the sideli. After the sharp rise, some analysts are debating whether Bitcoin could repeat its sharp bull run seen in 2013 and 2017.
Vailshire Capital founder and CEO Jeff Ross highlighted that Bitcoin had rallied ten-fold in the second half of 2013 after facing three months of negative news. Ross said: “I still contend that 2021 will behave in similar fashion.”
Crypto market data daily view. Source: Coin360
PlanB, the creator of the stock-to-flow price model, said Bitcoin’s comeback in July was “like clockwork.” He said that the stock-to-flow model will remain valid if Bitcoin closes August above $47,000.
Meanwhile, institutional investors continue to accumulate Bitcoin when the price is still depressed. Asset management firm GoldenTree, with about $45 billion in assets under management, has purchased an undisclosed amount of Bitcoin, according to The Street.
Bitcoin’s short-term sentiment has clearly turned bullish following the strong recovery of the past few days. Let’s study the charts of the top-5 cryptocurrencies that may participate in the up-move in the next few days.
Bitcoin’s sharp rally of the past few days is facing stiff resistance at $42,451.67 but the positive sign is that buyers have not given up much ground. This suggests that bulls are not dumping their positions as they anticipate the up-move to continue.
BTC/USDT daily chart. Source: TradingView
The rising 20-day exponential moving average ($36,800) and the relative strength index (RSI) near the overbought zone suggest that the path of least resistance is to the upside. If bulls drive the price above $42,451.67, the BTC/USDT pair could start a new uptrend, which could reach the psychological level at $50,000.
On the other hand, if the price turns down from the current level, the bulls will attempt to defend the support at $36,670. A strong rebound off this support could keep the pair range-bound between $36,670 and $42,451.67 for a few days.
The bears will have to pull the price below $36,670 to gain the upper hand. Such a move could unlock the possibility for a retest at $31,000.
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that both moving averages are sloping up and the RSI is in the positive zone, indicating an advantage to buyers. If the price rebounds off the 20-EMA, the bulls will make one more attempt to clear the overhead hurdle at $42,451.67.
Alternatively, if the bears pull the price below the 20-EMA, the pair could drop to the 50-simple moving average. A strong bounce off this support will suggest that sentiment remains positive and traders are buying on dips.
The bullish momentum may weaken if the price dips below the 50-SMA. Such a move could result in a decline to $36,670.
Uniswap (UNI) rose above the downtrend line on July 30, invalidating the descending triangle pattern. This could result in a short squeeze as aggressive bears rush to cover their positions.
UNI/USDT daily chart. Source: TradingView
If bulls drive the price above the $23.45 to $25 resistance zone, the UNI/USDT pair could rally to the stiff overhead resistance at $30. The moving averages have completed a bullish crossover and the RSI has risen into the positive territory, suggesting that bulls are in command.
However, the bears may have other plans as they are likely to try to defend the overhead zone. If the price turns down from the zone but rebounds off the 20-day EMA ($19.25), it will suggest that traders are buying the dips. That will increase the possibility of a break above $25 and a rally to $30.
Contrary to this assumption, if the price turns down and plummets below the moving averages, several aggressive bulls may get trapped. That may result in a drop to $17.24 and then to $13.
UNI/USDT 4-hour chart. Source: TradingView
The UNI/USDT pair could rise to $23.45 where the bulls may encounter stiff resistance from the bears. If the bulls do not give up much ground, it will suggest they anticipate a further rally. The upsloping moving averages and the RSI in the overbought zone also indicate that the sentiment favors a further rise.
This positive view will be negated if the price turns down from the overhead resistance and breaks below the 20-EMA. Such a move will suggest that traders booked profits near $23.45 aggressively. That may result in a deeper pullback to the 50-SMA.
Chainlink (LINK) broke above the 50-day SMA ($18.73) on July 27, suggesting that bears were losing their grip. After a minor hesitation near the psychological level at $20, the bulls resumed the relief rally on July 30.
LINK/USDT daily chart. Source: TradingView
However, the long wick on today’s candlestick suggests that the up-move may be losing steam.
If the price turns down from the current level but rebounds off the 20-day EMA ($18.83), it will suggest that the sentiment has turned bullish. The buyers will then attempt to push the LINK/USDT pair toward the stiff overhead resistance zone at $32.50 to $35.
Conversely, if the pair breaks below the moving averages, it will suggest that bears have not yet given up. They may then pull the price down to the critical support zone at $13.38 to $15.
LINK/USDT 4-hour chart. Source: TradingView
Both moving averages are sloping up on the 4-hour chart and the RSI is in the positive zone, suggesting that bulls are in control. The bulls are likely to buy the dips to the 20-EMA. If that happens, the pair could resume its up-move with the next possible stop at $26.20.
On the other hand, if bears pull the price below $21, several aggressive bulls may get trapped. The price could then drop to the 50-SMA. This is an important level for the bulls because if it cracks, the pair may extend its decline to $15.
The bulls pushed Solana (SOL) above the downtrend line on July 31, invalidating the descending triangle pattern. The bears are currently attempting to pull the price back below the downtrend line and trap the aggressive bulls.
SOL/USDT daily chart. Source: TradingView
The 20-day EMA ($30.49) has turned up and the RSI has risen above 61, indicating that buyers have the upper hand. If bulls buy the dip to the downtrend line, it will suggest that the sentiment has turned positive. The buyers will then try to resume the up-move by propelling the price above the $37 to $38.10 resistance zone.
If they succeed, the SOL/USDT pair could rally to $44 where the bears are likely to mount a stiff resistance. This positive view will invalidate if the bears pull the price below the moving averages. Such a move could open the doors for a further fall to $26.50.
SOL/USDT 4-hour chart. Source: TradingView
The bears are attempting to stall the relief rally near the overhead resistance at $38.10 but the upsloping moving averages and the RSI in the positive zone suggest that bulls have the upper hand.
If the pair rebounds off the 20-EMA, the buyers will again attempt to clear the overhead hurdle. If they manage to do that, the pair could start its journey toward $44.
A break below the 20-EMA will be the first sign of weakness. That may pull the price to the 50-SMA and delay the possible break above $38.10.
Monero (XMR) broke above the downtrend line on July 26, which invalidated the developing descending triangle pattern. The failure of a bearish setup is a positive sign.
XMR/USDT daily chart. Source: TradingView
The XMR/USDT pair has been consolidating in a tight range for the past three days. If bulls drive the price above $250, the pair could start its journey toward $288.06 and later to $316.23. The moving averages are on the verge of a bullish crossover and the RSI is in the positive zone, indicating advantage to the buyers.
If the price turns down from the current level but finds support at the 20-day EMA ($220), it will suggest that traders are buying on dips. The bulls will then make one more attempt to resume the up-move.
This positive view will invalidate if the bears sink the price below the moving averages. Such a move will suggest that the current rally was a bull trap.
XMR/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows the pair had been stuck between $180 and $227.50 for the past few days. The breakout of this range gives the pair a target objective at $275 but the bears have other plans. They are aggressively defending the psychological resistance at $250.
The upsloping moving averages and the RSI in the positive territory suggest the path of least resistance is to the upside. If bulls thrust the price above $250, the upward march may pick up momentum.
On the downside, bears will have to sink and sustain the price below $227.50 to invalidate the bullish view.
Legendary Trader Peter Brandt Challenges Binance with Four Questions about 88% BTC Crash
Here’s what is unclear for Mr. Brandt about mysterious Bitcoin (BTC) flash-crash of Oct. 21, 2021
Prominent trader and analyst Peter Brandt has taken to Twitter to ask his four questions in the context of the flagship crypto’s 88% dropdown.
What do Binance and Binance.US have in common?
First of all, Mr. Brandt challenged the character of corporate relationships between Binance and Binance.US, its unit focused on American markets.
1. What is exact corp. relationship @binance w/ @BinanceUS
2. Will firm release T&S with all trades/volume/price?
3. Did firm take opposite side of client fills
4. Will firm change low to reflect actual fills
cc: @GaryGensler @CFTC @SECGov @cz_binance @IBKR pic.twitter.com/huqzZbSGIt— Peter Brandt (@PeterLBrandt) October 24, 2021
Also, Mr. Brandt asks whether Binance is planning to release detailed documents to specify statistics for trades, their volume and prices during the flash-crash.
Then, the trading legend asked about the role of the platform in taking the opposite side of a client fills.
Besides the Binance CEO and co-founder Changpeng “CZ” Zhao, Mr. Brandt mentioned the Interactive Brokers platform, U.S. watchdogs CFTC and SEC and Gary Gensler, the SEC chairman.
Most expensive “trading algorithm bug” ever?
Also, Mr. Brandt attached a screenshot of a tweet by CZ when Binance’s boss warned his audience about expected volatility spikes across cryptocurrency markets.
Finally, Mr. Brandt added that he never used Binance for trading.
As covered by U.Today previously, on Oct. 21, 2021, amidst a spending rally, the Bitcoin (BTC) price briefly tanked to the $8,000 level, losing more than 88% in no time.
A similar flash-crash was registered on 26 other low-liquidity exchanges. A Binance.US representative attributed this dramatic plunge to a critical bug in third-party mechanisms by one of the platform’s sophisticated institutional clients.
Dogecoin Looks Ready To Rip As Bitcoin Finds Critical Support, According to Crypto Analyst Justin Bennett
Crypto analyst Justin Bennett says that Dogecoin (DOGE) could be ready to make a run for its next critical level about 37% above current prices.
The popular analyst tells his 88,000 Twitter followers that DOGE is attempting to break out of a long descending resistance line that it has been up against since May.
“DOGE looks ready (as long as $BTC cooperates).
Just needs to get above 0.27 on a daily closing basis to open up 0.34+.”
In the near term, Bennett says DOGE needs to turn the $0.26 level into support and close above $0.27 before continuing higher to his initial target of $0.34. At time of writing, Dogecoin is trading at $0.26 according to CoinGecko.
Looking at Bitcoin, the analyst says BTC’s ability to maintain the $60,000 level is a major show of strength that could have big implications in the broader markets.
“Although the BTC weekly candle might not look great, it still held above $60k.
That’s what I was looking for. Doesn’t mean we can’t see more pullback before further upside, but it does mean $60k is holding as support on a weekly closing basis.
Bennett also has his eye on Bitcoin dominance, which compares BTC’s market cap to the rest of the crypto markets. He says it’s bounced off a support level and is currently on its way up.
“BTC.D is bouncing from 44.5% support.
While surging Bitcoin dominance often suggests that altcoins will underperform, Bennett says this may only hold true in the short term. He says if the king crypto is looking healthy, then altcoins might take it as a signal to move up.
“This isn’t necessarily a bad thing for altcoins.
Will they suffer if BTC.D heats up again?
In the short term and against BTC, yes.
But Bitcoin strength now is massively bullish for alts over the next few months.
Anybody That Does the Homework Eventually Invests in Bitcoin: SkyBridge Capital’s Scaramucci
Founder of SkyBridge Capital believes that anyone who starts looking into Bitcoin seriously will end up buying
Antony Scaramucci, founder and CEO of SkyBridge Capital venture fund that has a branch investing in Bitcoin, has told CNBC that Bitcoin can eventually convert anyone who “does their homework” to invest in it.
He named several billionaires who used to be skeptical on BTC but have been into it since 2020.
Ray Dalio, Paul Tudor Jones, etc, have turned to Bitcoin
According to Scaramucci, Bitcoin has the power to attract even its opponents – if they begin to study BTC carefully and “do the homework” they get convinced of the great potential Bitcoin has.
He has referred to billionaire investors, such as Ray Dalio, Paul Tudor Jones and Stanley Druckenmiller – they used to be opposed to the flagship cryptocurrency and now are holding BTC in their portfolios.
Among these former Bitcoin skeptics are Shark Tank’s co-hosts – Kevin O’Leary (widely known as Mr. Wonderful) and Mark Cuban, billionaire and owner of the Dallas Mavericks baseball team. He now considers Bitcoin a store of value and believes that Dogecoin is a perfect crypto for payments. The Mavericks online store accepts DOGE for tickets and merch, and, according to Cuban, people are spending thousands of USD in Dogecoin on every month. He also likes Ethereum because of smart contracts.
Here’s how much Bitcoin Scaramucci holds
As part of studying BTC, Scaramucci recommended reading the BTC white paper written by Satoshi Nakamoto, the mysterious person or a team of them that created Bitcoin back in 2008-2009.
As for his own crypto holdings, Anthony Scaramucci holds over one billion USD worth of Bitcoin. He believes BTC to be digital analogue of gold.
He also believes that Ethereum and Cardano have a large potential and are going to keep rising in the future.