Crypto price analysis 7/23: Bitcoin could rally to $10,000 if holding above $9,300 plus ETH, XTZ, ATOM, LEND
The European Union has also agreed on a massive recovery fund of about $ 857 billion to address the economic and social crisis caused by the coronavirus pandemic. In response, gold exploded to a new yearly high, suggesting that with each new announcement of a stimulus, investors are stacking gold.
Most investors buy gold because they are looking to preserve their assets against the devaluation of the fiat currencies. However, as gold continues to rise, investors can start looking for other assets where they can find significant value. This is when Bitcoin could come into greater focus.
The next price increase in BTC is likely to be a sustained growth move, unlike the vertical rally seen in the previous bull market in 2017. Therefore, cryptocurrency investors should be patient with their holding.
Bitcoin seems to be stronger than many analysts think, as its tight trading range between $9,100 and $9,300 is resolved in favor of bull.
It is important to note that the continual protection of $ 9,300 after the recent rally indicates that buyers are building strength.
At the press time, Bitcoin is trading up 2% with the current price of $ 9,518.
Analyst “Josh Rager” explained that a break above $ 9,450 would be positive, but he is still closely watching a breakdown if BTC closes below $ 9,230.
“Here we are again above the mid-range of the weekly closes between $10k and $8500. If the price goes back under $9,230 on a close, I’ll start to lean more bearish as this compression can’t last much longer. Close above $9,450 = good/ $9,700 = bullish/ $10,000+ = semi-euphoric.”
Source: Josh Rager / Twitter
According to him, continued protection of this level could open the gate for crypto to see a rise to $ 10,000 in the days and weeks to come.
Another analyst also explained that a breakout in the area between $ 9,000 is very important, “the party starts” once the $ 9,500 is broken.
“BTC HTF Update: Looking good still, it seems as though $9,300 is holding as support, but even if we pull back to around $9,200, that’s fine, and we should be looking good for another leg upwards. Really want to see if bulls have the power to break $9,500 as this is where the party starts.”
Source: Cactus / Twitter
ETH is starting to flash some strength signs after the strong upward movement seen yesterday.
Previously, ETH had faced some resistance in the area between $ 200, but the current strength of buyers could far exceed selling pressure at this level.
When ETH breaks the upper boundary of its macro trading range at $ 250, it will catalyze some immense momentum that allows it to fly higher.
Analyst “Josh Olszewicz” recently said a technical model is currently suggesting that a rally to $ 385 is imminent.
“ETH: What a diff a day makes. iHS- target $265-275. C&H- target $333-386. If/when these resolve up, they will bring BTC w/them most likely.”
Source: Josh Olszewicz / Twitter
Another analyst noted that ETH has been forming a potential double bottom pattern that will be confirmed if the cryptocurrency can surpass $ 365. A break above this level will open the door for formidable upside.
“Ultimately, this ETH break higher would continue to paint the picture of a multi-year double bottom, with a neckline at $365. If the double bottom completes over $365, use your imagination for how high we go.”
Source: Jonny Moe / Twitter
At the time of writing, Tezos (XTZ) is trading at $ 3.08, with a nearly 3% increase in the last 24 hours. However, that surge will end soon, which is why short XTZ will be the best way.
Although the surge over the past 24 hours is a good one, the RSI is creating a bearish divergence. This is the main reason for a short position, in addition to the resistance of $ 3,063 has been flipped into a support level. Flip this R/ S still not sure. Therefore, a short position here (at $ 3,063) would be profitable if the flip did not occur successfully.
The stop-loss is set at $ 3,145 in the chart above, but it could be adjusted based on the level of risk that one is willing to accept. As always, the narrow stop-loss will often close a position, especially considering the volatile nature of crypto.
The first short position belongs to the conservative faction with a target at $ 2.91, that is, down 4.69%. The second place seems to maximize profits by taking more risks with the price target at $ 2.77, which was also the support target that XTZ was bounced back on July 14 and 21.
The MACD and Aroon indicators, though not seen in the chart, indicate the upcoming bearish crossover, further confirming the short position.
Cosmos (ATOM) price has been following a descending resistance level since it reached a high of 66,110 satoshis on December 27, 2019. The price broke out from that level in early June 2020 and dropped to confirm the line was the support later on June 27.
Since then, the ATOM price has increased at a fast pace. However, the price was rejected by the 0.5 – 0.618 Fib levels on July 19 and had been decreasing since then. As for technical indicators, significant divergence in price has been developed on the daily RSI.
This is a sign that the price is likely to pull back, reinforced by a decline in price at the 0.5 to 0.618 Fib area. Price has pulled back significantly since divergence.
The 50- and 200-day moving averages (MA) are very close to creating a bull cross, and will likely provide support for the price if it retraces. The MA is currently near 37,500 sts.
The 12-hour chart shows that the very steep support line has not been broken. The slope of this line could make the price of ATOM increase unsustainably in the long term. However, the price will continue rising as long as it is trading above this support line.
The nearest resistance area is found at 52,500 sts. If the price breaks down, the next closest support level is found at 38,000 sts, the 0.5 Fib level of the whole step up, or 34,600 sts, 0.618 Fib, and MA 100 days.
Aave (LEND) stole the attention of COMP, another DeFi token with similar goals, and quickly gained market share in the total locked value.
LENDUSDT has been in a steady, explosive uptrend for the past two months with virtually no significant setbacks. In less than two months, the token has increased by more than 675%. In July alone, just three weeks, LEND increased by more than 180%.
The price and momentum action was taken by a parabolic support curve, with an increasingly steep angle. As LEND price climbs, the slope of the corner increases. Price action went verticle at more than 40% trend angle, but the parabolic curve was broken.
However, after a crazy demonstration of LEND may be about to be overpowered. A parabolic curve that the Defi token has tracked has now been broken, as we have learned from the cryptocurrency bubble, the possibility of a correction of 80% or more is possible.
- XRP price could potentially reach $26 if the asset reached a Fibonacci extension of 1.618
- Bitcoin price could soon dive lower if it breaks below $9,300