Altcoin prices are moving higher as Bitcoin price holds a pattern of daily higher lows, a sign that the downtrend could be coming to an end.
Price analysis 7/7: BTC, ETH, BNB, ADA, DOGE, XRP, DOT, UNI, BCH, SOLPRICE ANALYSIS
Bitcoin’s (BTC) range-bound action seems to be increasing the confidence of institutional investors looking to resume investing in cryptocurrencies. Proof of this comes as Marshall Wace, a London-based hedge fund, announced plans to invest in the digital asset space, according to sources at the Financial Times.
A survey of wealth managers and institutional investors already holding crypto, from the U.S., U.K., France, Germany, and the UAE shows that 82% of the respondents expect to increase their investments in digital assets by 2023.
The research shared with Cointelegraph claims that only 7% of the participants plan to reduce their exposure to crypto, while 40% plan to “dramatically increase their holdings.”
Daily cryptocurrency market performance. Source: Coin360
More evidence of institutional interest was highlighted in a report from CoinShares which revealed a total institutional inflow of $63 million into digital asset funds. The buying was broad-based as all individual digital assets with dedicated funds witnessed inflows for the first time in nine weeks.
However, the arrival of institutional investors is unlikely to result in a sharp upswing in crypto prices in the short term. This is because institutions gradually accumulate their desired exposure before boosting prices higher.
Let’s analyze the charts of the top-10 cryptocurrencies to identify the levels that will suggest the start of a possible uptrend.
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The bulls have been holding Bitcoin above the trendline for the past few days. A breakout and close above $36,670 will complete an ascending triangle pattern that could result in a move to the overhead resistance at $42,451.67.
BTC/USDT daily chart. Source: TradingView
The bears are likely to mount a stiff resistance at $42,451.67. If the price turns down from this level, the BTC/USDT pair could drop to $36,670. If buyers can flip this level into support, it will suggest that the sentiment has turned positive and traders are buying on dips.
That will increase the possibility of a break above $42,451.67. Such a move will suggest that the correction has ended and the pair is ready to start a new uptrend.
Conversely, if the price turns down from the current level or the overhead resistance and breaks below the trendline, the pair may drop to $31,000. This is an important level to watch out for because the bears have not been able to manage a close below it.
If that happens, it will indicate that the bears have absorbed the demand. A break below $28,000 could result in panic selling, opening the gates for a drop to $20,000.
The bulls have sustained Ether (ETH) above the 20-day exponential moving average ($2,219) for the past three days, which indicates that the sentiment is turning positive. The buyers are currently attempting to push and sustain the price above the 50-day simple moving average ($2,369).
ETH/USDT daily chart. Source: TradingView
If they succeed, the ETH/USDT pair could rally to the downtrend line where the bears may again mount a stiff resistance. If the price turns down from it but rebounds off the 20-day EMA, then the possibility of a break above the downtrend line increases.
Such a move could open the gates for a move to $2,990.05. A break above this resistance will suggest that the correction is over.
Conversely, if the price turns down from the current level or the overhead resistance and breaks below the 20-day EMA, it will indicate that bears are selling on rallies. The pair could then drop to $2,000 and then $1,728.74.
Binance Coin (BNB) broke above the 20-day EMA ($312) on July 6, which suggests that the demand is picking up. The bears may now try to defend the 50-day SMA ($333) aggressively.
BNB/USDT daily chart. Source: TradingView
However, the flat 20-day EMA and the relative strength index (RSI) above 53 indicate the bulls are back in the game. If buyers push and sustain the price above the 50-day SMA, the BNB/USDT pair could rally to $379.58 and then $433.
Contrary to this assumption, if the price turns down from the 50-day SMA and plummets below $264.26, it will suggest that bears have overpowered the bulls and are back in the driver’s seat. The pair could then drop to $211.70.
Cardano (ADA) has been trading above the 20-day EMA ($1.39) for the past three days but the bulls have not been able to challenge the 50-day SMA ($1.49). The flat 20-day EMA and the relative strength index (RSI) near the midpoint suggest a balance between supply and demand.