Top 5 cryptocurrencies to watch this week: BTC, ETH, MATIC, FTT, ETC

Bitcoin’s attempt to form a bottom has lured altcoin traders to focus on ETH, MATIC, FTT and ETC.

The United States equities markets recovered from their intra-week lows last week, suggesting demand exists at lower levels. On similar lines, Bitcoin (BTC) also recovered from $18,910 last week, indicating that traders may be getting back into risky assets. 

However, analysts remain divided in their opinion on the recovery in Bitcoin. While some believe that the relief rally is a bull trap, others expect the up-move to retest the crucial resistance at the 200-week moving average ($22,626).

The current bear phase has damaged sentiment as seen from the Crypto Fear and Greed Index, which has remained in the “extreme fear” zone since May 6. According to Philip Swift, creator of on-chain analytics platform LookIntoBitcoin, the time spent in the “extreme fear” category is longer than during the 2018 Bitcoin bear market.

Could the sentiment stage a turn around boosting crypto prices higher? Let’s study the charts of the top-5 cryptocurrencies to identify potential breakout assests.

BTC/USDT

Bitcoin rose above the 20-day exponential moving average ($20,894) on July 15, but the bulls have not been able to build upon this advantage. The bears are likely to defend the resistance line of the symmetrical triangle with vigor.

The 20-day EMA has flattened out and the relative strength index (RSI) has risen close to the midpoint. This suggests a balance between supply and demand.

The first sign of strength will be a break and close above the 50-day simple moving average ($23,445). That could clear the path for a possible rally to the pattern target at $28,171. Such a move will suggest that the BTC/USDT pair may have bottomed out at $17,622.

Alternatively, if the price turns down and breaks below the 20-day EMA, the pair could extend its stay inside the triangle for a few more days. The price action inside the triangle is likely to be random and volatile. A break and close below the triangle could signal that bears are back in the driver’s seat.

The moving averages have been criss crossing each other for some time, indicating a range formation. The bears will try to pull the price below the moving averages. If they manage to do that, the pair could decline to $20,000. A break below this support could open the doors for a possible drop to the support line.

On the other hand, if the price rebounds off the moving averages, it will suggest that bulls are buying on dips. That could improve the prospects of a breakout from the triangle. The pair could then rally to the overhead resistance at $23,363.

ETH/USDT

Ether (ETH) completed an ascending triangle pattern when bulls pushed the price above $1,280 on July 16. The bears are currently trying to pull the price back below the breakout level and trap the aggressive bulls.

The critical level to watch on the downside is $1,280. If the price rebounds off this level, it will suggest that bulls have flipped $1,280 into support. That could improve the prospects of the resumption of the up-move. The ETH/USDT pair could then rise to $1,700 where the bears may again pose a strong challenge.

On the contrary, if the price turns down and breaks below the 20-day EMA ($1,206), it will suggest that bears are selling on rallies. That could sink the pair toward the support line of the triangle.

The 20-EMA on the 4-hour chart is sloping up and the RSI is near the overbought zone, indicating that bulls are at an advantage. If the price turns up and rises above $1,423, the pair could pick up momentum and rally to $1,550 and then to $1,700.

Conversely, if the price slips from the current level, the bulls will attempt to arrest the decline at the…

Read More: cointelegraph.com