Top 5 cryptocurrencies to watch this week: BTC, UNI, ICP, AAVE, QNT

Bitcoin is trending toward a retest of its lower support and if this happens, UNI, ICP, AAVE and QNT could breakout to the upside.

Bitcoin (BTC) has given up ground over the weekend as investors remain cautious about the United States consumer inflation data to be released on July 13. Analysts anticipate June’s consumer price index to be higher than May’s 8.6% level.

Due to the macro uncertainty, investors are not confident that Bitcoin’s correction is over. However, Fidelity Investments’ director of global macro Jurrien Timmer said that Bitcoin is back at the 2013 bull market levels “if the price per millions of non-zero addresses“ is considered for valuing it. That implies that “Bitcoin is cheap.”

The readings on the Reserve Risk indicator, which shows long-term holder sentiment, plunged to a new all-time low in July. Commentator Murad said this meant that “we are in the high timeframe bottoming zone” or the indicator may be broken.

Could Bitcoin turn around and start a new rally or will it continue lower? Are altcoins showing signs of bottoming out? Let’s study the charts of the top-5 cryptocurrencies to find out?

BTC/USDT

Bitcoin broke above the symmetrical triangle pattern on July 7 but the bulls could not sustain the momentum at higher levels. This suggests that the bears have not surrendered and are attempting to defend the overhead resistance at $23,363.

The bears are attempting to sustain the price below the 20-day exponential moving average ($21,230). If they succeed, the BTC/USDT pair could decline to the support line of the triangle.

If the price rebounds off this level, it will suggest that bulls continue to buy at lower levels. The bulls will then again strive to push the price above the overhead resistance at $23,363 and the 50-day simple moving average ($24,692). If they succeed, it could signal the start of a new up-move.

On the contrary, if the price breaks below the support line, the bears will endeavor to pull the pair below $17,622.

The bears pulled the price below the 20-EMA but a minor positive is that the bulls are trying to defend the 50-SMA. This indicates accumulation at lower levels. If bulls thrust the price back above the 20-EMA, the pair could rise toward $22,500.

Alternatively, if the price turns down from the 20-EMA, the likelihood of a break below the 50-SMA increases. If that happens, the pair could extend its decline to $19,300. The flattening 20-EMA and the relative strength index (RSI) just below the midpoint do not give a clear advantage to the bulls or bears.

UNI/USDT

Uniswap (UNI) broke above the overhead resistance at $6.08 which completed a bullish inverse head and shoulders pattern. The bears are attempting to pull the price back below the breakout level.

If they manage to do that, it will suggest that the rise above $6.08 may have been a bull trap. That could pull the price toward the 20-day EMA ($5.39). If the price rebounds off this level with strength, it could increase the possibility of a break above $6.62. The pair could then pick up momentum and rally toward the pattern target of $8.78.

Conversely, if the price breaks below the moving averages, it will suggest that the bullish momentum has weakened. The UNI/USDT pair could then remain range-bound for a few days.

The bears pulled the price below the breakout level of $6.08 but the strong rebound off the 20-EMA shows aggressive buying at lower levels. The buyers will make another attempt to push the price above $6.62 and resume the uptrend.

Contrary to this assumption, if the price turns down and breaks below the 20-EMA, it will suggest that the bears are trying to trap the aggressive bulls. The pair could then drop to the 50-SMA. If this level…

Read More: cointelegraph.com