With the Bolinger Bands contracting on Bitcoin’s chart, a huge move may be around the corner. Let’s find out which coins are showing signs of a bullish move soon!
Bitcoin has still not been able to break the $32,500 mark even after having an increase of over 5% in price multiple times the past week. The range between $28,500 and $3,2500 has been respected by Bitcoin. However, the charts are indicating a breakout (or a breakdown) is just around the corner.
The bulls have failed yet again after reaching the $32,000 zone which could be an indication that the next bear attack could be just around the corner. However, the bulls should not lose hope so soon as the Bollinger bands are contracting on the 4H chart of Bitcoin which is pointing towards an extensive move soon. It may be too early to say which side the move could be thus the levels- $28000 and $32500 must be monitored closely as a close on either side could mark the start of a significant move.
If the bears are successful in breaking the support at $28,000, the price will most likely visit the $22,000 zone. On the other hand, if the bulls recapture the resistance at $32,500, we could see a rapid move towards $38,000. The investors holding stablecoins should continue to sit tight until a clear breakout is seen.
One worrisome point that investors should be aware of is that the majority of the coins we analyzed last week that marked strong support are on the verge of breaking down from those support levels. This is not a positive sign as it shows the overall sentiment of the market as bearish. In this week's technical analysis, we will mark the next support level that these coins may have to get an idea of the fall that may be coming shortly.
Once again, we will be using the chart and the 4H logarithmic chart to keep the analysis as accurate and relevant as possible.
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GMT/USDT
Fortunately for the GMT investors there seem to be some indications of bullish price action!
GMT has continued trading in the zone between $0.83 to $1.30. However, it is forming a bullish RSI divergence on the 4H time frame which is an indication that the range may be broken soon.
GMT was also strongly outperforming Bitcoin on Wednesday as it was trading 3% higher while the majority of the coins were trading in the red.
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The important levels for this week will remain the same as last week’s analysis. The bullish RSI divergence will be confirmed once a break over $1.10 is seen. Therefore, traders can look for targets at $1.55 once a strong breakout is seen.
Bears could make a strong return if a close below $0.80 is seen. Therefore, traders must be cautious of the support level as a breach of the support could take GMT to $0.58.
DOT/USDT
DOT has broken the demand zone at $9.21 which we had determined last week as a crucial zone. DOT took support from the liquidity level at $8.85 which has now become the last standing support before the support at $7.32.
We anticipated a breakdown in last week’s analysis as the bulls were unable to clear the resistance even after multiple attempts. Investors must stay away from any fresh buys in DOT until it is able to break back above the previous support at $9.21 as DOT could break the $8.85 level if it tests it once again.
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A steep drop could be seen if the $8.85 level is broken, therefore, investors must be cautious at the moment as bears seem to have a strong grip over bulls. Bulls need to reclaim the $9.21 mark soon as DOT is aiming to test the support at $7.32.
BTT/USDT
Just like the last week's analysis, investors are advised to stay away from taking any positions in BTT, which seems to be the case this week as well.
BTT is trading slightly below the tight zone it formed several weeks ago, which is why it seems like the bears may have an edge over the bulls. Interestingly, unusually high trading volumes were seen this week which is suggesting that a major move could be seen soon.
BTT has formed a liquidity level at the low of last week's fall which is a very crucial price level.
If the liquidity zone is broken, we could see a new low on BTT’s chart, which is why investors should strictly avoid any long positions until the token is able to enter the zone once again.
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A bullish move can only be seen once the price is able to flip the resistance for the zone it formed earlier, which is not looking likely at the moment.
BAT/USDT
Bears have once again proved to be stronger than the bulls as BAT has been unable to break the resistance at $0.43. In the past few weeks, the token has attempted to break the resistance multiple times, however, it has continuously failed. This shows the bulls are not strong enough. It is also important to note that the bulls have protected the support zone at $0.36 from being breached. Therefore, it looks like both zones will take some time to be broken.
A break from either side will result in a volatile move as BAT has been accumulating since the start of May. For a bullish move, a close above the $0.43 mark must be seen. In the same way, bears will take control only once the support level at $0.36 is broken which could see the price going towards $0.306. Investors must be patient before taking any positions until a clear breakout is seen.
FLUX/USDT
The analysis for FLUX will remain unvaried from last week’s analysis as the price is at the same level. However, the price has now been trading at the demand zone for quite some time thus a bounce should be seen soon before bears strike and break the support level at $0.63.
FLUX could hit the low at $0.562 if a bounce is not seen soon. Therefore, traders must wait for a bounce as buying FLUX at this level could prove to be risky.
A bounce could be seen once it is able to pass the $0.67 level. Therefore, if there is a close above $0.67, expect any bullish moves to form. A bounce could also help the price approach the higher level of the range at $0.95.
FIL/USDT
FIL continues to show a bearish sentiment as we advise traders and investors to stay away from FIL yet again.
The demand zone we constructed in last week’s analysis has been broken by FIL. We anticipated this move and it seems like the next leg in the downtrend may start soon. The next leg could be seen once FIL breaks the support at $7.11.
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Once a close below $7.11 is seen, we may see FIL plummet down to $6.71 which was a freak low set in May. Any sign of bulls will only be seen once the price is able to climb back to $7.92, thus until then investors should steer clear of FIL.
Summary
A quick recap of all the coins:
- GMT is forming a bullish RSI divergence and a bullish move could be expected once it breaks back into the zone which is above $0.83. However, investors must stay cautious of the support as GMT could plunge to $0.58, if it breaks down.
- DOT is trading near its last standing support level at $7.32 which is why any fresh buys should only be executed once DOT trades above $9.21. A break of the support could lead DOT to $7.32.
- The tight zone formed by BTT has been broken and it could now head for the next support. This is why any long positions should not be taken until it is able to trade back in the zone.
- The resistance has still not been broken by BAT in the past week even after multiple attempts. However, the support has also been respected and has resulted in BAT accumulating for yet another week. A big move could be seen once a breakout occurs.
- A bounce must be seen in FLUX next week as it is trading dangerously close to the support at $7.21 since the past week. Failure to do so could end with FLUX heading towards $0.562.
- FIL continues to maintain a bearish sentiment and once again, it is a token we advise you to stay away from for the time being. It has broken a crucial support level we marked last week and it could soon head for $6.71.
Remember that this is all based on the subjective views of the writer. As always, DYOR!
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