Key points:
Bitcoin is facing a sharp decline at $115,000, indicating that bearish investors are trying to take control of the market.
If Bitcoin maintains its price above $112,000, prices for LTC, CRO, ENA, and MNT may resume their rise.
The price of Bitcoin (BTC) rose to $113,482, surpassing the $115,000 level on Monday, but bulls could not maintain these high levels. Bears pulled the price down to nearly $113,000 and are trying to threaten the support level of $112,000.
Institutional investors have taken a cautious stance in recent days, but companies continued their purchases. U.S. Bitcoin ETFs experienced a net outflow of $323.5 million on Monday, according to data from Farside Investors. However, corporate treasury bonds considered this weakness a buying opportunity, adding more than 600 Bitcoins, according to Capriole Investments.
A similar pattern was observed in Ethereum (ETH) at $3,583. Ethereum exchange-traded funds experienced their highest net outflows ever, totaling $465 million on Monday, but large purchases by whales or institutions were spotted on the network through over-the-counter deals on Tuesday.
If Bitcoin maintains its support, some altcoins may continue to rise. Let's analyze the charts of the top five cryptocurrencies that look strong on the charts in the near term.
Bitcoin price prediction
Bitcoin is receiving support at the 50-day simple moving average ($112,395), but this recovery wave faces selling near $115,000.
If the price bounces strongly from the 50-day simple moving average, the BTC/USDT pair may trade between the moving averages for a few days. This tight trading is expected to be followed by an expansion in the range.
If the price breaks the 20-day simple moving average and closes above it, this indicates the dominance of bulls over bears. The pair may then rise to $120,000, then to $123,218. A break and close above $123,218 may start the next phase of the upward trend to $135,000.
Conversely, if the price breaks below the 50-day simple moving average, it indicates that bulls are taking profits. Bears will then try to strengthen their positions by pulling the price below the support level of $110,530. If they do, the pair may drop to $105,000, ultimately to $100,000.
The price of Bitcoin (BTC) dropped below the 50-day simple moving average on the four-hour chart, indicating that sellers are selling at price highs. There is slight support at $112,000, but if this level breaks, the pair may drop to $110,530. Buyers are expected to defend the $110,530 level strongly.
Buyers will need to push the price and keep it above the 50-day simple moving average to take control of the market in the near term. The pair may then rise to the upper resistance area between $120,000 and $123,218.
Litecoin price prediction
Litecoin
LTC
$119.97
Bounced from $107 on Sunday, indicating that buyers are trying to turn this level into support.
Rising moving averages and the relative strength index (RSI) in the overbought area suggest that the path of least resistance is upward. If the price holds at $122, the Litecoin/USDT (LTC/USDT) pair may jump to $130. Sellers will try to stop the rise at $130, but if the bulls break through the resistance level, the pair could reach $140.
The first sign of weakness will be a break below $120 and a close below it. The pair may then drop to the 20-day simple moving average ($111).
The price of Litecoin (LTC) gained momentum after breaking above the 50-day simple moving average on the four-hour chart. Buyers pushed the price above the resistance level of $122, but they are facing strong selling at higher levels. Bears are trying to push the price below $122. If they succeed, the pair may drop to the 20-day simple moving average.
Alternatively, if the price bounces off $122, it indicates that the bulls are trying to turn the level into support. This increases the likelihood of a rise to $130.
Cronos price prediction
Cronos (CRO) fell below the 20-day simple moving average ($0.13) on Saturday, but bulls could not maintain the low levels.
Optimists pushed the price above the 20-day simple moving average on Sunday. The rise of the 20-day simple moving average and the relative strength index (RSI) near the level of 58 indicates an advantage for the optimists. A price break and close above $0.15 indicates a resumption of the ascent. The CRO/USDT pair may rise to $0.17, then to $0.19.
Sellers will have to pull the price below $0.12 to prevent the rise. The pair may then drop to the 50-day simple moving average ($0.10).
Optimists pushed the price above the 50-day simple moving average on the four-hour chart, but they could not capitalize on this lead. Sellers are trying to pull the price below the 20-day simple moving average, which is an important near-term support level to watch. If the price bounces off the 20-day simple moving average, the bulls will try to push the pair to $0.15.
Conversely, if the price continues to drop and breaks below the 20-day simple moving average, it indicates that bulls are selling at price highs. The pair may then drop to a strong support level at $0.12.
The recovery of the Ethina (ENA) pair halted at $0.576 at $0.70 on July 28, but the positive indicators show that buyers bought at the price drop to the 20-day simple moving average ($0.54) on Sunday.
Daily chart for the Ethina/USDT pair. Source: Cointelegraph/Trading View
The rise of the 20-day simple moving average and the relative strength index (RSI) in the positive area indicate that buyers are in control. Buyers will need to push the price above $0.70 to start the next phase of the ascent. If they achieve this, the Ethina/USDT pair could rise to $0.82 and then to $0.96.
This optimistic outlook will fade in the near term if the price drops below the 20-day simple moving average. This indicates that buyers are rushing to exit. The price of Ethina may then fall to $0.42.
Chart for the ENA/USDT pair for four hours. Source: Cointelegraph/Trading View
The pair is moving within a descending channel pattern on the four-hour chart. If the price drops below the 20-day simple moving average, the pair may retrace to the support line, where buyers are expected to intervene.
Alternatively, if the price bounces off the 20-day simple moving average, it indicates buying at the dips. The pair may then rise to the resistance line. Buyers will have to push the price above the resistance line to signal that the correction phase may have ended.
Mantle price prediction
Mantle
MNT
$0.9307
An inverted head and shoulders pattern formed, which will complete when broken and closed above the neckline at $0.85.
The 20-day simple moving average ($0.78) and the relative strength index (RSI) in the positive area indicate the dominance of bulls. If the price holds at $0.85, the MNT/USDT pair may start an upward move to $0.94 and then to $1.06. The target for the bullish pattern is at $1.15.
Sellers are likely to have other plans. They will try to pull the price below the $0.85 level, trapping bulls in a narrow range. This could lead to a drop in the pair to the 20-day simple moving average, then to the 50-day simple moving average, which is an important level to watch.
Chart for the MNT/USDT pair for four hours. Source: Cointelegraph/Trading View
The pair rose from $0.67 and gained momentum after breaking above the 50-day simple moving average on the four-hour chart. Bears tried to curb the rise at $0.85, but bulls bought at the dip and are attempting to resume the ascent. If the price remains above $0.92, the pair may rise to $1.
This positive outlook will fade in the near term if the price drops and breaks the $0.80 level. This could lead to a retracement of the pair to the 20-day simple moving average.
Cointelegraph