BTC, ETH, and XTZ have all rebounded above critical support levels, but remain vulnerable to downward pressure
Ethereum’s ETH has correlated highly with BTC in 2021, and the latter’s uptick on Thursday also saw ETH/USD surge to break above $2,000.
Popular crypto trader Michael van de Poppe suggests Bitcoin’s reclaiming of support at $31,000 could help it surge to $40k. Meanwhile, the uptick in BTC’s fortunes could see altcoins jump 80%+ in the near term.
If we look at the price action of #Bitcoin, we can clearly see and state that we’re holding above $31K.
If that sustains, and the market grants a higher low, I think we’ve found a temporary bottom & we’ll test $40K.
— Michaël van de Poppe (@CryptoMichNL) July 22, 2021
But while the crypto market looks to recoup losses suffered these past few weeks, some industry players suggest BTC is yet to bottom, and selling pressure could still push Bitcoin and alts lower.
Bitcoin (BTC) has recovered above a critical horizontal zone and currently eyes a breakout towards $33,000.
Technical indicators suggest that bulls have the upper hand as the 4-hour MACD has formed a bullish crossover as it looks to break above 0; the RSI in the same time frame is also above 50.
However, the RSI has generally flattened and suggests a potential flip, similar to the stochastic oscillator that remains in the bullish zone, but with a potential bearish cross.
Key price levels to watch on the upside are $32,500, $34,800, and then the main resistance at $36,650. If the upside fizzles out, crucial support levels are likely at the 61.8% Fib level ($31797) and recent lows of $29,300.
ETH looks bullish on the daily chart, with the RSI, MACD, and stochastic all showing bullish signals. In this scenario, Ethereum’s price could break above a descending trendline to test resistance levels near $2,150 and $2,325.
According to van de Poppe, popping off a new horizontal line could catapult ETH/USD to $2,400 and then $2,900. On the downside, bulls need to defend the vital support level at $2,000 to prevent a retest of weekly lows of $1,720.
Tezos price has gained 6% in the past 24 hours and currently trades near $2.57. Bulls are trying to consolidate above $2.35.
The RSI is rising and could rise above 50 to hand buyers the advantage. If the upward pressure holds, XTZ/USD could test resistance at $3.00 and seek fresh support around $3.38. In case the bullish scenario plays out, the next targets would be at $4.10 and $5.73.
Buyers, however, face a lot of pressure near the 20-day EMA and 50 SMA at $2.59 and $2.89 respectively. A breakdown would thus put Tezos’ price at risk of declining to $2.16 and $1.79.