Bitcoin (BTC) rose from $ 29,482.61 on July 21 to $ 40,000 today, its highest level since June 16. This strong recovery shows a possible change in sentiment.

The cops received a boost on Sunday after an anonymous source inside Amazon announced that the company plans to accept bitcoin payments by the end of 2021 and is considering launching its own cryptocurrency by 2022.

This news seems to have the bears rushing to the exit, resulting in a short squeeze. Bybt data shows that roughly $ 1.1 billion was liquidated in a 24-hour period on Monday, most since May 18. The intensity of the bottleneck was so great that, according to analyst William Clemente III, “US $ 111,000,000 in shorts were liquidated in 10 minutes”.

Daily performance of the cryptocurrency market. Source: Coin360

Although the institutional adoption of digital assets is increasing, some still view crypto as just a speculative asset. Luke Ellis, CEO of Man Group, said that cryptocurrencies are “a pure trading instrument,” “with no value whatsoever. It is a tulip bulb. “

Can the bullish sentiment sustain and attract more buyers? Let’s look at the charts of the top 10 cryptocurrencies to see the critical levels up and down.

BTC / USDT

Bitcoin closed above the simple 50-day moving average ($ 34,396) on July 25, which may have forced short-term traders to cover their short positions. This could have resulted in a short squeeze today that could propel the price above the overhead resistance at $ 36,670.

BTC / USDT daily chart. Source: TradingView

The moving averages are on the verge of a bullish crossover and the relative strength index (RSI) has risen close to the overbought territory, suggesting that the bulls have the upper hand.

If buyers hold the price above $ 36,670, the BTC / USDT pair could climb into the overhead resistance zone of $ 41,330 to $ 42,451.67 where they could face strong resistance from the bears.

If the bulls halt the subsequent drop above $ 36,670, the pair could trade in the upper half of the large trading range between $ 30,000 and $ 42,451.67. A break above $ 42,451.67 signals the possible start of a new uptrend.

This positive view will be invalidated if the price goes down and falls below the moving averages. If so, the pair could retest the $ 31,000-28,000 support zone.

ETH / USDT

Ether (ETH) has been struggling near the $ 2,200 mark for the past two days, but the long tail of the July 25 candle suggests the bulls bought the slump. The bulls’ continued buying drove the price above the $ 2,200 mark today.

ETH / USDT daily chart. Source: TradingView

The ETH / USDT pair could rally to the downtrend line, which in turn could act as a rigid resistance. If price turns down from this resistance but rebounds from the 20-day EMA ($ 2,081), it indicates a change in sentiment. That will improve the prospect of breaking above the downtrendline.

A breakout and close above the downtrendline will open the way for a possible rally to the psychological resistance at $ 3,000. This bullish view will be void if price goes down and falls below the 20-day EMA. Such a move will indicate that the bears have not given up and will continue to sell on rallies.

BNB / USDT

The bulls have pushed Binance Coin (BNB) above the downtrend line and are now trying to break the hurdle at the 50-day SMA (USD 314).

BNB / USDT daily chart. Source: TradingView

The 20-day EMA has flattened and the RSI has moved into positive territory, suggesting the bulls are trying to make a comeback. If they can hold the price above the 50-day SMA, the BNB / USDT pair could rise to $ 380 and then to $ 433 later.

On the contrary, if the price moves down from current levels, the bears will attempt to bring the pair back below $ 280. If successful, the pair could resume its bearish move and retest the July 20th low of $ 254.52.

ADA / USDT

The long tail on Cardanos (ADA) candlestick on July 25th indicated that the bulls were buying the dips rather than closing their positions near the 20-day EMA ($ 1.24). Momentum picked up today and bulls pushed price above the moving averages.

ADA / USDT daily chart. Source: TradingView

If the bulls hold the price above the 50-day SMA ($ 1.34), the ADA / USDT pair could hit the downtrend line. This level could act as stiff resistance, but if the bulls hold up the next drop above the 20-day EMA, it increases the prospect of a break above the downtrendline.

If so, the pair could rise to $ 1.63 and then $ 1.88. On the flip side, the pair could drop to $ 1.14 and then to $ 1 if the price drops down from current levels and falls below the 20-day EMA.

XRP / USDT

XRP’s rebound had stalled near the 20-day EMA ($ 0.61) for the past three days, but the bulls have not reduced their positions. Renewed buying pushed the price above the 20-day EMA today.

XRP / USDT daily chart. Source: TradingView

The 20-day EMA has flattened and the RSI has surged above 54, suggesting the bears are losing their grip. If the bulls push the price above the 50-day SMA ($ 0.68), the XRP / USDT pair could rise to $ 0.75.

A breakout and close above $ 0.75 complete a double floor pattern that could open the doors for a rally to $ 1.07. Contrary to this assumption, the pair could fall back to the critical support at $ 0.50 if the price drops from current levels and falls below the 20-day EMA.

DOGE / USDT

Although the bears defended the 20-day EMA ($ 0.20) for the past three days, the bulls did not give up much ground. This suggests that the bulls were not posting gains as they expected the Dogecoin (DOGE) relief rally to continue.

DOGE / USDT daily chart. Source: TradingView

Buyers pushed the price above the $ 0.21 overhead resistance today, but the bears may not give up easily. Sellers will try again to stop the rebound at the 50-day SMA ($ 0.24). If price moves down from this level, the bulls will seek to turn $ 0.21 into support.

If they succeed, the likelihood of a breakthrough above the 50-day SMA increases. Such a move could open the doors to a likely rally to $ 0.28 and then to $ 0.33. Conversely, the DOGE / USDT pair could fall again to $ 0.15 if bears pull below the 20-day EMA.

DOT / USDT

The bears tried to stop the polkadot (DOT) relief rally at the 20-day EMA ($ 13.92) for the past three days, but they were unable to pull the price back below the $ 13 level. This shows that cops bought with every little break-in.

DOT / USDT daily chart. Source: TradingView

The bulls pushed price above the 20-day EMA today and the DOT / USDT pair may now rebound to the overhead resistance at $ 16.93. This level can act as a strong resistance and if the price deviates the pair could fall back to $ 13.

On the contrary, if the bulls are driving the price above $ 16.93, it indicates that the markets have rejected the lower levels. The pair could then begin their march north at $ 20 and later the rigid overhead resistance at $ 26.50.

UNI / USDT

Uniswap (UNI) rebound has hit the downtrendline of the descending triangle pattern where bears could build up tough resistance. If the price moves down from this level and falls below the 20-day EMA ($ 18.17), it suggests that bears are aggressively selling at higher levels.

UNI / USDT daily chart. Source: TradingView

The RSI has moved into positive territory and the 20-day EMA has flattened, suggesting that selling pressures are easing. When bulls push and hold the price above the downtrend line, the bearish pattern becomes invalid.

That could attract more buying and open the doors to a rally to $ 25. If the bulls can overcome this hurdle, the UNI / USDT pair could climb to $ 30, where bears could be a major challenge.

Related: That’s how much the tweets from Musk and Saylor had an impact on crypto prices in the second quarter

BCH / USDT

After struggling near the 20-day EMA ($ 465) for the past two days, Bitcoin Cash (BCH) resumed its recovery today. The altcoin could now rise to the overhead resistance at $ 538.11 where the bears could build strong resistance.

BCH / USDT daily chart. Source: TradingView

The RSI has risen above 55 and the 20-day EMA has flattened, suggesting a balance between supply and demand. A breakout and close above $ 538.11 will tip the bull’s advantage as the BCH / USDT pair completes a double bottom pattern.

This bullish setup has a target target of $ 706.22. Alternatively, if the price drops from $ 538.11, the pair may drop to the 20-day EMA. If the price recovers from this level, the bulls will try again to push the price above the overhead resistance. A break below the 20-day EMA could drag the price to $ 370.

LTC / USDT

The bears have been trying to stop Litecoin (LTC) relief rally near the 20-day EMA ($ 127) for the past two days, but the bulls were in no mood to give way. They held their own, pushing price above the 20-day EMA today.

LTC / USDT daily chart. Source: TradingView

The RSI has risen into positive territory and the 20-day EMA has flattened, suggesting the bears are losing their grip. If the bulls push and hold the price above the 50-day SMA ($ 139), the LTC / USDT pair could attempt a rally to $ 180.

If the price is falling from the 50-day SMA but not falling below the 20-day EMA, it suggests that sentiment has turned positive and traders are buying on dips. The bears will have to move below the 20-day EMA to gain the upper hand.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.

Market data is provided by HitBTC Exchange.

[RITEKIT_HASHTAG1] [RITEKIT_HASHTAG2] [RITEKIT_EMOJI]

Relevant news