Top 5 cryptocurrencies to watch this week: BTC, ADA, AVAX, CAKE, ATOM

Published at: Aug. 22, 2021

Bitcoin (BTC) is knocking at the doors of the key $50,000 level, and most traders are still optimistic, even after the digital asset rallied 70% from the July 20 low at $29,278 to an intraday high at $49,757.04 on Aug. 21.

Monitoring resource Material Indicators pointed to a lot of puts at the $50,000 strike price and the “positive funding almost across the board (overheated),” which suggests a rejection at the current levels and a “pullback going into September.”

Nikita Ovchinnik, chief business development officer of 1inch Network, said that several new institutional investors began adding exposure to crypto in the past year, and that “They didn't come for short-term gains.”

Another positive sign for the crypto sector is the ever-growing list of unicorns. Analysts expect more companies to join the list as the adoption of crypto and blockchain increases.

Will Bitcoin’s hesitation near the $50,000 mark shift the focus to altcoins? Let’s study the charts of the top five cryptocurrencies that are likely to attract traders' attention in the short term.

BTC/USDT

Bitcoin (BTC) rebounded off the 20-day exponential moving average (EMA) ($45,049) on Aug. 19, and the bulls pushed the price above the stiff overhead resistance at $48,144 on Aug. 20. The bears are currently attempting to stall the up-move at the psychological resistance at $50,000.

If bulls do not give up much ground and flip the $48,144 level to support, it will indicate strength. The BTC/USDT pair could then pick up momentum and start its northward march toward $58,000.

The rising 20-day EMA and the relative strength index (RSI) in the positive zone suggest that the path of least resistance is to the upside.

Alternatively, if bears pull the price below $48,144, the pair could drop to the 200-day simple moving average (SMA) ($45,816). This is an important level for the bulls to defend because a break below it could embolden the bears.

The sellers will then try to sink the price below the breakout level at $42,451.67. If they succeed, it will suggest the start of a deeper correction.

The four-hour chart shows that the bears are aggressively defending the zone between $49,500 and $50,000. If they can sink the price below the 20-day EMA, the pair could drop to $46,600 and then to $44,000.

If that happens, it will suggest that the bulls are losing their grip and the pair could then remain range-bound between $44,000 and $50,000 for a few days. The bears will have to pull the price below $42,451.67 to gain the upper hand.

ADA/USDT

Cardano (ADA) is in a strong uptrend. The bulls pushed the price above the all-time high at $2.47 on Aug. 20, but the long wick on the day’s candlestick showed selling at higher levels. The altcoin formed an inside-day candlestick pattern on Aug. 21, indicating indecision among bulls and bears.

The uncertainty resolved to the upside on Aug. 23 as the bulls have again pushed the price to a new all-time high. If buyers sustain the price above the breakout level at $2.47, the ADA/USDT pair could rally to $3.

However, the long wick on the Aug. 23 candlestick suggests that bears are unlikely to give up without a fight. They will try to pull the price back below $2.36 and trap the aggressive bulls. If that happens, the pair may correct to $2.20.

If the price rebounds off $2.20, the bulls will again try to resume the uptrend. A breakout and close above $2.47 to $2.65 will enhance the prospects of the continuation of the uptrend. Alternatively, a break below $2.20 could pull the price down to $1.94.

The four-hour chart shows that the 20-day EMA is sloping up but the RSI is forming a negative divergence. This suggests that the bullish momentum may be slowing down. The first sign of weakness will be a break below the 20-day EMA.

Contrary to this assumption, if bulls do not give up much ground from the current level, it will suggest strength. That could attract further buying, and the pair may then rally to the psychological resistance at $3.

AVAX/USDT

Avalanche (AVAX) rallied from $18.41 on Aug. 17 to $50.27 on Aug. 21, a 173% rally within a short time. This sharp up-move has pushed the RSI above 92, indicating the rally is over-extended in the short term.

The long wick on the Aug. 21 candlestick shows that bears are attempting to defend the psychological resistance at $50. On the downside, the first support is at $40. If the price rebounds off this level, it will suggest that bulls are not booking profits aggressively, as they anticipate the rally to continue further.

A breakout and close above $44 could improve the prospects of a retest of the all-time high at $60.30.

On the contrary, if bears pull the price below the 38.2% Fibonacci retracement level at $38.09, the AVAX/USDT pair could correct to the 50% retracement level at $34.34. A break below this support will indicate that the bullish momentum may have weakened.

The four-hour chart shows that bears are attempting to stall the relief rally at the overhead resistance at $44.60 and the bulls are buying on dips to $40. This suggests that the pair could remain range-bound between these two levels in the short term.

If the bulls drive the price above $44.60, the pair could rally to $50.27. A breakout and close above this level will signal the resumption of the uptrend. Conversely, a break below the 20-day EMA will indicate that traders are booking profits and not buying the dips. That could signal the start of a deeper correction.

CAKE/USDT

PancakeSwap (CAKE) is currently in a strong recovery. Sustained buying by the bulls pushed the price above the 38.2% Fibonacci retracement level at $22.74 on Aug. 20.

If bulls sustain the price above $22.74, the relief rally could reach the 50% retracement level at $26.85 and then the 61.8% retracement level at $30.96. The bears are likely to mount a stiff resistance in this zone.

On the way down, the critical support to watch out for is the 20-day EMA ($20.37). If the price rebounds off this support, it will suggest that sentiment remains positive and traders are buying on dips. Conversely, a break below the 20-day EMA could open the doors for a further decline to $16.

The four-hour chart shows the price is trading inside a rising wedge pattern. If bears sustain the price below the 20-day EMA, the pair may drop to the support line of the wedge. This level is likely to act as strong support, and a sharp rebound off it will indicate that traders are buying on dips.

A breakout and close above $24.65 will suggest the resumption of the up-move. The next target objective on the upside is the resistance line of the wedge. The bullish momentum could pick up if bulls thrust the price above the wedge.

Related: Walmart seeks crypto product lead, Dogecoin Foundation returns, Coinbase amasses $4B war chest: Hodler’s Digest, Aug. 15-21

ATOM/USD

Cosmos (ATOM) had been trading in a large range between $8.51 and $17.56 since late May. The bulls pushed the price above the resistance of the range on Aug. 18, clearing the path for a possible move to the pattern target at $26.61.

However, the long wick on the Aug. 23 candlestick and the RSI above 83 suggest the rally is overextended in the short term. This could attract profit-booking by the bulls, resulting in a minor correction or consolidation in the next few days.

If bulls do not give up much ground and flip the $17.56 level into support, the ATOM/USDT pair will again try to resume the uptrend. A break above $26.61 could open the doors for a rally to $28 and then to $30.

The bears will have to pull and sustain the price below $17 to invalidate the bullish sentiment.

The four-hour chart shows that bears are mounting a stiff resistance near $24. Although bulls had pushed the price above this resistance, they could not sustain the higher levels, as seen from the long wick on the candlestick.

A positive sign is that buyers are not dumping their positions in a hurry. The pair could consolidate between $21 and $24 for some time. A breakout and close above $24 will indicate strength and signal the resumption of the up-move.

Alternatively, a break below the 20-day EMA will indicate the start of a deeper correction to $17.56.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Tags
Related Posts
Price analysis 11/19: BTC, ETH, BNB, SOL, ADA, XRP, DOT, DOGE, SHIB, AVAX
Bitcoin (BTC) dropped below $56,000 on Nov. 19, completing a near 20% correction from the all-time high. The Crypto Fear & Greed Index, which remained in the greed zone for most of the past two months, has plummeted into the fear category with a reading of 34. Cryptocurrency research firm Delphi Digital said in a recent report that the sell-off in Bitcoin was “largely driven by a wave of liquidations rather than a fundamental shift in narrative,” and the analysts expect the drawdown to be “relatively short-lived.” The recent correction does not seem to have shaken the long-term holders. According …
Bitcoin / Nov. 19, 2021
Price analysis 2/16: BTC, ETH, BNB, XRP, ADA, SOL, AVAX, LUNA, DOGE, DOT
Bitcoin (BTC) and the US equity markets are facing selling on Feb. 16 as traders seem to be trimming positions in assets perceived to be risky on the accusation by NATO that Russia continues to build troops near the Ukrainian border. This is contrary to claims by Moscow that Russian troops are returning to their permanent deployments after completion of the exercise. This geopolitical uncertainty could result in increased volatility in the near term. However, the longer-term fundamentals continue to strengthen. PwC Luxembourg, in a recent report, said that 61% of 123 Luxembourg-based financial players have either started or plan …
Bitcoin / Feb. 16, 2022
Price analysis 4/20: BTC, ETH, BNB, XRP, SOL, ADA, LUNA, AVAX, DOGE, DOT
The U.S. dollar currency index (DXY) turned down sharply after rising above 101 on April 20 but this weakness in the dollar has not helped Bitcoin (BTC), possibly because the S&P 500 is struggling to build upon its strong rally on April 19. This indicates that Bitcoin remains tightly correlated with the U.S. equity markets. Irrespective of the lackluster price action, research projects several positives for Bitcoin this year. A report by Insider Intelligence shows that the number of adult crypto users in the U.S. could surge from 28.3 million in 2021 to 33.7 million in 2022. Along with the …
Bitcoin / April 20, 2022
Price analysis 9/2: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, MATIC, SHIB
Nonfarm payrolls rose by 315,000 jobs in August, down from the July increase of 526,000 jobs. The report was just below the Dow Jones estimate of 318,000 jobs and the slowest monthly gain since April 2021. The S&P 500 rose in response to the report, but later erased its gains, indicating that bears continue to sell on rallies. That may be because the U.S. dollar index (DXY), which had retreated from its Sept.1 20-year high, recovered part of its losses. The bears will have to pull the DXY lower to boost prices of stocks and the cryptocurrency markets as both …
Bitcoin / Sept. 2, 2022
Price analysis 11/28: SPX, DXY, BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT
China witnessed a spike in Covid cases and that has resulted in strict lockdown restrictions in several parts of the country. This triggered widespread protests in China and has possibly pulled the global stock markets lower. In addition to the turmoil in China, the cryptocurrency markets, which are already in a bear grip, are reeling under pressure from the Chapter 11 bankruptcy filing by BlockFi and its subsidiaries. Bitcoin (BTC) is down 21% in November, on track to its worst November performance since 2018. The sharp fall in Bitcoin’s price has drastically reduced the number of wallets holding more than …
Bitcoin / Nov. 28, 2022