The rejection of ETF applications by the SEC caused a knee-jerk reaction but the shallow fall in Bitcoin and several altcoins suggests that lower levels are attracting buyers.
Although there was a knee-jerk reaction to the news, the downside was limited because it turned out that the ETF applications were returned due to a technical issue. The regulators said the asset managers
Any adverse news is likely to witness a negative reaction from SThs. What are the important support and resistance levels that need to be watched on Bitcoin and altcoins in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin continues its tight consolidation near the overhead resistance at $31,000. This shows that the bears are trying their level best to stall the up-move but the bulls have kept up the pressure.
Generally, a tight consolidation near an overhead resistance resolves to the upside. The upsloping 20-day exponential moving average ($28,982) and the relative strength index (RSI) in the positive territory indicate that the path of least resistance is to the upside.
إقرأ أيضا:Is Dogecoin copying the 2020 fractal that sent DOGE price soaring 15,800%?If buyers sustain the price above $31,000, the BTC/USDT pair could pick up momentum and start the next leg of its uptrend. There is a minor resistance at $32,400 but it is likely to be scaled. The pair could then dash toward $40,000.
This positive view will invalidate in the near term if the price turns down and plummets below the 20-day EMA. The pair may then swing inside the large range between $31,000 and $24,800 for a few more days.
The bulls will try to propel the price above the overhead resistance at $1,937. If they manage to do that, the ETH/USDT pair may rise to the psychological level of $2,000. This level may again act as a minor barrier but it is likely to be crossed. The pair may then rally to $2,142.
Instead, if the price turns down sharply from 1,937, it will suggest that bears are not willing to surrender. That will increase the likelihood of a drop below the moving averages. The pair may then slump to $1,700 and next to $1,600.
The 20-day EMA ($245) remains the key level for the bulls to cross. If they kick the price above it, the BNB/USDT pair could fly toward the overhead resistance zone between $257 and $265. Sellers are expected to mount a strong defense in this zone.
إقرأ أيضا:Celsius files lawsuit to recover $150M from staking platform StakeHoundContrary to this assumption, if the price turns down sharply from the 20-day EMA, it will suggest that the sentiment remains negative and traders are selling on rallies. The bears will then make one more attempt to sink the pair below $220 and start the next leg of the downtrend.
The $0.44 support is an important level to watch out for in the near term. If this level breaks down, the selling could pick up and the XRP/USDT pair may tumble to $0.41. This level may again attract strong buying by the bulls.
The 20-day EMA ($0.48) remains the key resistance for the bulls to scale. If buyers overcome this obstacle, it will enhance the prospects of a rally to the strong overhead resistance zone between $0.53 and $0.56.
