‘Bitcoin’s $30K support opens opportunities for gains in UNI, ARB, AAVE, and MKR.’

'Bitcoin's $30K support opens opportunities for gains in UNI, ARB, AAVE, and MKR.'

The Blockchain Industry: Bitcoin, Altcoins, and Price Analysis

Bitcoin (BTC) attempted to break away from its boring sideways price action on July 13 following Ripple’s legal victory over the United States Securities and Exchange Commission. However, the enthusiasm proved to be short-lived as sellers pulled the price back into the range on July 14, indicating their continued activity at higher levels. Despite this setback, a positive sign is that the bulls have managed to keep Bitcoin’s price above $30,000.

As market observers closely follow the review process for various exchange-traded fund (ETF) proposals for a spot Bitcoin ETF, one proposal by BlackRock has garnered significant attention. Interestingly, Bloomberg Intelligence’s Eric Balchunas and James Seyffart reveal that out of 550 ETF applications by BlackRock, only one has been rejected. This suggests a potentially high chance of approval for BlackRock’s Bitcoin ETF proposal, which could have a significant impact on the market.

While Bitcoin consolidates and waits for its next catalyst, several altcoins are witnessing solid buying. This has pulled Bitcoin’s market dominance below 50%, indicating a potential shift in focus towards altcoins in the near term.

Bitcoin Price Analysis

Bitcoin closed above $31,000 on July 13, but the bears quickly pulled the price back below that level on July 14, demonstrating their strong defense of the zone between $31,000 and $32,400. This bearish price action has formed a bearish divergence on the Relative Strength Index (RSI), indicating a weakening bullish momentum.

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To prevent further decline, bulls must quickly push and sustain the price above $31,000. If they succeed, the pair could climb to $32,400, potentially clearing the path for a run to $40,000 with no major resistances in between. However, if the bears manage to pull the price below the 20-day exponential moving average ($30,187), the BTC/USDT pair could descend to the 50-day simple moving average ($28,631).

The 4-hour chart reveals that the pair has dropped below the moving averages, indicating a lack of demand at higher levels. To start a deeper correction, the bears will need to sink and sustain the price below $29,500. On the other hand, if the bulls can sustain the price above $31,000, it will suggest that the bulls have flipped the level into support, potentially triggering a rally to $40,000.

Uniswap Price Analysis

Uniswap (UNI) has shown positive sentiment and strong buying activity, as it consistently finds support at the 20-day exponential moving average (EMA) during pullbacks. This indicates a bullish sentiment among traders, who are actively buying the dips.

The immediate resistance at $6.16 is crucial for the bulls. If they manage to push the price above this level, the UNI/USDT pair could rise to $6.50 and potentially even reach $6.70. However, if the bears gain control and break below the 20-day EMA, it could signal a shift in sentiment and lead to a decline towards the 50-day simple moving average (SMA) at $5, followed by the crucial support at $4.72.

On the 4-hour chart, the bulls are attempting to build strength by pushing the price above the overhead resistance at $6.17. If successful, the pair may climb to the resistance line of the ascending channel. Conversely, a price slip below the 20-EMA would suggest short-term traders booking profits, potentially pulling the price down to the support line of the channel and further to $5.08.

Arbitrum Price Analysis

Arbitrum (ARB) recently broke and closed above the symmetrical triangle pattern, indicating a victory for the bulls. The 20-day EMA has turned up, and the RSI has reached near the overbought zone, suggesting that the path of least resistance is to the upside.

While a minor resistance exists at $1.36, a successful cross above this level could propel the ARB/USDT pair to surge to $1.50. Overcoming this resistance may pave the way for a rally to $1.70. However, if the price turns down and plummets below the support line of the triangle, it could invalidate the positive view and result in a sharp drop to $0.90.

On the 4-hour chart, the bulls have successfully held the retest of the breakout level from the symmetrical triangle, indicating strong demand at lower levels. A push above $1.36 could provide further momentum, while a failure to do so may suggest a trap and drag the pair back into the triangle, potentially leading to a drop to the 50-SMA and the support line of the triangle.

Aave Price Analysis

Aave (AAVE) broke and closed above the descending channel pattern, showcasing strong demand at lower levels. The rising 20-day EMA and the RSI in the positive territory indicate that the bulls are in control.

If the price turns up from the current level or bounces off the 20-day EMA, it will enhance the prospects of a rally above $84.50. The AAVE/USDT pair could then target $95. However, a turn down and a break below the 20-day EMA may suggest weakening bullish momentum and a potential reentry into the descending channel.

On the 4-hour chart, the bulls managed to push the price above the overhead resistance at $84.50. However, they were unable to sustain the breakout, resulting in a pullback below the 20-EMA. With both moving averages flattening out and the RSI near the midpoint, supply and demand are currently balanced. The advantage may shift to the bears if the price breaks below the 50-SMA, potentially leading to a slide to $68. Conversely, maintaining the price above $84.50 would favor the bulls.

Maker Price Analysis

Maker (MKR) broke above the downtrend line and successfully retested the level, indicating strong demand at lower levels. The upsloping 20-day EMA and the RSI in the positive zone signal bullish control.

While the bulls attempt to resume the up-move, they may face resistance near $1,100. A breakthrough could propel the MKR/USDT pair to $1,200. Conversely, a turn down from $1,080 would suggest continued selling pressure from bears. In such a scenario, the pair may slump to the 20-day EMA, and a break below this level could indicate a comeback by the bears.

On the 4-hour chart, the bulls successfully pushed the price above the resistance line, indicating the end of the short-term correction. A dip to the resistance line would provide an important level to watch, as a strong rebound from this level could signify a flip of the resistance line into support. This would improve the likelihood of a break above $1,080. However, a plunge below the moving averages may shift the advantage to the bears, potentially sinking the pair to $831.

In conclusion, the blockchain industry continues to evolve with both Bitcoin and altcoins experiencing price movements. Bitcoin’s price analysis suggests a potential trending move, while altcoins like Uniswap, Arbitrum, Aave, and Maker are showing strength on their respective charts. Traders and market participants will closely monitor these developments to make informed decisions within the dynamic blockchain industry.