Crypto Frontline

BTCUSD (Coinbase)

Source: TradingView

After weeks of waiting, Bitcoin buyers have finally stepped in more aggressively and pushed the price away from the $30k key support area. At the time of writing, BTC is consolidating above the $34k area, having breached above the 4h chart 200 SMA, a dynamic resistance level that has capped the upside for more than a month.

Now that the rebound has occurred, we expect BTC to continue higher and the first major resistance to watch is located around $40k-$41k. A break above that zone could unlock further upside, with more potential for gains towards $45k. Although the developments are now encouraging, traders should remain cautious, given the rally can be treated as a new opportunity to sell the market.

Inability to keep above the 4h chart 200 SMA, and the trend line we’ve highlighted, will be a sign of weakness. In that case, BTC could roll over towards the $30k once again. We think the bias is slightly tilted in favor of the buyers right now and the positive momentum can extend into next week.

ETHUSD (Kraken)

Source: TradingView

A slightly weaker picture can be noted in the case of Ether, given the price has managed to break above the 4h chart 200 SMA, but failed to do so above a falling trend line that goes back to June 21^st. That is showing sellers are active there and buyers need to proceed with caution until the break higher occurs.

On the downside, if sellers will be more active, the 20 EMA or 200 SMA are expected to act as support. Failure to do that could send the price back towards the $1,800 or $1,700 where the current bottom is located.

A break above the trend line will be a major win for the buyers and might signal the continuation higher. Near-term targets are located around $2,5000 and $2,900 if the bullish sentiment manages to gather pace. The past couple of days have been positive but more needs to be done in order to negate the overall bearish sentiment.

THETAUSDT (Huobi)

Source: TradingView

One of the best performing tokens for the week is Tether, currently posting a 34% gain. The price reached the May 2021 lows and that is where buyers started to enter aggressively, pushing the price up from $3,84 all the way to $6.2.

Compared to Bitcoin and Ether, Theta is posting more solid gains, communicating there are many market participants heavily investing in this token. As a result, the pump higher can extend next week and as long as the price will continue to trade above the 4h chart 200 SMA, we suspect it can head towards $8.3 or even $10 over the medium term.

Failure to remain above the SMA will be a sign of weakness and we could see a temporary setback before the price moves higher again. Only a breakout below the current July lows can negate the bullish sentiment.