Bitcoin (BTC) continued its sideways price action as buyers successfully defended the $55,724 support this week. Large fund managers have used the period of consolidation to add spot Bitcoin exchange-traded funds (ETFs) to their portfolios. According to an analysis by CoinShares Research, Goldman Sachs bought $419 million, Capula Management acquired $470 million, and Avenir Tech purchased $388 million worth of Bitcoin ETFs since March.
A report published by cryptocurrency exchange Coinbase shows that institutional investors labeled as investment advisers increased their Bitcoin ETF holdings by 3% in the second quarter of 2024. During the same period, the hedge fund holdings declined slightly. Coinbase believes that the summer period in the United States (June to August) may delay “large inflows,” keeping the price action choppy.
Crypto market data daily view. Source: Coin360
Crypto analyst Matthew Hyland said in a video analysis that Bitcoin is following patterns similar to those in previous US election years. According to that, Bitcoin may remain in the range for “a little bit longer” and break out probably in October or November.
Bitcoin’s choppy price action has kept several altcoins under pressure. However, buying may emerge in select altcoins as Bitcoin attempts to climb above $60,000. Let’s study the top 5 cryptocurrencies that look strong on the charts.
Bitcoin price analysis
Bitcoin bounced off the $55,724 support on Aug. 15 and reached the 20-day exponential moving average ($60,193) on Aug. 18.
BTC/USDT daily chart. Source: TradingView
The downsloping moving averages and the relative strength index (RSI), just below the midpoint, indicate a minor advantage to the bears. If the price turns down from the 20-day EMA, the bears will again try to yank the BTC/USDT pair below the crucial $55,724 support. If they succeed, the pair may move downward toward $49,000.
If bulls want to prevent the downside, they will have to push the price above the 50-day simple moving average ($61,540). The pair may then attempt a rally to $65,660 and subsequently to $70,000.
BTC/USDT 4-hour chart. Source: TradingView
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