Bitcoin’s (BTC) rally above $45,000 suggests that the short-term sentiment has turned positive and this has increased buying interest across the board and pushed the total crypto market capitalization above $1.8 trillion.
Driven by the tailwind of the London hard fork, Ether (ETH) broke above the $3,000 mark on Aug. 7. While the rally in the biggest altcoin is a positive sign, on-chain data shows the possibility of profit-booking in the short term.
Glassnode’s “Ethereum: Percent of Addresses in Profits” indicator has risen above 96.4%, which is the “red zone, historically associated with local tops,” according to Lex Moskovski, the chief investment officer at Moskovski Capital.
While the near-term price action may remain volatile, the long-term picture looks positive. Reports suggest that venture capital (VC) funds have invested $17 billion into blockchain firms in the first half of the year. This amount is almost equal to the total investments made by VC funds in all the previous years combined, which shows the bullish outlook for the future.
Buyers will now attempt to hold on to their advantage and build upon it. Let’s study the charts of the top-5 cryptocurrencies that may outperform in the short term.
Bitcoin broke above the resistance of the range at $42,451.67 on Aug. 6, which suggests that bulls are attempting to start a new uptrend. The buyers are likely to face stiff resistance at the 200-day simple moving average ($44,879).