Bitcoin (BTC) has been experiencing a period of low volatility, with its price trading between $25,333 and $26,156 since September 1. Typically, periods of low volatility are followed by an expansion in volatility, but it is difficult to predict which direction the breakout will occur.
Historical data shows that Bitcoin has fallen in September for the past six years, which could keep the bulls at bay and embolden the bears. In addition, the U.S. Dollar Index (DXY), which has an inverse correlation with Bitcoin, has risen sharply in recent weeks. Both of these factors suggest that Bitcoin may remain under pressure in the short term.
However, the prospect of one or more Bitcoin spot exchange-traded fund (ETF) applications receiving approvals may limit the downside of the cryptocurrency. Many analysts believe that the approval of these ETFs would be a bullish signal for Bitcoin. Positive news in this regard could prop up prices.
From a macro perspective, it appears that there may be near-term weakness in the Bitcoin market. However, lower levels are likely to attract buyers. The important support levels to watch out for are between $24,800 and $31,000.
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In terms of other cryptocurrencies, Ether (ETH) has been trading below $26,000 for the past two days. The developing positive divergence on the relative strength index (RSI) suggests that the bearish momentum could be weakening. Buyers will need to drive and sustain the price above $26,833 to start a relief rally.
Binance Coin (BNB) has been trading below the important level of $220, but selling pressure seems to be drying up at lower levels. This could keep the cryptocurrency stuck between $220 and $200 for some time.
XRP has been clinging to the $0.50 support, but the failure to start a strong rebound indicates a possible downside breakdown. A break and close below $0.50 could extend XRP’s stay within the $0.56-$0.41 range.
Cardano (ADA) has been trading within a tight range, indicating caution from both bulls and bears. If the price breaks below $0.25, the bears may push the ADA/USDT pair to $0.24. On the other hand, a break and close above the 20-day EMA ($0.26) would indicate strength and pave the way for a rally to the 50-day SMA ($0.28).
Dogecoin (DOGE) is attempting to start a relief rally, but the bears are likely to defend the 20-day EMA ($0.06) aggressively. If the price turns down sharply, the bears may pull the DOGE/USDT pair below $0.06. On the upside, a break and close above the 20-day EMA could indicate reduced selling pressure.
Solana (SOL) is facing strong selling at the downtrend line, with a risk of resuming its downtrend if it falls below $19. The first indication of strength would be a break and close above the 20-day EMA, which could lead to a recovery to the 50-day SMA.
Toncoin (TON) experienced a sharp rise followed by profit-booking, which pulled the price toward the 20-day EMA ($1.64). If the price rebounds off this level, it would suggest positive sentiment and could propel the price to $2.07. However, if the 20-day EMA cracks, the bulls may lose their grip and the price could slump to $1.42.
Polkadot (DOT) is struggling to start a strong rebound, indicating continued bearish pressure. If the $4.22 level gives way, DOT could fall to the next major support at $4. On the upside, buyers will need to clear the 20-day EMA and the downtrend line for a potential trend change.
Polygon (MATIC) reached the 20-day EMA but failed to clear the hurdle, suggesting limited demand at higher levels. Bears will try to sink the price to the crucial support at $0.50. If this level breaks, the downtrend may resume, with a further slide to $0.45. Bulls will need to push the price above the 20-day EMA to prevent a downside continuation.
In conclusion, the Bitcoin market appears to be experiencing near-term weakness, but lower levels are likely to attract buyers. The charts of various cryptocurrencies suggest different scenarios, from potential relief rallies to possible downtrends. Traders should closely watch the important support and resistance levels to determine the next move in these markets.
