Bitcoin’s recovery is currently facing selling pressure above the $27,000 level, with investors feeling nervous ahead of the Federal Reserve’s meeting on September 20th. Despite this temporary downturn, long-term investors have remained unfazed and continue to accumulate Bitcoin. Glassnode data reveals that Bitcoin’s inactive supply has reached all-time highs since July.
However, institutional activity in the cryptocurrency market tells a different story. Investors have reduced their exposure to cryptocurrencies and are waiting on the sidelines for further clarity on regulatory and macroeconomic issues. Recent outflows from exchange-traded products have totaled $455 million over the past nine weeks, according to asset manager CoinShares.
The opinions of analysts regarding Bitcoin’s near-term price action are split. John Bollinger, creator of the Bollinger Bands indicator, speculates that Bitcoin could see an upward movement, but cautions that it is still too early to tell. Volatility in the market could increase after Federal Reserve Chair Jerome Powell’s press conference, leading traders to be cautious and wait for the volatility to subside before making any directional moves.
To better understand the important levels to watch for Bitcoin and major altcoins, let’s examine the charts of the top 10 cryptocurrencies.
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Bitcoin (BTC) Price Analysis:
Bitcoin is facing strong resistance at the 50-day simple moving average ($27,154), indicating the bears’ attempts to halt the recovery. However, the upsloping 20-day exponential moving average ($26,499) and the positive relative strength index (RSI) suggest that the bulls are in control. If the price rebounds from the 20-day EMA, it could pave the way for a rally above the 50-day SMA and a potential climb to $28,143. Conversely, a break below the 20-day EMA could lead to increased selling and a drop toward the crucial support at $24,800.
Ether (ETH) Price Analysis:
Ether has managed to maintain levels above the breakdown level of $1,626 in recent days, but bullish momentum has yet to gain traction. A rally above $1,680 could tilt the advantage in favor of the bulls and potentially lead to a rise to $1,745. On the other hand, a slide below $1,600 would indicate the bears’ strength and could push the price to $1,530.
BNB (BNB) Price Analysis:
Buyers have attempted to push BNB above the overhead resistance at $220, but the bears have successfully defended this level. However, the fact that the price has not slipped below the 20-day EMA ($215) suggests that the bulls are buying minor dips with the expectation of further upward movement. If buyers clear the zone between $220 and the 50-day SMA ($223), the BNB price could rally toward $235.
XRP (XRP) Price Analysis:
XRP has risen and closed above the 20-day EMA ($0.50), indicating that the bulls have the upper hand. If the price stays above the 20-day EMA, it could suggest that the bulls are attempting to flip this level into support, opening the door for a potential rise to the overhead resistance at $0.56. The current price action is also indicating the formation of a bullish ascending triangle pattern, which would complete on a break above $0.56.
Cardano (ADA) Price Analysis:
Cardano has seen attempts by the bulls to push above the 20-day EMA ($0.25), but the bears have refused to back down. If buyers can sustain the price above the 20-day EMA, ADA could attempt a rally to the overhead resistance at $0.28. Conversely, a sharp downturn from the current level would indicate that bears are selling on relief rallies. A break below the $0.24 support would signal the start of the next leg of the downtrend.
Dogecoin (DOGE) Price Analysis:
DOGE has been trading near the 20-day EMA ($0.06), with the bears aggressively defending this level. Bulls have managed to hold the price above $0.06, indicating an attempt to clear the overhead hurdle. If the 20-day EMA gives way, DOGE could climb to $0.07 and eventually $0.08. Alternatively, a sharp downturn from the current level would suggest negative sentiment and a challenge to the critical support at $0.055.
Solana (SOL) Price Analysis:
After struggling to rise above the 20-day EMA ($19.55), SOL has finally overcome this obstacle. The flattening 20-day EMA and the RSI just above the midpoint indicate the bears may be losing their grip. Buyers will aim to push the price to the 50-day SMA ($21.14) and subsequently to the overhead resistance at $22.30. However, if SOL turns down and falls below $18.50, it could invalidate the positive view and lead to a retest of the strong support at $17.33.
Toncoin (TON) Price Analysis:
Toncoin is currently in a strong uptrend, with bulls attempting to push the price above $2.59. Although sellers have defended this level, buyers have remained resilient, suggesting anticipation of further upward movement. Above $2.59, TON could reach $2.90 and eventually $3.28. However, the overbought level on the RSI warns of a possible correction or consolidation in the short term.
Polkadot (DOT) Price Analysis:
The bulls are struggling to push Polkadot above the breakdown level of $4.22, indicating a lack of demand at higher levels. A break and close below the immediate support at $4 could lead to a slide to the crucial support at $3.90. Conversely, a rise above the $4.22-4.33 resistance zone could trigger short covering and push the price to the 50-day SMA ($4.50) and the downtrend line.
Polygon (MATIC) Price Analysis:
MATIC rose and closed above the 20-day EMA ($0.54), indicating a potential comeback for the bulls. However, the 20-day EMA is likely to witness a battle between buyers and sellers. If the bulls can maintain the price above the 20-day EMA, MATIC could climb to the overhead resistance at $0.60 and then to $0.65. On the other hand, a drop below the 20-day EMA would show continued selling at higher levels, with bears attempting to push the price below $0.49.
In conclusion, short-term nervousness around Bitcoin’s recovery has caused selling pressure above $27,000, but long-term investors remain unfazed. Institutional investors have reduced their exposure to cryptocurrencies due to regulatory and macroeconomic uncertainties. Analysts have differing opinions on Bitcoin’s near-term price action, but caution against getting caught in the volatility. Examining the charts of the top 10 cryptocurrencies reveals important levels to watch for each asset.
