Bitcoin continues to trade within its range, hovering near the $26,000 level after failing to sustain higher levels. The recent price action has formed two successive doji candlestick patterns on the weekly chart, indicating uncertainty about the next directional move.
The lack of clarity regarding Bitcoin’s next trending move has put pressure on most major altcoins, with only a few showing signs of strength in the short term. Let’s take a closer look at the top five cryptocurrencies that may start a rally if they break above their respective overhead resistance levels.
Bitcoin (BTC):
Bitcoin is back inside the $24,800 to $26,833 range, but there is a positive sign as bulls continue to buy the dips, as seen from the long tail on the September 1 candlestick. The downsloping moving averages suggest an advantage to bears, but the gradually recovering Relative Strength Index (RSI) indicates weakening bearish momentum.
A break and close above the range at $26,833 would be the first sign of strength, potentially leading to a retest of the August 29 intraday high at $28,142. On the other hand, bears would need to sustain the price below $24,800 to gain control, which could potentially lead to a plunge to $20,000.
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Toncoin (TON):
Toncoin is currently in an uptrend, with overhead resistance near $2.07. The moving averages have turned up, indicating an advantage to buyers, but the overbought levels on the RSI suggest a minor correction or consolidation is possible.
If the bulls hold their ground at the current level, the chances of a rally above $2.07 increase, potentially pushing the price to $2.40. However, a deeper correction could pull the price to the 20-day EMA ($1.58), and a strong bounce off this level would suggest a positive sentiment and buying on dips. The trend would turn negative if the 20-day EMA support breaks.
Chainlink (LINK):
Chainlink has been trading within a large range between $5.50 and $9.50 for several months. Although the bears temporarily pulled the price below the range support on June 10, they could not sustain the lower levels.
The recent drop near the support of the range on August 17 was quickly bought up by bulls, as seen from the long tail on the candlestick. Buyers are currently facing resistance near the 20-day EMA ($6.24), a crucial level to watch.
If buyers manage to push the price above the 20-day EMA, the pair could start moving towards the 50-day SMA ($6.95). On the other hand, a sharp downturn from the 20-day EMA would indicate negative sentiment and selling on rallies, potentially pushing the price down to $5.50.
Maker (MKR):
Maker has found support near $1,000 and is attempting to resume its uptrend. Bulls are currently facing resistance at the downtrend line, but the fact that they have kept the price above the 20-day EMA ($1,107) is a positive sign.
If the price turns up from the current level, it will indicate a positive sentiment, with traders viewing dips as buying opportunities. The bulls will likely push the price towards $1,370. However, a continued downturn and a break below the 20-day EMA would suggest strong bearish defense of the downtrend line and could lead to a decline to $980.
Tezos (XTZ):
Tezos has been experiencing a battle between bulls and bears near the strong support level at $0.70. The failure of bears to sustain the price below this level indicates buying pressure. Although the downsloping moving averages show an advantage to bears, the rising RSI suggests weakening bearish momentum.
A close above the 20-day EMA ($0.71) would be the first sign of strength, potentially leading to a rally towards the downtrend line. Overcoming this hurdle, the XTZ/USDT pair may initiate a new upward move, with targets at $0.94 and $1.04. However, if the price falls and sustains below $0.66, this positive view would be invalidated.
In conclusion, Bitcoin continues to trade within its range, with uncertainty about the next directional move. However, there are a few altcoins showing signs of strength, including Toncoin, Chainlink, Maker, and Tezos, which may start a rally if they break above their respective overhead resistance levels. Traders should closely monitor these levels for potential trading opportunities.
