Bitcoin and the broader cryptocurrency market experienced a brief rally on August 29 following Grayscale’s victory in a lawsuit against the US Securities and Exchange Commission (SEC). However, analysts cautioned that this victory did not guarantee the approval of a spot Bitcoin exchange-traded fund (ETF), and the rally could not be sustained. Despite this, the victory could prove to be bullish for Grayscale, with analysts suggesting that the Grayscale Bitcoin Trust (GBTC) could return to a premium next year.
GBTC has been trading at a discount to the spot Bitcoin price for the past two and a half years, so a potential premium would be seen as a positive development for the trust. The cryptocurrency market has shown that it is highly sensitive to news and events specific to the crypto industry, as evidenced by the inability to sustain higher levels despite the recovery of the S&P 500 Index and the downturn of the US Dollar Index.
Taking a look at the top 10 cryptocurrencies, let’s analyze their price charts and determine whether bulls can defend support levels and if that will lead to a stronger recovery soon.
Bitcoin’s price broke out with a sharp move to the upside on August 29, indicating that it is likely to oscillate within a large range between $24,800 and $31,000 for the next few days. The 20-day exponential moving average (EMA) is flattening out and the relative strength index (RSI) is just below the midpoint, suggesting that selling pressure is reducing. If buyers successfully defend the breakout level of $26,833, it would signal a bullish sentiment and the potential for a rally to $31,000.
Related Post
Ether rebounded off the crucial support at $1,626 on August 28, indicating that bulls are buying the dips. The momentum picked up on August 29 as the price broke above the 20-day EMA, suggesting that the ETH/USDT pair could range between $1,626 and $1,816 for some time. However, a turn back below the 20-day EMA would indicate continued bearish sentiment, with a potential tumble to $1,626.
BNB surged higher on August 29 after trading in a tight range near $220 for a few days. The 20-day EMA is flattening out and the RSI is just below the midpoint, indicating a reduction in downward selling pressure. If the price turns up from the current level, the BNB/USDT pair could rally to the resistance line, although there may be aggressive selling by bears at that level. On the downside, a slide below $220 would indicate continued bearish control.
XRP has been trading between $0.50 and $0.56, with bulls buying near support and bears selling close to resistance. The downsloping 20-day EMA and negative RSI indicate bearish sentiment, with sellers attempting to sink the price below the strong support at $0.50. If successful, the XRP/USDT pair may plummet to $0.41. Buyers will need to push and sustain the price above $0.56 to signal the start of a sustained recovery.
Cardano pushed above $0.28 on August 29 but failed to sustain higher levels. This indicates that the price remains stuck within the range between $0.24 and $0.28. The next support is at the uptrend line, and if the price rebounds off this level with strength, it would suggest bullish momentum and a potential rally above $0.28. On the other hand, a dive below the uptrend line would indicate bearish pressure, with a potential drop to $0.24.
Dogecoin reached the 20-day EMA on August 29 but has struggled to sustain the price above it. This suggests that bears are selling on rallies, and the DOGE/USDT pair may consolidate between the 20-day EMA and support at $0.06. However, if the pair maintains its current level, it would suggest continued buying pressure and the potential for a rally to $0.08.
Solana’s recovery hit a roadblock at the 20-day EMA on August 29, indicating negative sentiment and selling on rallies. Bears will aim to tug the price to $19.35, which, if broken, could result in a downward move to $18 and then $16. Bulls will attempt to push the price above the overhead resistance at $22.30, potentially leading to a rise to the 50-day SMA. Range-bound action is possible between the 50-day SMA and $19.35.
Toncoin broke above the neckline of an inverse head-and-shoulders pattern on August 29, indicating a potential trend change. The price may turn down to retest the breakout level at $1.53, and if it bounces off this level, it would suggest bullish momentum and a potential rally to the pattern target of $1.91. However, if the price sinks back below $1.53, it could trap aggressive bulls and result in a slump to $1.25.
Polkadot broke and closed above the 20-day EMA on August 29 but faced selling at higher levels. Bears have not given up, viewing recoveries as selling opportunities. The flattening 20-day EMA and negative RSI suggest possible range-bound action, with the price swinging between the 20-day EMA and $4.22. A break above the 20-day EMA could propel the price to the overhead resistance at $5.
Polygon is facing stiff resistance between $0.60 and $0.65, with the price turning down on August 30. This suggests that the MATIC/USDT pair could consolidate in a large range between $0.51 and $0.65 for some time. If bears drag the price below $0.51, the downtrend may resume with support at $0.45. On the upside, a sustained price above $0.65 would indicate a potential rally.
In conclusion, the cryptocurrency market experienced a brief rally following Grayscale’s victory, but analysts caution that this does not guarantee the approval of a spot Bitcoin ETF. Bitcoin and other top cryptocurrencies are currently facing resistance levels, and it remains to be seen whether bulls can defend support levels and lead to stronger recoveries.
