The recent rally in Bitcoin was short-lived, indicating a lack of clarity between the bulls and bears regarding the next move for the cryptocurrency. Analysts suggest that Bitcoin could remain in a “mid cycle lull” until the start of the next bull run in November 2024. Additionally, cryptocurrencies in general may face headwinds for the rest of 2023 due to macroeconomic issues such as interest rates, GDP estimates, unemployment, and inflation.
In terms of upcoming events that may impact the market, investors will be closely watching the decision of the United States Securities and Exchange Commission on various Bitcoin spot exchange-traded fund (ETF) applications. The race for a spot Ether (ETH) ETF has also officially begun, with filings from VanEck and ARK Invest, and more Ether ETF filings are expected in the coming days.
Let’s take a closer look at the price analysis of the top 10 cryptocurrencies:
Bitcoin (BTC): The bulls were unable to overcome the 20-day exponential moving average (EMA) of $26,419, suggesting that the bears are strongly defending this level. However, the failure of the bears to challenge the support at $24,800 indicates a drying up of selling pressure at lower levels. The relative strength index (RSI) is showing a positive divergence, signaling weakening bearish momentum. A break and close above the 20-day EMA would pave the way for a sustained recovery towards $28,143, while a breakdown below $24,800 could start a downtrend with support at $20,000.
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Ether (ETH): Ether continues to trade within a narrow range between the 20-day EMA ($1,668) and the strong support at $1,626. The failure to clear the overhead hurdle at the 20-day EMA increases the risk of a breakdown. If support at $1,626 is breached, the price could retest the Aug. 17 intraday low of $1,550. On the upside, bulls need to push the price above the 20-day EMA to attempt a rally towards the 50-day simple moving average (SMA) at $1,762. The price is likely to remain range-bound between $2,000 and $1,626 in the short term.
BNB: The bulls attempted to push BNB above the breakdown level of $220 but were met with resistance from bears. If the support at $211 is breached, the price could reach the psychological level of $200. This level is likely to attract buying pressure, leading to a consolidation between $200 and $220. However, a break above $220 would suggest accumulation at lower levels and could launch a recovery up to the downtrend line.
XRP: The bulls bought the dip below $0.50, but the lack of a strong rebound indicates weak demand at higher levels. If the price falls below $0.50, the next major support is at $0.41. On the other hand, if the price turns up from the current level, it would suggest an attempt to flip $0.50 into support. A break above the 20-day EMA would indicate a range-bound movement between $0.50 and $0.56.
Cardano (ADA): ADA formed a Doji candlestick pattern, indicating indecision between the bulls and bears. The downsloping 20-day EMA and negative RSI suggest a downside breakdown. If the price falls below $0.25, ADA could drop to the critical support at $0.24. On the upside, breaking above the 20-day EMA could lead to a reach of the overhead resistance at $0.28.
Dogecoin (DOGE): DOGE remains stuck between the 20-day EMA and the horizontal support at $0.06. The downsloping 20-day EMA and RSI near 40 suggest an edge to the bears. If the price falls below $0.06, DOGE could descend to $0.055. A move above the 20-day EMA would invalidate the negative view and suggest a recovery to $0.07 and eventually $0.08.
Solana (SOL): SOL has been gradually correcting within the range of $14 and $27.12. The failure of the bulls to push the price above the 20-day EMA suggests a path of least resistance to the downside. If the price falls below the immediate support at $19, SOL could slump to $18 and subsequently $16. On the other hand, a push above the 20-day EMA could lead to a rally towards the overhead resistance at $22.30.
Toncoin (TON): TON attempted a rebound on Sept. 6, but the long wick on Sept. 7 signals selling pressure from bears. The 20-day EMA remains a key level to watch, and a rebound from this level could lead to another attempt to break above the overhead resistance at $2.07. However, if the price slips below the 20-day EMA, it would suggest aggressive profit booking, with support at $1.53 and the 50-day SMA.
Polkadot (DOT): The bears pulled DOT below the strong support at $4.22, but could not sustain lower levels. A move above the 20-day EMA would suggest a comeback for the bulls and potential climb to the downtrend line. On the other hand, a breakdown below $4 would indicate further downside, with psychological support at $4.
Polygon (MATIC): The bulls attempted to push MATIC above the 20-day EMA for the past three days but faced resistance from bears. This suggests that traders are selling on minor rallies. Support at $0.50 remains crucial, and a failure to hold above this level could lead to a decline to $0.47. A move above the 20-day EMA would suggest a potential range-bound movement between $0.56 and $0.52.
In conclusion, the recent rally in Bitcoin was short-lived, and the direction of the market remains uncertain. The bulls and bears are still in a state of indecision, and various factors, including macroeconomic issues and upcoming ETF decisions, will likely impact the market in the coming months.
