Bitcoin has been trading within a wide range since April, suggesting uncertainty about its next move. The bears attempted to push the price below the range support but were unsuccessful. However, Bitcoin is not yet in the clear. If the current tightening cycle continues, coupled with an increase in unemployment and stress in the banking sector, there could be more pain for Bitcoin and other risk assets.
Cryptocurrency traders have also been cautious, as the industry saw capital outflows of $55 billion in August. The drop in liquidity has led to isolated events having a larger impact on market movements.
Let’s analyze the charts of the top 10 cryptocurrencies to see where they might be headed:
Bitcoin (BTC) broke above the 20-day exponential moving average (EMA) of $26,228, indicating that the downside momentum is weakening. The 20-day EMA is flattening out, suggesting that the BTC/USDT pair may remain range-bound between $24,800 and $28,143 for some time. However, if the bears manage to push the price below the 20-day EMA, higher levels could be sold into, potentially leading to a retest of the strong support at $24,800.
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Ether (ETH) dropped below the $1,550 support but quickly recovered, indicating solid buying at lower levels. The recovery has reached the 20-day EMA, where a battle between the bulls and bears is expected. A break and close above the 20-day EMA could trigger a short squeeze and propel the price to $1,745. On the other hand, a rejection at the 20-day EMA would suggest that the bears remain in control, with a potential drop to $1,550.
BNB (BNB) bounced off the psychological support near $200, indicating active bull participation at lower levels. The recovery has reached the 20-day EMA, which will be a crucial level to watch. A rejection at this level would indicate negative sentiment and increase the risk of a breakdown below $200. However, a positive divergence on the RSI suggests that selling pressure may be falling. A rise above the 20-day EMA could open the doors to a retest of the 50-day simple moving average (SMA) at $225.
XRP (XRP) has been trading within a range between $0.41 and $0.56. The recent recovery has brought the price to the 20-day EMA, which will be an important level to monitor. A breakthrough above the 20-day EMA would suggest a reduction in selling pressure and could lead to a sustained recovery toward the overhead resistance at $0.56. However, if the price turns down from $0.56, the range-bound action may continue. The next significant move is likely to occur when the price breaks above $0.56 or below $0.41.
Cardano (ADA) experienced strong selling pressure, but the bears failed to break the crucial support at $0.24. The rebound reached the 20-day EMA, which is expected to be a battleground for buyers and sellers. A sharp rejection at the 20-day EMA would indicate that minor rises are being sold into, increasing the risk of a drop to $0.22. Conversely, a push above the 20-day EMA would signal a stronger recovery to $0.28.
Dogecoin (DOGE) continues to trade within a tight range between the 20-day EMA and the support at $0.06. This range-bound trading is expected to end soon, with a potential breakout. A move above the 20-day EMA would suggest that sellers may be losing control and could trigger a relief rally to the 50-day SMA. Conversely, a sharp rejection at the 20-day EMA would enhance the prospects of a breakdown below $0.06, potentially leading to a drop to $0.055.
Solana (SOL) has been swinging between $14 and $27.12 for several months. The recent recovery has brought the price to the 20-day EMA, where bears are likely to pose a strong challenge. If the price breaks above the 20-day EMA, SOL/USDT could reach the overhead resistance at $22.30. On the other hand, a rejection at the 20-day EMA would signal a lack of demand at higher levels and potentially lead to a drop to the vital support at $14.
Toncoin (TON) found support at the 20-day EMA, indicating that bulls consider dips as buying opportunities. The price has reached the first resistance at $1.98, and a break above it could lead to further upside potential. The TON/USDT pair could reach $2.07, then $2.40. However, if the price slides below the 20-day EMA, the advantage could shift in favor of the bears.
Polkadot (DOT) has been trading below the breakdown level of $4.22, indicating a negative sentiment. A relief rally may face strong selling at $4.22, indicating that bears are still in control. The sellers will attempt to push the DOT/USDT pair below $3.90, potentially leading to a drop to $3.44. To prevent the decline, bulls will need to push and sustain the price above $4.22, signaling a rejection of the breakdown.
Polygon (MATIC) slipped below the critical support at $0.51 but quickly rebounded. The recovery is approaching the 20-day EMA, where the bears are expected to put up a fight. If the price turns down from the 20-day EMA, it could signal a resumption of the downtrend. On the other hand, if buyers clear the obstacle at the 20-day EMA, the pair may climb to $0.60.
In conclusion, the cryptocurrency market remains uncertain about the next directional move. Bitcoin is range-bound, and other cryptocurrencies are showing mixed signals. Traders and investors should closely monitor key support and resistance levels to make informed decisions.
