Bitcoin (BTC) has managed to maintain its position above the $26,000 level despite a drop in the S&P 500 and a rise in the US dollar index (DXY). This lack of aggressive selling at lower levels is seen as a positive sign for the cryptocurrency. However, Bitcoin’s price has been stuck in a range recently, causing traders to remain cautious and wait for confirmation before taking positions.
According to research from on-chain analytics platform CryptoQuant, Bitcoin’s daily spot exchange transactions dropped from over 600,000 in March to 8,000-15,000 last week. This decrease in liquidity could result in volatile moves in either direction, emphasizing the need for careful trading decisions.
Despite the uncertain near-term price action, long-term Bitcoin bulls remain confident in the cryptocurrency’s potential. MicroStrategy, a company co-founded and chaired by Michael Saylor, recently announced the acquisition of 5,445 Bitcoin at an average price of $27,053 per Bitcoin.
Let’s take a look at the charts of the top 10 cryptocurrencies to see if Bitcoin and select altcoins could potentially start a short-term upward movement.
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Bitcoin’s price is currently battling between the bulls and bears near the 20-day exponential moving average (EMA) at around $26,436. While there was a brief push above the 20-day EMA on September 27, the price failed to break the 50-day simple moving average (SMA) at around $26,757. If the bears manage to push the price below $25,990, it could potentially lead to a fall to $24,800. However, if the bulls succeed in breaking and closing above the 50-day SMA, Bitcoin could rise to $27,500 and then to the overhead resistance at $28,143.
Ether (ETH) is showing signs of a recovery, reaching above the 20-day EMA at $1,614 on September 27. However, the price failed to hold this level, indicating continued selling pressure at higher levels. If the buyers can retain the price above the 20-day EMA, ETH could rise to the 50-day SMA at $1,668 and potentially attempt a rally to the overhead resistance at $1,746. On the other hand, if the price remains below the 20-day EMA, it could suggest that the bears are in control, potentially leading to a fall to $1,368.
BNB remains below the breakdown level of $220, but bulls have managed to hold the price above $203. The 20-day EMA is flattening out, indicating a balance between supply and demand. If the bulls push the price above $220, it could ascend to $235. However, if the price continues to decline and breaks below $203, it would indicate bearish dominance and potentially start a new downtrend to the strong support at $183.
XRP has been forming a symmetrical triangle pattern, indicating indecision between the bulls and bears. If the sellers manage to drag the price below the uptrend line, XRP could descend to $0.46 and then to $0.41. Conversely, if the price breaks above the resistance line, it would indicate bullish strength and could lead to a climb to the overhead resistance at $0.56.
Cardano (ADA) is struggling to push the price above the 20-day EMA after bouncing off the vital support at $0.24. If the support at $0.24 gives way, ADA could complete a bearish descending triangle pattern and potentially start a downward move to $0.22 and then to the pattern target of $0.19. However, if the price breaks above the downtrend line, it would invalidate the bearish setup and could lead to an up-move to $0.29.
Dogecoin (DOGE) experienced a drop below the $0.06 support, but buying at lower levels caused a long tail on the candlestick. However, the downsloping 20-day EMA and negative RSI suggest that bears are still in control. If the price sustains below $0.06, DOGE could plummet to the next significant support at $0.055. On the other hand, if the price turns up and rises above the 20-day EMA, it would indicate a potential comeback for the bulls.
Solana (SOL) has struggled to break above the 20-day EMA in recent days, indicating strong resistance from the bears. If the bears manage to pull the price below the nearest support at $18.50, selling pressure could increase, potentially leading to a drop to $17.33. However, if the price bounces off $18.50, it would suggest buying on dips and could lead to a rally to $22.30.
Toncoin (TON) dropped to the 20-day EMA, an important level to watch. If the buyers can maintain the price above the 20-day EMA, TON could attempt a rally to the 61.8% Fibonacci retracement level at $2.40. However, sellers will likely try to push the price below $2.07 and extend the correction to the next major support at the 50-day SMA at $1.76.
Polkadot (DOT) has remained below the 20-day EMA for several days, indicating strong defense from the bears. The RSI suggests a potential bullish divergence, but clearing the overhead hurdle at $4.22 is necessary to reduce selling pressure. If the price continues to decline and breaks below the immediate support at $3.91, the next support on the downside is at $3.58.
Polygon (MATIC) saw a bounce off the critical support at $0.51, but the price failed to rise above the 20-day EMA. The sentiment remains negative, with sellers taking advantage of rallies. If the price sinks below the September 11 intraday low of $0.49, it would indicate a resumption of the downtrend. However, if buyers sustain the price above the 20-day EMA, it could signal the start of a sustained recovery, potentially leading to a rally to the 50-day SMA at $0.56.
In summary, Bitcoin has shown a lack of aggressive selling at lower levels, indicating a mildly positive sign for the cryptocurrency. Traders should remain cautious due to low liquidity, which could result in volatile moves. Long-term Bitcoin bulls have continued to add the cryptocurrency to their portfolios. As for select altcoins, the near-term price action remains uncertain, with potential for both upward and downward moves. Traders should carefully analyze the charts and look for confirmations before taking positions.
