Bitcoin (BTC) has been trading within a narrow range this week, signaling a battle between bulls and bears. The lack of support from the US equities markets, which ended the week on a negative note, has dragged Bitcoin and other altcoins lower. This suggests that the broader crypto market is firmly in the grip of bears. However, this could be an opportune time for long-term investors to build their portfolios.
A recent report by Amberdata reveals that 24% of asset management firms are appointing senior executives dedicated to implementing digital strategies. Additionally, 13% more firms plan to adopt a digital assets strategy in the future. This indicates a serious commitment to implementing digital strategies and buy-in from senior management.
Could Bitcoin break out to the upside, sparking buying interest in altcoins? Let’s take a closer look at the charts of the top five promising cryptocurrencies.
Bitcoin has been hovering near the $26,000 level, indicating a struggle between bulls and bears. The downsloping moving averages suggest an advantage for the bears, but the positive divergence on the relative strength index (RSI) indicates that selling pressure is decreasing. The indicators provide no clear advantage to either the bulls or bears. It is therefore advisable to wait for the price to either sustain above $26,500 or dip below $24,800 before considering large bets. If bulls overcome the obstacle at $26,500, Bitcoin could rise to the overhead resistance at $28,143. Conversely, a fall below $24,800 could lead to a collapse to $20,000.
The 4-hour chart shows that Bitcoin has been trading near the moving averages, indicating a lack of interest from both bulls and bears. This tight-range trading is unlikely to continue for long and may lead to a range expansion in the near future. A rally above $26,500 would indicate an advantage for buyers and could lead to an up-move to $27,600 and eventually $28,143. On the other hand, if the price breaks below $25,300, selling could gain momentum and the pair may retest the Aug. 17 intraday low of $25,166.
Toncoin (TON) has pulled back to the 20-day exponential moving average (EMA), which typically offers a low-risk entry opportunity in an uptrend. The 20-day EMA is expected to act as strong support. If the price bounces back from the 20-day EMA, it will indicate a positive sentiment and buying on dips. The TON/USDT pair could potentially rise to $1.89 and then attempt a rally to $2.07. However, if the price continues to drop and falls below the 20-day EMA, it will suggest that bulls are exiting their positions and could open the doors for a possible drop to $1.53 and subsequently to the 50-day simple moving average (SMA) at $1.45.
The 4-hour chart shows that bears are attempting to push the price below the immediate support at $1.72. However, the bulls have held their ground. If the support at $1.72 is breached, the pair could decline further to $1.66 and eventually to the strong support at $1.53. On the other hand, if the price rises above the moving averages, it will suggest a stronger recovery to $1.90 and potentially $2.
Stellar (XLM) has shown signs of a recovery in recent days, indicating that buyers are attempting a comeback. The XLM/USDT pair broke above the 20-day EMA ($0.12) on Sep. 4 and the bulls have successfully defended the level since then. This suggests that the bulls are trying to establish the 20-day EMA as support. The price has reached the 50-day SMA ($0.13), which is currently acting as a resistance. If the price breaks above the 50-day SMA, the pair could potentially rise to $0.15 and $0.17. However, if the price turns down and falls below the 20-day EMA, this bullish view would be invalidated.
The 4-hour chart shows that bears are trying to prevent the recovery at the overhead resistance of $0.13, but the bulls have not given up much ground. The rebound off the 20-EMA indicates that lower levels continue to attract buyers. If the price remains above the resistance, the pair could start an up-move to $0.15. However, if bears manage to drag the price below the 20-EMA, it could accelerate selling and lead to a decline towards the 50-SMA.
Monero (XMR) has held the uptrend line support for the past few days, indicating buying interest at lower levels. The 20-day EMA ($143) is an important level to watch. A breakout above the 20-day EMA would suggest a sustained recovery, with the XMR/USDT pair potentially climbing to the 50-day SMA ($151) and then to $160. On the other hand, if bears manage to pull the price below the uptrend line, several stops may be hit and the pair could drop to $130.
The 4-hour chart shows the formation of a symmetrical triangle pattern, with the price oscillating within a tight range. The moving averages are flat and the RSI is near the midpoint, indicating no clear advantage for either the bulls or bears. A break above or below the triangle could signal the start of a trending move.
Maker (MKR) has been stuck between the moving averages, suggesting indecision among both bulls and bears. However, the fact that the price has been trading above the downtrend line is a positive sign for the bulls. The 20-day EMA is moving up gradually, but the RSI near the midpoint suggests a lack of bullish momentum. Bulls must sustain the price above the 50-day SMA to signal an up-move to $1,227. On the downside, a re-entry into the downtrend line could lead to a drop to the strong support at $980.
In conclusion, Bitcoin and several altcoins are trading within narrow ranges, indicating indecision among traders. The broader crypto market is currently under bearish pressure, which may make it difficult for short-term buyers to identify bullish trades. However, long-term investors may find this to be an opportune time to build their portfolios. It is important to conduct thorough research and analysis before making any investment or trading decisions.