75 Interactions, 4 Today
Bitcoin price has continued to rise within its range, and altcoins have broken out after ETH surpassed a critical barrier level.
Bitcoin (BTC) is failing to break through the $50,000 barrier, but analysts remain optimistic due to good on-chain indicators. Willy Woo, an analyst, says that investors have been stockpiling Bitcoin, and that a break above $50,000 might result in a rapid advance to $60,000.
Another encouraging voice was that of SkyBridge Capital CEO Anthony Scaramucci, who stated in an interview with Cointelegraph that Bitcoin’s limited, fixed supply and exponentially expanding demand will drive up prices. Scaramucci believes Bitcoin will reach $100,000 by the end of the year.
The spotlight appears to have switched to Ether (ETH), which has surged to a three-month high against Bitcoin. This robust performance is supported by a decline in the amount of Ether stored in exchange wallets, which fell from 19.45 million on August 18 to 18.75 million on September 1, according to CryptoQuant statistics.
Will altcoins continue to outperform as Bitcoin consolidates, or will they face profit-booking at greater levels? To discover out, let’s look at the charts of the top ten cryptocurrencies.
Bitcoin broke below the 20-day exponential moving average ($47,008) today but bounced off the 200-day simple moving average ($46,064). Both moving averages have flattened out and the relative strength index (RSI) is just above the midpoint, suggesting a balance between supply and demand.
If bears push the price below the 200-day simple moving average, the BTC/USDT pair might fall to the next support level of $43,927.70. If this support also fails, the next halt might be the $42,451.67 breakthrough level.
This would imply that the bullish impetus has weakened. This could be followed by a few days of rest.
Alternatively, if bulls force the price above the downtrend line, the pair may test the overhead resistance zone between $50,000 to $50,500. If the price falls below this level again, the pair may remain range-bound for a few days.
The bulls will have to push and sustain the price above $50,500 to signal the resumption of the uptrend. The next target objective on the upside is $60,000.
Ether had been trading between the overhead resistance zone at $3,335 to $3,377.89 and the breakout level at $3,000 for the past few days. This consolidation resolved to the upside on Aug. 31 with a break and close above $3,377.89.
The bulls continued to buy today, pushing the price beyond the psychological level of $3,500. This indicates that the uptrend has resumed, with the next target aim of $4,000 in sight.
The upsloping 20-day EMA ($3,212) and an RSI in the overbought zone signal that the bulls are in charge. If the price falls from its current level, the bulls will attempt to defend the $3,377.89-$3,335 zone.
The first sign that supply exceeds demand will be a break and closure below the 20-day EMA. A breach below the $3,000 support level may herald the start of a more serious decline.
The buyers have been defending the $2.70 support for the past three days but are struggling to push Cardano (ADA) above the overhead resistance at $2.97. This suggests that demand dries up at higher levels.
To signify the restart of the uptrend, the bulls must push the price over the psychological mark of $3. If this occurs, the ADA/USDT pair may rise to its next objective of $3.50.
While the 20-day EMA ($2.47) is rising, the RSI has established a negative divergence, indicating that the positive momentum is fading.
If the price falls below $2.70, it may fall to the breakthrough level of $2.47. A break and close below this level will indicate a possible trend change.
Binance Coin (BNB) bounced off the 20-day EMA ($449) on Aug. 31, suggesting that the sentiment remains positive and traders are buying on dips. The bulls will now try to push the price above the overhead resistance at $518.90 and resume the uptrend.
The bulls have the upper hand, as seen by the upsloping 20-day EMA and the RSI in the positive zone. A break and closure above $520 might pave the way for an uptrend to $600 and perhaps $680.
If the price falls below $518.90 again, the BNB/USDT pair may drop below the 20-day EMA and remain range-bound between these two levels for the foreseeable future. A close below $433 indicates that the bullish impetus has faded. The pair could then fall to the 200-day simple moving average ($371).
XRP rebounded off the 20-day EMA ($1.11) on Aug. 31 but the long wick on the day’s candlestick suggests that bears are defending the downtrend line. A minor positive is that bulls have not given up much ground today and are again trying to push the price above the overhead resistance.
If they are successful, the XRP/USDT pair might increase to $1.35 before beginning its trek towards $1.66. The 20-day EMA is progressively rising, and the RSI is in positive territory, indicating that the path of least resistance is to the upward.
On the other hand, if the price falls below the downtrend line, the pair may fall to the 20-day EMA. A break and closure below $1.05 will complete a descending triangle pattern, signalling the beginning of a slide to the 200-day SMA ($0.88) and subsequently to the pattern goal of $0.75.
Dogecoin (DOGE) is currently trading inside a falling wedge pattern. The bears are aggressively defending the zone between the 20-day EMA ($0.28) and the downtrend line of the wedge.
The flat 20-day EMA and the RSI at the midway indicate a supply-demand balance. A breakout and closure above the falling wedge formation will tip the scales in the bulls’ favour.
The pair DOGE/USDT might then soar to $0.35. This level may operate as a barrier, but if bulls can push the price above it, the surge might reach $0.45.
If the price falls from its present level and breaks below the wedge, the pair might fall to the important support level of $0.21.
Solana (SOL) has been in a strong uptrend for the past few days. The bulls pushed the price to a new all-time high at $130.11 on Aug. 31 but the long wick on the day’s candlestick shows profit-booking at higher levels.
However, an encouraging indicator is that lower levels have enticed buyers again today. Bulls will now attempt to push the price above the all-time high of $130.11. If they can keep the price above this level, the SOL/USDT pair might reach $150.
If the price continues to fall from the overhead resistance, it may be time to sell at higher levels. The pair might then begin a correction to $100. If this support breaks, the pair might fall to the 20-day moving average ($80).
The bulls successfully defended the 20-day EMA ($25.66) in the past few days, indicating accumulation at lower levels. The buying momentum picked up on Aug. 31 and the bulls thrust Polkadot (DOT) above the overhead resistance at $28.60.
This completed the V-bottom pattern, indicating the prospect of a fresh rise. The DOT/USDT pair may now climb to $41.40 before reaching the pattern target of $46.83.
When the price breaks out of a setup, it usually retests the breakout level. In this situation, a price bounce off the breakthrough level of $28.60 will imply strong bullish purchasing. This increases the likelihood of the uptrend resuming.
The first indicator of weakness will be a closure below the 200-day simple moving average ($27.80). Such a change would imply a lack of demand at a higher level.
Uniswap (UNI) rose above the downtrend line on Aug. 31, invalidating the bearish descending triangle pattern. The bulls will now try to push the price above the overhead resistance at $31.26.
If they do, the UNI/USDT pair may resume its upward trend towards the initial target objective of $37.52 and, eventually, $42.25.
In contrast to this assumption, if the price falls below $31.26, the pair may fall to the moving averages, indicating that the range-bound behaviour may continue for a few more days.
The first indicator of weakness will be a break and closing below $25. This will pave the way for a further drop to $23.45 and ultimately below $20.
Terra protocol’s LUNA is currently correcting in a strong uptrend. The bulls are attempting to defend the support at $30.44. The rising 20-day EMA ($27.83) and the RSI in the positive territory indicate advantage to the bulls.
If the price returns from its current level, the bulls will make another attempt to push it above $36.89.
If they are successful, the LUNA/USDT pair may resume its upward trajectory. The initial target on the upside is $43, and if that level is breached, the rally might extend to the psychological level of $50.
Alternatively, if bears drive the price below $30.44, the pair might fall to the 20-day moving average. This is a critical support for the bulls because if it breaks, a bigger correction below $26 and then to $22.40 may begin.