97 Interactions, 4 Today
If bulls switch $52,000 to support, Bitcoin might witness a significant breakout, attracting additional buyers to choose altcoins.
Bitcoin’s (BTC) market capitalisation is approaching $1 trillion, and several altcoins have also surged in recent days. This has pushed the Crypto Fear and Greed Index into severe greed territory, with a range of 79 to 100. Tops are typically formed when the index reaches about 95, indicating that there is still some way to run.
PlanB, the creator of the Bitcoin stock-to-flow model, believes that BTC is on target to reach $100,000 by Christmas this year. Eventually, he believes that BTC price will be much higher than $100,000 before the end of the current halving cycle in 2024.
Tuesday is a significant day for Bitcoin because El Salvador became the world’s first sovereign country to accept Bitcoin as legal cash. Despite the fact that the experiment will have hitches, it is probable that other countries will closely monitor it.
Will Bitcoin and altcoins regain momentum and resume their upward trend, or will bears once again drive the price below crucial support levels? Let’s look at the charts of the top ten cryptocurrencies to find out.
Bitcoin’s range-bound action between $46,200 to $50,500 resolved to the upside on Sep. 5. The bulls pushed and closed the price above the $50,500 to $51,000 overhead resistance zone, indicating the resumption of the uptrend.
The bears will try to pull the price back below the $50,500 level and trap the aggressive bulls. If they do that, the BTC/USDT pair could drop to the 20-day exponential moving average ($48,476).
This is an essential level to keep an eye on because the price has rebounded off it several times in the last few days. If the price bounces off the 20-day EMA, it indicates that sentiment is still bullish. The bulls will next try to resume the rise.
The initial upside target objective is $55,000, followed by $60,000. This bullish outlook will be rendered null and void if the price falls below the 20-day EMA. Short-term traders may book profits in response to such a move, bringing the price down to the 50-day simple moving average ($43,719).
Ether (ETH) broke above $4,000 on Sep. 3 but the bulls could not sustain the higher levels. This shows that bears are defending this level aggressively. However, a positive sign is that buyers have not given up much ground.
This shows that bulls are not in a hurry to book profits since they believe the uptrend will continue. Although the upsloping moving averages indicate a buyer’s advantage, the negative divergence on the RSI implies that the bullish momentum is fading.
If bears push the price below $3,700, the ETH/USDT pair may fall to the 20-day moving average ($3,493). A strong rebound from this support level will signal that bulls are still buying dips. The purchasers will then attempt to drive the price up to the all-time high of $4,372.72. A break below $3,377.89, on the other hand, may indicate a likely trend change.
The bears have thwarted several attempts by the bulls to push Cardano (ADA) above the $2.97 to $3.10 overhead resistance zone. The negative divergence on the RSI also indicates that the bullish momentum is slowing down.
The ADA/USDT pair might fall to the 20-day EMA ($2.65), which will most likely operate as solid support. If the price bounces off this level, the bulls will try to push the pair over the overhead zone once more. If they are successful, the two may be able to begin their trip towards $3.50.
If the price falls below the 20-day moving average, the pair might fall to $2.47. If the pair bounces off this level, it could remain range-bound between $2.47 and $3.10 for a few days. A breach below $2.47 will indicate a possible trend change.
The bulls are struggling to drive Binance Coin (BNB) above the overhead resistance at $518.90 but a positive sign is that they have not allowed the price to dip below the 20-day EMA ($467). This suggests accumulation at lower levels.
If the price rebounds off the 20-day EMA again, buyers will attempt to push the BNB/USDT pair over $518.90. If they succeed, the pair may restart its uptrend and climb to the next target of $600.
A break below the 20-day EMA, on the other hand, might bring the price down to $433. If bulls can hold this level, the pair could remain range-bound between $433 and $518.90 for a few days longer. A break and closure below $433 may indicate that the bulls are losing ground.
The bears tried to pull XRP back into the triangle on Sep. 4 but the bulls bought the dips. The buyers have pushed the price above the overhead resistance at $1.35 today, signaling the resumption of the uptrend.
If bulls keep the price over $1.35, the XRP/USDT pair might reach $1.66. The upward sloping moving averages and the RSI nearing overbought area suggest that the route of least resistance is to the upward.
On the other hand, if bulls fail to keep the price above $1.35, bears may take it back below the 20-day EMA ($1.19). This raises the prospect of the pair stabilising between $1.05 and $1.35 for a few days longer. A break and closure below $1.05 indicates that the bears have re-entered the fray.
Solana (SOL) is in a strong uptrend. Although bears tried to stall the uptrend at the psychological level at $150 on Sep. 4, they could not pull the price below $135.73. The shallow correction shows that traders were in no hurry to book profits.
Bullish buying has lifted the price above $150.60 today, marking the return of the uptrend. The SOL/USDT pair may now climb towards the next target goal of $179.45.
Despite the pair’s considerable momentum, vertical rallies are rarely long-lasting. When the rise pauses, they are frequently followed by a strong pullback as traders race to the exit. To signify the commencement of a deeper decline to the 20-day EMA ($105), the bears must push the price below $134.74.
Although Dogecoin (DOGE) has been sustaining above the falling wedge for the past three days, the bulls are struggling to push the price toward the target objective at $0.35. This suggests that bears continue to sell on rallies.
The DOGE/USDT pair could fall to the 20-day moving average ($0.29). If the market bounces off this support, the bulls will try to push it above $0.35 once more. If this occurs, the pair may rise to $0.45.
If bears push the price below the 20-day EMA, the pair might fall below the 50-day SMA ($0.25). The mildly increasing 20-day EMA and the RSI just above the midpoint signal that the bulls have a slight advantage.
If the 50-day SMA cracks, the bears will gain an advantage. This might pave the way for a drop to $0.21.
Polkadot (DOT) has been gradually moving up since breaking out of $28.60 but the slow pace of rise suggests a lack of conviction among bulls. The RSI has also formed a negative divergence indicating that the bullish momentum may be weakening.
The DOT/USDT pair could fall below the $28.60 breakthrough level. If the market bounces off this level with vigour, it indicates that the bulls are accumulating at lower levels. The purchasers will next attempt to restart the uptrend towards the first target goal of $41.40.
Another scenario is that the price rises from $28.60 but remains below $35. This could result in a few days of range-bound trading between these two levels. A close below $28.60 indicates that the current breakout was a bull trap. This might push the stock down to the 50-day simple moving average ($22).
Uniswap (UNI) turned down from the overhead resistance at $31.41 on Sep. 3 but the positive sign is that the bulls have not allowed the price to break below the 20-day EMA ($28).
The 20-day EMA is steadily trending up, indicating that the bulls have a slight advantage. The negative divergence on the RSI, on the other hand, signals that the bullish momentum may be slowing. Today’s Doji candlestick pattern shows ambivalence among bulls and bears.
If the price falls below the 20-day moving average, the UNI/USDT pair might fall to $25. If this support holds, the pair may remain around the $25-$31.41 range for a few more days.
If the market bounces off the current level and rallies above $31.41, the pair could rally to $37.52 and then to $42.25.
The bears tried to pull Chainlink (LINK) below the breakout level at $30 on Sep. 4 but the bulls had other plans. They aggressively bought the dip and have pushed the price above the overhead resistance at $35.33 today.
If bulls keep the price above $35.33, the LINK/USDT pair may restart its rise and rally to $36 and eventually $43.50. The upsloping moving averages and the RSI in overbought area indicate that bulls are in command.
In contrast to this premise, if the price fails to hold above $35.33, the bears may push the price down below $30. If this level is maintained, the pair could remain range-bound for a few days. A break and closure below the 20-day EMA ($28) will indicate that the bulls are losing control.