Bitcoin (BTC) attempted to break out of the range in the first half of last week, but the bulls were unable to sustain the higher levels. Bitcoin is back in the range, trading near $26,000.
The price action of the past few days has formed two consecutive doji candlestick patterns on the weekly chart, indicating uncertainty about the next move.
While it is difficult to predict the direction of the breakout, downside may be limited in the near term in anticipation that the U.S. Securities and Exchange Commission (SEC) may eventually approve one or more pending applications for a spot bitcoin exchange-traded fund.
Former committee chairman Jay Clayton sounded confident when he said in a recent interview that “approval is inevitable.”
In the short term, it is difficult to identify specific catalysts that could take Bitcoin out of its range. Most of the major altcoins are under pressure due to the lack of clarity on where Bitcoin will trend next.
Only a handful of altcoins are showing signs of strength in the short-term. Let’s examine the charts of the top five cryptocurrencies, which could start a rally if they break above their respective overhead resistance levels.
Bitcoin Price Analysis
Bitcoin is back in the $24,800-$26,833 range, but a positive sign is that bulls continue to buy on dips from the long tail of the September 1 candlestick.
While the downward sloping moving averages suggest bears have the upper hand, the recovering Relative Strength Index (RSI) suggests that bearish momentum may be fading. The first sign of strength would be a break and close above the $26,833 range. If this happens, the BTC/USDT pair could retest the August 29 intraday high of $28,142.
If the bears want to take control, they will have to push the price down and sustain it below $24,800. It will be tough as the bulls are likely to go to great lengths to defend this level. However, if the bears gain the upper hand, the pair could plunge towards $20,000. There is a minor support at $24,000, but that may not stop the decline.
The bears attempted to drag the price below the immediate support at $25,300, but the bulls held their ground. Next, buyers will try to consolidate their positions by pushing the price above the 20 exponential moving average. If they do, it will signal the start of a stronger recovery.
The 50-day simple moving average could act as a hurdle but is expected to be breached. The pair may then rally towards the overhead resistance at $26,833.
Seller may have other plans. They will try to push the price below $25,300 and challenge the important support at $24,800.
Token Price Analysis
Toncoin (TON) is in an uptrend, but the bears are trying to stop the uptrend near the overhead resistance at $2.07.
Both moving averages have risen, suggesting buyers have the upper hand, but overbought levels on the RSI suggest a minor correction or consolidation could be in the offing. If the bulls do not give up too much ground from current levels, the chances of a rally above $2.07 will increase. The TON/USDT pair could surge towards $2.40.
Conversely, a deeper correction could pull the price towards the 20-day EMA ($1.61). A strong rebound from this level would indicate that market sentiment remains positive and traders buy on dips. The trend will turn negative if the 20-day EMA support breaks down.
The 4-hour chart shows that bulls have been buying on pullbacks to the 20 SMA. Buyers would have to push the price above $1.98 to signal a resumption of the uptrend, but the bears may not give up so easily.
Sellers will try to pull the price below the 20 SMA. If they manage to do so, the pair could start a further pullback towards the 50 moving average. A bounce off this level could face a sell-off at the 20-day EMA, but if this hurdle is cleared, it would suggest bulls regained dominance.
Chainlink price analysis
Chainlink (LINK) has been trading in a wide range between $5.50 and $9.50 for the past few months. The bears pulled the price below the June 10 range support, but they were unable to sustain lower levels.
On August 17, the LINK/USDT pair fell close to range support, but judging by the long tail of the day’s candlestick, bulls were buying on dips. Buyers are trying to start a recovery but are facing resistance near the 20-day EMA ($6.23). So this becomes an important level to watch.
If the buyers push the price above the 20-day EMA, the pair can start heading towards the 50-day SMA ($6.94). There is a minor resistance at $6.40, but it is likely to be breached.
Conversely, if the price declines sharply from the 20-day EMA, it would indicate that market sentiment remains negative and traders sell into rallies. This could drag the price down to $5.50.
The moving averages on the 4-hour chart have flattened out and the RSI is just above the midpoint. This suggests that selling pressure is easing. Buyers must push the price above $6.40 to start a fresh increase. The pair may rise first to $6.87 and then to $7.07.
Alternatively, if the price turns down from $6.40, it will indicate that the bears are selling on rallies. This could see the pair range between $5.50 and $6.40 for some time.
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Manufacturer price analysis
Maker (MKR) has found support near $1,000, but the bulls face stiff resistance from the bears near the downtrend line.
The bulls have pushed the price above the downtrend line several times over the past few days but failed to sustain the higher levels. A small positive is that buyers haven’t given up much of their positions, suggesting traders aren’t in a rush to unload positions.
If the price rises and closes above the downtrend line, it will show that buyers are back in the game. Positive momentum could gain momentum after buyers pushed the price above $1,227. The pair may then rebound to $1,370.
Conversely, if the price sustains below the 20-day EMA ($1,106), it will suggest that bears have the upper hand. The pair could then drop to the strong support at $980.
The 4-hour chart shows that the bulls pushed the price above the downtrend line but were unable to sustain the higher levels. This shows that the bears are not giving up and they continue to sell into rallies.
Prices have plummeted to the 50 SMA, which is an important level to watch. If the price recovers from the current levels, the bulls will make another attempt to overcome the $1,186 and $1,227 hurdles. If this area is breached, the rally could reach $1,280.
Conversely, if the price sustains below the 50 SMA, a drop to $1,040 and eventually to $980 is possible.
Tezos Price Analysis
Tezos (XTZ) is witnessing a battle between bulls and bears near the strong support at $0.70. The failure of the bears to sink and sustain the price below this level suggests buying at lower levels.
The downward sloping moving averages suggest bears have the upper hand, but a rise in the relative strength index suggests that bearish momentum is fading. A close above the 20-day EMA ($0.71) would be the first sign of strength. This could pave the way for a rally to the downtrend line.
This level could turn out to be a huge hurdle, but if the bulls overcome it, the XTZ/USDT pair could start a fresh increase. The pair may first rise to $0.94 and then to $1.04. This positive view will be invalidated if the price slides down and sustains below $0.66.
The 4-hour chart shows the price consolidating between $0.70 and $0.66. The crossed moving averages and RSI near the midpoint indicate a balance between supply and demand.
The advantage will tilt in favor of the bulls if the price rises above $0.70. The pair could then surge towards the overhead resistance at $0.74. The advantage will tilt in favor of the bears if they sink the price below $0.68. This could lead to a retest of the $0.66 support. If this level breaks down, the pair could start the next downtrend towards $0.61.
This article does not contain investment advice or recommendations. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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