Bitcoin (BTC) led the cryptocurrency market higher on Aug. 29 after Grayscale won a lawsuit against the SEC. However, the rally could not be sustained as analysts warned that the victory did not guarantee the approval of a spot bitcoin exchange-traded fund.
Still, the win could be bullish for Grayscale. Grayscale Bitcoin Trust (GBTC) could return to a premium next year, Glassnode analysts said in an X (formerly Twitter) post on Aug. 30. Notably, GBTC has been trading below the spot Bitcoin price for the past two and a half years.
In the short term, the cryptocurrency market is still unable to sustain higher levels despite the recovery of the S&P 500 and the recent pullback in the U.S. dollar index (DXY). This shows that traders remain focused on cryptocurrency-specific news.
Can Bulls Defend Bitcoin and Altcoin Support Levels? Will this lead to a stronger recovery soon? Let’s examine the chart of the top ten cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin’s range broke out sharply on Aug. 29, finally deciding to move up. This move suggests that the price could trade within a wide range between $24,800 and $31,000 in the coming days.
The 20-day exponential moving average ($27,168) is flattening and the relative strength index (RSI) is just below the midpoint, suggesting that selling pressure is easing.
Buyers will struggle to defend the breakout level of $26,833. If they succeed, it will indicate that the bulls have turned the price level into support. The BTC/USDT pair may first rise to the 50-day simple moving average ($28,689) before attempting a rally to $31,000.
If the bears want to trap the aggressive bulls, they will have to pull the price below $26,833. If they do, it would suggest that the bears are selling on every recovery attempt. Subsequently, the pair may retest the strong support at $24,800.
Ethereum Price Analysis
On Aug. 28, Ethereum (ETH) bounced off the key support level of $1,626 again, indicating that bulls are buying on dips.
On Aug. 29, momentum picked up and the bulls pushed the price above the 20-day EMA ($1,716). This suggests that the ETH/USDT pair may fluctuate between $1,816 and $1,626 for some time.
On August 30, the price had moved back below the 20-day moving average, suggesting that the bears had not given up yet. If the price sustains below the 20-day EMA, the pair could drop to $1,626. Conversely, if the price recovers and climbs back above the 20-day EMA, the pair could test the overhead resistance at $1,816.
BNB price analysis
BNB (BNB) surged higher on Aug. 29 after trading in a tight range around $220 for several days. The easing rally faces resistance at the 50-day moving average ($235), as seen by the long shadows on the day’s candlestick.
The 20-day EMA ($224) is flattening out and the RSI is just below the midpoint, suggesting that downside selling pressure is easing. If the price rises from the current levels, the BNB/USDT pair may rally towards the resistance line. This level could again attract aggressive selling from the bears.
On the downside, if the price breaks below $220, it will indicate that the bears are still in control. The pair could then drop to an intraday low of $203 on Aug. 22.
Ripple Price Analysis
XRP (XRP) has been trading between $0.50 and $0.56 for the past few days. This shows that bulls are buying near support and bears are selling near resistance.
The downsloping 20-day EMA ($0.55) and the RSI in negative territory suggest that the bears have the upper hand. Sellers will attempt to push the price below the strong support at $0.50. If they succeed in doing so, the XRP/USDT pair could plummet to $0.41.
Alternatively, if the price bounces off $0.50, the pair may stay in a tight range for a while. Buyers must push and sustain the price above $0.56 to signal the start of a sustained recovery. The pair could then move up to the 50-day moving average ($0.64).
Cardano Price Analysis
The bulls pushed Cardano (ADA) above $0.28 on Aug. 29, but they were unable to sustain the higher levels. This brought the price below the $0.28 resistance.
This shows that the price is still stuck in the range between $0.28 and $0.24. The next support is located at the rising trend line. If the price rebounds strongly off this level, it would suggest that every small dip is bought. This will enhance the prospects of a rally above $0.28. Above this level, the ADA/USDT pair could surge towards $0.32.
Conversely, if the price breaks below the uptrend line, it will indicate that the bears are attempting to stage a comeback. The pair could then slide towards the important support at $0.24.
Dogecoin Price Analysis
Dogecoin (DOGE) hit its 20-day EMA ($0.07) on Aug. 29, but the bulls are struggling to keep the price above that level.
If the price declines sharply from the current levels, it will indicate that the bears are selling into rallies. Subsequently, the DOGE/USDT pair may consolidate between the 20-day EMA and the support at $0.06.
Alternatively, if the pair does not retrace too much from current levels, it would suggest that the bulls are maintaining buying pressure. This could open the doors for the price to rise towards $0.08.
Solana Price Analysis
Solana’s (SOL) recovery hit a snag at its 20-day EMA ($21.77) on Aug. 29, indicating sentiment remains negative and traders are selling into rallies.
The bears will again try to pull the price to $19.35. If this level breaks down, the SOL/USDT pair could start a decline to $18 and then to $16.
The bulls may have other plans. They will attempt to consolidate the recovery by pushing the price above the overhead resistance at $22.30. If they can succeed, the pair could move up to the 50-day moving average ($23.59). If the price pulls back from this level, the pair may remain range-bound between the 50-day moving average and $19.35 for some time.
related: Why is Dogecoin price up today?
Token Price Analysis
On August 29, Toncoin (TON) surged to $1.53, breaking the neckline of an inverse head and shoulders pattern. This signals a potential trend change.
Usually, after a breakout, the price falls and retests the breakout level. If the price bounces off $1.53, it will show that the bulls have turned this level into support. This could start a rise towards the pattern target of $1.91. If this resistance is broken, the TON/USDT pair could reach $2.07.
If the bears want to stop the rally, they will have to push the price back below $1.53 quickly. Such a move could trap aggressive bulls, causing them to liquidate their positions. The pair could then drop to $1.25.
Polkadot Price Analysis
Polkadot (DOT) broke out and closed above its 20-day EMA ($4.64) on Aug. 29, but the long wick on the candlestick indicated a sell-off at higher levels.
On August 30, the bears pulled the price back below the 20-day moving average. This shows that the bears have not given up yet and view the rally as a selling opportunity. A flattening 20-day EMA and RSI in negative territory point to possible range-bound trading in the near term.
If the price breaks below $4.50, the DOT/USDT pair may trade between the 20-day EMA and $4.22 for a while. On the other hand, a break and close above the 20-day EMA could propel the pair to resistance above $5.
Polygon Price Analysis
Polygon (MATIC) is facing strong resistance in the $0.60 to $0.65 area, as seen by the long shadows on the August 29 candlestick.
The price started to decline on August 30, indicating that the MATIC/USDT pair may consolidate in a wide range between $0.51 and $0.65 for a period of time. Price action within this range is likely to remain random and volatile.
If the bears want to seize control, they will have to pull the price below $0.51. This could resume the downtrend with the next support at $0.45. On the upside, a break and close above the 50-day moving average ($0.67) could indicate that bulls are in command.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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