Bitcoin (BTC) volatility has increased over the past few days. Prices soared after Grayscale’s victory over the US Securities and Exchange Commission (SEC) on Aug. 29. However, the euphoria was short-lived as prices gave up all their recent gains following news that the SEC had delayed decisions on all seven spot bitcoin ETF applications.
News related to a Bitcoin ETF has been the main trigger for the market over the past few days. Bloomberg ETF analysts remain optimistic about the chances of ETF regulatory approval in 2023. In an Aug. 30 post by X (formerly Twitter), Bloomberg senior ETF analyst Eric Balchunas raised the likelihood of approval for a spot bitcoin ETF from 65. % to 75%.
In the short term, the bulls face an uphill battle, as September traditionally favors the bears. Bitcoin posted its sixth straight year of negative returns in September, according to CoinGlass data. Will this trend continue in 2023?
Bitcoin’s weakness is affecting several major altcoins, which have fallen to levels close to strong support levels. Will the decline extend further or will there be a rebound? Let’s examine the chart of the top ten cryptocurrencies to find out.
Bitcoin Price Analysis
On August 31, the bulls failed to hold above the 20-day exponential moving average ($26,947). This sparked a sell-off that sent Bitcoin below the breakout level of $26,833.
Price action over the past few days shows that the BTC/USDT pair has been oscillating within a wide range between $24,800 and $31,000. Typically, traders will buy dips near range support and sell near resistance. Bulls expect the price to reach $24,800 as well.
If the bears want to take control, they will have to push the price down and sustain it below $24,800. If that happens, the pair could extend losses to $19,500. There is a minor support at $24,000, but it may not last for long.
Ethereum Price Analysis
Ethereum (ETH) bounced off strong support at $1,626 but eventually fell to $1,745 on Aug. 29. This shows that the bears are still active at higher levels.
The bears will attempt to extend their advantage by pulling the price below the $1,626-$1,550 support zone. If they succeed, it will mark the start of a new downtrend. Subsequently, the ETH/USDT pair could plummet to the next strong support at $1,368.
Alternatively, if the price rebounds sharply from current levels, it would suggest that the bulls are fiercely defending the support level. This could push the price towards the 20-day EMA ($1,702) and later to $1,745, which could act as resistance.
BNB price analysis
The recovery in BNB (BNB) was stalled at the 50-day moving average ($234) on Aug. 29, and the bears pulled the price below the important support at $220 on Aug. 31.
The moving averages are sloping down and the RSI is in the negative zone, suggesting that bears have the upper hand. The bears will attempt to sink the price to the psychological support of $200. If this level breaks down, the BNB/USDT pair could hit the next major support at $183.
If the bulls want to start easing the rally, they will have to push the price back above the 20-day EMA ($222). The pair could then climb to the 50-day moving average and then to the resistance line.
Ripple Price Analysis
The long tail on the XRP (XRP) August 31 candlestick shows that the bulls are attempting to protect the $0.50 support level. However, price action on Sept. 1 suggests that bears are continuing to exert pressure.
If the price breaks below $0.50, it will indicate that the bears are back in control. This could start a downward move towards the strong support at $0.41. The bulls are likely to defend this level vigorously. A bounce off the support could keep the XRP/USDT pair range-bound between $0.41 and $0.56 for a while.
If the price bounces off $0.50, it will indicate that the pair may attempt a rally towards $0.56. The bulls must overcome this hurdle to start a fresh increase to $0.63 and then to $0.73.
Cardano Price Analysis
Cardano (ADA) has been fluctuating between $0.28 and $0.24 for the past few days. The bulls pushed the price above this range on Aug. 29, but failed to sustain the higher level.
This could tempt short-term bulls to exit their positions. The sell-off intensified further, and the price broke below the uptrend line on August 31. The bears will next attempt to sink the ADA/USDT pair below the important support at $0.24.
If the price bounces off of $0.24, the pair may continue consolidating within the range for some time. Conversely, if the price breaks below $0.24, it will signal the start of a decline towards $0.22 and eventually $0.20.
Dogecoin Price Analysis
The bulls are struggling to kick-start the recovery of Dogecoin (DOGE), which shows that demand is drying up at high levels.
The DOGE/USDT pair may drop to the solid support at $0.06. Buyers are expected to fight hard to defend this level, as a break below it could resume the downtrend. The pair could first drop to $0.055 and then to the final support near $0.05.
Conversely, if the price bounces off $0.06, it will show that the bulls are buying this level on dips. The bulls will then try again to overcome the hurdle of the 20-day EMA. If they succeed, the pair could surge to $0.08.
Solana Price Analysis
Solana (SOL) regressed from its 20-day EMA ($21.37) on August 30, which suggests that the bears are still in command. The price has reached an important support level at $19.35.
The 20-day EMA is sloping down and the RSI is in negative territory, suggesting the path of least resistance is to the downside. If the support at $19.35 disappears, the sell-off could intensify and the SOL/USDT pair could slide to $18.
Time is running out for the bulls. If they want to start a recovery, they will have to quickly push the price to the overhead resistance at $22.30. If they do, the pair could surge to $26. The 50-day moving average ($23.42) could be a hurdle, but it is likely to be breached.
related: Bitcoin vs. RSI showdown as BTC price drops to new two-week low
Token Price Analysis
Toncoin (TON) is in a strong uptrend. The bears attempted to cap the rally near $1.77, but the bulls did not give up much ground. This shows that the bulls are in no rush to take profits.
Buying resumed on September 1, and the TON/USDT pair has reached the pattern target of $1.91. If buyers extend this level, the uptrend could continue and the pair could surge to $2.38. This level may lead traders to take profits.
This bullish view will be invalidated if the price declines and breaks below $1.66. Such a move would mean aggressive selling at higher levels. This could bring the pair down to the $1.53 breakout level.
Polkadot Price Analysis
Polkadot (DOT) declined from its 20-day EMA ($4.56) on Aug. 30, indicating that market sentiment remains negative and traders are selling into rallies.
On August 31, the sell-off intensified further, with the DOT/USDT pair falling to the critical support level of $4.22. This level may witness a battle between bulls and bears. If the price breaks below $4.22, the pair may start the next phase of the downtrend towards $4.
The buyer’s task was cancelled. If they want to make a comeback, they will have to push prices quickly and stay above the 20-day moving average. If they succeed in doing so, the pair could surge to the overhead resistance at $5.
Polygon Price Analysis
Polygon (MATIC)’s failure to sustain above its 20-day EMA ($0.58) on Aug. 29 may have attracted profit-taking by short-term traders. On August 30 and 31, the bulls tried to push the price back above the 20-day moving average, but the bears held their ground.
The bears will attempt to consolidate their position by pulling the price below the immediate support at $0.53. If they can succeed, the MATIC/USDT pair could drop to the critical support level of $0.51.
If the price recovers from the current levels, it may face a sell-off at the 20-day SMA and 50-day SMA ($0.66). On the other hand, a break below $0.51 could resume the downtrend. The next support level is $0.45.
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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