Bitcoin (BTC) has been trading between $25,333 and $26,156 since Sept. 1. Typically, volatility squeezes are followed by volatility expansions, but it is difficult to predict exactly where a breakout will go.
CoinGlass data shows that in September, Bitcoin has fallen for six consecutive years. This historical data could keep the bulls in a bind and the bears more emboldened in the short term. Additionally, the U.S. dollar index (DXY), which has a negative correlation with Bitcoin, has risen sharply in the past few weeks. Both of these suggest that Bitcoin may remain under pressure in the short term.
It’s not all gloom and doom for cryptocurrency bulls, as lower levels could attract buyers. The prospect of one or more bitcoin spot ETF applications being approved could limit the downside. Some analysts see the event as very bullish for Bitcoin. Any positive news on this front could push prices higher.
From a macro perspective, there may be weakness in the short term, but buying at lower levels is likely. What are the important support levels to watch out for? Let’s examine the chart of the top ten cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin has been trading below $26,000 for the past two days and the bears are attempting to pull the price towards the important support level of $24,800.
The downward sloping moving averages suggest that sellers have the upper hand, but a positive divergence on the relative strength index (RSI) suggests that bearish momentum may be fading.
Buyers must push and sustain prices above $26,833 to initiate a rally towards the 50-day simple moving average ($28,048). This move suggests that the price may remain in a large range between $24,800 and $31,000.
Meanwhile, the bears may have other plans. They will attempt to sink the price below the $24,800-$24,000 support zone. If they succeed in doing so, the sell-off could accelerate and the BTC/USDT pair could plummet to $20,000.
Ethereum Price Analysis
The long tail on the September 4th and 5th candlesticks for Ethereum (ETH) suggests that bulls are buying dips below the immediate support at $1,626. However, there was no follow-through buying at higher levels.
This means that the bears are selling on rallies around $1,650. This narrow trading is unlikely to last for long. If the price crashes and sustains below $1,600, it will indicate that the bears have taken control. There is a minor support at $1,550, but if it breaks down, the ETH/USDT pair could plummet to $1,368.
On the upside, the bears are expected to fiercely defend the area between $1,650 and the 20-day exponential moving average ($1,674). If buyers overcome this hurdle, the pair could surge towards the 50-day moving average ($1,772).
BNB price analysis
BNB (BNB) has been trading below the important $220 level for the past few days, but bears have failed to take advantage of the opportunity.
This suggests that the sell-off dried up at lower levels. This could see the BNB/USDT pair hover between $220 and $200 for a while. A tight consolidation below the breakout level increases the chances of further declines. The pair could resume its downtrend if the $200 support breaks down. The next major downside support is $183.
If buyers want to make a comeback, they have to raise the price above $220. This would indicate strong buying at lower levels. The pair may then try to bounce back to the downtrend line.
Ripple Price Analysis
XRP (XRP) has been holding onto the $0.50 support for the past few days. Failure to start a strong rally increases the chances of a downside breakdown.
A breakout and close below $0.50 would suggest that the XRP/USDT pair may stay in the $0.56 to $0.41 range for a few more days. There is no major support between $0.50 and $0.41, so the drop could be quick.
Another possibility is that the price recovers from the current levels and rises above the 20-day EMA ($0.52). If that happens, the pair could climb to $0.56, an important level to watch.
Cardano Price Analysis
Cardano (ADA) has been trading in a tight range for the past few days. This suggests that both bulls and bears are playing it safe and not betting big.
The downsloping moving averages and the RSI in negative territory suggest that bears have a slight advantage. If the price falls below $0.25, the bears will attempt to sink the ADA/USDT pair to $0.24.
Conversely, a breakout and close above the 20-day EMA ($0.26) would be the first sign of strength. This will pave the way for a rally towards the 50-day moving average ($0.28). Buyers must clear this hurdle to begin a sustained recovery.
Dogecoin Price Analysis
Dogecoin (DOGE) hit its 20-day EMA ($0.06) on September 6, indicating that the bulls are trying to start easing the rally.
However, the bears are unlikely to give up easily and will mount a strong defense at the 20-day EMA. If the price falls sharply, the bears will try to consolidate their positions by pulling the DOGE/USDT pair below $0.06. If successful, the pair could extend the decline to the next support at $0.055.
On the upside, a breakout and close above the 20-day EMA would be the first sign that selling pressure is easing. This could start a rally to the 50-day moving average ($0.07) and then to $0.08.
Solana Price Analysis
Solana’s (SOL) recovery attempt is facing strong selling at the downtrend line. This shows that the bears are aggressively defending this level.
If the price breaks below $19, the SOL/USDT pair may resume its downtrend. The first support on the downside is $18 and the next is $16. Buyers are expected to vigorously defend this level.
The first sign of strength would be a break and close above the 20-day EMA ($20.69). This could start a stronger recovery towards the 50-day moving average ($22.70). This level may once again act as a hurdle, but if the bulls clear this level, the pair may try to rally towards $25.42.
related: Here’s Why Bitcoin Could Hit $22,000 Soon
Token Price Analysis
A sharp rise in Toncoin (TON) has pushed the RSI into overbought territory, indicating that the rally is ahead of its time. This usually leads to a revision or consolidation, and that’s what happened.
Bearish profit taking is pulling the price towards the 20-day EMA ($1.64). This remains a key support to watch. If the price bounces off the 20-day EMA, it will indicate that sentiment remains positive and traders are buying on dips. This could push the price up to $2.07. If this level pulls back, the rally could extend to $2.38.
Alternatively, if the 20-day EMA breaks, it would be a sign that the bulls are losing control. Subsequently, the TON/USDT pair could drop to $1.53 and then to the 50-day moving average ($1.42).
Polkadot Price Analysis
Buyers are struggling to initiate a strong rally in Polkadot (DOT), which shows that the bears have been exerting pressure.
The downward sloping moving averages and the RSI near the oversold zone increase the chances of a downside breakdown. If the $4.22 level fails, the DOT/USDT pair could slip to the next major support at $4.
Contrary to this assumption, if the price rises from the current levels, the bears will try to stop the rally at the 20-day EMA ($4.44) and again at the downtrend line. Buyers must clear this hurdle to signal a potential trend change.
Polygon Price Analysis
Polygon (MATIC) hit its 20-day moving average ($0.57) on September 5, but the bulls were unable to clear that hurdle. This indicates that demand is drying up at high levels.
The bears will try to sink the price to the critical support level of $0.50. This remains a key level to watch in the near term, as a break below it would resume the downtrend. Subsequently, the MATIC/USDT pair could slide further down to $0.45.
If the bulls want to arrest the decline, they must quickly push the price above the 20-day EMA. This could start a stronger recovery towards the overhead resistance at $0.60 and then $0.64. This level may again witness strong selling by the bears.
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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