When the market is trending, traders should be active if they want to make money. On the other hand, in a range-bound market, it’s best to be patient, or traders could lose money due to random moves in either direction.
Bitcoin’s (BTC) sideways price action since its sharp drop on Aug. 17 suggests that both bulls and bears are unsure of what’s next. Therefore, it is better to wait for the breakout to occur before placing large bets.
In the short term, institutional traders also appear to be taking a cautious approach. A report from CoinShares revealed that digital asset investment products saw $55 million in outflows during the week of September 13.
What are the important support and resistance levels for Bitcoin and altcoins to cross? Let’s examine the chart of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
The long tail on Bitcoin’s August 22 candlestick is a positive sign as it shows that bulls are struggling to protect the $24,800 support.
However, the bulls will remain under pressure until they break the resistance at $26,833 and then the 20-day exponential moving average (EMA) at $27,777. If both of these resistances are overcome, it would suggest that the BTC/USDT pair could stay in the $24,800-$31,000 range for longer.
While the downsloping 20-day EMA suggests bears have the upper hand, oversold levels on the relative strength index (RSI) suggest a possible near-term recovery.
The bears must push down and sustain the price below $24,800 to further strengthen their position. This could open the door for a drop to $20,000.
Ethereum Price Analysis
Ethereum (ETH) has again broken below the strong support at $1,626, but the long tail on the candlesticks shows strong buying at lower levels.
The bulls are responsible for pushing the price above the resistance above $1,700. If they do, the ETH/USDT pair could hit the 20-day EMA ($1,756). This remains a key level to watch in the near term.
If the price turns down from this level, the bears will again attempt to pull the pair below the $1,626 to $1,550 support zone. If they succeed, the index could start a decline to $1,368.
Conversely, a break above the 20-day EMA would strengthen the pair’s prospects for staying in the $2,000-$1,626 range in the coming days.
BNB price analysis
BNB (BNB) bounced off psychological support at $200 on Aug. 17, suggesting that bulls are attempting to arrest a decline at that level.
The recovery could touch the 20-day EMA ($227), which could again be a huge hurdle. If the price turns down sharply from the 20-day EMA, the bears will make another attempt to sink the BNB/USDT pair below $200. If they succeed in doing so, the pair could drop to $183.
Conversely, if the price rises above the 20-day EMA, it will indicate that the bears are losing control. The pair could then move up to the resistance line, an important level for the bears to defend.
Ripple Price Analysis
XRP (XRP) is retreating from the overhead resistance at $0.56, but a small positive is that the bulls will not allow the price to drop below $0.50.
The XRP/USDT pair is likely to consolidate between $0.50 and $0.56 for a while. The downsloping 20-day EMA ($0.58) and the RSI are close to oversold territory suggest that the bears have the upper hand.
If the price breaks below $0.50, the pair may start a decline towards the next major support at $0.41. This could indicate that the price will move between $0.41 and $0.50.
Alternatively, if the buyers push the price above the 20-day EMA, it will indicate that the bulls are staging a comeback. The pair could then move up to the 50-day simple moving average (SMA) of $0.63.
Cardano Price Analysis
The long tail on the Cardano (ADA) August 22 candlestick shows strong demand at lower levels. The price is currently stuck between $0.24 and $0.28.
If the price breaks below $0.24, the ADA/USDT pair could start the next phase of its downtrend. The pair may first drop to $0.22 and then to the psychological support of $0.20. The downsloping 20-day EMA ($0.28) and the RSI in negative territory suggest that bears have a slight advantage.
This negative view may be invalidated in the short-term if buyers push the price above $0.28. If they do, the pair could start a rally towards the 50-day moving average ($0.29) before moving up to $0.32.
Solana Price Analysis
Solana (SOL) broke below immediate support at $20 on Aug. 22, but bulls bought the dip, suggesting demand is at low levels.
Buyers must push the price above the 20-day EMA ($22.64) if they want to salvage the situation. Above this level, the SOL/USDT pair may accelerate and attempt a rally to $26. The 50-day moving average ($23.60) could act as a hurdle, but it is likely to be breached.
Contrary to this assumption, if the price turns down from the current levels or the 20-day EMA, it will indicate that the bears have not given up yet. This will increase the probability of a break below $19.35. If that happens, the pair could drop to $18 and eventually $16.
Dogecoin Price Analysis
Dogecoin (DOGE) bounced off the $0.06 support on Aug. 21 and 22, suggesting that bulls are buying this level on dips.
The bulls are attempting to initiate a relief rally that could reach the 20-day EMA ($0.07). Sellers are likely to protect this level aggressively. If the price pulls back from the overhead resistance, it will suggest that the DOGE/USDT pair may hover between the 20-day EMA and $0.06 for a while.
Buyers must push the price above the moving averages to start a rally to the next major resistance above $0.08. On the downside, a break and close below $0.06 could signal the start of a decline towards $0.05.
related: Here’s What the Latest Bitcoin Price Adjustment Reveals
Polkadot Price Analysis
The bears attempted to pull Polkadot (DOT) below the important support at $4.22, but the bulls held their ground, judging by the long tail of the August 22 candlestick.
The 20-day EMA ($4.73) is declining and the RSI is in negative territory, which shows that bears have the upper hand. If buyers want to signal a return, they must push the price above the upper zone between $4.56 and the 20-day EMA.
Meanwhile, the bears may have other plans. They will try to sell on minor rallies and pull the price below $4.22. If successful, the DOT/USDT pair could start the next phase of its downtrend. The next support level is $4.
Polygon Price Analysis
Polygon (MATIC) bounced off $0.53 on Aug. 22, showing that the bulls are trying to keep the price above the critical support level of $0.51.
The bulls are done, as they may face a strong sell-off at $0.60. If the price turns down from this resistance, it will indicate that the bears are active at higher levels. This could keep the MATIC/USDT pair stuck in a range of $0.51 to $0.60 for a few days.
A break and close below $0.50 would signal the resumption of the downtrend. The pair could then drop to $0.45 and then to $0.42. Conversely, a rally above $0.60 could be followed by a rally to $0.65 and then to $0.69.
Shiba Inu price analysis
Shiba Inu (SHIB) fell below the 50-day moving average ($0.0000084) on Aug. 20, but the bulls did not allow the price to retest the important support at $0.0000072.
The strong rally on Aug. 22 suggested strong buying at lower levels. The bulls will next attempt to rally above the moving averages. If they succeed, the SHIB/USDT pair could accelerate and surge to $0.000011.
Conversely, if the price turns down from the moving averages, it will indicate that the bears are still in control. The pair may then drop to strong support at $0.0000072 and then to $0.0000064.
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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