Bitcoin (BTC) has been trading within a tight range this week and is on track to form a third consecutive doji candlestick pattern on the weekly chart. The cryptocurrency market did not receive any support from the U.S. stock market, which ended the week on a negative note. The S&P 500 fell 1.3% and the Nasdaq closed down 1.9%.
Bitcoin’s weakness dragged several altcoins lower, with many testing multi-week lows. This suggests that the broader cryptocurrency market is firmly in a bear market. Sluggish markets make it difficult for buyers to identify short-term bullish trades as gains struggle to sustain. However, for long-term investors, this could be a good time to build a portfolio.
According to a recent report by Amberdata, 24% of asset managers are appointing senior executives dedicated to implementing digital strategies. In the future, companies planning to adopt digital asset strategies will increase by 13%. This shows “seriousness towards implementation and support from senior management”, the report added.
Can Bitcoin break out to the upside, boosting buying interest in altcoins? Let’s examine the charts of the top 5 cryptocurrencies that have shown promise in the recent past.
Bitcoin Price Analysis
Bitcoin has been trading near $26,000 over the past few days, indicating a struggle between bulls and bears.
Downward sloping moving averages suggest bears have the advantage, but positive divergence in the RSI suggests selling pressure is easing. These indicators do not give bulls or bears a clear advantage.
Therefore, it is better to wait for the price to sustain above $26,500 or fall below $24,800 before making big bets.
If the bulls overcome the $26,500 hurdle, the BTC/USDT pair may surge towards the overhead resistance at $28,143. On the other hand, a break below $24,800 could clear the way for a drop to $20,000.
The price has been trading near the moving averages on the 4-hour chart, indicating a lack of interest from both bulls and bears. This tight range trading is unlikely to last long and could lead to a wider range in the coming days.
On the bright side, a rebound above $26,500 would indicate that the advantage has tilted in favor of buyers. This could start rising to $27,600 and eventually rise to $28,143.
Alternatively, if the price falls below $25,300, the selling could intensify and the pair could retest the August 17 intraday low of $25,166.
Coin price analysis
Toncoin (TON) has fallen back to the 20-day exponential moving average ($1.69). In an uptrend, corrections to the 20-day moving average often provide low-risk entry opportunities.
The 20-day EMA is likely to act as strong support. If the price rebounds from the 20-day moving average, it indicates that market sentiment has improved and traders are buying the dip. The TON/USDT pair may first rise to $1.89 and then attempt a rebound to $2.07.
Conversely, if the price continues lower and falls below the 20-day EMA, it would indicate that bulls are selling their positions. This could open the door for a drop towards $1.53 and the 50-day simple moving average ($1.45).
The 4-hour chart shows that the bears are trying to sink the price below the immediate support at $1.72, but the bulls are holding their ground. The downward sloping 20 EMA and RSI in negative territory increase the risk of a downside breakdown.
If the support at $1.72 breaks, the pair could slip to $1.66 before plummeting to strong support at $1.53. Conversely, if the bulls push the price above the moving average, it would suggest the start of a strong recovery towards $1.90, followed by a rise to $2.
Stellar Price Analysis
Stellar Lumens (XLM) has seen a smart recovery over the past few days, suggesting that buyers are attempting a comeback.
The XLM/USDT currency pair broke above the 20-day moving average ($0.12) on September 4, with bulls thwarting bears’ attempts to pull the price back below this moving average on September 5 and 6. This indicates that bulls are trying to reverse the 20-day EMA into support.
The price has reached the 50-day moving average ($0.13), which is a hurdle. A small positive in favor of the buyers is that they are not giving up too much land. This suggests bulls are in no rush to exit. If the price breaks above the 50-day moving average, the pair could surge to $0.15 and subsequently to $0.17.
If the price declines and falls below the 20-day EMA, this bullish view will be invalidated in the short term.
The bears attempted to halt the rebound at overhead resistance at $0.13, but the bulls did not give up much ground. The rebound from the 20-day EMA suggests that lower levels continue to attract buyers. If the price holds above the overhead resistance, the pair may start rising towards $0.15.
If the bears want to halt the rise, they will have to quickly drag the price below the 20 EMA. This could accelerate the sell-off and push the price towards the 50 moving average.
related: 3 major reasons why Pepe prices will continue to fall in September
Monero Price Analysis
Monero (XMR) has been holding ascending trendline support over the past few days, indicating buying at lower levels. The price has reached the 20-day EMA ($143), which is an important level to watch.
If bulls push prices above the 20-day EMA, it would signal the beginning of a sustained recovery. Subsequently, the XMR/USDT pair is likely to climb towards the 50-day moving average ($151), where bears may once again mount a strong defense. If this hurdle is cleared, the pair could surge to $160.
The bears may have other plans. They will work to protect the 20-day EMA and pull the price below the uptrend line. If they manage to make it this far, there may be a few pit stops. This could send the pair down to $130.
Price action on the 4-hour chart shows the formation of a symmetrical triangle pattern. The flat moving averages and RSI near the midpoint do not give bulls or bears a clear advantage.
If the price falls below the 50 moving average, the bears will try to pull the pair towards the support line of the triangle. Conversely, if the price rises above the 20 EMA, the pair may hit the resistance line. A breakout above or below the triangle may signal the beginning of a trend move.
Manufacturer price analysis
Maker (MKR) has been hovering between moving averages, indicating indecision between bulls and bears. A small positive for the bulls is that the price has been trading above the downtrend line.
The 20-day EMA ($1,119) is gradually rising, but the RSI is near the midpoint indicating a lack of bullish momentum. Buyers would have to push and sustain prices above the 50-day moving average ($1,157) to signal the start of a price increase towards $1,227.
This positive view may be invalidated in the short term if the price re-enters the downtrend line. The MKR/USDT pair may then fall towards the strong support at $980. This level is likely to witness strong buying from the bulls.
The 4-hour chart shows that the price has been trading between $1,083 and $1,170 for some time. The flat moving averages and the RSI in negative territory suggest a slight advantage for sellers.
On the downside, important support levels to watch are $1,102 and then $1,083. Conversely, if the price rises from current levels and breaks above the moving averages, it would indicate that bulls are making a comeback. The pair may then rebound towards $1,170.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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