Bitcoin Indecisive as Bears and Bulls Battle for Control
Bitcoin has been trading within a wide range since April, indicating uncertainty about its next move. While bears attempted to push the price below the range’s support on Sept. 11, they were met with resistance from the bulls. However, Bitcoin is still not out of the woods, according to Jamie Coutts, a chartered market technician and crypto market analyst at Bloomberg Intelligence. Coutts believes that if the tightening cycle continues, combined with an uptick in unemployment and stress in the banking sector, Bitcoin and other risk assets could experience further pain.
Cryptocurrency traders are also exercising caution, as a Bitfinex report reveals that the industry witnessed $55 billion in capital outflows in August. This drop in liquidity has made isolated events have a greater impact on market movements.
Bitcoin Price Analysis
Bitcoin recently broke and closed above the 20-day exponential moving average (EMA) of $26,228, indicating a weakening downside momentum. The flattening of the 20-day EMA and the near midpoint position of the relative strength index (RSI) suggest that the BTC/USDT pair may continue to trade within the range of $24,800 and $28,143 for some time. However, if bears manage to bring the price below the 20-day EMA, it could signal that higher levels are being sold into and lead to a retest of the strong support at $24,800.
Ether Price Analysis
Ether experienced a plunge below the $1,550 support on Sept. 11, but the bears were unable to capitalize on this strength. This suggests strong buying at lower levels. The subsequent recovery has brought the price to the 20-day EMA ($1,638), where a battle between bulls and bears is likely to occur. A break and close above the 20-day EMA could trigger a short squeeze and propel the price to $1,745. On the other hand, a downturn from the 20-day EMA would indicate that bears still have control and may attempt to push the ETH/USDT pair below $1,550.
BNB Price Analysis
BNB bounced off the psychological support near $200, indicating active buying at lower levels. The recovery has reached the 20-day EMA ($215), a crucial level to monitor. If the BNB/USDT pair turns lower from this level, it would suggest negative sentiment and increased selling during relief rallies. This would raise the risk of a breakdown below $200. However, a positive divergence in the RSI indicates decreasing selling pressure, and a rise above the 20-day EMA could lead to a retest of the 50-day simple moving average at $225.
XRP Price Analysis
XRP has been trading between $0.41 and $0.56 for several days. The price has now recovered to the 20-day EMA ($0.50), an important level to watch. A move above the 20-day EMA would indicate reduced selling pressure and potentially start a sustained recovery towards the overhead resistance at $0.56. However, if the price turns down from $0.56, it would suggest that the range-bound action may continue. The next trending move is likely to occur when the price breaks above $0.56 or below $0.41.
Cardano Price Analysis
Cardano experienced strong selling pressure that brought the price to $0.24, but the bears were unable to break the crucial support. The rebound off $0.24 reached the 20-day EMA ($0.26), where a battle between buyers and sellers is expected. A sharp downturn from the 20-day EMA would indicate that minor rises are being sold into and increase the risk of a drop to $0.22. Conversely, a push above the 20-day EMA would signal a stronger recovery to $0.28.
Dogecoin Price Analysis
Dogecoin continues to trade within the range of the 20-day EMA ($0.06) and the solid support at $0.06. This tight-range trading is unlikely to continue for long, and a breakout may occur soon. A move above the 20-day EMA would suggest weakening selling pressure, while a sharp downturn from the 20-day EMA would enhance the prospects of a break below $0.06. If this support breaks, the DOGE/USDT pair may plummet to $0.055.
Solana Price Analysis
Solana has been swinging between $14 and $27.12 for several months. The price has now reached the 20-day EMA ($19.51), where bears are likely to pose a strong challenge. A move above the 20-day EMA could lead to a reach of the overhead resistance at $22.30, while a downturn from the 20-day EMA would indicate a lack of demand at higher levels. Bears would then attempt to resume the downtrend and push the price to the vital support at $14.
Toncoin Price Analysis
Toncoin bounced back from the 20-day EMA ($1.75), indicating that bulls are viewing the dips as buying opportunities. The price reached the first resistance at $1.98, where bears are trying to halt the upswing. However, the bulls have not given ground, suggesting that they expect the upward movement to continue. A break above $1.98 could lead to a reach of $2.07, an important level for bears to defend. On the downside, a slide below the 20-day EMA would favor bears.
Polkadot Price Analysis
Polkadot has been trading below the breakdown level of $4.22, which is a negative sign. Although the bulls are attempting a relief rally, strong selling is likely to occur at $4.22. A downturn from the overhead resistance would suggest that bears remain in control and may push the DOT/USDT pair below $3.90. However, if bulls can sustain the price above $4.22, it would indicate a rejection of the breakdown and potentially lead to a rally to the 50-day SMA at $4.61.
Polygon Price Analysis
Polygon slipped below the critical support at $0.51 but encountered resistance from bears. The subsequent rebound is approaching the 20-day EMA ($0.54). Bears will attempt to stall the recovery at this level and push the price below $0.50, signaling a resumption of the downtrend. In that case, the MATIC/USDT pair could slump to $0.45.
Disclaimer: The information provided here does not constitute investment advice or a recommendation to buy or sell any cryptocurrency. The analysis is solely for informational purposes and should be used at your own risk.
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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