Bitcoin has experienced increased volatility in recent days, with its price surging after Grayscale won a victory over the SEC. However, this excitement was short-lived as the price quickly gave back its gains after news broke that the SEC had delayed its decision on seven spot Bitcoin exchange-traded fund (ETF) applications. The market has been closely following news related to Bitcoin ETFs, as this has been a major trigger for recent price movements.
Bloomberg ETF analysts are optimistic about the possibility of ETFs being approved by the regulator in 2023. In fact, senior ETF analyst Eric Balchunas raised the approval possibility of a spot Bitcoin ETF from 65% to 75% in a recent post on X (formerly Twitter). These positive predictions have bolstered market sentiment, despite the current challenges faced by Bitcoin.
The bulls now face an uphill battle as historically, September has favored the bears. Data from CoinGlass shows that Bitcoin has seen negative returns in September for the past six years. The question on everyone’s mind is whether this trend will continue in 2023.
The weakness in Bitcoin has also affected major altcoins, which have dropped close to their strong support levels. Traders are now wondering if the decline will extend further or if a bounce is imminent. To gain clarity, let’s analyze the charts of the top 10 cryptocurrencies.
Looking at Bitcoin’s chart, the bulls failed to defend the 20-day EMA of $26,947. This led to a sell-off that pulled the price below the breakout level of $26,833. Bitcoin has been oscillating inside a large range between $24,800 and $31,000, and traders typically buy the dips to support and sell near resistance. Therefore, it is expected that the bulls will defend the support level at $24,800. However, if the bears sink and sustain the price below $24,800, the pair may extend its fall to $19,500.
Moving on to Ethereum, its rebound off the strong support at $1,626 didn’t last long as bears remain active at higher levels. If the bears successfully pull the price below the support zone of $1,626 to $1,550, it may signal the start of a new downtrend. In this case, Ethereum could nosedive to the next formidable support at $1,368. However, if the price sharply rebounds off the current level, it will indicate that bulls are defending the support, potentially driving the price to the 20-day EMA and subsequently to $1,745, which may act as a resistance level.
BNB’s recovery halted at the 50-day SMA of $234, and bears yanked the price below the important support at $220. The moving averages are sloping down and the RSI is in negative territory, indicating that bears have the upper hand. If the support at $200 collapses, BNB could reach the next major support at $183. However, a push back above the 20-day EMA could lead to a relief rally, where the pair climbs to the 50-day SMA and later to the resistance line.
XRP’s long tail on its candlestick suggests that bulls are attempting to protect the support at $0.50. However, recent price action indicates that bears are keeping up the pressure. If the price plunges below $0.50, it will suggest that bears are back in control, potentially leading to a downward move to the support at $0.41. Alternatively, if the price rebounds off $0.50, it will suggest that the pair may attempt a rally to $0.56.
Cardano has been range-bound between $0.24 and $0.28, but a slip below the uptrend line on August 31 has raised concerns. Bears may try to sink the pair below the vital support at $0.24, potentially signaling the start of a downtrend. However, if the price rebounds off $0.24, the pair may continue to consolidate inside the range.
Dogecoin’s recovery attempts have been struggling, indicating that demand dries up at higher levels. If the pair dips below the solid support at $0.06, it could resume its downtrend. On the other hand, if the price rebounds off $0.06, it will signal that bulls are buying the dips, potentially leading to a push toward $0.08.
Solana’s return from the 20-day EMA shows that bears remain in control. The price has reached a vital support level at $19.35, and if it gives way, selling could intensify with a potential slide to $18. However, if the bulls manage to shove the price above the resistance at $22.30, the pair may soar toward $26.
Toncoin is in a strong uptrend, with the bulls showing no signs of booking profits. Buying resumed on September 1 and the pair reached the pattern target of $1.91. Scaling this level could lead to a further upmove with a potential skyrocket to $2.38. However, a price turn down and break below $1.66 would suggest aggressive selling at higher levels.
Polkadot turned down from the 20-day EMA, indicating negative sentiment and selling pressure during rallies. The pair dropped to a vital support level at $4.22, which is likely to witness a battle between bulls and bears. A break below $4.22 could lead to the next leg of the downtrend to $4. However, if the price sustains above the 20-day EMA, it may surge to the overhead resistance at $5.
Finally, Polygon failed to maintain above the 20-day EMA, attracting profit-booking from short-term traders. The bears held their ground despite attempts to push the price back above the 20-day EMA. A stronger position by the bears could push the price below immediate support levels, while a rebound off the current level would indicate ongoing consolidation.
In conclusion, Bitcoin’s recent volatility has been driven by news surrounding ETFs, and the market is eyeing the possibility of approval by the SEC in 2023. However, the bears may have the upper hand in the near term, as September has historically favored them. The weakness in Bitcoin is also impacting major altcoins, which are approaching key support levels. It remains to be seen whether the decline will continue or if a bounce is in store for these cryptocurrencies. Traders should closely monitor the charts for further insights and potential trading opportunities.