Bitcoin (BTC) has traded within a relatively narrow range of $25,333 to $26,156 since the beginning of September. This period of low volatility often precedes a breakout in either direction, but it is difficult to predict which way the market will go. Historical data from CoinGlass indicates that Bitcoin has typically experienced a decline in price during the month of September, which could keep bullish investors cautious and embolden bearish sentiment. Furthermore, the rising value of the United States dollar index (DXY), which has an inverse correlation with Bitcoin, in recent weeks suggests that Bitcoin could face downward pressure in the short term.
Despite these factors, there is still hope for crypto bulls. Lower levels of Bitcoin are likely to attract buyers, as investors see an opportunity to enter the market at a more favorable price point. Additionally, the potential approval of one or more Bitcoin spot exchange-traded fund (ETF) applications could limit the downside for the cryptocurrency. Many analysts view the approval of a Bitcoin ETF as a highly bullish event that could drive prices higher. Any positive news regarding the approval of a Bitcoin ETF could provide a boost to Bitcoin’s price.
Taking a macro perspective, it appears that there may be some weakness in the near term, but lower levels are expected to find support from buyers. To gain insight into important support levels, let’s analyze the charts of the top-10 cryptocurrencies.
Looking at Bitcoin’s price analysis, it has been trading below $26,000 for the past two days. The downtrending moving averages suggest an advantage for sellers, but there is a positive divergence developing on the relative strength index (RSI), indicating weakening bearish momentum. However, buyers will need to push and sustain the price above $26,833 to initiate a relief rally to the 50-day simple moving average ($28,048). If this happens, it would suggest that Bitcoin will remain within the range of $24,800 and $31,000 for the time being. On the other hand, if the bears manage to push the price below the $24,800-$24,000 support zone, it could lead to further selling pressure and a potential drop to $20,000.
In the case of Ethereum (ETH), it has shown support at the $1,626 level, with the bulls buying the dips. However, there has been no follow-up buying at higher levels, leading to a narrow-range trading pattern. If the price drops and maintains below $1,600, it would indicate that bears have taken control. In that scenario, there is a minor support level at $1,550, but a breakdown could lead to a sharp decline to $1,368. On the upside, the bears are expected to strongly defend the zone between $1,650 and the 20-day exponential moving average ($1,674). If buyers manage to break through this resistance, the pair could rally to the 50-day SMA ($1,772).
BNB has been trading below the significant level of $220, but the bears haven’t been able to capitalize on this opportunity. This suggests that selling pressure is decreasing at lower levels, potentially keeping the BNB/USDT pair range-bound between $220 and $200. A consolidation below the breakdown level increases the likelihood of a further slide, potentially leading to a resumption of the downtrend with the next major support at $183. However, if buyers push the price above $220, it would indicate solid buying at lower levels and may lead to an attempted rally to the downtrend line.
XRP has been holding onto the $0.50 support level, but the lack of a strong rebound suggests a possible downside breakdown. A break and close below $0.50 would indicate that the XRP/USDT pair may continue to trade within the range of $0.56 to $0.41 for the next few days. There is no significant support between $0.50 and $0.41, so a downturn could occur swiftly. However, if the price turns up from current levels and rises above the 20-day EMA ($0.52), the pair may climb to $0.56, which is an important level to watch.
Cardano (ADA) has been trading in a tight range, with both bulls and bears taking a cautious approach. The downsloping moving averages and negative RSI indicate a slight edge for the bears. If the price breaks below $0.25, sellers may try to push the ADA/USDT pair to $0.24. On the other hand, a break and close above the 20-day EMA ($0.26) would be the first sign of strength and could pave the way for a rally to the 50-day SMA ($0.28). To initiate a sustained recovery, buyers will need to clear this hurdle.
Dogecoin (DOGE) reached the 20-day EMA ($0.06) on September 6, indicating an attempt by bulls to start a relief rally. However, the bears are likely to put up a strong defense at the 20-day EMA, potentially leading to a downturn. If the price sharply turns down, bears may aim to push the DOGE/USDT pair below $0.06, with the next support at $0.055. On the upside, a break and close above the 20-day EMA would indicatea reduction in selling pressure. This could bring a rally to the 50-day SMA and later to $0.08.
In the case of Solana (SOL), the recovery attempt is encountering strong resistance at the downtrend line, suggesting aggressive defense from the bears. If the price falls below $19, the SOL/USDT pair may resume its downtrend, with support at $18 and $16. However, buyers are expected to defend the $16 level with determination. To indicate strength, the pair needs to break and close above the 20-day EMA. This could initiate a stronger recovery to the 50-day SMA, but overcoming this level could be challenging.
Toncoin (TON) recently experienced a sharp rise that pushed the RSI into overbought territory, leading to profit-booking by bears. The key support level to watch for is the 20-day EMA. A rebound off this level would suggest positive sentiment and buying on dips, potentially propelling the price to $2.07. If this level is breached, the rally could extend to $2.38. Conversely, if the 20-day EMA is broken, it would indicate weakening bullish strength, potentially leading to a decline to $1.53 and later to the 50-day SMA.
Polkadot (DOT) buyers are struggling to initiate a strong rebound, indicating sustained bearish pressure. The downtrending moving averages and the RSI near the oversold zone suggest a possible downward breakdown. If the $4.22 level is breached, the DOT/USDT pair could drop to the next major support at $4. However, should the price turn up from current levels, bears will likely try to halt the recovery at the 20-day EMA and downtrend line. Buyers will need to clear this barrier to indicate a potential trend change.
Polygon (MATIC) reached the 20-day EMA but struggled to clear the hurdle, indicating limited demand at higher levels. Bears will attempt to push the price to the crucial support at $0.50. A break below this level would resume the downtrend, potentially leading to a decline to $0.45. On the other hand, bulls can prevent the downside by pushing the price above the 20-day EMA. This could spark a stronger recovery to the overhead resistance at $0.60.
In conclusion, the cryptocurrency market is currently experiencing limited volatility, with Bitcoin trading in a narrow range. Historical data suggests a potential decline in Bitcoin’s price during September, and the rising value of the US dollar index adds to the short-term bearish sentiment. However, lower levels may attract buyers, and the potential approval of Bitcoin ETF applications could limit the downside. Analyzing the charts of various cryptocurrencies, it is clear that there are both bullish and bearish factors at play. It will be important to monitor key support and resistance levels to gauge the direction of the market in the coming days.