The Bitcoin rally on September 7 was short-lived, indicating a lack of clarity between the bulls and bears regarding the cryptocurrency’s next move. Analysts predict that Bitcoin may remain in a “mid-cycle lull” until the start of the next bull run in November 2024. Furthermore, cryptocurrencies could face headwinds for the remainder of 2023 due to various macroeconomic issues.
One factor that could influence Bitcoin’s future is the decision of the United States Securities and Exchange Commission on Bitcoin spot exchange-traded fund (ETF) applications. Additionally, the race for a spot Ether (ETH) ETF has officially begun with filings from VanEck and ARK Invest.
Bitcoin’s price reached the 20-day exponential moving average (EMA) of $26,419 but failed to surpass it, suggesting strong resistance from bears. However, the failure of bears to challenge the support at $24,800 indicates a drying up of selling at lower levels. The relative strength index (RSI) also shows a positive divergence, indicating weakening bearish momentum. If Bitcoin can break and close above the 20-day EMA, it may pave the way for a sustained recovery towards $28,143. On the other hand, a break below $24,800 could start a downtrend, potentially reaching pivotal support at $20,000.
Ether continues to trade within a narrow range between the 20-day EMA ($1,668) and the support level at $1,626. The failure of bulls to clear the 20-day EMA increases the risk of a breakdown. If it falls below $1,626, Ether could retest the August 17 intraday low of $1,550. However, if Ether can rally above the 20-day EMA, it may remain range-bound between $2,000 and $1,626 for a few more days.
The bulls attempted to push BNB (BNB) above the resistance level of $220, but the bears held strong. The failure to surpass $220 suggests that sellers are trying to turn it into resistance. If the price falls below minor support at $211, BNB could reach the psychological level of $200. However, if it rebounds from $200, it suggests consolidation between $200 and $220.
XRP’s dip below $0.50 was met with bullish buying, but the lack of a strong rebound indicates a lack of demand at higher levels. Bears will try to pull the price below $0.50, potentially leading to a nosedive to the next major support at $0.41. However, a bounce from the current level could indicate bulls attempting to flip $0.50 into support.
Cardano formed a Doji candlestick pattern, indicating indecision between bulls and bears. The downsloping 20-day EMA and negative RSI suggest a downside breakout is possible. If the price falls below $0.25, Cardano could drop to critical support at $0.24. On the other hand, if bulls can push the price above the 20-day EMA, it may reach overhead resistance at $0.28.
Dogecoin remains stuck between the 20-day EMA and horizontal support at $0.06. The downsloping 20-day EMA and RSI near 40 suggest an edge to the bears. If it falls below $0.06, Dogecoin could descend to $0.055. However, a sustained move above the 20-day EMA suggests a stronger recovery to $0.07 and eventually $0.08.
Solana has been correcting within a large range between $14 and $27.12, with relief rallies being sold into. If bears can push the price below the immediate support at $19, Solana may slump to $18 and subsequently $16. However, if bulls drive the price above the 20-day EMA, it may reach overhead resistance at $22.30.
The TON/USDT pair attempted a rebound but encountered selling pressure, suggesting continued bearish sentiment. The 20-day EMA remains a key level to watch, with a rebound potentially leading to a push above the overhead resistance at $2.07. Conversely, if the price falls below the 20-day EMA, it may indicate profit-taking and a potential drop to breakout support at $1.53.
Polkadot broke below strong support at $4.22 but quickly rebounded, showing buying at lower levels. However, every minor rally is being sold into, suggesting bearish sentiment. If support at $4.22 fails, Polkadot could fall to psychological support at $4. On the other hand, a move above the 20-day EMA could signal the end of the downtrend.
Polygon has faced resistance at the 20-day EMA for the past three days, suggesting a lack of demand at higher levels. The bears appear to have the edge, with a potential drop to $0.06. However, a sustained move above the 20-day EMA may lead to a range-bound pattern between $0.50 and $0.56.
In conclusion, Bitcoin and other cryptocurrencies are facing uncertainty, with bulls and bears battling for control. The outcome of various macroeconomic issues, as well as regulatory decisions, could impact the direction of the market. Traders will closely monitor key levels and indicators to gain insight into the future of these cryptocurrencies.
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