Bitcoin managed to maintain its position above the $26,000 mark despite the S&P 500 experiencing a three-month low and the US dollar index climbing to a new year-to-date high. This indicates a lack of aggressive selling at lower levels, which is viewed as a mildly positive sign. However, Bitcoin has been trapped in a range with no clear direction, keeping traders on the sidelines. According to on-chain analytics platform CryptoQuant, daily spot exchange transactions for Bitcoin saw a decline from 600,000 in March to 8,000-15,000 last week, indicating low liquidity in the market. This low liquidity could result in volatile movements in either direction, prompting traders to exercise caution and wait for confirmations before taking positions on intraday breakouts.
Despite the uncertain near-term price action, long-term Bitcoin bulls remain unfazed and continue to add Bitcoin to their portfolios. Michael Saylor, the co-founder and executive chairman of MicroStrategy, announced on X (formerly Twitter) that the company had acquired 5,445 Bitcoin at an average price of $27,053 per Bitcoin.
Now let’s analyze the charts of the top 10 cryptocurrencies to see if Bitcoin and select altcoins could potentially start a short-term uptrend.
Bitcoin’s price action is currently experiencing a tough battle between bulls and bears near the 20-day exponential moving average (EMA) of $26,436. The bulls managed to push the price above the 20-day EMA on September 27, but they were unable to clear the 50-day simple moving average (SMA) of $26,757. If the bears pull the price below $25,990, it could potentially lead to a fall to $24,800. On the other hand, a break and close above the 50-day SMA could signal strength and pave the way for a rise to $27,500 and subsequently to the overhead resistance at $28,143.
Ether is attempting to initiate a recovery. Although the price rose above the 20-day EMA of $1,614 on September 27, the bulls were unable to sustain the intraday rally, indicating that higher levels continue to attract sellers. However, a bullish divergence on the relative strength index (RSI) favors buyers. If the price remains above the 20-day EMA, the ETH/USDT pair could rise to the 50-day SMA of $1,668 and potentially attempt a rally to the overhead resistance at $1,746. Conversely, if the price remains below the 20-day EMA, it will suggest bearish control, and sellers may attempt to push the price below the important support level at $1,531, leading to a potential crash to $1,368.
BNB remains below the breakdown level of $220 but has managed to avoid slipping below $203. The 20-day EMA is flattening out, indicating a balance between supply and demand. If the bulls push the price above $220, the BNB/USDT pair could ascend to $235. On the contrary, if the price continues to decline and breaks below $203, it will signal the bears’ supremacy and could lead to a further downtrend to the strong support at $183.
XRP’s price action has formed a symmetrical triangle pattern, indicating indecision between the bulls and bears. If the bears succeed in dragging the price below the uptrend line, the XRP/USDT pair may descend to $0.46 and then to $0.41. However, if the price turns upward and breaks above the resistance line, it will indicate bullish control, potentially leading to a climb to the overhead resistance at $0.56.
Cardano’s price remains below the 20-day EMA, and the bulls are struggling to push the price above it, potentially leading to more selling pressure. If the support at $0.24 gives way, the ADA/USDT pair will complete a bearish descending triangle pattern and could begin a downward move to $0.22 and subsequently to the pattern target of $0.19. However, if the price turns up and breaks above the downtrend line, it will invalidate the bearish setup, potentially resulting in an up-move to $0.29.
Dogecoin sank below the $0.06 support on September 26 but saw buying at lower levels. The downsloping 20-day EMA and the negative RSI suggest that bears remain in command. If sellers successfully sustain the price below $0.06, the DOGE/USDT pair may plummet to the next significant support at $0.055. Alternatively, if the price turns up and rises above the 20-day EMA, it will signal a potential comeback for the bulls, with the pair possibly rallying to $0.07 and then to $0.08.
Solana has struggled to surpass the 20-day EMA, indicating that bears are defending the level. If the bears pull the SOL/USDT pair below the nearest support at $18.50, it could result in a further fall to $17.33. On the other hand, if the price bounces off $18.50, it suggests buying on dips, with the bulls attempting to push the price above the moving averages and potentially jumping to $22.30.
Toncoin has dropped to the 20-day EMA, an important level to watch. If buyers maintain the price above the 20-day EMA, the TON/USDT pair may attempt a rally to the 61.8% Fibonacci retracement level of $2.40. However, sellers will aim to pull the price below $2.07 and extend the correction to the next major support at the 50-day SMA of $1.76.
Polkadot remains stuck below the 20-day EMA, suggesting strong resistance from bears. The RSI shows signs of forming a bullish divergence, but the buyers will need to clear the hurdle at $4.22 to alleviate selling pressure. If the price continues to decline and breaks below the immediate support at $3.91, the next support on the downside is at $3.58.
Polygon bounced off the critical support at $0.51 on September 25 but failed to break above the 20-day EMA. The RSI forming a bullish divergence offers a glimmer of hope for the bulls. However, the price must be sustained above the 20-day EMA to signal a sustained recovery, with the pair potentially rallying to the 50-day SMA.
In conclusion, Bitcoin has shown resilience above the $26,000 level while the S&P 500 faced a downturn and the US dollar index reached new highs. The near-term price action remains uncertain, leading to cautiousness among traders. However, long-term bulls continue to add Bitcoin to their portfolios. The charts of various altcoins indicate mixed signals, with some potentially facing further downside pressure while others may see short-term recoveries. Traders are advised to monitor support and resistance levels and exercise caution in their trading decisions.