When engaging in trading, it is important to understand the current market conditions in order to make informed decisions. In trending markets, traders are advised to be active and seize opportunities to make money. However, in a ranging market, it is better to exercise patience and wait on the sidelines, as choppy and random price movements can result in losses. This is particularly relevant in the case of Bitcoin (BTC), which has been experiencing sideways price action since a significant fall on August 17th.
The uncertainty surrounding Bitcoin’s next directional move is evident, with both bulls and bears unsure of the market’s future trajectory. This cautious sentiment is also reflected in the behavior of institutional traders, as a recent CoinShares report revealed an outflow of $55 million from digital asset investment products during the week of September 13th.
To gain a better understanding of Bitcoin and altcoins’ potential trending moves, it is necessary to analyze the important support and resistance levels. Let’s take a closer look at the charts of the top 10 cryptocurrencies.
Bitcoin’s price analysis demonstrates a positive sign, as the long tail on the candlestick from August 22nd indicates strong efforts by bulls to protect the $24,800 support level. However, the bulls will continue to face pressure until they surpass the overhead hurdle at $26,833 and the 20-day exponential moving average (EMA) at $27,777. Only then will it indicate the possibility of BTC/USDT extending its stay within the $24,800 to $31,000 range for a prolonged period.
Ether (ETH) has dipped below the strong support at $1,626, but the presence of solid buying at lower levels is reflected in the long tail on the candlestick. For the bulls to regain control, they must ensure that the price rises above the overhead resistance of $1,700. If successful, the ETH/USDT pair could reach the 20-day EMA at $1,756. However, failure to break above this level could result in a downward move towards the $1,368 support level.
Binance Coin (BNB) has seen a bounce from the psychological support at $200, indicating the bulls’ efforts to curtail further decline. The recovery could lead to the 20-day EMA at $227, which is likely to serve as a strong resistance. If the bulls fail to overcome this obstacle, the bears will attempt to push the BNB/USDT pair below $200, potentially leading to a slide towards $183.
XRP turned down from the overhead resistance at $0.56, but it has managed to stay above the $0.50 mark. The XRP/USDT pair is expected to consolidate within the $0.50 to $0.56 range for the time being. The downsloping 20-day EMA and the oversold RSI indicate an advantage for the bears. However, a break above $0.56 would suggest a comeback by the bulls, potentially leading to a rise towards the 50-day simple moving average (SMA) at $0.63.
Cardano (ADA) has displayed strong demand at lower levels, as indicated by the long tail on the August 22nd candlestick. However, the price remains range-bound between $0.24 and $0.28. If the price falls below $0.24, the ADA/USDT pair could start a downtrend towards $0.20. On the other hand, a break above $0.28 would invalidate this negative view and potentially trigger a relief rally towards the 50-day SMA at $0.29.
Solana (SOL) experienced a dip below the immediate support at $20, which was promptly followed by a rebound. The buyers will need to push the price above the 20-day EMA at $22.64 to salvage the situation. If successful, the SOL/USDT pair could gain momentum and attempt a rally towards $26. However, a failure to break above the 20-day EMA could result in a break below $19.35, potentially leading to further declines.
Dogecoin (DOGE) has shown resilience at the support level of $0.06, with the bulls buying the dips to this level. A relief rally could be in the works, with the possibility of reaching the 20-day EMA at $0.07. However, sellers are likely to defend this level, potentially keeping the DOGE/USDT pair range-bound between the 20-day EMA and $0.06. To initiate a rally above $0.08, buyers will need to surpass the moving averages. Conversely, a break and close below $0.06 could signal a downward move towards $0.05.
In the case of Polkadot (DOT), bears attempted to pull the price below a crucial support at $4.22, but the bulls managed to defend this level. Currently, the 20-day EMA is turning down, while the RSI remains in the negative zone, suggesting an advantage for the bears. To signal a comeback, buyers will need to push the price above the resistance zone between $4.56 and the 20-day EMA. Conversely, the bears will aim to sell on minor rallies and break below $4.22 to continue the downtrend.
Polygon (MATIC) experienced a bounce from the support level at $0.53, indicating strong buying at lower levels. However, the bulls face a tough task as they aim to overcome the strong selling pressure at $0.60. Failure to do so would confirm that bears are active at higher levels, potentially causing the MATIC/USDT pair to remain range-bound between $0.51 and $0.60. A break below $0.50 would signal a resumption of the downtrend, while a rally above $0.60 could lead to further gains.
Shiba Inu (SHIB) fell below the 50-day SMA at $0.0000084, but the bulls prevented a retest of the crucial support at $0.0000072. This bounce indicates strong buying at lower levels. The bulls will now attempt to push the price above the moving averages, potentially triggering a rally towards $0.000011. However, if the price turns down from the moving averages, it will indicate continued bearish control and a potential downward move to $0.000006.
In conclusion, the current market conditions require traders to exercise caution and wait for clear breakouts before making significant bets. Bitcoin and altcoins are currently experiencing uncertain price movements, and it is important to closely monitor support and resistance levels to gauge potential trending moves.