The cryptocurrency markets have been quiet over the weekend. The sideways price action continues on Sept. 5 and there is unlikely to be any fresh trig
The cryptocurrency markets have been quiet over the weekend. The sideways price action continues on Sept. 5 and there is unlikely to be any fresh triggers from the United States equities markets which are closed for Labor Day.
However, the bullish picture for cryptocurrencies looks clouded as the energy crisis in Europe sent the euro to a two-decade low versus the U.S. dollar. Meanwhile, the U.S. dollar index (DXY) which has an inverse correlation with the equities markets and cryptocurrencies soared above 110 for the first time since June 2002.
A positive sign among all the mayhem is that Bitcoin (BTC) has not given up much ground over the past few days and continues to trade near the psychological level of $20,000. This suggests that traders are not panicking and dumping their positions in a hurry.
Could bulls push and sustain Bitcoin above $20,000 and will this trigger buying in altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has been stuck inside a tight range between $19,520 and $20,576 for the past few days. This indicates indecision among the bulls and the bears. Although bulls are buying the dips, they have failed to clear the overhead resistance.
The downsloping 20-day exponential moving average ($20,775) and the relative strength index (RSI) in the negative territory increase the likelihood of a break below $19,520. If that happens, the BTC/USDT pair could drop to the strong support zone between $18,910 and $18,626.
Buyers are expected to defend this zone with all their might. If the rebound breaks above the 20-day EMA, the pair could rise to the 50-day simple moving average ($22,253). The bulls will have to clear this hurdle to open the doors for a possible rally to $25,211.
Conversely, if bears sink the price below $18,626, the pair could retest the final support at $17,622. A break below this support could signal the resumption of the downtrend.
ETH/USDT
Ether (ETH) has been stuck between the 20-day EMA ($1,605) and the neckline of the head and shoulders (H&S) pattern since Aug. 31 but this tight-range trading is unlikely to continue for long.
If buyers push and sustain the price above the 20-day EMA, the ETH/USDT pair could rally to the overhead resistance at $1,700. This is an important level to keep an eye on because a break and close above it could signal that bulls are back in control. The pair could then rally to $2,030 and later to the downtrend line.
This bullish view will be invalidated in the near term if the price turns down from the moving averages and breaks below $1,422. If that happens, the pair could slide to $1,280. The bulls are expected to defend this level with vigor but if the bears overpower them, the decline could extend to the pattern target of $1,050.
BNB/USDT
Binance Coin (BNB) has been trading near the strong support of $275 for the past few days but the bulls have not been able to achieve a strong rebound off it. This indicates a lack of demand at higher levels.
The 20-day EMA ($286) has been sloping down and the RSI is below 41, indicating that bears have the upper hand. If the price breaks and closes below $275, the BNB/USDT pair will complete a bearish head and shoulders pattern. The pair could then start its decline to $240 and later to the pattern target of $212.
Contrary to this assumption, if the price turns up from the current level and breaks above the moving averages, it will suggest that bulls are back in the game. The pair could then rise to the overhead resistance at $308.
XRP/USDT
XRP has been stuck between $0.32 and $0.34 for the past few days but this tight range trading is unlikely to continue for long.
The bears will attempt to sink the price below $0.32. If they succeed, the XRP/USDT pair could extend its decline to the crucial support at $0.30. Buyers are likely to defend this level aggressively as they had done on three previous occasions.
Alternatively, if the price rebounds off $0.32 and breaks above $0.34, it will suggest a short-term advantage to the bulls. The pair could then rise to the 50-day SMA ($0.36) and later to the stiff overhead resistance at $0.39.
ADA/USDT
Cardano (ADA) broke and closed above the 50-day SMA ($0.49) on Sept. 4 but the bulls could not sustain the breakout. This suggests that bears continue to sell on rallies.
The price turned down and broke below the 50-day SMA on Sept. 5, indicating that bears are attempting to trap the aggressive bulls. If the price dips below the 20-day EMA ($0.47), the pair could drop to $0.44 and later to $0.42.
Conversely, if the price rebounds off the 20-day EMA and rises above $0.51, it will suggest a change in sentiment from selling on rallies to buying on dips. The ADA/USDT pair could then rise to the…
cointelegraph.com