After today's Bitcoin ETF decision delay, BTC's boring price action looks set to carry on through the weeken
After today’s Bitcoin ETF decision delay, BTC’s boring price action looks set to carry on through the weekend.
Bitcoin (BTC) continues to frustrate investors with its tight range consolidation, giving no clue about the possible direction of the breakout. Typically, the longer the range, the stronger the eventual breakout from it. Therefore, traders should be on their toes to latch on to the breakout when it happens.
A minor positive in favor of the bulls is that they are holding on to a large part of the gains seen in 2023. That indicates a lack of urgency among the bulls to book profits as they anticipate the uptrend to resume.
Bloomberg senior ETF analyst Eric Balchunas highlighted that 15 of the best performing equity exchange-traded funds in 2023 have been crypto-related with exposure to crypto and blockchain.
Do Bitcoin and the select altcoins show any signs of a potential breakout from their respective ranges? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
The bulls pushed Bitcoin above the 50-day simple moving average ($29,960) on Aug. 8 and 9 but could not sustain the higher levels. This suggests that the bears are selling on rallies.
The range in the BTC/USDT pair has shrunk further with the price swinging between $28,585 and $30,350. Both moving averages have flattened out and the relative strength index (RSI) is near the midpoint, suggesting that the consolidation may continue for some more time.
When the price is stuck in a range, it is difficult to predict the direction of the breakout. However, traders should be ready for the start of a trending move soon.
If the price plunges below $28,585, the pair may descend to $26,000 and then to $24,800. Conversely, a break and close above $30,350 could propel the pair to $32,400. This is likely to be the final hurdle before the pair reaches $40,000.
Ether price analysis
Ether (ETH) has been trading between the 50-day SMA ($1,879) and the horizontal support at $1,816 for the past few days. This suggests uncertainty between the bulls and the bears about the next directional move.
The flattish 20-day exponential moving average ($1,855) and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears. The sellers will have to tug the price below $1,816 to gain control. That could start a selloff, which may pull the ETH/USDT pair to $1,700 and then to the vital support at $1,626.
On the contrary, if the price turns up and breaks above the 50-day SMA, it could open the gates for a rally to the psychological resistance at $2,000.
BNB price analysis
The failure to push BNB (BNB) above the resistance line of the triangle may have attracted selling. That has pulled the price below the moving averages.
The BNB/USDT pair could drop to the support line of the triangle. This is an important level to keep an eye on because a slide below it may start the next leg of the downward move to $220. The bulls are likely to buy the dip to this level.
If the price rebounds off the support line, the pair may spend some more time inside the triangle. Buyers will have to shove the price above the resistance line to clear the path for a potential rally to $265.
XRP price analysis
XRP (XRP) turned down from the 20-day EMA ($0.65) on Aug. 9, indicating that the bears are trying to flip the level into resistance.
The important support to watch on the downside is the 50-day SMA ($0.61). If this level cracks, the selling could intensify and the XRP/USDT pair could plummet to the breakout level of $0.56.
Another possibility is that the price bounces off the 50-day SMA. If that happens, the pair may spend some more time oscillating between the moving averages. A break and close above $0.67 will be the first sign of strength. That could open the doors for a possible rally to $0.73.
Dogecoin price analysis
Dogecoin (DOGE) continues to trade inside the ascending channel pattern but the bulls are finding it difficult to overcome the barrier at the downtrend line.
If the price dips below the 20-day EMA ($0.07), the support line of the channel will come under threat. The repeated retest of a support level within a short interval tends to weaken it. If the bears yank the price below the channel, the DOGE/USDT pair could drop to the breakout level of $0.07.
Another possibility is that the price turns up from the 20-day EMA. If that happens, the likelihood of a rally above the downtrend line increases. That could start an up-move to $0.08 and next to the resistance line of the channel.
Cardano price analysis
Cardano’s (ADA) recovery attempt hit a wall at the 20-day EMA ($0.30) which suggests that the bears have not…
cointelegraph.com