Bitcoin price continues to press higher within its range and altcoins broke out after ETH rose above a key resistance level.
Bitcoin (BTC) is struggling to break above $50,000 but analysts remain confident due to strong on-chain metrics. Analyst Willy Woo believes that investors have been accumulating Bitcoin and a break above $50,000 could result in a quick up-move to $60,000.
Another positive voice was that of SkyBridge Capital CEO Anthony Scaramucci, who said in an interview with Cointelegraph that the limited, fixed supply of Bitcoin and exponentially growing demand will boost prices higher. Scaramucci personally believes that Bitcoin could reach $100,000 before the end of the year.
Currently, the focus seems to have shifted to Ether (ETH) as it rallied to a three-month high against Bitcoin. This strong performance is backed by a drop in the amount of Ether held in exchange wallets from 19.45 million on Aug. 18 to 18.75 million on Sep.1, according to data from CryptoQuant.
With Bitcoin in consolidation, will altcoins continue their outperformance or will they face profit-booking at higher levels? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin broke below the 20-day exponential moving average ($47,008) today but bounced off the 200-day simple moving average ($46,064). Both moving averages have flattened out and the relative strength index (RSI) is just above the midpoint, suggesting a balance between supply and demand.
If bears sink the price below the 200-day SMA, the BTC/USDT pair could decline to the next support at $43,927.70. If this support also cracks, the next stop could be the breakout level at $42,451.67.
Such a move will suggest that the bullish momentum has weakened. That could be followed by a few days of consolidation.
Alternatively, if bulls push the price above the downtrend line, the pair could challenge the overhead resistance zone at $50,000 to $50,500. If the price once again turns down from this zone, the pair may remain range-bound for a few days.
The bulls will have to push and sustain the price above $50,500 to signal the resumption of the uptrend. The next target objective on the upside is $60,000.
ETH/USDT
Ether had been trading between the overhead resistance zone at $3,335 to $3,377.89 and the breakout level at $3,000 for the past few days. This consolidation resolved to the upside on Aug. 31 with a break and close above $3,377.89.
The bulls continued buying today and pushed the price above the psychological mark at $3,500. This signals the resumption of the uptrend, which may reach the next target objective at $4,000.
The upsloping 20-day EMA ($3,212) and the RSI in the overbought zone indicate that bulls are in control. If the price turns down from the current level, the bulls will try to defend the zone between $3,377.89 and $3,335.
A break and close below the 20-day EMA will be the first sign that supply exceeds demand. A break below the $3,000 support may signal the start of a deeper correction.
ADA/USDT
The buyers have been defending the $2.70 support for the past three days but are struggling to push Cardano (ADA) above the overhead resistance at $2.97. This suggests that demand dries up at higher levels.
The bulls will have to push and sustain the price above the psychological level at $3 to signal the resumption of the uptrend. If that happens, the ADA/USDT pair could rally to its next target at $3.50.
While the 20-day EMA ($2.47) is rising, the RSI has formed a negative divergence, warning that the bullish momentum may be weakening.
If the price dips below $2.70, the pair could drop to the breakout level at $2.47. A break and close below this level will signal a possible change in trend.
BNB/USDT
Binance Coin (BNB) bounced off the 20-day EMA ($449) on Aug. 31, suggesting that the sentiment remains positive and traders are buying on dips. The bulls will now try to push the price above the overhead resistance at $518.90 and resume the uptrend.
The upsloping 20-day EMA and the RSI in the positive zone indicate that bulls have the upper hand. A breakout and close above $520 could clear the path for an up-move to $600 and then to $680.
If the price again turns down from $518.90, the BNB/USDT pair may drop to the 20-day EMA and remain range-bound between these two levels for the next few days. A break and close below $433 will indicate that the bullish momentum has weakened. The pair may then drop to the 200-day SMA ($371).
XRP/USDT
XRP rebounded off the 20-day EMA ($1.11) on Aug. 31 but the long wick on the day’s candlestick suggests that bears are defending the downtrend line. A minor positive is that bulls have not given up much ground today and are again trying to push the price above the overhead resistance.
If they succeed, the XRP/USDT pair could rise to $1.35 and then start its journey toward $1.66. The gradually rising 20-day EMA and the RSI in the positive territory suggest the path of least resistance is to the upside.
On the contrary, if the price turns down from the downtrend line, the pair could drop to the 20-day EMA. A break and close below $1.05 will complete a descending triangle pattern, indicating the start of a decline to the 200-day SMA ($0.88) and then to the pattern target at $0.75.
DOGE/USDT
Dogecoin (DOGE) is currently trading inside a falling wedge pattern. The bears are aggressively defending the zone between the 20-day EMA ($0.28) and the downtrend line of the wedge.
The flat 20-day EMA and the RSI near the midpoint suggest a balance between supply and demand. A breakout and close above the falling wedge pattern will tilt the advantage in favor of the bulls.
The DOGE/USDT pair could then rise to $0.35. This level may act as a resistance but if bulls drive the price above it, the rally could reach $0.45.
Conversely, if the price turns down from the current level and breaks below the wedge, the pair could drop to the critical support at $0.21.
SOL/USDT
Solana (SOL) has been in a strong uptrend for the past few days. The bulls pushed the price to a new all-time high at $130.11 on Aug. 31 but the long wick on the day’s candlestick shows profit-booking at higher levels.
However, a positive sign is that lower levels have again attracted buying today. The bulls will now try to push the price above the all-time high at $130.11. If they can sustain the price above this level, the SOL/USDT pair may rally to $150.
Conversely, if the price again turns down from the overhead resistance, it will suggest selling at higher levels. The pair may then start a correction to $100. If this support cracks, the pair may drop to the 20-day EMA ($80).
DOT/USDT
The bulls successfully defended the 20-day EMA ($25.66) in the past few days, indicating accumulation at lower levels. The buying momentum picked up on Aug. 31 and the bulls thrust Polkadot (DOT) above the overhead resistance at $28.60.
This completed a V-bottom pattern, which points to the possibility of a new uptrend. The DOT/USDT pair could now rally to $41.40 and then to the pattern target at $46.83.
Generally, when the price breaks out of a setup, it tends to retest the breakout level. In this case, if the price rebounds off the breakout level at $28.60, it will signal strong buying by the bulls. That will increase the prospect of the resumption of the uptrend.
The first sign of weakness will be a break and close below the 200-day SMA ($27.80). Such a move will suggest a lack of demand at higher levels.
Related: Altcoins rally to new highs after the ETH/BTC pair flips bullish
UNI/USDT
Uniswap (UNI) rose above the downtrend line on Aug. 31, invalidating the bearish descending triangle pattern. The bulls will now try to push the price above the overhead resistance at $31.26.
If they do that, the UNI/USDT pair could resume its up-move toward the first target objective at $37.52 and later to $42.25.
Contrary to this assumption, if the price turns down from $31.26, the pair may drop to the moving averages, signaling that the range-bound action may continue for a few more days.
A break and close below $25 will be the first sign of weakness. That will open the doors for a further decline to $23.45 and then to $20.
LUNA/USDT
Terra protocol’s LUNA is currently correcting in a strong uptrend. The bulls are attempting to defend the support at $30.44. The rising 20-day EMA ($27.83) and the RSI in the positive territory indicate advantage to the bulls.
If the price rebounds off the current level, the bulls will make one more attempt to push the price above $36.89.
If they manage to do that, the LUNA/USDT pair could resume its uptrend. The first target on the upside is $43 and if that resistance is crossed, the rally may extend to the psychological barrier at $50.
Alternatively, if bears sink the price below $30.44, the pair could drop to the 20-day EMA. This is an important support for the bulls because if it cracks, a deeper correction to $26 and then to $22.40 may start.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
via cointelgraph.com
