Crypto Market Analysis: Bitcoin Forms Doji Candlestick Pattern, Altcoins Face Bearish Trend
Summary:
Bitcoin (BTC) trades in a narrow range, forming the third consecutive Doji candlestick pattern. The broader crypto market remains bearish, with altcoins testing multi-week lows. Asset management firms show seriousness in implementing digital asset strategies. Bitcoin's price analysis indicates the need to wait for a sustained move above $26,500 or below $24,800. Toncoin (TON), Stellar (XLM), Monero (XMR), and Maker (MKR) are analyzed for potential price movements.
Bitcoin (BTC) is currently trading within a narrow range and is poised to form its third consecutive Doji candlestick pattern on the weekly chart. The cryptocurrency market did not receive any support from the US equities market, which ended the week on a negative note with the S&P 500 Index dropping 1.3% and the Nasdaq closing down 1.9%. As a result, Bitcoin's weakness has led to a decline in several altcoins, indicating that the broader crypto market is firmly in bearish territory. While negative markets make it difficult for short-term bullish trades, long-term investors may find this a good opportunity to build a portfolio.
According to a recent report by Amberdata, 24% of asset management firms are appointing senior executives dedicated to implementing digital strategies, and an additional 13% of firms plan to adopt digital assets strategies. This demonstrates seriousness and senior management buy-in for digital asset implementation.
The question remains whether Bitcoin will break out to the upside, thereby increasing buying interest in altcoins. Let's analyze the charts of the top 5 cryptocurrencies that show potential in the near term.
Bitcoin price analysis:
Bitcoin has been trading near the $26,000 level, indicating a battle between the bulls and bears. The downsloping moving averages give an advantage to bears, but the positive divergence on the relative strength index suggests that selling pressure is decreasing. However, it is better to wait for the price to either sustain above $26,500 or fall below $24,800 before making significant bets. If bulls manage to overcome the obstacle at $26,500, Bitcoin could rally to the overhead resistance at $28,143. Conversely, a drop below $24,800 could pave the way for a decline to $20,000.
Toncoin price analysis:
Toncoin (TON) has retraced to the 20-day exponential moving average ($1.69), which typically offers a low-risk entry opportunity in an uptrend. If the price bounces back from the 20-day EMA, it will indicate positive sentiment and buying on dips. This could potentially push the TON/USDT pair to $1.89 and subsequently attempt a rally to $2.07. However, if the price continues to decline and breaks below the 20-day EMA, it could signal bearish sentiment and open the doors for a drop to $1.53 and the 50-day simple moving average ($1.45).
Stellar price analysis:
Stellar (XLM) has recently experienced a recovery, suggesting that buyers are attempting a comeback. The XLM/USDT pair broke above the 20-day EMA ($0.12) and has held its position above it, indicating bullish attempts to establish support. If the price breaks above the 50-day SMA ($0.13), the pair could surge to $0.15 and eventually $0.17. However, this bullish view could be invalidated if the price turns down and falls below the 20-day EMA.
Monero price analysis:
Monero (XMR) has found support at the uptrend line, indicating buying at lower levels. If the price surpasses the 20-day EMA ($143), it could signal the start of a sustained recovery, with the XMR/USDT pair potentially climbing to the 50-day SMA ($151) and then $160. On the other hand, if bears manage to pull the price below the uptrend line, the pair may experience further downside towards $130.
Maker price analysis:
Maker (MKR) is currently in a state of indecision, with the price stuck between the moving averages. However, it is worth noting that it has been trading above the downtrend line, which slightly favors the bulls. To indicate a stronger upward move, buyers need to propel and sustain the price above the 50-day SMA ($1,157), potentially leading to a rally to $1,227. Conversely, re-entering the downtrend line could mean a slump to the strong support level at $980.
Published At
9/10/2023 6:58:10 PM
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