Bitcoin Holds Above $26,000 Amid Market Fluctuations; Other Cryptocurrencies Reflect Struggle
Summary:
Despite the S&P 500 hitting a 3-month low and the US dollar index reaching a new high for the year, Bitcoin maintained a level above $26,000. On-chain analytics platform CryptoQuant data revealed a drop in Bitcoin's daily spot exchange transactions, which requires traders to await confirmations before engaging in intraday breakouts. Meanwhile, other cryptocurrencies such as Ether, BNB, XRP, Cardano, Dogecoin, Solana, Toncoin, Polkadot, and Polygon show fluctuations around their 20-day EMAs. These instances highlight an ongoing struggle between selling and buying forces on the crypto market.
Even as the S&P 500 experienced a plunge, hitting a three-month low, and the US dollar index (DXY) achieved a new high for the year to date, Bitcoin (BTC) successfully maintained a level surpassing the $26,000 mark. The absence of intense selling at lower rates can be viewed as moderately encouraging. Although Bitcoin seems to be stuck within a certain range, it has caused traders to stay on the outer lines, due to its lack of price direction. Last March, the daily spot exchange transactions for Bitcoin were above 600,000, but that number fell to a mere 8,000-15,000 in the previous week, as reported by the on-chain analytics platform, CryptoQuant.
The reduced liquidity could potentially lead to extreme moves in any direction, therefore traders must be attentive and await confirmations before choosing to bet on every intraday breakout. While the near-term price actions seem unpredictable, long-term investors appear undeterred, as seen by MicroStrategy's latest acquisition of 5,445 Bitcoins at an average cost of $27,053 per Bitcoin, announced by the company's co-founder and executive chairman, Michael Saylor, on former platform Twitter.
The top 10 cryptocurrencies could potentially see an upward trend in the short term, given that Bitcoin's value is continuously contested between the buyers and the sellers' forces near the 20-day exponential moving average ($26,436). On Sep 27, the bulls were able to push the price above the 20-day EMA but could not clear the hurdle of the 50-day simple moving average ($26,757). This signifies continuous bear resistance and the selling of rallies happening near the 50-day SMA.
A clear path for a potential fall to $24,800 can only be paved if the bears manage to drag the price under $25,990. It is likely that this level will attract substantial buying from the bull's side. On the flip side, the first strength indication would be breaking free and closing beyond the 50-day SMA, followed by a rise to $27,500 and subsequently, an overhead resistance at $28,143. The bears would fiercely safeguard this level.
Ether (ETH) is showing potential signs of recovery as the price managed to climb above the 20-day EMA ($1,614) on Sep. 27. However, the bulls struggled to keep up with the intraday rally, indicating the presence of sellers at higher levels. Buyers are expected to be favored due to the bullish divergence indicated by the relative strength index (RSI). If they persist in respites in the price above the 20-day EMA, the ETH/USDT pair could rise first to the 50-day SMA ($1,668) and then attempt a rally reaching the overhead resistance at $1,746.
Other leading cryptocurrencies including BNB (BNB), XRP (XRP), Cardano (ADA), Dogecoin (DOGE), Solana (SOL), Toncoin (TON), Polkadot (DOT), and Polygon (MATIC) also showcased fluctuations around their respective 20-day EMAs, suggesting an ongoing struggle between the bears and the bulls. This article provides a brief analysis of the cryptocurrencies mentioned and does not include any investment advice or recommendations. Every investment or trading move involves risk, thereby, readers should perform their individual research before making a decision.
Published At
9/27/2023 5:31:41 PM
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