Bitcoin Range-Bound as Bulls Struggle, SEC Approval Potential Upside Catalyst
Summary:
Bitcoin remains within its range near $26,000 as bulls struggle to sustain higher levels. Uncertainty about the next move is reflected in two successive Doji candlestick patterns. The potential approval of a Bitcoin exchange-traded fund by the SEC could limit downside. Meanwhile, major altcoins are under pressure, with only a few showing signs of strength. Top 5 cryptocurrencies are analyzed for potential rallies if they break resistance levels. Toncoin is in an uptrend, Chainlink is trading within a range, Maker attempts to resume an uptrend, and Tezos witnesses a struggle between bulls and bears. No investment advice is provided.
Bitcoin (BTC) attempted to break out of its range last week, but failed to sustain higher levels. It is now trading near $26,000, back within the range. The past few days have seen the formation of two successive Doji candlestick patterns on the weekly chart, reflecting uncertainty about the next directional move. The potential approval of a spot Bitcoin exchange-traded fund by the United States Securities and Exchange Commission (SEC) may limit the downside in the near term. Former commission chair Jay Clayton expressed confidence in a recent interview, stating that approval is inevitable. The lack of clarity regarding Bitcoin's next move has kept major altcoins under pressure, with only a few showing signs of strength. Let's analyze the charts of the top 5 cryptocurrencies that may rally if they break above their respective resistance levels.
In Bitcoin's case, it is currently back within the range of $24,800 to $26,833, but the bulls have bought the dips, as shown by the long tail on September 1. Although the downsloping moving averages favor bears, the gradually recovering relative strength index (RSI) suggests weakening bearish momentum. A breakout and close above $26,833 would be the first sign of strength, potentially leading to a retest of the August 29 high at $28,142. On the downside, bears would need to sink and sustain the price below $24,800, which could prove challenging as bulls defend this level. However, if bears prevail, the price could plunge to $20,000 with minor support at $24,000.
Amidst the battle between buyers and sellers, Toncoin (TON) is in an uptrend but facing resistance at $2.07. Both moving averages indicate an advantage for buyers, but overbought levels on the RSI suggest a minor correction or consolidation. If the bulls hold their ground near the current level, the chances of a rally above $2.07 increase, potentially propelling the TON/USDT pair to $2.40. On the downside, a deeper correction could drop the price to the 20-day EMA, which will be a crucial support level. A bounce off this level would indicate positive sentiment and buying on dips, while a breakdown of the 20-day EMA would turn the trend negative.
Chainlink (LINK) has been trading between $5.50 and $9.50 for months. Although bears briefly pushed the price below the range's support on June 10, they couldn't sustain lower levels. The recent dip near the support on August 17 saw a strong bounce from bulls. Buyers are currently facing resistance near the 20-day EMA, making it a crucial level to watch. If the price surpasses the 20-day EMA, the pair may aim for the 50-day SMA with minor resistance at $6.40. However, a sharp downturn from the 20-day EMA would indicate selling pressure and pull the price down to $5.50.
Maker (MKR) has found support near $1,000 and is attempting to resume its uptrend. Bulls are currently encountering resistance at the downtrend line, but keeping the price above the 20-day EMA is a positive sign. If the price reverses from the current level, it will signal positive sentiment and potential retesting of $1,370. However, a break below the 20-day EMA would indicate fierce bearish defense of the downtrend line, with potential support at $980 and $860.
Tezos (XTZ) is witnessing a struggle between bulls and bears near strong support at $0.70. The failure of bears to sustain the price below this level suggests buying at lower levels. A close above the 20-day EMA would indicate strength and pave the way for a rally to the downtrend line, with targets at $0.94 and $1.04. However, if the price falls and sustains below $0.66, the positive view would be invalidated, potentially leading to a downtrend to $0.61.
Note: This article does not provide investment advice or recommendations.
Published At
9/5/2023 8:13:17 PM
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