Bitcoin Struggles to Break Range, Altcoins Under Pressure: Top Cryptocurrencies Analyzed for Potential Rally
Summary:
Bitcoin struggles to break out of its range, trading near $26,000. Uncertainty surrounds its direction as it forms Doji candlestick patterns. Limited downside potential expected due to potential approval of a Bitcoin exchange-traded fund. Altcoins under pressure. Top-five cryptocurrencies analyzed for potential rally. Toncoin shows upward trend, facing resistance at $2.07. Chainlink trades within range between $5.50 and $9.50. Maker finds support near $1,000. Tezos witnesses battle between bulls and bears around $0.70. Conduct own research before making investment decisions.
Bitcoin attempted a breakout last week but failed to sustain higher levels and is now trading near $26,000. Two consecutive Doji candlestick patterns on the weekly chart indicate uncertainty about its next move. The downside potential could be limited in the short term with expectations of potential approval of a Bitcoin exchange-traded fund by the SEC. Altcoins are under pressure due to the lack of clarity surrounding Bitcoin's direction. A few altcoins show signs of strength and may rally if they break above their overhead resistance levels.
Bitcoin's price action shows that while bears have the advantage with downsloping moving averages, the recovering relative strength index (RSI) suggests weakening bearish momentum. Breaking and closing above the $26,833 range could lead to a retest of the Aug. 29 intraday high of $28,142. On the other hand, a sustained price drop below $24,800 could push the pair down to $20,000.
Toncoin is in an uptrend, although the bears are attempting to halt its upward movement near the $2.07 resistance. Overbought levels on the RSI suggest a potential minor correction or consolidation. Maintaining current levels increases the likelihood of a rally above $2.07, potentially soaring to $2.40. A deeper correction may pull prices to the 20-day EMA ($1.61), with a strong bounce off this level indicating positive sentiment. However, if the 20-day EMA support is breached, the trend could turn negative.
Chainlink has been trading within a range between $5.50 and $9.50, with the bulls defending the support level. Buyers must push the price above the 20-day EMA ($6.23) to initiate a recovery towards the 50-day SMA ($6.94). A sharp downturn from the 20-day EMA would indicate negative sentiment, potentially pushing the price down to $5.50.
Maker has found support near $1,000 but faces strong resistance from bears at the downtrend line. Buyers have not given up much ground, suggesting a lack of urgency to sell positions. Closing above the downtrend line could indicate buyer reentry, with positive momentum likely after crossing $1,227.
Tezos has seen a struggle between bulls and bears near the $0.70 support level. The failure of bears to sustain a price drop below this level suggests buying pressure at lower levels. A close above the 20-day EMA ($0.71) would indicate strength and a potential rally to the downtrend line, although it may face resistance. The scenario would be invalidated if the price sustains below $0.66.
As a reminder, this article does not offer investment advice or recommendations. Conduct your own research before making any financial decisions.
Published At
9/4/2023 9:00:57 AM
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