Bitcoin (BTC) has been trading in a range since April, reflecting uncertainty about its next move. The bears’ attempts to push the price below the support level have been unsuccessful. However, according to Jamie Coutts, a market analyst at Bloomberg Intelligence, if the current tightening cycle continues and is followed by increased unemployment and stress in the banking sector, Bitcoin and other risk assets could face more challenges.
Cryptocurrency traders have also remained cautious, as the industry saw capital outflows of $55 billion in August, leading to decreased liquidity and heightened market sensitivity.
In terms of technical analysis, Bitcoin broke above the 20-day exponential moving average ($26,228), suggesting a weakening downside momentum. The cryptocurrency may continue to trade within a range of $24,800 and $28,143 in the near term. A decisive move below the 20-day EMA could lead to a retest of the strong support at $24,800.
As for other top-10 cryptocurrencies, Ether (ETH) showed strong buying support after falling below the $1,550 level. It has since recovered to the 20-day EMA ($1,638), which will be a key level to watch. A break above this level could trigger a short squeeze and drive the price towards $1,745. Conversely, a rejection at the 20-day EMA could indicate continued bearish sentiment.
Binance Coin (BNB) bounced off the psychological support level of $200, suggesting active buying at lower levels. The recovery has reached the 20-day EMA ($215), where a battle between buyers and sellers is expected. A move above the 20-day EMA could open the door for a retest of the 50-day SMA ($225).
XRP has been trading within a range of $0.41 and $0.56. A break above the 20-day EMA ($0.50) could indicate reduced selling pressure and a potential rally towards the overhead resistance at $0.56. However, a rejection at $0.56 would suggest continued range-bound trading.
Cardano (ADA) found support at $0.24 and has rebounded to the 20-day EMA ($0.26). A decisive move above this level could signal a stronger recovery towards $0.28. On the other hand, a sharp rejection at the 20-day EMA could increase the risk of a drop to $0.22.
Dogecoin (DOGE) continues to trade within a tight range between the 20-day EMA ($0.06) and the support level at $0.06. A move above the 20-day EMA could indicate weakening selling pressure, while a rejection could lead to a break below $0.06.
Solana (SOL) has been ranging between $14 and $27.12 for several months. The price has reached the 20-day EMA ($19.51), where strong resistance is expected. A move above this level could lead to a test of the overhead resistance at $22.30, while a rejection could result in a drop to the crucial support at $14.
TONcoin (TON) found support at the 20-day EMA ($1.75) and has reached the resistance at $1.98. A break above this level could pave the way for a rally towards $2.07. However, a slide below the 20-day EMA could shift the advantage to the bears.
Polkadot (DOT) has been trading below the breakdown level of $4.22. A move above this level would indicate a rejection of the breakdown, while a rejection could lead to a drop towards $3.44.
Polygon (MATIC) slipped below the support at $0.51 but quickly rebounded. The 20-day EMA ($0.54) will be a crucial level to watch, as a rejection could resume the downtrend towards $0.45, while a break above could lead to a rally towards $0.60.
Please note that this article does not provide investment advice and readers should conduct their own research before making investment decisions.
