Bitcoin (BTC) has been trading in a tight range this week and is about to form a third consecutive Doji candlestick pattern on the weekly chart. Cryptocurrency markets did not receive any support from US equity markets, ending the week in a negative trend. The S&P 500 index fell 1.3%, while the Nasdaq closed up 1.9%.
Bitcoin’s weakness dragged down many altcoins, many of which hit multi-week lows. This shows that the overall cryptocurrency market is in a bearish situation. Negative markets make it difficult for buyers to identify short-term bullish trades because rallies are almost unsustainable. However, this may be a good time for long-term investors to build a portfolio.
According to a recent Amberdata report, 24% of asset management companies have appointed senior executives dedicated to implementing digital strategies. Next, Another 13% of companies plan to adopt a digital asset strategy. This shows the “seriousness of implementation as well as the acceptance of senior management” added the report.
Could Bitcoin Break Higher, Driving Interest in Buying Altcoins? Let’s study the charts of the 5 most promising cryptocurrencies in the short term.
Bitcoin price analysis
Bitcoin has been trading near the $26,000 level for the past few days, indicating a battle between bulls and bears.
The bearish moving averages show an advantage for the bears, but the positive divergence of the relative strength index suggests that the selling pressure has decreased. The indicators do not give a clear advantage to bulls or bears.
Therefore, it is better to wait for the price to stay above $26,500 or fall below $24,800 before making big bets.
If the bulls clear the $26,500 barrier, the BTC/USDT pair may reach the $28,143 resistance. On the other hand, If the pair falls below $24,800, the BTC/USDT pair may recover. Instead, a drop below $24,800 could clear the way for a crash to $20,000.
On the 4-hour chart, the price is trading near the moving averages, which shows the lack of interest from the bulls and bears. It is unlikely that this situation will last over time and there may be an expansion of the range in the coming days.
On the upside, a rally above $26,500 would indicate that the upside has shifted in favor of buyers. This could lead to a strong move to $27,600 and finally $28,143.
On the other hand, if the price breaks below $25,300, selling may increase and the pair may retest on August 17 intraday below $25,166.
Toncoin Price Analysis
Toncoin (TON) retreated to the 20-day exponential moving average ($1.69). In a fashion aka a fashion A retracement of the 20-day EMA usually offers a low-risk entry opportunity.
The 20-day EMA is likely to act as strong support. If the price bounces back from the 20-day EMA, it will indicate that the sentiment has turned positive and traders are buying the dips. The TON/USDT pair may first rise to $1.89 and then try to rally to $2.07.
On the other hand, if the price continues to decline and falls below the 20-day EMA, the bulls will exit their positions. That could open the doors to a possible drop to $1.53 and close to the 50-day simple moving average ($1.45).
On the 4-hour chart, the bears are trying to sink the price below the immediate support at $1.72, but the bulls remain strong. The bearish 20 EMA and the RSI in negative territory increase the risk of a bearish breakout.
If the support at $1.72 is broken, the pair may fall to $1.66 and then fall to the strong support at the $1.53 level.. Conversely, if the bulls push the price above the moving averages, it will suggest the start of a stronger recovery at $1.90 and later $2.
Stellar Price Analysis
Stellar (XLM) has staged a smart recovery in recent days, indicating that buyers are trying to return.
The XLM/USDT pair broke above the 20-day EMA ($0.12) on September 4 and the bulls thwarted the bears’ attempts to pull the price back below it on September 5 and 6. This suggests that the bulls are trying to convert the 20-day EMA into support.
The price reached the 50-day SMA ($0.13), which acted as a barrier. A small positive point in favor of the buyers is that they do not give much land. This suggests that the bulls are in no rush to exit. If the price breaks the 50-day SMA, the pair can shoot up to $0.15 and then $0.17.
This bullish view may become invalid in the short term if the price declines and falls below the 20-day EMA.
The bears are trying to stop the recovery of the overhead resistance at $0.13, but the bulls are not giving much ground. The bounce from the 20 EMA shows that the lower level continues to attract buyers. If the price remains above the resistance, the pair may start an upward movement towards $0.15.
If the bears want to stop the bullish move, they need to drag the pair below the 20 EMA quickly. That will facilitate selling and drag the price to the 50 SMA.
Monero Price Analysis
Monero (XMR) has been holding uptrend line support for the past few days, indicating buying at lower levels. The price has reached the 20-day EMA ($143), which is an important level to watch.
If the bulls push the price above the 20-day EMA, it will suggest the start of a sustained recovery.. The XMR/USDT pair may rise towards the 50-day SMA ($151), where the bears can once again mount a strong defense. If this barrier is removed, the pair could reach $160.
The bears may have other plans. They will try to protect the 20-day EMA and take the pair below the uptrend line. If they succeed, more stops can be reached. The pair may sink to $130.
The formation of a symmetrical triangle is observed on the 4-hour chart. The flat moving average and the RSI near the midpoint do not give a clear advantage to either the bulls or the bears.
If the price falls below the 50 SMA, the bears will try to push the pair to the triangle support line. Conversely, if the price crosses the 20 EMA, the pair will reach the resistance line. A break above or below the triangle may signal the start of a trend move.
Producer Price Analysis
The Maker (MKR) is stuck between the moving averages, indicating hesitation between bulls and bears. A small positive point in favor of the bulls is that the price is trading above the downtrend line.
The 20-day EMA ($1,119) is gradually rising, but the RSI near the middle suggests a lack of bullish momentum. Buyers should push and sustain the price above the 50-day SMA ($1,157) to signal the start of an upward move to $1,227.
This positive view may become invalid in the short term if the price re-enters the downtrend line. The MKR / USDT pair may fall to the strong support of $ 980. This level is likely to witness heavy buying by bulls.
The 4-hour chart shows that the price has been oscillating between $1,083 and $1,170 for some time. The flat moving averages and the RSI in the negative zone indicate a slight advantage for sellers.
On the negative side, Key support to watch is USD 1,102 and then USD 1,083. On the contrary, if the price rises from the current level and exceeds the moving averages, it will suggest that the bulls will return. The pair may rise to $1,170.
This article does not constitute investment advice or recommendations. Every investment and trading move involves risks, and readers should do their own research when making a decision.