The United States’ equities markets are on a recovery path as the S&P 500 Index (SPX) surged 2.50% last week for its best week since June. Despite the relief rally attempted by Bitcoin (BTC), the bulls could not sustain the higher levels, resulting in a marginal loss of 0.5%.
The delay in the decision by the Securities and Exchange Commission on spot Bitcoin exchange-traded fund (ETF) applications did not stop analysts from expecting approval of several Bitcoin ETFs in the future. JPMorgan analysts noted this in a recent note.
Battle Infinity Crypto: Could Bitcoin Break Out of Its Range?
The short-term price action in Bitcoin has been volatile, but this has not discouraged long-term investors from holding onto their stockpiles. According to Glassnode data, the supply of Bitcoin mined and dormant for three years or more has reached a new high of 40.538%.
So, what are the important levels to watch out for when it comes to the battle infinity crypto? Could Bitcoin break out of its range in the next few days? Let’s analyze the charts to find out.
S&P 500 index price analysis
On Aug. 29, the S&P 500 index broke above the moving averages, indicating a strong relief rally by bulls. If buyers can keep the price above the moving averages, it suggests that sentiment remains positive and traders are buying on minor dips, increasing the chances of a rally above the overhead resistance at 4,607. If this level is surpassed, the index could rise to 4,650 and then 4,800.
Resuming the uptrend may be a challenge, as bears will attempt to push the price below the moving averages. If they succeed, the pair may drop to the strong support at 4,325. The bears must break this level to start a new downtrend.
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U.S. Dollar Index price analysis
The U.S. Dollar Index (DXY) bounced off the downtrend line on Aug. 30 and 31, suggesting that the bulls have transformed the level into support.
The bulls will then attempt to push the best crypto api above 104.45 and initiate a rally to the overhead resistance at 106. This level is likely to experience intense selling by the bears because a break above it will suggest that the downtrend may be over. The index could then rise to 108.
The significant support to monitor on the downside is the downtrend line. If this support fails, the index may decline to the 50-day simple moving average (SMA) (102.41) and eventually to the critical support at 100.82.
Bitcoin price analysis
The battle between bulls and bears is intensifying around the $24,800 level, which marks the bottom of the wide range between $24,800 and $31,000. Traders are taking advantage of the range by buying the dips near the support and selling near the resistance.
A breakdown of the $24,800 support could spark a massive sell-off that could push the BTC/USDT pair to the crucial $20,000 level. There is a minor support at $24,000, but it may not hold up for long.
On the other hand, if the bulls manage to break above the resistance at $26,833, the pair could climb to the 50-day SMA ($28,221), which would suggest that the range between $24,800 and $31,000 could remain in place for an extended period.
Ether price analysis
Ether (ETH) dipped below the strong support at $1,626 on Sept. 1, but the long tail on the candlestick shows solid buying at lower levels.
The bulls are attempting to revive the situation, but are having difficulty initiating a rebound. This implies a lack of demand at higher levels. Both the moving averages are sloping downwards, and the RSI is in negative territory, indicating that the bears are still in control.If sellers drag the price below $1,600, the ETH/USDT pair could plunge to the Aug. 17 intraday low of $1,550. This is the pivot level in the near term because a fall below it may open the gates for a decline to $1,368.
The first indication of strength will be a break above the 20-day exponential moving average (EMA) ($1,684). The pair could then rise to the overhead resistance at $1,750.BNB price analysis
The price of BNB (BNB) has been trading below the breakdown level of $220 for several days, but the bears have not been successful in pushing it further down.
The failure to break the $200 psychological support could encourage the bulls to initiate a recovery. The first obstacle they have to overcome is the resistance at $220 and then the resistance line. To confirm that the downtrend is over, buyers will need to take the price above the resistance line.
On the other hand, if the price turns down and breaks below $200, it will suggest the start of a new bearish phase. The BNB/USDT pair could then drop to the next major support at $183.
XRP price analysis
The bears pulled XRP (XRP) price below $0.50 on Sept. 1, but they were unable to maintain the lower levels, as evidenced by the long tail on the day’s candlestick.
The bears have kept up the pressure and have not allowed the bulls to start a strong rebound off the $0.50 level. This increases the probability of a downside break. If that happens, the XRP/USDT pair could drop to $0.41.
Conversely, if the price turns up from the current level and breaches the 20-day EMA ($0.53), it will signal that the bulls are attempting a comeback. The pair may then surge to $0.56. Buyers will have to break through this barrier to indicate the start of a new uptrend to $0.65.
Cardano price analysis
The ADA/USDT pair has been trading between $0.24 and $0.28 for the past few days, with the bulls and the bears in a battle of indecision.
The declining 20-day EMA ($0.26) and the RSI below 38 point to a slight advantage for the bears. If the price turns down from the 20-day EMA, the probability of a fall to $0.24 increases. Breaking below this level may trigger the next leg of the downtrend to $0.22 and then to $0.20.
Conversely, if the bulls are able to push the price above the 20-day EMA, the ADA/USDT pair could face resistance at the 50-day SMA ($0.28). A successful breakout of this level could propel the pair to $0.32.
Dogecoin price analysis
On Sept. 2, buyers attempted to drive Dogecoin (DOGE) above the 20-day EMA ($0.07), but the bears managed to resist. This keeps the DOGE/USDT pair stuck between the 20-day EMA and the key support at $0.06. The downward sloping 20-day EMA and the RSI in the negative zone point to an advantage for the sellers. If the price falls below $0.06, the selling could increase, and the pair could drop to the next support at $0.055.
If bulls wish to prevent the decline, they must quickly push the price above the 20-day EMA. If they succeed, the pair could jump to the 50-day SMA ($0.07) and later surge to $0.08.
Solana price analysis
Solana’s SOL (SOL) is currently undergoing a strong corrective phase, with buyers attempting to initiate a recovery rally, however, the downtrend line is likely to face resistance.
If the price moves sharply lower from its current level or the downtrend line, it will suggest that sentiment remains bearish and traders are selling on rallies. This could pull the price down to $18.32 and then to $16.
The bearish outlook may be invalidated in the short-term if bulls can push the SOL/USDT pair above the downtrend line. This could allow for a rally to $22.30, where the bears are likely to mount a strong defense.
Toncoin price analysis
Toncoin (TON) has hit a wall of resistance at $2.07, but the bulls have not backed down significantly. This suggests that they are holding on to their positions. The RSI indicates that a correction or consolidation may be imminent.
The key support to watch is the 20-day EMA ($1.61), as a break below it could push the price down to $1.53 and then to the 50-day SMA ($1.40).
On the upside, the bulls must break the resistance at $2.07. If successful, the TON/USDT pair could signal the continuation of the uptrend. The pair could then aim for the $2.40–$2.60 range.
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