Bitcoin (BTC) has been trading within a narrow range this week, forming a potential third consecutive Doji candlestick pattern on the weekly chart. The lack of support from the US equities markets, which ended the week in negative territory, has dragged down Bitcoin and several altcoins to multi-week lows. This indicates that the broader crypto market is firmly in the grip of bears, making it difficult for short-term bullish trades to sustain rallies. However, long-term investors may see this as a good time to build their portfolio.
A recent report by Amberdata reveals that 24% of asset management firms are appointing senior executives specifically dedicated to implementing digital strategies. This indicates a seriousness and senior management buy-in towards adopting digital assets strategies. Furthermore, an additional 13% of firms plan to adopt digital assets strategies in the near future. This growing interest in digital assets by asset management firms could potentially boost buying interest in Bitcoin and other cryptocurrencies.
When analyzing the Bitcoin price, the daily chart shows that the downsloping moving averages give an advantage to bears. However, the positive divergence on the relative strength index suggests that selling pressure is decreasing. The indicators are not giving a clear advantage to either bulls or bears. Therefore, it is advisable to wait for the price to either sustain above $26,500 or fall below $24,800 before making significant bets. If bulls manage to overcome the obstacle at $26,500, the BTC/USDT pair could rise to the overhead resistance at $28,143. Conversely, a fall below $24,800 could open the path for a collapse to $20,000.
On the 4-hour chart, Bitcoin has been trading near the moving averages, indicating a lack of interest from both bulls and bears. This tight-range trading is unlikely to continue for long and may result in a range expansion in the coming days. A rally above $26,500 would indicate an advantage for buyers, leading to an up-move towards $27,600 and eventually $28,143. On the other hand, if the price breaks below $25,300, selling pressure could increase, potentially retesting the Aug. 17 intraday low of $25,166.
Turning to altcoins, Toncoin (TON) has pulled back to the 20-day exponential moving average ($1.69). In uptrends, corrections to the 20-day EMA often present low-risk entry opportunities. If the price bounces back from the 20-day EMA, it will indicate positive sentiment and buying on dips. The TON/USDT pair could rise to $1.89 and potentially attempt a rally towards $2.07. However, if the price continues to decline and falls below the 20-day EMA, it would suggest that bulls are exiting their positions, opening the doors for a possible drop to $1.53 and potentially the 50-day simple moving average ($1.45).
Stellar (XLM) has shown signs of a comeback, staging a recovery in the past few days. The XLM/USDT pair broke above the 20-day EMA ($0.12), and bulls managed to keep the price above it, indicating an attempt to flip the 20-day EMA into support. The price has reached the 50-day SMA ($0.13), which is acting as a roadblock. However, the fact that buyers have not given up much ground suggests that they are not rushing to exit. If the price breaks above the 50-day SMA, the pair could rise to $0.15 and potentially $0.17. This bullish view would be invalidated if the price turns down and falls below the 20-day EMA.
Monero (XMR) has held the uptrend line support, indicating buying at lower levels. The price has reached the 20-day EMA ($143), an important level to monitor. If bulls can push the price above the 20-day EMA, it would suggest the start of a sustained recovery. The XMR/USDT pair could then climb to the 50-day SMA ($151) where bears may defend strongly. If this obstacle is overcome, the pair could surge to $160. However, if bears manage to pull the price below the uptrend line, the pair could sink to $130. On the 4-hour chart, a symmetrical triangle pattern has formed, indicating indecision between bulls and bears. A break above or below the triangle could signal the start of a trending move.
Finally, Maker (MKR) has been trading between the moving averages, suggesting indecision among bulls and bears. The fact that the price has remained above the downtrend line is a minor positive for bulls. The 20-day EMA ($1,119) is gradually moving up, but the RSI near the midpoint indicates a lack of bullish momentum. A sustained move above the 50-day SMA ($1,157) would signal an up-move to $1,227. Conversely, re-entering the downtrend line could lead to a drop to the strong support at $980.
The information provided in this article should not be considered as investment advice or recommendations. Every investment and trading decision involves risks, and individuals should conduct their own research before making any decisions.
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