Bitcoin (BTC) attempted to break out of its range last week but was unable to sustain higher levels and has returned to trading near $26,000. The weekly chart shows two successive Doji candlestick patterns, indicating uncertainty about the next directional move. While it’s difficult to predict the breakout direction, there is a belief that the downside could be limited in the near term due to expectations that the United States Securities and Exchange Commission (SEC) may eventually approve a spot Bitcoin exchange-traded fund (ETF). Former SEC chair Jay Clayton expressed confidence in a recent interview, stating that approval is inevitable.
The lack of clarity surrounding Bitcoin’s next move has kept most major altcoins under pressure, with only a few showing signs of strength in the short term. If certain altcoins break above their respective overhead resistance levels, they may start a rally.
In terms of Bitcoin’s price analysis, it is currently back within the $24,800 to $26,833 range. Although the downsloping moving averages suggest an advantage to bears, the recovering relative strength index (RSI) indicates weakening bearish momentum. A break and close above the range at $26,833 would be a sign of strength and could lead to a retest of the Aug. 29 intraday high of $28,142. On the other hand, if bears manage to sustain the price below $24,800, the pair could decline to $20,000.
For Toncoin (TON), an uptrend is apparent but the bears are attempting to halt the up-move near the overhead resistance at $2.07. The moving averages show an advantage to buyers, but the overbought levels on the RSI suggest a minor correction or consolidation is possible. A rally above $2.07 could propel the TON/USDT pair to $2.40, while a deeper correction may lead to a pullback to the 20-day exponential moving average (EMA), currently at $1.61. A strong bounce off this level would indicate positive sentiment and buying on dips, while a crack in the 20-day EMA support would turn the trend negative.
Chainlink (LINK) has been trading within a large range between $5.50 and $9.50 for several months. The bearish trendline has provided solid resistance, while the support level at $5.50 has held firm. Failure to sustain below this support indicates buying at lower levels. If the price closes above the downtrend line and surpasses $1,227, positive momentum could pick up and lead to a rally toward $1,370. Conversely, sustaining below the 20-day EMA would give bears the upper hand and potentially lead to a decline to $980.
Maker (MKR) has found support near $1,000 but faces resistance from bears at the downtrend line. Buyers have not given up much ground, suggesting traders are holding their positions. A close above the downtrend line would indicate the return of buyers, likely leading to a rally toward $1,370. Conversely, sustaining below the 20-day EMA would favor bears and potentially result in a decline to $980.
Tezos (XTZ) has seen a battle between bulls and bears near the strong support at $0.70. The failure of bears to sustain the price below this level suggests buying at lower levels. A close above the 20-day EMA would indicate strength and potentially pave the way for a rally to the downtrend line, with resistance at $0.94 and $1.04. However, a slide and sustained price below $0.66 would invalidate this positive view.
In summary, Bitcoin remains uncertain in its range, with the potential for limited downside. Altcoins are under pressure, but a few show signs of strength. Bitcoin’s price analysis suggests a potential breakout above $26,833, while altcoins like Toncoin, Chainlink, Maker, and Tezos may experience rallies if they break above their respective resistance levels.
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