US stock markets are trying to stabilize after the carnage on August 26. Similarly, Bitcoin (BTC) is also witnessing a swinging battle near the psychological $20,000 level with the bulls and bears vying for supremacy.
Although several analysts are bearish on Bitcoin in the short term, it has not stopped the whales from accumulating at lower levels. Data from on-chain research firm Santiment shows that the number of whale addresses containing between 100 and 10,000 Bitcoin has increased by 103 in the last 30 days.
In bear markets, rumors spread quickly and could lead to rapid declines, but fears are often unfounded. Mt. Gox creditors confirmed on Twitter that the rumor of a 137,000 Bitcoin sell-off spread on social media was false. Creditors said the infrastructure needed to initiate payment was not yet in place.
Could Bitcoin and Major Altcoins Sustain the Rebound? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin closed below the psychological $20,000 level on Aug. 28, but the bears were unable to press their advantage. Buyers have pushed the price back above $20,000 on Aug 29, showing strong demand at lower levels.
The BTC/USDT pair could rally to the 20-day exponential moving average ($21,620), which is an important level to watch. If the bulls push the price above this resistance, it could indicate that the bearish momentum is weakening. A breakout and close above the moving averages could open the doors for a possible rally to $25,211.
Alternatively, if the price breaks down from the downtrend line or moving averages, it will suggest that the bears are selling on every minor rise. The pair could then drop to the strong support zone of $18,910 to $18,626. The bulls are expected to defend this zone with all their might because if the support breaks, the pair could drop to the June low of $17.622.
ETH/USDT
Ether (ETH) turned down from the 20-day EMA ($1,638) on Aug. 26 and broke below the neckline of the head and shoulders pattern. This completed the bearish setup, indicating that sellers are in control.
However, the bears could not sustain the price below the neckline, which indicates that they are buying the dips. The bulls are attempting to push and sustain the price above the neckline and challenge the overhead resistance at $1,700. If they are successful, the ETH/USDT pair could rally to the psychological $2,000 level.
Conversely, if the price turns down from the current level or the moving averages, it will suggest that the bears are active at higher levels. If the price turns down and breaks below the neckline, the pair could drop to the strong support at $1,280. The bulls are expected to defend this level aggressively, but if they do not, the pair could drop to $1,050.
BNB/USDT
The failure of the bulls to sustain the price above the 20-day EMA ($293) on Aug. 25 attracted strong selling. Binance Coin (BNB) turned down sharply on Aug. 26 and broke below the 50-day SMA ($284).
A minor positive is that the bulls did not allow the price to sustain below the strong support at $275. The buyers are trying to push the price above the 50-day SMA.
If they are successful, the BNB/USDT pair could rally to the 20-day EMA, where the bears can present a strong challenge. The bulls will have to push the pair above $308 to open the doors for a possible rally to $338.
Conversely, if the price turns down from the moving average and drops below $275, it will complete a head and shoulders pattern. This negative setup could start a drop to $240 and then to the $212 target.
XRP/USDT
The bulls failed to sustain XRP above the moving averages on Aug. 26, indicating that the breakout may have been a bull trap. That intensified the selling and the bears are attempting to push the price to the strong support at $0.30.
The buyers are likely to defend the $0.30 support aggressively because if the support breaks, the XRP/USDT pair could start the next leg of the downtrend. The pair could then drop to $0.25 and then to the pattern target of $0.21.
Alternatively, if the price bounces off $0.30 strongly, it will indicate strong demand at lower levels. The bulls will once again try to push the price above the moving averages. If they can pull it off, the pair could rally to the strong overhead resistance of $0.39.
ADA/USDT
Cardano (ADA) continues to gradually slide towards the strong support of $0.40. The bulls have bought the dips at this level twice before, so it may again attract buyers.
The bulls are attempting to push the price above the moving averages. If successful, the ADA/USDT pair could rally to the downtrend line and then attempt an up move to the $0.70-$0.74 resistance zone.
On the other hand, if the price turns below the moving averages again, it will suggest a lack of demand at higher levels. Afterwards, the bears will try to sink the price below $0.40 and resume the downtrend.
SOL/USDT
Solana (SOL) broke out and closed below the strong support at $32 on Aug. 26, indicating that the range has been broken in favor of the bears.
The bulls are attempting to push the price back above the breakout level of $32. If successful, the SOL/USDT pair could rally to the 20-day EMA ($36). This is an important level to watch out for because a breakout and close above it could increase the chance that the pair remains range bound at $32-$48 for a few more days.
Conversely, if the price turns below the current level or the 20-day EMA, it will suggest that the bears are in control. The pair could then drop to the vital support at $26. A breakout and close below this level could signal the start of the next leg of the downtrend.
DOGE/USDT
Dogecoin (DOGE) broke out and closed below the trendline of the ascending triangle pattern on Aug. 26, invalidating the bullish setup. The price has dropped to the immediate support at $0.06.
If the price bounces off the current level, it will suggest that the bulls may be accumulating on the dips. The buyers will once again try to push the price above the moving averages. If they manage to do that, the DOGE/USDT pair could rally to $0.08. A breakout and close above this level will be the first sign that the bears may be losing control.
Alternatively, if the price breaks below $0.06, the selling could intensify and the pair could drop to the critical support at $0.05. The bulls are likely to defend this support with all their might because if the level breaks, the pair could resume its downtrend.
DOT/USDT
Polkadot (DOT) remains stuck inside the wide range between $10 and $6. The 20-day EMA down ($7.68) and the RSI in the negative territory indicate an advantage for the bears.
The bulls are attempting to push the price above the moving averages. If they manage to do that, the DOT/USDT pair could rally towards $9.17 and then the overhead resistance at $10.
Conversely, if the price turns below the moving averages again, it will suggest that the bears are selling on the rallies. The pair could then decline to the crucial support at $6. The bears will have to sink and sustain the price below this level to suggest the start of the next leg of the downtrend.
SHIB/USDT
Shiba Inu (SHIB) broke out and closed below the immediate support at $0.000012 on Aug. 28, but the bears were unable to take advantage of it. This suggests that the bulls are buying the dips.
If the buyers sustain the price above the 50-day SMA ($0.000012), the SHIB/USDT pair could attempt a rally to the overhead resistance at $0.000014. If the price turns down from this level, the SHIB/USDT pair could remain stuck between $0.000012 and $0.000014 for some time.
If the bulls push and sustain the price above $0.000014, the pair could rally to the strong resistance at $0.000018. This bullish view will be invalidated in the short term if the price turns down and falls below the intraday low of August 28.
MATIC/USDT
The Polygon (MATIC) bounce ran into stiff resistance at the 20-day EMA ($0.83) on Aug. 28, which indicates that the bears are defending the level aggressively.
The MATIC/USDT pair bounced off the strong support at $0.75 on Aug. 29, which indicates that the bulls are buying the dips to range support. The pair is stuck between the 20-day EMA and $0.75, but this tight range trading is unlikely to continue for long.
If the buyers push the price above the moving averages, the pair could rally to the overhead resistance of $1.05, where the bears may again pose a strong challenge. Alternatively, if the price drops below $0.75, the pair could drop to the strong support at $0.63.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
Market data is provided by the exchange HitBTC .