Bitcoin (BTCs) market capitalization has surpassed $1 trillion. Other altcoins are also rallying in the last few days. The Crypto Fear and Greed Index has risen to extreme greed territory, with a range of 79 and 100. The index reaches 95 at the highest point, which indicates that there is still plenty of room for growth.
PlanB, who is the inventor of Bitcoin stock-to flow, believes that BTC will reach $100,000 this Christmas. He believes that Bitcoin will eventually reach $100,000 by the end of the 2024 halving cycle.
Everyday cryptocurrency market performance. Source: Coin360
Tuesday is a significant day for Bitcoin. El Salvador became the first sovereign country to issue BTC as legal currency. While the experiment may have some hiccups it will be closely watched by other countries.
Are Bitcoin and altcoins poised to pick up momentum? Or will bears pull the price down below key support levels again? Lets look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoins range bound action of $46,200 to $51,000 resolved to the upside on Sep. 5. The bulls drove and closed the price higher than the 50,500-$51,000 overhead resistance zone. This indicates that the uptrend is resuming.
Daily chart of BTC/USDT Source: TradingView
The bears will attempt to bring the price down below $50,500 and trap aggressive bulls. The BTC/USDT exchange could fall to the 20-day exponentially moving average ($48.476) if they succeed.
This is an important level to monitor as the price bounced off it several times in the last few days. It will be a sign that sentiment is positive if the price bounces off the 20-day EMA. The bulls will attempt to regain the uptrend.
The upsides first target is $55,000, then $60,000. If the price falls below the 20-day EMA, this positive view will be invalidated. This could draw short-term traders to profit, bringing the price down below the 50-day simple average ($43,719).
On Sep. 3, Ether (ETH), broke above $4,000 but the bulls couldnt sustain higher levels. This indicates that the bears are aggressively defending this level. Positive news is that buyers are not giving up any ground.
Daily chart of ETH/USDT Source: TradingView
This indicates that bulls dont want to rush to book profits as they expect the up-move will continue. The buyers have an advantage because of the upwardly moving averages, but the negative divergence in the RSI indicates that bullish momentum is waning.
If the price falls below $3,700, then the ETH/USDT currency pair could fall to the 20-day EMA ($3,493). This support will be strong and bulls will continue to accumulate on dips. The buyers will attempt to push the price towards the record $4,372.72. A break below $3,377.89 could indicate a change in trend.
The bulls have failed to push Cardano, (ADA), above the $2.97-$3.10 overhead resistance zone. The RSIs negative divergence also suggests that bullish momentum is slowing.
Daily chart ADA/USDT Source: TradingView
The ADA/USDT currency pair could fall to the $20-day EMA ($2.65) which will likely act as a strong support. The bulls will attempt to push the pair higher if the price bounces off of this level. The pair could begin its climb towards $3.50 if they succeed.
The pair could drop to $2.47 if it breaks below the 20 day EMA. The pair could trade between $2.47 to $3.10 for a few more days if it bounces off of this level. Breaking below $2.47 could signal a change in trend.
Binance Coin (BNB), which is currently trading at $518.90 overhead resistance, is being driven by the bulls. However, a positive sign is the fact that the bulls have not allowed Binance Coin to drop below the 20-day EMA ($467). This indicates that accumulation is possible at lower levels.
Daily chart BNB/USDT TradingView
The buyers will attempt to push the BNB/USDT pair higher than $518.90 if the price bounces back above the 20-day EMA. The pair could retrace its upward trend and rally to $600 if they succeed.
A break below the 20 day EMA could bring the price down to $433. The pair could trade between $433 to $518.90 for a few days if bulls hold this level. Bulls may lose their grip if the pair closes below $433 or breaks.
Sep. 4, the bears attempted to drag XRP back into a triangle, but the bulls purchased the dips. Todays buyers have lifted the price above $1.35 overhead resistance, signaling the start of an uptrend.
Daily chart of XRP/USDT Source: TradingView
The XRP/USDT pairing could rise to $1.66 if bulls can keep the price above $1.35. The upward-sloping moving averages, and the RSI close to overbought territory suggest that the path of least resistance is towards the upside.
The bears could pull the price back down to the $20-day EMA ($1.19) if the bulls are unable to maintain the price above $1.35. This will increase the chance that the pair consolidates between $1.05-$1.35 for a few days more. Bears will be back in the game if they break below $1.05 and close below it.
Solana (SOL), is currently in an uptrend. Although bears attempted to stop the uptrend at $150 psychologically on Sep. 4, but could not get the price below $135.73, This shallow correction shows traders werent in a hurry to make profits.
Daily chart of SOL/USDT Source: TradingView
Bulls have been aggressively buying the price to push it above $150.60 today. This signals the resumption in the up-move. The SOL/USDT currency pair could rally to $179.45 as the next target.
Vertical rallies, even though they are strong in momentum, are not always sustainable. These rallies are often followed by sharp pullbacks as traders rush for the exit when the rally stops. To signal a possible correction to the 20 day EMA ($105), the bears must pull the price below $134.74.
Dogecoins (DOGE), although it has been holding above the falling wedge over the last three days, bulls are having trouble pushing the price towards the $0.35 target. This indicates that bulls will continue to sell rallies.
Daily chart of DOGE/USDT Source: TradingView
The DOGE/USDT currency pair could fall to the $20-day EMA ($0.29). The bulls will attempt to push the price higher if the price breaks this support. The pair could rally to $0.45 if that happens.
If bears lower the price below the 20 day EMA, the pair could drop to the 50-day SMA ($0.25). Bulls have a slight advantage due to the marginally rising 20-day EMA, and the RSI just below the midpoint.
If the 50-day SMA breaks, this advantage could tilt in favor the bears. This could lead to a drop of $0.21.
Polkadot has been steadily rising since its $28.60 breakout, but this slow rise indicates a lackluster conviction among bulls. A negative divergence has been observed in the RSI, which suggests that bullish momentum is weakening.
Daily chart of DOT/USDT Source: TradingView
The breakout level of $28.60 could see the DOT/USDT pair drop. The bulls will accumulate at lower levels if the price recovers from this level of strength. The buyers will attempt to regain the uptrend towards the $41.40 target.
Another possibility is for the price to rebound from $28.60, but remain below $35. This could lead to some range-bound trading between these levels for a few days. If the price breaks below $28.60, it will be a sign that the breakout is a bull trap. This could cause the price to drop below the SMA of 52 days ($22).
Related: LINK price lock in 36% gains after Ethereum layer 2s Chainlink Integration
Uniswap, (UNI), declined from $31.41 overhead resistance on Sep. 3, but the bulls have not allowed price to fall below the 20-day EMA ($28).
Daily chart of UNI/USDT Source: TradingView
The 20-day EMA is slowly moving up, which indicates a slight advantage for the bulls. The RSIs negative divergence suggests that bullish momentum is slowing. Todays Doji candlestick pattern indicates indecision between the bulls, and the bears.
The UNI/USDT pair may drop to $25 if the price falls below the 20-day EMA. The pair could extend its stay between $25.41 and $31.41 if this support holds for a few days more.
If the price rises above $31.41, it could rebound to $37.52 before rising to $42.25.
Chainlink (LINK), which was launched at $30 on Sep. 4, was pushed by the bears. But the bulls had different plans. They bought the dip aggressively and have lifted the price above the overhead resistance of $35.33 today.
Daily chart for USDT LINK. Source: TradingView
The LINK/USDT pair may resume its uptrend if bulls keep the price above $35.33. This could lead to a rally to $36 and then $43.50. Bulls have control of the market, as evidenced by the RSI in overbought territory and the moving averages that are upwardly sloping.
Contrary to the assumption, bears could pull the price down to $30 if the price does not sustain above $35.33. The pair could remain range bound for a few more days if this level is maintained. Bulls may lose their grip if they break or close below the 20 day EMA ($28).
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.