Summary of BTC, ADA, ATOM, FIL and EOS price analysis for the wee
If BTC bounces off its key fundamental support, ADA, ATOM, FIL, and EOS could break out.
Last week's drop in the US stock market extended the bearish streak across the market school for three consecutive weeks. The Nasdaq Composite fell for six consecutive days for the first time since 2019. The negative market reaction to the August jobs report looked positive, suggesting that traders are nervous about future moves. of the Federal Reserve and its effect on the economy.
The weakness in the US stock market dragged Bitcoin (BTC) back below $20,000 on September 2, and bears maintained the price below the level over the weekend. This dragged Bitcoin's market dominance to just under 39% on September 4, the lowest level since June 2018, according to data from CoinMarketCap.
While sentiment remains negative and hard to call a bottom, investors who are confident in the long-term outlook of cryptocurrencies can take advantage of the opportunity to gradually build positions at low levels. lower instead of trying to catch the bottom. However, investors can avoid chasing higher prices during bear market rallies and look to buy when prices drop to strong support.
If Bitcoin recovers, select altcoins could move higher. Let's study the charts of the top 5 cryptocurrencies that are trending strongly on the charts.
Bitcoin has been trading in a tight range between $19.520 and $20,576 for the past few days, which suggests a balance between buyers and sellers in the near term. Although the bulls are buying on the downside, they have not been able to overcome the selling at higher levels.
The 20-day exponential moving average ($20,863) and the relative strength index (RSI) in the negative territory suggest an advantage for the sellers. If the bears drop below $19.520, the BTC/USDT pair can drop to the strong support area between $18,910 and $18,626.
This area is likely to attract strong buying by the bulls as has been the case on the previous two occasions. The bears will have to drop the price below $17.622 to signal the continuation of the downtrend.
On the other hand, buyers will have to push and sustain the price above the 20-day EMA to show that the bears may be losing their grip. The pair can then rally to the 50-day simple moving average ($22,271).
The price has recovered from the strong support near $19.520 but the bears are attempting to stave off the recovery at the moving averages. This shows that the bears are selling on every minor rally. If the bears sink the price below $19.520, the pair can resume the next phase of the downtrend.
Contrary to this assumption, if the bulls push the price above the moving averages, the pair can attempt to recover to the resistance of the range at $20,576. Buyers will have to clear this barrier to signal a potential short-term trend change.
Cardano (ADA) is in the process of consolidating but it is trying to rise above the moving averages. This shows demand at a lower level and increases the chances of an upturn, which is the reason for its choice.
The 20-day EMA ($0.47) has flattened out and the RSI has jumped into the positive zone, showing that selling pressure is easing. If buyers sustain the price above the 50-day SMA ($0.50), the ADA/USDT pair can rally to the downtrend line.
This level could once again act as a stiff resistance but if the bulls break above this level, the pair can rally to $0.70.
This positive view could be negated in the short term if the price turns down from the current levels and slides below the 20-day EMA. If that happens, the pair can once again slide to the strong support at $0.40.
The 20 EMA on the 4-hour chart is sloping up and the RSI has risen into the overbought zone. This shows that the bulls have the upper hand but a minor correction or consolidation is possible in the near term.
If buyers sustain the price above $0.48 or the 20 EMA, it will indicate a shift in sentiment from selling on the up to buying on the downside. That could push the price to $0.54 and then the downtrend line.
To invalidate this positive view, the bears will have to drag the price below $0.48. If that happens, the pair can slide to $0.44 and then $0.42.
Cosmos (ATOM) has not given up in the past few days and is trading near the overhead resistance of $13.45. This shows that traders do not close their positions when they anticipate the price to move higher. This is the reason for it being included in this list.
The ATOM/USDT pair dipped below the 50-day SMA ($11.08) on Aug 29 but the bulls bought at the lower levels. That started a recovery reaching the overhead resistance at $13.45. The ascending moving averages and the RSI in the positive zone suggest the path of least resistance is to the upside.
If the buyers push the price above $13.45, the pair can pick up momentum and rally to $15.30 and then to $20. This positive view could be invalidated if the price plummets and plummets below the psychological support at $10.
The 20 EMA is sloping up and the bulls are buying to drop to this support. This shows positive sentiment in the short term. The bulls will attempt to push the price to the overhead resistance of $13.45. This is an important level to watch as a break and close above it could indicate a continuation of the upward move.
Conversely, if the price turns down from the current level or the overhead resistance and breaks below the 20 EMA, it shows that the bears are active at higher levels. After that, the pair is likely to remain range-bound between $10 and $13.45 for some time.
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Filecoin (FIL) has been trading in a narrow range from Aug 27th to 2nd September, which resolved in reverse on September 3. The expectation that buyers could continue their purchases led to this coin's selection.
The FIL/USDT pair rallied strongly and climbed above the 20-day EMA ($6.39) on September 3. This is the first sign that buyers are attempting a return. However, the bears are not likely to surrender easily and they are posing a strong challenge near the 50-day SMA ($6.92).
The bears pulled the price back below the 20-day EMA on September 4. If they sustain the price below this level, the pair can drop to $5.50. Conversely, if the price rises from the current levels and breaks above the 50-day SMA, it will indicate strong buying on the downside. After that, the pair can rise to $9 and then $9.50. The pair has turned down from the overhead resistance area between $6.80 and $6.60 but one minor positive is that the bulls have not allowed the price to slide below the 20 EMA. If the price bounces off the current levels, the possibility of a breakout and close above the zone increases.
If that happens, the pair will complete an inverse head and shoulders pattern. The pair can then pick up momentum and recover towards the pattern target of $7.6 and then $8.30.
This positive view may be invalidated in the near term if the price breaks and closes below the 20 EMA. After that, the pair can drop to the strong support at $5.50.
EOS made the list because even in the turmoil it managed to stay above the moving averages. This shows short-term performance and increases the upside potential if sentiment in the crypto sector improves.
The EOS/USDT pair completed a rounded bottom on Aug 21 but the bulls were unable to sustain the higher levels. The bears pulled the price back below the August 28 breakout, showing strong selling on the recovery.
One small positive is that buyers were actively buying on a drop to the 50-day SMA ($1.33). The 20-day EMA ($1.48) has flattened out and the RSI is near the midpoint, suggesting a balance between buyers and sellers.
This balance could tilt in favor of the bulls if they push and sustain the price above $1.60. After that, the pair can rally to overhead resistance near $2. Alternatively, a break and close below the 50-day SMA could open the door for a possible drop to $1.15. .
The bears sold the recovery near $1.60 and are attempting to drag the price back below the $1.46 breakout. If they do, the pair can drop to the uptrend line. This level has acted as a strong support on the previous three occasions, hence, the bulls will again attempt to defend it.
If the price bounces off the uptrend line and breaks above $1.60, the pair can pick up momentum and rally to $1.80 and then $2. Conversely, a break and close below the uptrend line would indicate that the short-term uptrend may be over. After that, the pair can drop to $1.24.
The views and opinions expressed here are those of the author only and do not necessarily reflect the views of Fox Crypto News. Every investment and trading move is risky, you should do your own research when making your decision.
Sep 04, 2022