Bitcoin Bulls Struggle to Break Out of Range; Long-Term Outlook Remains Positive
Bitcoin’s recent rebound off the $28,701 support level has shown that buyers are still attracted to lower price levels. However, the cryptocurrency has been trading within a range, as traders wait for a new trending move to start. According to a recent report by ARK Invest, Bitcoin’s volatility dropped to a 6-year low in July.
Traders who were expecting a strong move in either direction have been disappointed by the ongoing range-bound action in August. Historical data shows that August and September have been relatively uneventful months for Bitcoin, with average moves of 0.73% and -5.01%, respectively.
While the short-term outlook is uncertain, the long-term view remains positive. Galaxy Digital CEO Mike Novogratz recently said that the first spot Bitcoin exchange-traded fund (ETF) in the United States could be approved by the Securities and Exchange Commission in four to six months. Such an approval is expected to have a significant positive impact on the crypto space.
Meanwhile, important resistance levels continue to impact Bitcoin and altcoins. Can the bulls overcome this roadblock? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin Price Analysis
Bitcoin’s recent relief rally from the $28,861 support level shows that the bulls are not willing to give up and continue to see dips as buying opportunities. The BTC/USDT pair has broken above the 20-day exponential moving average (EMA) of $29,455 and is now attempting to breach the 50-day simple moving average (SMA) of $29,981. If successful, the pair could gain momentum and move towards the overhead resistance zone between $31,804 and $32,400.
On the other hand, if the price turns down and falls below the 20-day EMA, it would suggest that bears are still selling on rallies. This could result in the pair being stuck in a tight range between $28,500 and $30,500 for a few days.
Ether Price Analysis
Buyers have been stepping in to purchase the dip below the $1,816 support level in Ether (ETH), leading to a strong recovery. The bulls are currently facing resistance at the 50-day SMA ($1,881), but the flattening 20-day EMA and the relative strength index (RSI) near the midpoint indicate that bears are losing their grip.
If buyers manage to push the price above the 50-day SMA, the ETH/USDT pair could rally to $1,930 and potentially reach the psychologically important level of $2,000. However, if the price falls below the crucial short-term support at $1,800, the advantage could shift in favor of the bears.
BNB Price Analysis
BNB has turned upwards from the moving averages and reached the resistance line of the symmetrical triangle pattern. Bulls are trying to defend the resistance line, and if they can prevent the price from falling below the moving averages, it would increase the likelihood of an upside breakout. The BNB/USDT pair could climb to $265 and potentially reach the pattern target of $288.
However, if the price turns down and falls below the moving averages, it could indicate that the pair may continue to trade inside the triangle for some time. A break below the triangle could give the advantage to the bears, with the pair potentially declining to $220.
XRP Price Analysis
XRP reversed direction from the 50-day SMA ($0.60) on August 7 and has reached the 20-day EMA ($0.66). If the price turns down from the current level, it would suggest that sentiment has turned negative and traders are selling on rallies. This could enhance the prospects of a fall to the breakout level of $0.56.
On the other hand, if the price rises above the 20-day EMA, it would suggest that bulls are attempting a comeback. The XRP/USDT pair could then rise to $0.73, which may prove to be a tough hurdle to cross.
Dogecoin Price Analysis
Dogecoin has bounced back from the support line of the ascending channel on August 7, indicating that bulls continue to buy on dips. The price has risen above the 20-day EMA ($0.07), clearing the path for a possible rally to $0.08. However, this level may present a difficult obstacle for bulls to overcome. If they manage to surpass it, the DOGE/USDT pair could reach the resistance line of the channel.
However, if the price turns down from the current level or the overhead resistance, it could plunge below the channel, potentially dropping to $0.07. This is an important level to watch, as a break below it could result in a further decline to $0.06.
Cardano Price Analysis
Cardano has turned up from $0.28 on August 7, indicating buying at lower levels. The price has reached the moving averages, which are just below the downtrend line. The bears are likely to defend the downtrend line, and if the price turns down from this level, the ADA/USDT pair could retest the support at $0.28. A break and close below this level could bring the pair to $0.26 and then to $0.24.
However, if bulls manage to clear the overhead hurdle, the pair could rally to $0.34. This level may once again prove to be a barrier, but if bulls overcome it, the pair could reach the overhead resistance at $0.38.
Solana Price Analysis
Solana has held the support at $22.30, indicating demand at lower levels. Buyers have pushed the price above the 20-day EMA ($23.71), signaling a comeback. The flattish 20-day EMA and the RSI in positive territory indicate a minor advantage to the bulls. The SOL/USDT pair could rise to $25.68 and then to the stiff overhead resistance of $27.12. However, sellers may pose a strong challenge at this level. If the price turns down from the overhead resistance, it could consolidate between $27.12 and $22.30 for some time. The bears would gain the upper hand if they push the price below $22.30.
Polygon Price Analysis
Polygon has bounced off the strong support at $0.64 and reached the moving averages, where bears are expected to mount a strong defense. If the price turns down from the moving averages, the MATIC/USDT pair could drop to $0.64. A bounce off this level could keep the pair range-bound between $0.64 and the moving averages. The flattish moving averages and the RSI just below the midpoint indicate range-bound action.
However, if bulls manage to drive the price above the moving averages, it would suggest the start of a stronger recovery to $0.74 and then to $0.80.
Litecoin Price Analysis
Litecoin experienced strong demand at lower levels, as evidenced by the long tail on the candlestick. The bulls are attempting to start a recovery, but they are likely to face strong selling near the 20-day EMA ($87). If the price turns down from this level, it would suggest that sentiment remains negative and traders are selling on rallies. The bears could make one more attempt to push the LTC/USDT pair below $81.36.
However, if bulls manage to push the price above the 20-day EMA, it would open the doors for a possible rise to the 50-day SMA ($92) and potentially to $96.46.
Polkadot Price Analysis
Polkadot has been trading within a range between $5 and $5.65 for some time. Attempts to break above and below the range have been unsuccessful, indicating that bulls are buying the dips and bears are selling on rallies. The bulls are currently trying to push the price above the moving averages, but they are facing stiff resistance from the bears.
If the price turns down from the moving averages, it would increase the likelihood of a break below $4.83. If that happens, the DOT/USDT pair could decline to $4.60. On the other hand, if bulls manage to push the price above the moving averages, it would indicate that the range remains intact. The pair could rise to $5.33 and subsequently to the overhead resistance at $5.64.
Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Analyst comment
Positive news. The short-term outlook for Bitcoin is uncertain due to the ongoing range-bound trading. However, the long-term outlook remains positive with the potential approval of the first spot Bitcoin ETF in the US. Bitcoin bulls may attempt to break above resistance levels and gain momentum, potentially reaching the overhead resistance zone. Other cryptocurrencies like Ether, BNB, XRP, Dogecoin, Cardano, Solana, Polygon, Litecoin, and Polkadot also have varied price analysis but show potential for recovery or upward movement. Investors should conduct their own research before making any investment decisions.
