Bitcoin continues to frustrate investors with its tight-range consolidation, giving no clue about the possible direction of a breakout. Typically, the longer the range, the stronger the eventual breakout from it. Therefore, traders should be on their toes to latch on to the breakout when it happens.
A minor positive in favor of the bulls is that they are holding on to a large part of the gains seen in 2023. That indicates a lack of urgency among the bulls to book profits, as they anticipate the uptrend to resume.
Bloomberg senior exchange-traded fund (ETF) analyst Eric Balchunas highlighted that 15 of the best-performing equity ETFs in 2023 have been crypto-related, with exposure to crypto and blockchain.
Do Bitcoin (BTC) and the select altcoins show any signs of a potential breakout from their respective ranges? Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin price analysis
The bulls pushed Bitcoin above the 50-day simple moving average (SMA) of $29,960 on Aug. 8 and 9 but could not sustain the higher levels. This suggests that the bears are selling on rallies.
The range in the BTC/USDT pair has shrunk further, with the price swinging between $28,585 and $30,350. Both moving averages have flattened out and the relative strength index (RSI) is near the midpoint, suggesting that the consolidation may continue for some more time.
When the price is stuck in a range, it is difficult to predict the direction of the breakout. However, traders should be ready for the start of a trending move soon.
If the price plunges below $28,585, the pair may descend to $26,000 and then to $24,800. Conversely, a break and close above $30,350 could propel the pair to $32,400. This is likely to be the final hurdle before the pair reaches $40,000.
Ether price analysis
Ether (ETH) has been trading between the 50-day SMA ($1,879) and the horizontal support at $1,816 for the past few days. This suggests uncertainty between the bulls and the bears about the next directional move.
The flattish 20-day exponential moving average (EMA) at $1,855 and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears. The sellers will have to tug the price below $1,816 to gain control. That could start a sell-off, which may pull the ETH/USDT pair to $1,700 and then to the vital support at $1,626.
On the contrary, if the price turns up and breaks above the 50-day SMA, it could open the gates for a rally to the psychological resistance at $2,000.
BNB price analysis
The failure to push BNB (BNB) above the resistance line of the triangle may have attracted selling. That has pulled the price below the moving averages.
The BNB/USDT pair could drop to the support line of the triangle. This is an important level to keep an eye on because a slide below it may start the next leg of the downward move to $220. The bulls are likely to buy the dip at this level.
If the price rebounds off the support line, the pair may spend some more time inside the triangle. Buyers will have to shove the price above the resistance line to clear the path for a potential rally to $265.
XRP price analysis
XRP (XRP) turned down from the 20-day EMA ($0.65) on Aug. 9, indicating that the bears are trying to flip the level into resistance.
The important support to watch on the downside is the 50-day SMA ($0.61). If this level cracks, the selling could intensify and the XRP/USDT pair could plummet to the breakout level of $0.56.
Another possibility is that the price bounces off the 50-day SMA. If that happens, the pair may spend some more time oscillating between the moving averages. A break and close above $0.67 will be the first sign of strength. That could open the doors for a possible rally to $0.73.
Dogecoin price analysis
Dogecoin (DOGE) continues to trade inside the ascending channel pattern, but the bulls are finding it difficult to overcome the barrier at the downtrend line.
If the price dips below the 20-day EMA ($0.07), the support line of the channel will come under threat. The repeated retest of a support level within a short interval tends to weaken it. If the bears yank the price below the channel, the DOGE/USDT pair could drop to the breakout level of $0.07.
Another possibility is that the price turns up from the 20-day EMA. If that happens, the likelihood of a rally above the downtrend line increases. That could start an up move to $0.08 and then to the resistance line of the channel.
Cardano price analysis
Cardano’s (ADA) recovery attempt hit a wall at the 20-day EMA ($0.30), which suggests that the bears have not yet given up and are selling on rallies.
The flattish 20-day EMA and the RSI just below the midpoint do not give a clear advantage either to the bulls or the bears. If the buyers kick the price above the downtrend line, the ADA/USDT pair could rise to $0.32 and then to $0.34.
Contrarily, if the price turns down and breaks below $0.28, it will suggest that bears have the upper hand. The pair could then slump to $0.26 and eventually to the vital support at $0.24. The bulls are expected to guard this level with vigor.
Solana price analysis
Solana (SOL) has been trading above the 20-day EMA ($23.87) for the past three days, indicating that the price is stuck between $26 and $22.30.
The important level to watch on the upside is $26. If the price turns down from this resistance, it will indicate that the range-bound action remains intact. The bullish momentum may pick up if buyers clear the overhead hurdle at $26. If they do that, the SOL/USDT pair could first rise to $29 and thereafter retest the local high at $32.13 made on July 14.
The level to be wary of on the downside is $22.30. If this support cracks, it will suggest that the bulls may be rushing to the exit. That may start a fall to $18.
Polygon price analysis
The bulls failed to thrust Polygon (MATIC) above the 50-day SMA ($0.70) in the past two days, but a positive sign is that they have not given up much ground.
This suggests that the short-term bulls are holding on to their positions as they anticipate the relief rally to continue. If the 50-day SMA is surmounted, the MATIC/USDT pair could start a rally to $0.80 and then to $0.90.
Contrary to this assumption, if the price turns down sharply from the current level, the pair may retest the strong support at $0.64. If this level gives way, the pair may start a decline to the next support at $0.60.
Litecoin price analysis
Litecoin (LTC) is struggling to start a bounce off the strong support at $81.36, suggesting a lack of demand at higher levels.
The downsloping 20-day EMA ($86.90) and the RSI in the negative territory indicate that bears are in command. If the LTC/USDT pair skids and sustains below $81.36, it will signal the resumption of the downtrend. The next support on the downside is $76 and then $72.
Alternatively, the first important resistance to watch on the upside is the 20-day EMA. If buyers propel the price above $87.37, it will suggest the start of a stronger recovery to $96.46. This level may again attract strong selling by the bears.
Polkadot price analysis
Polkadot (DOT) has been trading near the $5 level for the past few days. Attempts by the bulls to push the price above the 20-day EMA ($5.08) on Aug. 9 were met with stiff opposition from the bears.
The 20-day EMA is sloping down gradually and the RSI has been in the negative territory, indicating that the bears have a slight edge. If the price slips and closes below $4.83, the DOT/USDT pair could start its downward journey toward $4.60.
On the other hand, if the price turns up from the current level and breaks above the moving averages, it will signal a comeback by the bulls. The pair could then move up to $5.33 and eventually to the downtrend line.
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.