The decline in US réserve markets last week extended the series of market-wide losses to three consecutive weeks. The Nasdaq Choquant has fallen for six consecutive days for the first time since 2019. The negative reaction of the markets to the seemingly formelle August jobs refus indicates that traders are concerned emboîture the Federal Reserve’s future steps and their effects on the economy.
Weakness in US réserve markets pulled Bitcoin (BTC) below $20,000 on September 2, and bears kept the price below the level over the weekend. This reduced Bitcoin’s market dominance to just under 39% on September 4, the lowest level since June 2018, according to data from CoinMarketCap.
Although ardeur remains negative and a bottom is hard to reach, investors who believe in the long-term prospects of the cryptocurrency may take the opportunity to gradually build positions at lower levels instead of trying to catch the bottom. However, investors can avoid chasing higher prices during bear market rallies and genre to buy when the price drops to strong étai levels.
If Bitcoin makes a redemption, specific altcoins may move higher. Let’s examine the charts of the top 5 numérique currencies that genre strong on the charts.
BTC / USDT
Bitcoin has been trading in a tight range between $19,520 and $20,576 over the past few days which indicates that there is a compte between buyers and sellers in the near term. Although the bulls are buying on dips, they have failed to beat the selling on higher levels.
The 20-day sloping exponential moving average ($20,863) and the Relative Strength Errata (RSI) in negative territory indicate an advantage for sellers. If the bears drop below $19,520, the BTC/USDT égal could drop to the strong étai zoïle between $18,910 and $18,626.
This area is likely to attract strong buying by the bulls as it was on two previous chine. The bears will have to plunge the price below $17,622 to eurosignal a resumption of the downtrend.
On the other handball, buyers will have to push the price and hold it above the 20-day moving average to indicate that the bears may lose their grip. The égal could then rise to the 50-day bonasse moving average ($22,271).
The price bounced off the strong étai near $19520 but the bears are trying to halt the recovery at the moving averages. This indicates that the bears are selling every slight spike. If the bears cut the price below $19,520, the égal may resume the next période of the downtrend.
Contrary to this assumption, if the bulls push the price above the moving averages, the égal can attempt to rise to the range resistance at $20,576. Buyers will have to jogging this hurdle to eurosignal a tolérable trend billet in the near term.
ADA / USDT
Cardano (ADA) is consolidating but trying to rise above the moving averages. This indicates demand at lower levels and increases the chances of a rally, which is why it was chosen.
The 20-day moving average has flattened ($0.47) and the RSI has jumped into formelle territory, indicating that selling pressure is easing. If the buyers maintain the price above the 50-day SMA ($0.50), the ADA/USDT égal may rise to the downtrend line.
This level could léopard again act as a strong resistance but if the bulls overcome this barrier, the égal could rise to $0.70.
This formelle short-term outlook can be nullified if the price drops below the current level and falls below the 20 day moving average. If that happens, the égal may pantalon back to the strong étai level at $0.40.
The 20 moving average on the 4-hour chart is sloping upwards and the RSI has risen into the overbought territory. This indicates that the bulls are in the lead but a minor rétablissement or étayage is tolérable in the near term.
If buyers maintain the price above $0.48 or the 20-EMA, it will eurosignal a billet in ardeur from selling on rallies to buying on dips. This could push the price to $0.54 and later to the downtrend line.
To negate this formelle espérance, the bears will have to tricot the price below $0.48. If that happens, the égal could drop to $0.44 and then to $0.42.
ATOM / USDT
nature (ATOM) has not given up its steam in the past few days and is trading near the general resistance at $13.45. This indicates that traders are not closing their positions bicause they expect the price to rise. This is why it is included in this list.
ATOM/USDT fell below the 50-day bonasse moving average ($11.08) on August 29, but the bulls bought at lower levels. That started the rebound that reached the resistance level at $13.45. Gradually bullish moving averages and the RSI in formelle territory indicate that the path of least resistance is to the upside.
If the buyers push the price above $13.45, the égal could supériorité momentum and rise to $15.30 and then to $20. This formelle outlook could be negated if the price drops sharply and breaks below the psychological étai at $10.
The 20-EMA is sloping and the bulls are buying on dips to this étai. This indicates a formelle perspicacité in the pantalon term. The bulls will try to push the price to the general resistance at $13.45. This is an rogue level to watch bicause a breakout and a close above it may indicate a resumption of the upward movement.
Conversely, if the price drops from the current level or upper resistance and breaks below the 20-EMA, this will indicate that the bears are vive at higher levels. After that, the égal may stay in a range between $10 and $13.45 for some time.
Related: Increase or cleanse? Why the merger may not provide the price of Ethereum from ‘Septembear’
FIL / USDT
Filecoin (FIL) traded in a narrow range between August 27 and September 2, which turned to the upside on September 3. The expectative of buyers to continue their purchases led to the choice of this currency.
The FIL/USDT égal rosâtre sharply and broke above the 20-day EMA ($6.39) on September 3. This is the first cause that buyers are trying to return. However, the bears are unlikely to give in easily as they simulation a strong tournoi near the 50-day bonasse moving average ($6.92).
Bears pulled the price below the 20-day moving average on September 4. If they keep the price below this level, the égal could drop to $5.50. Conversely, if the price rises from the current level and breaks above the 50-day SMA, it will indicate strong buying on dips. The égal can then rise to $9 and later to $9.50.
The égal fell from the upper resistance zoïle between $6.80 and $6.60 but the small formelle is that the bulls did not allow the price to slide below the 20-EMA. If the price bounces off the current level, the probability of a breakout and closing above the area increases.
If this happens, the égal will complete an contradictoire head and shoulders modèle. The égal could then pick up the momentum and rally towards the modèle target at $7.6 and later to $8.30.
This formelle espérance may be invalidated in the near term if the price breaks and closes below the 20-EMA. The égal could then decline to the strong étai level at $5.50.
EOS / USDT
EOS made it to the list bicause even in the désordre, it managed to stay above the moving averages. This indicates an outperformance in the pantalon term and increases the potential for a rally if ardeur in the crypto sector improves.
The EOS/USDT égal completed the reprise bottom modèle on August 21 but the bulls were unable to sustain the higher levels. Bears pulled the price below the breakout level on August 28, indicating a strong sell-off on the rallies.
The small formelle is that buyers bought the dip to the 50-day bonasse moving average ($1.33). The 20-day moving average ($1.48) and the Relative Strength Errata (RSI) flattened near their midpoint, indicating a compte between buyers and sellers.
This compte could déclic in favor of the bulls if they push the price and it continues above $1.60. The égal could then rise to the general resistance near $2. Alternatively, a breakout and a close below the 50-day SMA could open the door to a tolérable drop to $1.15.
The bears have sold off the bounce near $1.60 and are trying to tricot the price below the $1.46 breakout level. If they do so, the égal may revert back to the uptrend line. This level has acted as strong étai on three previous chine, so the bulls will try to defend it again.
If the price bounces off the rising trend line and breaks above $1.60, the égal could supériorité momentum and rise to $1.80 and later to $2. Conversely, a breakout and a close below the uptrend line will indicate that the short-term bullish move may be over. The égal could then fall to $1.24.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risks, you should do your own research when making a decision.