Bitcoin and altcoins have bounced off their range lows, but they are likely to encounter resistance at higher levels. The U.S. stock market is on track to clock its best August performance since 1984. Meanwhile, Bitcoin (BTC)
is attempting a positive close for the month after having declined
consecutively in August 2018 and August 2019. However, gold futures and
the U.S. dollar index (DXY) have not been in favor, as both could end
the month in the red.
Berkshire Hathaway disclosed a 5% stake
each in five leading Japanese trading companies, and just a few days
back, the company announced that it had a stake in a gold mining
company.
Daily cryptocurrency market performance. Source: Coin360
Max
Keiser of the Keiser report believes that these recent purchases by
Berkshire are an indication that Buffett is diversifying away from the
dollar. Hence, Keiser expects Bitcoin, gold and silver to make new all-time-highs in the near term.
While
anything is possible in the markets, does Bitcoin’s chart show bullish
setups that support the view of a sharp rally in the short term?
Let’s analyze the charts to find out!
BTC/USD
Bitcoin
broke out of the 20-day exponential moving average (EMA) ($11,559) on
Aug. 30, which is a positive sign. The bulls will now try to propel the
price above the $12,113.50–$12,460 resistance zone.
BTC/USD daily chart. Source: TradingView
If
they succeed, it will signal the possible resumption of the uptrend
with the next target objective at $13,000 and then $14,000.
However,
the 20-day EMA is flat, and the relative strength index is just above
the midpoint, which suggests a balance between supply and demand.
If
the price turns down from the overhead resistance, the BTC/USD pair
could remain range-bound between $12,113.50 and $11,000 for a few days.
A
break below $11,000 will indicate weakness, and the pair will turn
negative on a drop below the critical support zone of $10,400 to
$10,000.
ETH/USD
The bulls pushed Ether (ETH)
above the 20-day EMA ($400) on Aug. 28 and followed that up with a
strong up-move on Aug. 30, which brought the price above the $415.634
resistance.
ETH/USD daily chart. Source: TradingView
With
this rise, the 20-day EMA has again started to slope up, and the RSI
has broken out of a downtrend line, which suggests that the bulls are in
command.
If they can propel and sustain the ETH/USD pair above
$446.479, the uptrend is likely to resume with the first target at $480
and then $550.
Contrary to this assumption, if the pair turns down
from the overhead resistance, it could spend some more time in
consolidation. The momentum will weaken if the bears sink the price back
below the critical support at $366.
XRP/USD
The bulls pushed XRP
above the 20-day EMA ($0.28) on Aug. 30, which suggests strong buying
at lower levels. The 20-day EMA has flattened out, and the RSI has risen
above the 50 level, which suggests that the selling pressure has
reduced.
XRP/USD daily chart. Source: TradingView
If the bulls can sustain the price above the 20-day EMA, a move to $0.295 and then to $0.326113 is possible.
Contrary
to this assumption, if the XRP/USD pair again dips back below the
20-day EMA, the bears will try to sink the price below the 50-day simple
moving average ($0.26). If they succeed, the decline could extend to
the 61.8% Fibonacci retracement level of $0.241068.
LINK/USD
Chainlink's
LINK broke above the symmetrical triangle on Aug. 29, which suggests
buying at lower levels, but the bears are not willing to give up without
a fight. They are currently attempting to stall the up-move at
$17.6738.
LINK/USD daily chart. Source: TradingView
However,
the 20-day EMA ($15) is sloping up, and the RSI is in the positive
territory, which suggests that bulls have the upper hand.
If the
bulls do not give up much ground, the possibility of a break above
$17.6738 increases. Above this level, a retest of $20.1111 is likely. If
the bulls can push the price above this level, the uptrend is likely to
resume.
Contrary to this assumption, if the bears sink the
LINK/USD pair below the 20-day EMA, a deeper decline to the 50-day SMA
($11.72) is possible.
BCH/USD
Bitcoin Cash (BCH)
has bounced off the $260 support but is facing resistance at $280. The
20-day EMA ($282) is also placed just above this resistance; hence, the
bears will try to defend this level aggressively.
BCH/USD daily chart. Source: TradingView
If
the BCH/USD pair turns down from the current levels, the bears will
once again try to break below the $260 support. If they succeed, a
decline to $245 and then to $232 is possible.
Currently, the
20-day EMA has flattened out, and the RSI is just below the midpoint,
which suggests a balance between supply and demand. However, if the
bulls push the price above the 20-day EMA, a move to $300 and then to
$326.30 is likely.
LTC/USD
Litecoin (LTC)
soared above the 20-day EMA ($59.24) and the downtrend line on Aug. 30,
which suggests that the bulls are back in the game. However, the bears
are currently attempting to stall the relief rally at the minor
resistance of $64.
LTC/USD daily chart. Source: TradingView
If the LTC/USD pair turns down from the current levels, a drop to the 20-day EMA is possible.
The
20-day EMA has started to turn up, and the RSI has jumped into the
positive territory, which suggests a minor advantage to the bulls. If
the pair rebounds off this support, the bulls will once again attempt to
push the price above the $64–$68.9008 resistance zone.
This
bullish view will be invalidated if the bears sink the price below the
20-day EMA. In such a case, a drop to the 50-day SMA ($54.72) is
possible.
BSV/USD
The recovery in Bitcoin SV (BSV) is
currently facing resistance at the breakdown level of $200. Both moving
averages are placed just above this resistance; hence, the bears are
likely to defend this level aggressively.
BSV/USD daily chart. Source: TradingView
The 20-day EMA ($201) is sloping down and the RSI is in the negative zone, which suggests that the bears have the upper hand.
If
the BSV/USD pair turns down from the current levels, the bears will
again attempt to sink the price below the $180 support. If they succeed,
the decline could extend to $160 and then to $146.20.
Contrary to
this assumption, if the bulls can push the price above the 50-day SMA
($203), a move to the downtrend line is possible. A break above this
resistance will suggest that the bulls are attempting a comeback.
CRO/USD
Crypto.com Coin (CRO)
broke above the $0.176596 overhead resistance on Aug. 30, which is a
bullish sign. The bulls will now try to push the price to $0.191101, and
if this level is scaled, a move to $0.20 is possible.
CRO/USD daily chart. Source: TradingView
The
20-day EMA ($0.169) is sloping up, and the RSI has broken above the
resistance at 65, which shows that bulls have the upper hand.
However,
the bears are unlikely to give up without a fight. They will try to
pull down the price back below $0.176596 and trap the aggressive bulls.
If they succeed, a drop to the 20-day EMA is possible. A break below
this support could result in a fall to $0.154322.
If the CRO/USD
pair rebounds off the 20-day EMA, the bulls will once again attempt to
resume the uptrend. Hence, this is the critical support to watch out for
on any dips.
BNB/USD
Binance Coin (BNB) is currently facing resistance at the $23.91–$24.4588 zone, which shows a lack of demand at higher levels.
BNB/USD daily chart. Source: TradingView
However,
if the BNB/USD pair rebounds off the 20-day EMA ($22.53), the bulls
will make one more attempt to push the price above the $23.91–$24.4588
resistance zone. If they succeed, a rally to $27.1905 is possible.
Conversely,
if the bears sink the price below the 20-day EMA, a drop to the
$20.5710 support is likely. The bulls are likely to defend this support
aggressively. If they succeed, the pair could consolidate between $23.91
and $20.571 for the next few days.
EOS/USD
EOS
broke above the 20-day EMA ($3.22) on Aug. 30, which suggests that the
bears are losing their grip. If the bulls can sustain the price above
the 20-day EMA, a move to $3.4275 and then to $3.63 is possible.
EOS/USD daily chart. Source: TradingView
However,
if the EOS/USD pair turns down from $3.4272, a few days of
consolidation is possible. The flat 20-day EMA and the RSI just above
the midpoint suggest a balance between supply and demand.
Contrary
to this assumption, if the pair turns down from the current levels and
plummets below the 20-day EMA, a drop to the 50-day SMA ($3.03) and then
to $2.83 is possible. A break below this level will be a huge negative.
source link : https://cointelegraph.com/news/price-analysis-8-31-btc-eth-xrp-link-bch-ltc-bsv-cro-bnb-eos
