The S&P 500 (SPX) rose slightly by 0.24% last week, but Bitcoin (BTC) came under selling pressure and fell nearly 11%. Will Bitcoin continue its uptrend or has it topped out? That is the big question on investors’ minds.
However, whales appeared unfazed by the sideways price action and rushed in. According to Santiment's X post, whale wallets holding 100 Bitcoin or more increased by 283 to 16,129, a 17-month high.
Bitcoin could come under pressure in the near term as September is typically a weak month for Bitcoin, with an average return of -4.45%. However, market participants are looking further ahead, expecting a strong performance in October, with an average return of 22.90%, according to CoinGlass data.
Can Bitcoin hold above $55,724, extending its sideways price action? Will that attract altcoin buying? Let's analyze the chart to find out.
SPX Technical Analysis
The S&P 500 has been consolidating in a narrow range just below its all-time high of 5,670, suggesting bulls are in no rush to book profits.
SPX Daily Chart
The upward sloping 20-day exponential moving average (5,544) and the relative strength index (RSI) in positive territory suggest a potential upside breakout. If that happens, the index could start the next leg of the rally towards 6,000.
If the bears want to stop the rally, they will have to push the price below the moving average. If they do, selling could pick up and the index could drop to 5,265. That could keep the price in the range of 5,119 to 5,670 for a few more days.
DXY Technical Analysis
The US Dollar Index (DXY) has rebounded sharply from the 100.50 level, indicating strong demand from the bulls at lower levels.
DXY Daily Chart
The relief rally is expected to face stiff resistance at the 20-day EMA (102). If the price breaks down from the 20-day EMA, the bears will again try to push the index below 100.50. If they do so, the next stop could be 99.57.
Conversely, if the bulls push the price above the 20-day EMA, it will indicate that the selling pressure is easing. The index could then attempt a recovery towards the 50-day simple moving average (103).
BTC Technical Analysis
Bitcoin closed below the immediate support at $58,000 on September 1, but the bears failed to pull the price to the critical $55,724 level. This shows demand at lower levels.
BTC/USDT Daily Chart
The bulls will try to push the price above the moving averages. If they do, the BTC/USDT pair could rise to $65,000. This level is expected to act as a formidable barrier in the near term. That will keep the pair in the large range between $55,724 and $73,777 for a few more days.
Conversely, if the price turns down from the 20-day EMA ($60,007), the bears will make one more attempt to drag the price below $55,724. If successful, the pair could drop to the August 5 low of $49,000.
ETH Technical Analysis
Ether (ETH) bounced off the immediate support at $2,392 on September 2, suggesting that the bulls are attempting to make a higher low.
ETH/USDT Daily Chart
The relief rally is expected to face selling at the 20-day EMA ($2,605). If the price turns down sharply from the 20-day EMA, the bears will attempt to push the ETH/USDT pair to $2,300 and then to $2,111.
The first sign of strength would be a breakout and close above the 20-day EMA. That would open the way for a potential rally to the breakout level of $2,850. Buyers would have to overcome this barrier to suggest that the downtrend may be over.
BNB Technical Analysis
BNB (BNB) has been trading in a large range between $460 and $635 over the past few weeks, showing a tendency to buy on dips and sell on rallies.
BNB/USDT Daily Chart
The BNB/USDT pair declined from the moving averages on September 1 but bounced from the $495 support on September 2. This suggests that buyers will aggressively defend the $460 to $495 support zone.
On the upside, the moving averages are important resistance levels that need to be overcome to attract buyers. A close above the 50-day SMA ($549) could push the pair towards $600 and then $635.
SOL Technical Analysis
Solana (SOL) broke below the $129 support on September 1, but the bulls purchased the dip and pushed the price back above this level on September 2.
SOL/USDT Daily Chart
If the price sustains above $129, the bulls will attempt to push the SOL/USDT pair above the 20-day EMA ($143). If they succeed, the pair could rally to the overhead resistance at $164. This level could act as a formidable barrier in the short term.
If the price declines from the current level or the 20-day EMA, it will indicate that the sentiment remains negative. The pair could then drop to the important support level of $116. Buyers will try to defend this level at all costs because if it breaks, the price could drop to $100.
XRP Technical Analysis
XRP (XRP) declined from the 20-day EMA ($0.57) on August 31 and reached solid support at $0.54 on September 1.
XRP/USDT Daily Chart
A break and close below $0.54 would open the doors for a drop to $0.49. After that, the XRP/USDT pair could fluctuate within the $0.41 to $0.64 range for some time.
Alternatively, if the price rises from the current levels and breaks above the moving averages, it will indicate that the bulls continue to buy on dips. The pair could then rise to the overhead resistance at $0.64. Buyers will have to overcome this barrier to start the next leg of the rally towards $0.74.
DOGE Technical Analysis
Dogecoin (DOGE) turned down from the 20-day EMA ($0.10) on September 1, which shows that bears continue to sell on small rallies.
DOGE/USDT Daily Chart
Minor support is at $0.09, but if the bulls fail to defend this level, the selling could intensify and the DOGE/USDT pair could drop to $0.08 and eventually to the support line of the falling wedge pattern.
The bulls have a tough task ahead. If they want to signal a potential trend change, buyers will have to push and sustain the pair above the downtrend line. After that, the pair could start a fresh upward move towards $0.14.
TON Technical Analysis
Toncoin (TON) has formed a large bearish head and shoulders pattern, which will complete on a break and close below $4.72.
TON/USDT Daily Chart
The downsloping moving averages and the RSI in the negative zone suggest that bears are in control. There is minor support at $5.12, but it is likely to break. The TON/USDT pair could drop to $4.72, which is expected to see strong buying by the bulls.
If the price bounces off $4.72 and breaks above the 20-day EMA ($5.81), it will indicate that selling pressure is easing. The pair could then rise to the 50-day SMA ($6.38). Such a move would suggest that the pair could extend its stay in the $4.72-$8.29 range for some time.
ADA Technical Analysis
Cardano (ADA) slipped below the uptrend line on September 1, but the bears are struggling to sustain the lower levels.
ADA/USDT Daily Chart
If the price stays above the uptrend line, the bulls will again try to push the ADA/USDT pair above the moving average. If successful, the pair could reach the downtrend line. Buyers will have to push and sustain the price above the downtrend line to signal a short-term trend change.
If the price fails to sustain above the rising trend line, the decline could reach $0.31. This level is likely to see strong buying from the bulls, but if the bears gain the upper hand, the pair could drop to $0.27 and then to the important support at $0.24.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
