Latest Market Overview 4th Sep: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB

The Bitcoin market bulls strive to maintain the price within the current range, but its increasing fragility might eventually drive it below $49,000.

On 3 September, the weakness in US equity markets dragged the cryptocurrency markets down. The decline persisted into 4 September, though the silver lining is that the lower levels have begun to attract buyers. Trading firm QCP Capital informed its Telegram channel subscribers that Bitcoin and Ether might experience heightened volatility.

While many analysts expect the US Federal Reserve’s anticipated interest rate cut on 18 September to benefit-risk assets, Bitfinex analysts hold a contrary opinion. They predict that Bitcoin could drop by 15% to 20% following the rate cuts. In a note dated 2 September, they suggested that Bitcoin could bottom out between $40,000 and $50,000.

Bitcoin’s risk of breaking below its long-range puts pressure on altcoins, which have continued to weaken. That pulled the total crypto market capitalization below $2 trillion, according to CoinMarketCap data.

Will Bitcoin break below the range, triggering further selling in altcoins? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin (BTC) Market Analysis

Bitcoin turned down from the 20-day exponential moving average ($59,655) on Sept. 3 and fell to the $55,724 support on Sept. 4.

The bulls are expected to defend the $55,724 level with all their might because if the support gives way, the BTC/USDT pair may tumble to $49,000. This level may attract solid buying by the bulls, but the bears will try to halt the relief rally at $55,724. Below $49,000, the next stop could be $42,000.

This negative view will be invalidated in the near term if the price rises from the current level and breaks above the 50-day simple moving average ($61,712). The pair could then climb to $65,000 and later to the crucial resistance at $70,000.

Ether (ETH) Market Analysis

Ether has been swinging between $2,300 and $2,850 for a few days, suggesting buying on dips and selling on rallies.

If the price continues higher from the current level and breaks above the 20-day EMA ($2,577), it will signal that the consolidation may continue for a few more days. 

Conversely, if the relief rally turns down from the 20-day EMA, it will suggest that the sentiment remains negative, and traders are selling on every minor rise. That will increase the likelihood of a break below $2,300. If that happens, the ETH/USDT pair could plummet to $2,111 and eventually to the psychological level of $2,000.

BNB Market Analysis

BNB’s bounce off the $495 support reached the 20-day EMA ($535) on Sept. 3, but the bulls could not overcome this barrier.

If the $495 level cracks, the BNB/USDT pair could dive into the $460 support. This is an essential level for the bulls to protect because a break below it may intensify selling and pull the pair to $400.

On the upside, the bulls will have to push and maintain the price above the moving averages to suggest that the range-bound action may continue for a while longer. The next leg of the up move is expected to begin on a close above $635.

Solana (SOL) Price Analysis

Solana has reached close to the support of the Large $116 to $210 range, where buyers are likely to step in.

The bulls will try to push the price above the 20-day EMA ($141), which is the first sign of strength. The SOL/USDT pair could then rise to the 50-day SMA ($153). A break and close above this resistance will suggest that the pair may remain inside the range for some more time.

The bears are likely to have other plans. They will try to defend the moving averages and attempt to pull the price below $116. If they succeed, it will signal the start of a new down move to $100.

XRP Price Analysis

The bears pulled XRP below the $0.54 support on Sept. 4, but the long tail on the candlestick shows solid buying at lower levels.

Any relief rally is likely to face stiff resistance at the moving averages. Suppose the price turns down from the moving averages, the possibility of a break and close below $0.54 increases. The XRP/USDT pair could then plunge toward $0.49.

On the contrary, if buyers propel the price above the moving averages, it will suggest that the pair may extend its stay inside the $0.54 to $0.64 range for a while. A break above $0.64 will open the gates for a possible rally to $0.74.

Dogecoin (DOGE) Price Analysis

The bulls attempted to push Dogecoin above the 20-day EMA ($0.10) on Sept. 3, but the bears held their ground.

The bears are trying to pull the price below $0.09, but the bulls are likely to aggressively defend the level. If the price rises from the current level and breaks above the 20-day EMA, it will suggest that selling dries up at lower levels. The DOGE/USDT pair could then climb to the downtrend line.

Contrarily, if the price continues lower and breaks below $0.09, the decline could extend to $0.08 and subsequently to the support line of the falling wedge pattern.

Toncoin (TON) Price Analysis

Toncoin has formed a large head-and-shoulders pattern, which will complete on a close below $4.72.

The bears have pulled the price below $4.72 but are likely to find buyers at lower levels. If the bears prevail and the price closes below $4.72, it will signal the start of a new downtrend. The next support on the downside is at $3.50.

Alternatively, if the price fails to close below $4.72, it will signal that bulls are active at lower levels. The bulls will have to push and maintain the TON/USDT pair above the 50-day SMA ($6.27) to signal a comeback.

Cardano (ADA) Price Analysis

Cardano is witnessing a tough battle between the bulls and the bears at the $0.31 support. 

The downsloping moving averages and the RSI in the negative territory indicate that the bears have the upper hand. If the price maintains below $0.31, the selling could pick up, and the ADA/USDT pair may plunge to $0.27 and later to $0.24.

Instead, if the price turns up from $0.31, the recovery is likely to face resistance at the moving averages. Buyers will have to kick and maintain the price above the downtrend line to suggest the start of a new up move.

Avalanche (AVAX) Price Analysis

Avalanche has been gradually sliding toward the horizontal support at $19.50, indicating that the bears have maintained their pressure.

Sellers will try to strengthen their position by pulling the price below $19.50. If they succeed, the AVAX/USDT pair could slump to $17.29 and later to the support line of the descending channel pattern.

Contrary to this assumption, if the price bounces off $19.50, it will suggest that the bulls are trying to defend the level. Buyers will have to push and sustain the price above the channel to indicate a potential trend change.

Shiba Inu (SHIB) Price Analysis

Shiba Inu once again turned down the 20-day EMA ($0.000014) on Sept. 3, indicating that the Bears remain in command.

Sellers are trying to pull and maintain the price below the immediate support at $0.000013. If they manage to do that, the SHIB/USDT pair is likely to slide to the Aug. 5 intraday low of $0.000011 and thereafter to the psychological support at $0.000010.

If buyers want to prevent the downside, they will have to quickly drive the price above the moving averages. If they do that, the pair is likely to rally to the breakdown level of $0.000020. 

Source – Rakesh Upadhyay