Latest Market Overview 6th Sep: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB

The Bitcoin market price has fallen below its support level, signalling the potential onset of a downtrend towards $49,000.

After months of sideways movement, bearish forces are making a play to take control. If sellers successfully break through the key $55,724 to $73,777 range, it could trigger a more significant decline.

Former BitMEX CEO Arthur Hayes predicts that Bitcoin could dip below $50,000, while experienced trader Peter Brandt shares a comparable outlook, setting his target at $46,000.

However, not everybody shares the bearish market view. Some analysts anticipate the macro factors to surprise the bears.

“Although September is historically a negative month for BTC, the combination of a Fed [United States Federal Reserve] rate cut and a relatively robust US economy could surprise the bears,” Tyr Capital chief investment officer Ed Hindi told Cointelegraph.

Will Bitcoin start a new downtrend, pulling the altcoins lower? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

Bitcoin (BTC) Market Analysis

Bitcoin’s rebound off the $55,724 support on Sept. 4 did not find buyers at higher levels. The bears maintained their selling pressure and pulled the price below $55,724 on Sept. 6.

Minor support exists in the $53,500 to $54,000 range, where buyers will try to arrest the decline. However, if the bears prevail, the BTC/USDT pair could retest the $49,000 support. This is an essential level to keep an eye on because a break below it may start a downtrend.

Any rebound off the current level is likely to face strong selling at $55,724 and then at the 20-day exponential moving average ($58,804). Buyers will have to push the price above the 20-day EMA to suggest that the range-bound action may extend for some more time.

Ether (ETH) Market Analysis

Ether market bounced off the $2,300 support on Sept. 4, but the bulls could not maintain the higher levels. The bears have pulled the price below $2,300 on Sept. 6.

Both moving averages are sloping down, and the relative strength index (RSI) is near the oversold territory, indicating that the bears are in charge. If the price closes below $2,300, the ETH/USDT pair could decline to $2,111 and thereafter to $2,000.

The bulls have an uphill task if they want to start a recovery. A break and close above the 20-day EMA ($2,530) will be the first sign of strength. The pair may then ascend to the breakdown level of $2,850.

BNB Market Analysis

The bulls held the $495 support in BNB for the past two days, but they could not start a rebound. That increases the risk of a breakdown.

The downsloping 20-day EMA ($528) and the RSI in the negative zone suggest that the bears have the upper hand. A break and close below the $495 support could sink the BNB/USDT pair to $460.

The bulls are expected to defend the $495 to $460 zone, but the recovery is likely to face selling at the moving averages. Buyers will have to clear the 50-day simple moving average ($543) to suggest that the range-bound action remains intact.

Solana (SOL) Price Analysis

The bulls are trying to prevent Solana from falling to the crucial support at $116, but the bears have kept up the pressure.

The downsloping 20-day EMA ($139) and the RSI in the negative territory suggest that the bears have the upper hand. Sellers will try to sink the SOL/USDT pair to the crucial support at $116. Buyers will have to defend this level with all their might because a break below $116 may drag the pair to $100.

Instead, if the price turns up and breaks above the 20-day EMA, it will suggest that the selling pressure is weakening. The pair may rally to the 50-day SMA ($152) and later to $164.

XRP Price Analysis

XRP turned down from the 20-day EMA ($0.56) on Sept. 4 and plummeted below the $0.54 support on Sept. 6.

This suggests the XRP/USDT pair may slide toward $0.50. That could keep the pair stuck inside the $0.64 to $0.46 range for a while. The bulls are expected to defend the $0.46 level with vigor.

Any recovery attempt by the bulls is expected to face selling at the moving averages. A break and close above the 50-day SMA ($0.57) will suggest that the bears may be losing their grip. The bulls will gain further strength above $0.64.

Dogecoin (DOGE) Price Analysis

Dogecoin bounced off the $0.09 support on Sept. 4, but the bulls failed to push the price above the 20-day EMA ($0.10).

The bears will try to strengthen their position by yanking the price below $0.09. If they can pull it off, it will signal the resumption of the downtrend. The DOGE/USDT pair may dive to $0.08 and later to the support line of the falling wedge pattern.

Buyers will have to push and maintain the price above the downtrend line to signal a comeback. The pair may then climb to $0.14, indicating the start of a potential up move. If this level is crossed, the rally could reach $0.18.

Toncoin (TON) Price Analysis

Toncoin is witnessing a tough battle between buyers and sellers near the critical support at $4.72.

If the price continues lower and breaks below $4.50, it will signal the completion of a bearish head-and-shoulders pattern. That may start a downward move, pulling the TON/USDT pair to $3.50.

Conversely, if the price rises from the current level, it is likely to reach the 20-day EMA ($5.47). This is an important level to watch out for because if the price turns down sharply from the 20-day EMA, it will suggest that the sentiment remains negative. 

The first sign of strength will be a break and close above the 20-day EMA. That may open the doors for a rally to the 50-day SMA ($6.18) and later to $7. 

Cardano (ADA) Price Analysis

Cardano bounced off the $0.31 support on Sept. 4, indicating that the bulls are fiercely defending the level.

On the upside, the long wick on the Sept. 5 candlestick shows that the bears are selling on rallies to the 20-day EMA ($0.34). If bears sink the price below $0.31, the ADA/USDT pair could plunge to $0.27 and later to the crucial support at $0.24.

Contrarily, if the price turns up from the $0.31 support and rises above the moving averages, it will suggest a short-term bottom formation. The pair could then rally to the downtrend line, where the bears are expected to offer a strong resistance. 

Avalanche (AVAX) Price Analysis

Avalanche has been trading below the moving averages for the past few days, but the bears have failed to challenge the $19.50 support. This suggests that selling dries up at lower levels.

The bulls are attempting to push the price above the moving averages. If they succeed, the AVAX/USDT pair could reach the resistance line of the descending channel pattern. A break and close above the channel will suggest that the downtrend may be over. The pair may climb to $33 and later to $37.

This positive view will be invalidated in the near term if the price turns down and breaks below $19.50. That may sink the pair to $17.29 and eventually to the channel’s support line.

Shiba Inu (SHIB) Price Analysis

Shiba Inu has been trading between the 20-day EMA ($0.000014) and the horizontal support at $0.000013.

The tight-range trading signals a possible range expansion in the next few days. If the price breaks above the moving averages, the likelihood of a rally to $0.000020 increases. There is a minor resistance at $0.000016, but it is likely to be crossed.

Alternatively, if the price plummets below $0.000013, it will suggest the start of the next leg of the downtrend. The SHIB/USDT pair may plummet to $0.000011 and subsequently to $0.000010.

Source – Rakesh Upadhyay