Bitcoin bulls are struggling to hold $20,000 and several altcoins have clung to range limit trading and are up as much as 10%.
US stock markets are trying to stabilize after the August 26 massacre. Similarly, Bitcoin (BTC) is also witnessing an intense battle near the psychological $20,000 level, with both bulls and bears vying for supremacy.
While some analysts are bearish on Bitcoin in the near-term, that hasn’t stopped whales from rallying at lower levels. Data from network research firm Santiment shows that the number of whale addresses holding between 100 and 10,000 bitcoins has increased by 103 in the past 30 days.
Cryptocurrency market daily indicators. Source: Coin360
In bear markets, rumors spread quickly and can lead to a quick crash, but in many cases the fear is unfounded. Mt.Gox lenders confirmed on Twitter that the 137,000 Bitcoin dump rumor circulating on social media was false. The lenders said the infrastructure needed to begin repayments has not yet been put in place.
Can Bitcoin and Major Altcoins Survive the Recovery? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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Bitcoin closed below the psychological $20,000 level on Aug. 28, but the bears failed to extend their lead. Buyers pushed the price above $20,000 on Aug. 29, indicating strong demand at lower levels.
BTC/USDT daily chart. Source: Trade View
The BTC/USDT pair could rally to the 20-day exponential moving average (EMA) of $21,620, which is an important level to watch for. If the bulls push the price above this resistance, it could signal a waning bearish momentum. A break and close above the moving averages could open the doors for a possible uptrend towards $25,211.
Alternatively, if the price turns down from the downtrend line or the moving averages, it would mean that the bears are selling every slight spike. The pair could then drop to a strong support zone of $18,910-$18,626. The bulls are expected to vigorously defend this zone as a break of the support could see the pair drop to the June low of $17,622.
Ether (ETH) reversed down from the 20-day EMA ($1,638) on Aug 26 and broke the neckline of the head and shoulders pattern. This completed the bearish setup, suggesting that the sellers are in control.
Daily ETH/USDT chart. Source: Trade View
However, the bears failed to sustain the price below the neckline, which indicates buying on the dips. The bulls are attempting to push and sustain the price above the neckline and challenge the upper resistance at $1,700. If they succeed, the ETH/USDT pair could surge to the psychological $2,000 level.
Conversely, when the price turns down from the current levels or the moving averages, it means that the bears are active at higher levels. If the price turns down and breaks the neckline, the pair could drop to strong support at $1280. The bulls are expected to defend this level aggressively, but if they fail, the pair could drop to $1,050.
The inability of the bulls to sustain the price above the 20-day EMA ($293) on Aug. 25 led to heavy selling. BNB sharply reversed on August 26 and broke the 50-day simple moving average (SMA) of $284.
BNB/USDT daily chart. Source: Trade View
On the plus side, the bulls have prevented the price from sustaining below the strong $275 support. Buyers are attempting to push the price above the 50-day SMA.
If they succeed, the BNB/USDT pair could rally to the 20-day EMA, where the bears could become a major problem. The bulls need to scale the pair above $308 to open the doors for potential upside to $338.
Conversely, if the price moves down from the moving average and falls below $275, it will complete the head and shoulders pattern. This negative setup could initiate a decline to $240 and then the $212 target.
The bulls failed to sustain Ripple (XRP) above the moving averages on Aug. 26, suggesting that the