Bitcoin and some altcoins continue to face selling at higher levels, indicating that investor sentiment remains negative as traders continue to sell on the rally.
The number of non-farm payrolls rose by 315,000 jobs in August, compared with an increase of 526,000 jobs in July. The report was slightly below the Dow Jones estimate of 318,000 jobs and the slowest monthly growth since April 2021. The S&P 500 rose in response to the report, but later cut gains, suggesting bears continue to sell on the rally.

This may be because the US Dollar Index (DXY), which retreated from its 20-year high on September 1, has recouped some of its losses. The bears need to push the DXY lower to drive up prices in the stock and crypto markets as both are usually inversely correlated with the dollar index.

Daily dynamics of the cryptocurrency market. Source: Coin360
Despite bitcoin (BTC) falling more than 70% from its all-time high of $69,000, several traders held their ground. Data from trading analytics platform TipRanks shows that 62% of wallets hold bitcoins for a year or more. The number of wallets in which bitcoins are stored for less than a month is only 6%. This suggests that investors are taking a long-term approach and sticking to their positions.

Can Bulls Take Bitcoin and Altcoins Above Resistance Levels? Let’s examine the charts of the top 10 cryptocurrencies to find out.

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Bitcoin/US dollar
Bitcoin broke and closed above the downtrend line on September 1, which is the first sign that the short-term correction phase may be coming to an end.

BTC/USDT daily chart. Source: Trading View
There is some minor resistance at $20,576, but if the bulls push the price above it, the BTC/USDT pair could reach the 20-day exponential moving average (EMA) of $21,091.

This is an important level to watch out for, as if buyers get past this hurdle, it suggests that negative sentiment may ease. The BTC/USDT pair may then attempt to move up to the 50-day Simple Moving Average (SMA) of $22,318.

Contrary to this assumption, if the price turns down from $20,576 or the 20-day EMA, the bears will make another attempt to plunge the pair into the critical $18,910-18,626 support zone. Bulls are expected to aggressively defend this zone.

Ether (ETH) turned lower from the 20-day EMA ($1.61) on August 31, but the positive sign is that the bulls have not allowed the price to break below the head-and-shoulders neckline. fell.

Daily ETH/USDT chart. Source: Trading View
The price bounced off the neck line on September 1 and rose to the 50-day SMA ($1,640). The bears will try to defend the area between the 50-day SMA and $1700, but if the bulls break this barrier, the ETH/USDT pair could gain momentum. The pair could then rise to $1848 and then retest the tough resistance at $2030.

Alternatively, if the price reverses down from the upper zone, the pair may fall again towards the neckline. If this support breaks, the pair could drop to $1,422 and then to $1,280. While the H&S setup breakout pattern target is $1,050, the bulls are likely to defend the $1,280 support vigorously.

BinanBNB) reversed down from the 20-day EMA ($289) on August 31st and broke below strong support at $275 on September 1st. However, the long tail of the daily candle shows aggressive buying at lower levels.

BNB/USDT daily chart. Source: Trading View
The bulls will make another attempt to push the price above the 20-day EMA. If they succeed, this will be the first sign that the bears may lose their footing. The BNB/USDT pair could then rise to $308 where the bears could once again shore up the defenses.

Conversely, if the price reverses down from current levels or the 20-day EMA, this will indicate that sentiment remains negative and bears will sell on small upswings.

This increases the likelihood of a break below the $275 support. When this happens, the pair will complete the bearish H&S pattern. The pair could then drop to $240 and then to the $212 pattern target.


Source: CoinTelegraph