By James Davis
Bitcoin continues to trade above $26,500 despite the US Dollar Index recording a new high of the year. This is a good sign that Bitcoin bears are not selling aggressively at lower prices. Nonetheless, Bitcoin’s lack of a solid price direction has forced many traders to stay on the sidelines, as revealed by crypto analytics firm CryptoQuant.
According to the company’s report, BTC’s daily transactions in the spot markets were 650,000 in March, but that figure dropped to 150,400 last week. With most liquidity providers exiting the market, the low liquidity in the markets could likely cause volatile moves. So, traders are advised to take caution when opening positions.
Although Bitcoin’s short-term picture is unclear, long-term investors have continued accumulating the coin. Earlier this week, MicroStrategy Chair Michael Saylor took to X to inform the crypto community that his company had bought 5,400 BTC at $27,050 per coin.
Is there a chance for Bitcoin to lead other cryptocurrencies in starting a short-term upward move? Let’s explore the price charts to find out.
Bitcoin Price Analysis
Bitcoin bears and bulls engaged in a tough battle at the 20-day EMA (Exponential Moving Average) of $26,425 on September 27. The bulls emerged as winners and were able to thrust BTC above the 50-day SMA (Simple Moving Average) of $26,754. The largest coin by market cap now trades at $26,912.
The bulls’ immediate target is the $27,430 resistance level. If they push Bitcoin above this price, it may rally to $28,121. Conversely, a drop below $26,754 could clear the way for a further decline to the $24,897 support level.
Ethereum Price Analysis
Ethereum, the second-biggest cryptocurrency by market cap, has been in recovery mode this week, rising from $1,569.76 on Monday to $1,673.21 as of this writing. Moreover, the relative strength index has created a bullish divergence, signaling that ETH may continue rallying. If this happens to be the case, the token could retest the $1,745.98 resistance level. On the contrary, if the 50-day SMA of $1,668.87 crumbles, Ethereum could slide towards the 20-day EMA of $1,614.37.
BNB Price Analysis
BNB has risen above the 20-day EMA of $213.66 to change hands for $214.03 at press time. This price is still far below the $220.25 breakdown level. Any strong upward move will happen when the BNB bulls successfully challenge the bears at $220.25. After that, we may see the crypto asset ascending toward the $234.75 resistance level. However, this assumption could be rendered invalid if bears pull BNB below $213.66. That’s because the chances of a drop to $203.08 will increase.
XRP Price Analysis
The bulls have guarded the 20-day EMA of $0.50177 since Thursday. However, the symmetrical triangle pattern formed on XRP’s price chart suggests indecision between the sellers and the buyers. The only way the bears can take control of the XRP market is by dragging the token below the upward trend line. If they do so, a price fall to $0.42544 is possible. On the other hand, a break above the downward trend line gives the buyers the upper hand. If this occurs, a brief rally toward the $0.55519 resistance level is likely.
Cardano Price Analysis
The rebound from the $0.24289 support level has helped ADA bulls to push the 8th largest token by market cap above the 20-day Exponential Moving Average of $0.24852. The buyers are now looking to break above the downtrend line to start a major recovery to $0.33917. Conversely, bulls’ failure to guard $0.24289 may lead to the formation of a bearish divergence on the RSI indicator that would signal the beginning of a downward movement to $0.22931 or even to $0.19852.
Solana Price Analysis
SOL bulls have finally pushed the digital asset’s value above the 20-day EMA of $19.44. According to data from CoinGecko, Solana is priced at $20.32 as of this writing. If buyers thrust SOL above the 50-day SMA of $20.62, a further upward move to $22.27 becomes possible. However, in case $19.44 cracks, Solana may fall to retest the $18.48 support level.