Nonfarm payrolls increased by 315,000 jobs in August, down from 526,000 jobs in July. The report was below the Dow Jones estimate of 318,000 jobs and the slowest monthly gain since April 2021. The S&P 500 rose in response to the report, but later pared the gains, indicating that bears will continue to sell on rallies.
That’s because the US dollar index (DXY), which retreated from a 20-year high on September 1, has recovered some of its losses. Both are often inverse to the dollar index, so bears should push the DXY lower to boost the value of the stock and cryptocurrency markets.
Although Bitcoin (BTC) has fallen more than 70% from its peak of $69,000, many traders have maintained their positions. Data from business analytics platform TopRanks shows that 62% of wallets have held Bitcoin for a year or more. In less than a month, the number of wallets holding Bitcoin is only 6%. This indicates that investors are taking a long-term approach and holding their positions.
Could the bulls push Bitcoin and altcoins above overhead resistance levels? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC/USDT
On September 1, Bitcoin broke and closed above the lower line, the first indication that the short-term correction phase may be over.
There is minimal resistance at $20,576, but if the bulls push the price above it, the BTC/USDT pair may reach the 20-day EMA ($21,091).
This is an important level to pay attention to, because it suggests that if buyers clear this obstacle, the negative feeling can be weakened. The BTC/USDT pair may test a rally towards the 50-day simple moving average ($22,318).
Contrary to this assumption, if the price declines below $20,576 or the 20-day EMA, the bears will make one more attempt to push the pair into the critical support zone of $18,910 to $18,626. The Bulls are expected to defend this zone aggressively.
ETH/USDT
Ether (ETH) declined from the 20-day EMA ($1.61) on August 31, but a positive sign is that the bulls did not allow the price to drop below the head and shoulders (H&S) pattern.
The price rose from the neck on September 1 and rose to the 50-day SMA ($1,640). The bears will try to defend the zone between the 50-day SMA and $1,700, but if the bulls overcome this barrier, the ETH/USDT pair may gain momentum. The pair may rise to $1,848 and later retest the strong resistance at $2,030.
Alternatively, if the price declines from the above zone, the pair may again descend to the neckline. If this support is broken, the pair could drop to $1,422 and then to $1,280. Although the spread pattern target from H&S setup is $1,050, the bulls can strongly defend the support at $1,280.
BNB/USDT
BinanBNB) rejected the 20-day EMA ($289) on August 31 and slipped below the strong support at $275 on September 1. But the long tail on the intraday candlestick indicates strong buying at lower levels.
The bulls will again try to push the price above the 20-day EMA. If you manage to do this, it will be the first sign that the bears may lose their grip. The BNB/USDT pair may rally to $308 as bears may mount strong resistance again.
On the contrary, if the price falls below the current level or the 20-day EMA, it indicates that the sentiment is negative and bears are selling in small rallies.
That would increase the break below the support by $275. If that happens, the pair will complete a bearish H&S pattern. The pair may slide towards $240 and later towards the pattern target of $212.
XRP/USD
XRP has been trading between $0.32 and $0.34 since August 28th.
The 20-day EMA ($0.34) and RSI below 39 suggest the bears are dominant. If the price declines and breaks below $0.32, the XRP/USDT pair may drop to the necessary support at $0.30. If this level also gives way, the pair may start the next leg down.
If bulls drive the price above the 20-day EMA, this negative outlook may lose value in the near term. The pair may then move higher towards the 50-day SMA ($0.36). Such a move suggests that the pair will continue to strengthen between $0.30 and $0.39 for some time.
ADA/USD
Cardano (ADA) has been trading with the 20-day EMA ($0.47) for the past three days, but the bulls have not been able to push the price above it. This indicates that the bears are defending the 20-day EMA but the slight positive is that the bulls have not given much ground.
If the price declines below the 20-day EMA and breaks below $0.44, the ADA/USDT pair may drop to $0.42. This level could once again act as strong support, but if the bears break below it, the pair could drop to $0.40.
Contrary to this assumption, if the price breaks above the 20-day EMA, the pair may rise towards the 50-day SMA ($0.49). The bulls must overcome this obstacle to clear the rally to the downhill lane.
SOL/USDT
Solana (SOL) has been stuck in a tight range between $30 and $33 since August 27, indicating indecision between buyers and sellers.
The 20-day EMA ($34) and RSI in negative territory indicate bearish advantage. If sellers sink the price below $30, the SOL/USDT pair may drop to critical support at $26. This is an important level to monitor as a break and close below it could signal a resumption of the downtrend.
Alternatively, if the price breaks above the current level and breaks above the 20-day EMA, the pair may move higher towards the 50-day SMA ($39). Such a move could suggest the pair remains stuck between $30 and $48 for a few more days.
DOGE/USD
Dogecoin (DOGE) has regained the strong support at $0.06 on September 1 but lacks the strength of a recovery. This shows that there is no strong buying at these levels.
The downtrending 20-day EMA ($0.07) and the RSI in the negative territory indicate the interest of sellers. If the price changes from the current level or the 20-day EMA, the bears will try to sink the DOGE/USDT pair below $0.06. If successful, the pair could slide towards critical support at $0.05.
If the bulls drive the price above the moving averages, this negative view is worthless in the short term. If that happens, the pair may test an upward resistance rally at $0.09.
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DOT/USDT
Polkadot (DOT) has been stuck in a tight range between $7.38 and $6.79 for the past few days, indicating indecision between bulls and bears.
If the price pushes above the zone between $7.38 and the 50-day SMA ($7.87) and holds, this balance will be tilted in favor of the buyers. The DOT/USDT pair may start at $9.17 and later upward resistance at $10.
On the other hand, if the price falls below the Over Zone zone, it indicates that the sentiment is negative and traders are selling in rallies. The bears will need to break below $6.79 to regain dominance. The pair can decline to critical support at $6.
MATIC/USDT
Polygon (MATIC) broke and closed above the moving averages on September 1st. This opens the door to upside resistance at $1.05. The bears can defend this level significantly.
If the price declines below $1.05, the MATIC/USDT pair can extend its range-bound action for an additional period.
The 20-day EMA ($0.84) is flat but the RSI has jumped into positive territory, indicating that momentum is in favor of buyers. If the bulls push the price above $1.05, the pair can extend the move to $1.19.
On the contrary, if the price declines and breaks below the 20-day EMA, the pair may go down to $0.75 again. A break below this support could sink the pair to $0.63.
SHIB/USD
Shiba Inu (SHIB) rejected the 20-day EMA ($0.000013) on August 30 and dropped to important support at $0.000012. This shows that bears are highly active.
A slight positive is that the bulls did not allow the price to stay below $0.000012 on September 1st. The price remains stuck between the 20-day EMA and the $0.000012 support.
If the bulls lift the price above the 20-day EMA, the SHIB/USDT pair could support the upward resistance at $0.000014. This level could again act as a strong barrier, but if the bulls beat it, the rally could be extended to $0.000018.
Conversely, if the price declines again from the moving averages and breaks below $0.000012, the pair may decline to $0.000010.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and business activity involves risk. You should do your own research when making a decision.
Market information provided by HitBTC Exchange.