Critical support levels have been reached for Bitcoin and a few other cryptocurrencies, and the strength of the comeback is weak, raising the possibility of further decline.
What crucial barriers in Bitcoin and other cryptocurrencies must be broken for the bullish trend to gain traction? To find out, let’s examine the top3 cryptocurrency.
On September 6, the narrow range in which Bitcoin was trading between $19,520 and $20,576 resolved downward. The price was dragged down by the bears to a solid support area between $18,910 and $18,626.
The BTC/USDT pair may rise to the breakdown level of $19,520 if the price bounces off the zone. This level will be targeted for conversion into resistance by the bears. The probability of a break below the support zone rises if they are successful in doing so.
That might lead the pair to fall to the critical support level of $17,622. The downtrend may resume if there is a break and a close below this level.
The first sign of strength will be a break and close above the 20-day EMA. Such a move will indicate that bulls are attempting a comeback.
On September 6, Ethereum (ETH) climbed above the moving averages, but the bulls failed to pass the overhead levels of resistance of $1,700. The price was actively pushed back below $1,597 by the bears.
The bears will attempt to capitalize on their advantage and drive the price below. If they are successful, the ETH/USDT pair might fall to $1,422 before reaching the critical support level at $1,280. $1,050 is the pattern target for this bearish setup.
In contrast, it will indicate that bulls are still looking to purchase on dips if the price bounces off. The pair might then consolidate for some time between the neckline and $1,700. A rise to $2,030 may be achievable if the bulls breaks and hold above $1,700.
On September 6, Solana (SOL) gained momentum and reached the 20-day top at $33, but the bulls were unable to cross this threshold. This indicates that traders are continuing to sell on gains and that the tone is still negative.
A little advantage is that the bulls have avoided the price from falling below the key support level of $30. The bulls will once more try to move the SOL/USDT pair over $33 if the price moves upward from its current position. If they are successful, the pair may increase their price to $38.
On the other hand, if the prices fall and close below $30, the pair may continue to decline until it reaches the major support level of $26. The pair could restart its decline if this support breaks, thus the bulls are expected to make a vigorous defence at this level.