Bitcoin (BTC) has finally breached the $ 50,500 resistance and Ether (ETH) has risen above the $ 4,000 mark. This suggests that there is a growing interest in cryptocurrencies and several legacy finance companies are taking steps to take advantage of this growing demand.
One of the world’s largest freelance asset managers, Franklin Templeton, has posted new job applications for mid-to-senior positions in crypto research and trading, according to job postings on Linkedin.
Meanwhile, in Japan, financial conglomerate SBI Holdings plans to establish one of the first crypto funds in the country in late November. Tomoya Asakura, SBI Director and Senior Executive Director, said launching a second fund will be explored depending on the success of the first.
While cryptocurrency traders are cheering the recent surge of various altcoins, analysts at JPMorgan have warned their clients that the recovery of altcoins and non-fungible tokens (NFTs) are getting sparkling.
Analysts said that the share of altcoins in the cryptocurrency market increased from 22% in early August to 33%, which is high compared to historical standards. They believe the reason is “retail investor ‘craze’ and foam rather than a reflection of a structural uptrend.”
Could Bitcoin stay above $ 50,500 and resume its uptrend or will altcoins remain focused? Let’s study the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The bears successfully defended the $ 50,500 resistance on September 2, but were unable to pull and hold the price below the downtrend line. This could have attracted buying from the bulls that have pushed Bitcoin above $ 50,500 today.
If buyers hold the price above $ 50,500, the BTC / USDT pair could rise to $ 60,000. This level may again act as a stiff resistance, but if the bulls can push the price above it, the pair could challenge the all-time high at $ 64.854.
If the bulls push the Relative Strength Index (RSI) above the downtrend line, it will invalidate the negative divergence. That, coupled with the 20-day rising exponential moving average ($ 47,584) indicates that the path of least resistance is to the upside.
This bullish view will be invalidated if the price turns down from the current level and breaks below the 200-day simple moving average ($ 46,083). That could bring the price down to $ 42,451.67.
ETH / USDT
Ether picked up momentum after breaking above $ 3,377.89 and hit the $ 4,000 mark today. If the bulls hold the price above this psychological level, the largest altcoin could challenge the all-time high at $ 4,372.72.
The rising 20-day EMA ($ 3,344) and the RSI in the overbought zone suggest that the bulls are in control. If buyers push the price above $ 4,372.72, the ETH / USDT pair could start its journey towards the critical level at $ 5,000.
This may not be easy as the bears likely have other plans. They are likely to mount a strong resistance in the $ 4,000 to $ 4,372.72 zone. If the price turns down from this zone and breaks below $ 3,700, the pair may drop to the 20-day EMA.
A strong bounce from this support will suggest that sentiment remains bullish. Then the buyers will try to resume the upward move. Conversely, a breakout and close below the 20-day EMA will be the first sign that the bulls may be losing control.
ADA / USDT
Cardano (ADA) broke above the $ 3 mark on September 2, but the bulls were unable to sustain the higher levels as seen from the long wick on the day’s candle. Although the price fell back below $ 2.97 today, the bulls bought the dip and are again trying to carry the price above $ 3.
A breakout and close above $ 3.10 will signal the resumption of the uptrend. The ADA / USDT pair could rise to $ 3.50. The 20-day EMA ($ 2.58) favors the bulls, but the negative divergence on the RSI indicates that the bullish momentum may be weakening.
If the bulls fail to propel the price above the upper resistance, the pair may fall to the 20-day EMA. This is an important level for the bulls to defend. A strong rebound will suggest that sentiment remains positive.
Conversely, a break below the 20-day EMA can drive the price to the breakout level at $ 2.47. A break below this support could initiate a deeper correction.
BNB / USDT
Binance Coin (BNB) has been trading between the 20-day EMA ($ 456) and the overall resistance at $ 518.90. The long wick on the Sept. 2 candle suggests that the bears are selling above $ 500, but the positive sign is that the bulls are not giving up much ground.
Buyers will again try to push and hold the price above $ 518.90. If they manage to do that, the BNB / USDT pair could pick up momentum and climb to $ 600. This psychological level can act as a resistance, but if the bulls clear this hurdle, the rally can extend to $ 680.
Conversely, if the price turns down from the overhead resistance and falls below the 20-day EMA, the pair may slide to $ 433. A break below this level will suggest that the bears have dominated the bulls. The pair can then decline to the 200-day SMA ($ 375).
XRP / USDT
The bulls pushed XRP above the downtrend line on September 2, invalidating the developing bearish descending triangle pattern. The bears tried to pull and hold the price below the downtrend line today, but they failed.
If the bulls hold the price above the downtrend line, the XRP / USDT pair could rally to $ 1.35. This level can act as a resistance and if the price turns down, the pair can trade between $ 1.05 and $ 1.35 for a few days.
The 20-day EMA ($ 1.15) has appeared and the RSI has risen above 64, indicating that the bulls have the upper hand. A breakout and a close above $ 1.35 could clear the way for a rally to $ 1.66. The bears will have to lower the price below $ 1.05 to signal a comeback.
SOL / USDT
The bears tried to stop the Solana (SOL) uptrend at $ 130, but the bulls were in no mood to budge. Buyers did not allow the price to break below the $ 100 psychological support.
Buying resumed on September 2 and the bulls have extended the SOL / USDT pair to a new all-time high today. Vertical rallies are rarely sustainable and typically cause steep drops. The RSI above 88 also indicates that the pair is overextended in the short term.
If the price turns down from the current level or $ 150, the first support is at the Fibonacci retracement level of 38.2% at $ 115.75.
A strong bounce from this level will suggest strength and increase the possibility of a breakout above $ 150. The next target on the upside is $ 166.97. Conversely, a break below $ 115.75 could push the price down to the 50% retracement level at $ 106.29.
DOGE / USDT
Dogecoin (DOGE) broke above the 20-day EMA ($ 0.28) on September 1 and the bulls pushed the price above the downtrend line of the descending wedge pattern on September 2. However, the long wick on the day’s candle showed that the bears were selling at higher levels.
The DOGE / USDT pair has bounced off the 20-day EMA and the bulls have pushed the price above the wedge. If buyers hold the price above $ 0.31, the pair could rise to $ 0.35. This level is likely to act as strong resistance.
If the price falls below $ 0.35, the pair can drop back to the 20-day EMA. A strong bounce will suggest that the sentiment is positive. A breakout and close above $ 0.35 could clear the way for an upward move to $ 0.45.
On the other hand, if the price turns down and breaks below the 20-day EMA, the pair may fall to the wedge support line.
DOT / USDT
Polkadot (DOT) has held above the breakout level at $ 28.60 for the past three days, signaling the start of a new uptrend. The rising moving averages and the RSI in the overbought territory indicate an advantage for buyers.
If the bulls carry the price above $ 33.84, the DOT / USDT pair could begin its journey north towards $ 41.40 and then towards the pattern target at $ 46.83.
On the other hand, if the price turns down from the current level, the price can retest the breakout level at $ 28.60. If the bulls shift this level to support, it can act as a launching pad for the next stage of the up move.
A breakout and close below the 20-day EMA ($ 27.12) will be the first sign that the current breakout may have been a bullish trap.
Related: How to prepare for the end of the bullfight, Part 1: Time
UNI / USDT
Uniswap’s (UNI) move to the upside turned down from $ 31.41 on Sept. 2, suggesting that the bears have not yet thrown in the towel. The price action of the past few days has formed a negative divergence in the RSI, indicating that the bullish momentum may be weakening.
If the price bounces off the 20-day EMA ($ 27.91), the bulls will make one more attempt to push the UNI / USDT pair above the overhead resistance at $ 31.41. If they are successful, the pair can start their journey at $ 37.52 and then at $ 42.25.
Alternatively, if the bears sink the price below the moving averages, the pair can drop to $ 25 and remain in the range for a few more days. A breakout and close below the $ 25 to $ 23.45 support zone will indicate that the bears are back in the game.
LINK / USDT
Chainlink (LINK) had been limited to a range of between $ 24 and $ 30 for the last few days. The bulls pushed the price above the overhead resistance on September 2, but were unable to sustain the higher levels.
The bulls bought back the dip today and have propelled the price above the overhead resistance. If buyers hold the price above $ 30, the LINK / USDT pair could rally to $ 36 and if that level is crossed, the bullish move can hit $ 43.50, which is the intraday high of May 19.
The 20-day EMA ($ 26.99) has started to appear and the RSI is in positive territory, indicating that buyers have the upper hand. Contrary to this assumption, if the price turns down and breaks below $ 30, it will suggest that the range limit action may continue for a few more days.
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