Bitcoin (BTC) is witnessing a tough tussle between the bulls and the bears near the 200-day simple moving average, which is considered as an important level by institutional investors attempting to decide whether the asset is bullish or bearish.
Along with this, crypto investors are also watching the formation of a golden cross in Bitcoin. If this bullish setup completes, it will signal a trend in favor of the bulls. For the time being, investors continue to focus on select altcoins that have continued their northward journey.
On the fundamental front, Bitcoin reached another milestone as miners produced the 700,000th block on Sep. 11. Bitcoin was trading near $8,000 when the 600,000th block was reached on Oct. 18, 2019.
Reaching this milestone led some Twitter users to quote Hal Finney, one of Bitcoin’s earliest pioneers who had said:
“Every day that goes by and Bitcoin hasn’t collapsed due to legal or technical problems, that brings new information to the market. It increases the chance of Bitcoin’s eventual success and justifies a higher price.”
Let’s study the charts of the top-5 cryptocurrencies that may attract trader’s attention in the short term.
Bitcoin closed below the 200-day SMA ($45,894) on Sep. 10 but bears have not been able to capitalize on this move. The bulls are currently attempting to push the price back above the 200-day SMA.
The moving averages are close to completing a golden cross, indicating that the advantage is likely to tilt in favor of the bulls. If buyers push the price above $47,399.97, the BTC/USDT pair will attempt to rise to the overhead zone of $50,500 to $52,920.
The bears are likely to defend the overhead zone aggressively but if bulls do not give up much ground, the likelihood of a break above $52,920 increases. If that happens, the pair could rally to $60,000.
On the other hand, if the price turns down from the current level, it will suggest that bears are aggressively defending the 200-day SMA. The pair could then retest the critical support at $42,451.67. A break below this level could tilt the advantage in favor of bears.
The 4-hour chart shows that the price turned down from $47,550 on two occasions. Hence, this becomes an important level to watch out for in the short term. A break and close above this resistance may open the doors for a possible move to $50,500.
However, the moving averages are on the verge of a bearish crossover, indicating that sellers are attempting to make a comeback. A break and close below $44,000 could signal a minor advantage to bears. The pair could then drop to the critical level at $42,451.67.
The long tail on Sep. 7 shows that bulls aggressively bought the dip to the 50-day SMA ($1.10). Strong buying on Sep. 8 propelled Algorand (ALGO) above the stiff overhead resistance at $1.84.
The bears tried to trap the bulls by sinking the price below the breakout level at $1.84 on Sep. 10 but the buyers had other plans. The ALGO/USDT pair has rebounded off the support with strength today and bulls are currently attempting to thrust the price above $2.49.
If they succeed, the pair could resume the uptrend with the first target on the upside at $3 and then $3.32. On the contrary, if the price once again turns down from $2.49, the pair could drop to $1.84 and stay range-bound between these two levels for the next few days.
A break and close below $1.84 will suggest that the current breakout was a bull trap. The pair could then slide to $1.60.
The 4-hour chart shows that bears are defending the overhead resistance at $2.49. If sellers pull the price below $2.30, the pair could again slide to the breakout level at $1.84. A bounce off this support could suggest a range-bound action for some time.
If bulls do not give up much ground from the…
Read More: cointelegraph.com