The number of non-farm payrolls rose by 315,000 jobs in August, compared with an increase of 526,000 jobs in July. The report was just 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 reversed its gains, indicating that the bears continue to sell on the rally.
This may be because the US Dollar Index (DXY), which retreated from its 20-year high on September 1, has retraced some of its losses. The bears will have to pull the DXY lower to lift stock prices and crypto markets as both are usually inversely correlated with the dollar index.
Daily indicators of the cryptocurrency market. Source: Coin360
Although Bitcoin (BTC) has fallen over 70% from its all-time high of $69,000, several traders have held their ground. Data from trading analytics platform TipRanks shows that 62% of wallets hold bitcoins for a year or more. The number of wallets in which bitcoins are stored for less than a month is only 6%. This suggests that investors are taking a long-term approach and are holding their positions.
Will the bulls be able to push bitcoin and altcoins above upper resistance levels? Let’s examine the charts of the top 10 cryptocurrencies to find out.
Bitcoin broke and closed above the downtrend line on September 1, which is the first sign that the short-term correction phase may be coming to an end.
BTC/USDT daily chart. Source: Trading View
There is some resistance at $20,576, but if the bulls push the price above it, BTC/USDT could hit the 20-day (EMA) exponential moving average of $21,091.
This is an important level to watch out for because if buyers get past this hurdle, it will mean that negative sentiment may be easing. The BTC/USDT pair may then attempt to move up to the 50-day Simple Moving Average (SMA) of $22,318.
Contrary to this assumption, if the price turns down from $20,576 or the 20-day EMA, the bears will make another attempt to push the pair down to the critical support zone of $18,910 to $18,626. Bulls are expected to aggressively defend this zone.
Ether (ETH) turned lower from the 20-day EMA ($1.61) on August 31, but the positive sign is that the bulls have not allowed the price to drop below the neck line of the head and shoulder pattern (H&S).
Daily ETH/USDT chart. Source: Trading View
The price bounced off the neck line on September 1 and rose to the 50-day SMA ($1,640). The bears will try to defend the area between the 50-day SMA and $1700, but if the bulls break this barrier, the ETH/USDT pair could gain momentum. The pair could then rise to $1848 and then retest the tough resistance at $2030.
Alternatively, if the price reverses down from the upper zone, the pair may fall again towards the neck line. If this support breaks, the pair could drop to $1,422 and then to $1,280. While the H&S setup breakout pattern target is $1,050, the bulls are likely to defend support at $1,280 vigorously.
BinanBNB) reversed down from the 20-day EMA ($289) on August 31st and fell below strong support at $275 on September 1st. However, the long tail of the daily candle shows aggressive buying at lower levels.
BNB/USDT daily chart. Source: Trading View
The bulls will again try to push the price above the 20-day EMA. If they manage to do so, it will be the first sign that the bears may be losing their grip. The BNB/USDT pair could then rally to $308 where the bears could get back on the defensive.
Conversely, if the price reverses down from the current level or the 20-day EMA, this would mean that sentiment remains negative and bears are selling on small upswings.
This will increase the likelihood of a break below support at $275. If this happens, the pair will complete the bearish H&S pattern. The pair could then drop to $240 and then to the $212 target.
XRP has been trading between $0.32 and $0.34 since August 28th. This narrow range trading indicates indecision between bulls and bears.
Daily XRP/USDT chart. Source: Trading View
A descending 20-day EMA ($0.34) and an RSI below 39 suggest that the bears are taking over. If the price reverses and falls below $0.32, the XRP/USDT pair could drop to important support at $0.30. If this level also gives way, the pair may start the next leg of the downtrend.
This negative view may not be valid in the near term if the bulls push the price above the 20-day EMA. The pair may then rise to the 50-day SMA ($0.36). Such a move would mean that the pair could continue to consolidate between $0.30 and $0.39 for a while longer.
Cardano (ADA) has been trading close to the 20-day EMA ($0.47) for the past three days, but the bulls have been unable to push the price above it. This suggests that the bears are defending the 20-day EMA, but the small upside is that the bulls haven’t given up much ground.
Daily ADA/USDT chart. Source: Trading View
If the price deviates from the 20-day EMA and drops below $0.44, the ADA/USDT pair could drop to $0.42. This level could act as strong support again, but if the bears push the price below it, the pair could drop to $0.40.
Contrary to this assumption, if the price breaks the 20-day EMA, the pair could rise to the 50-day SMA ($0.49). The bulls will have to overcome this barrier to clear the way for a possible rally to the downtrend line.
Solana (SOL) has been stuck in a tight range between $30 and $33 since Aug 27, indicating buyers and sellers are hesitant.
SOL/USDT daily chart. Source: Trading View
The descending 20-day EMA ($34) and the RSI in negative territory point to the advantage of the bears. If sellers push the price below $30, SOL/USDT could fall to critical support at $26. This is an important level to keep an eye on because a break and close below it can signal the resumption of a downtrend.
Alternatively, if the price reverses from the current level and breaks the 20-day EMA, the pair could rise to the 50-day SMA ($39). Such a move could mean the pair could be stuck between $30 and $48 for a few more days.
Dogecoin (DOGE) bounced again from strong support at $0.06 on September 1, but the bounce lacks strength. This indicates the absence of aggressive purchases at these levels.
Daily DOGE/USDT chart. Source: Trading View
The descending 20-day EMA ($0.07) and the RSI in negative territory point to the advantage of the sellers. If the price deviates from the current level or the 20-day EMA, the bears will again try to push the DOGE/USDT pair below $0.06. If they succeed, the pair could drop to the vital support at $0.05.
This negative outlook will be worthless in the short term if the bulls push the price above the moving averages. If this happens, the pair may try to rise to the upper resistance at $0.09.
Related: CEL rises 50% as Celsius Network seeks $50M return to customers
Polkadot (DOT) has been stuck in a tight range between $7.38 and $6.79 for the past few days, indicating bulls and bears indecisiveness.
DOT/USDT daily chart. Source: Trading View
This balance could tip in favor of the buyers if they push and hold the price above the upper zone between $7.38 and the 50-day SMA of $7.87. The DOT/USDT pair could then start rising to $9.17 and then to upper resistance at $10.
Conversely, if the price turns down from the upper zone, this will mean that sentiment remains negative and traders are selling on the rise. The bears will have to push the price below $6.79 to gain the upper hand. The pair could then drop to critical support at $6.
The polygon (MATIC) broke and closed above the moving averages on September 1st. This opens the door for a possible rally towards upper resistance at $1.05. Bears are likely to aggressively defend this level.
Daily MATIC/USDT chart. Source: Trading View
If the price reverses down from $1.05, MATIC/USDT could extend its range move for some more time.
The 20-day EMA ($0.84) remains unchanged, but the RSI has jumped into positive territory, indicating momentum is favoring buyers. If the bulls take the price above $1.05, the pair could continue to move higher to $1.19.
Conversely, if the price reverses and falls below the 20-day EMA, the pair could fall back to $0.75. A break below this support could take the pair down to $0.63.
Shiba Inu (SHIB) deviated from the 20-day EMA of $0.000013 on August 30 and fell to important support at $0.000012. This suggests that bears are active at higher levels.
Daily SHIB/USDT chart. Source: Trading View
On a minor positive note, the bulls prevented the price from holding below $0.000012 on September 1st. The price is stuck between the 20-day EMA and the $0.000012 support.
If the bulls push the price above the 20-day EMA, SHIB/USDT could rise to upper resistance at $0.000014. This level could again become a tough hurdle, but if the bulls break it, the rally could extend to $0.000018.
Conversely, if the price deviates from the moving averages again and drops below $0.000012, the pair could drop to $0.000010.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of . Every investment and trading move involves risk. You should do your own research when making a decision.
Market data provided by the HitBTC exchange.