Bitcoin tried to break out of its range last week, but the bulls could not sustain the higher levels. Bitcoin (BTC) is back inside the range and is trading near the $26,000 level. The price action of the past few days has formed two successive doji candlestick patterns on the weekly chart, indicating uncertainty about the next directional move.
Although it is difficult to predict the direction of the breakout, the downside may be limited in the near term on expectations that the United States Securities and Exchange Commission (SEC) may eventually approve one or more pending applications for a spot Bitcoin exchange-traded fund. Former commission chair Jay Clayton sounded confident when he said in a recent interview that “an approval is inevitable.”
Crypto market data daily view. Source: Coin360
In the near term, it is difficult to pinpoint a specific catalyst that could shake Bitcoin out of its range. The lack of clarity about Bitcoin’s next trending move has kept most major altcoins under pressure.
Only a handful of altcoins are showing signs of strength in the short term. Let’s study the charts of the top five cryptocurrencies that may start a rally if they break above their respective overhead resistance levels.
Bitcoin price analysis
Bitcoin is back inside the $24,800 to $26,833 range, but a positive sign is that the bulls continue to buy the dips, as seen from the long tail on the Sept. 1 candlestick.
BTC/USDT daily chart. Source: TradingView
Although the downsloping moving averages indicate an advantage to bears, the gradually recovering relative strength index (RSI) shows that the bearish momentum may be weakening. The first sign of strength will be a break and close above the range at $26,833. If that happens, the BTC/USDT pair could retest the Aug. 29 intraday high of $28,142.
If bears want to seize control, they will have to sink and sustain the price below $24,800. This is going to be a tough task, as the bulls are likely to defend the level with all their might. Still, if the bears prevail, the pair could plunge to $20,000. There is a minor support at $24,000, but it may not halt the…..