There is an old proverb that says: “History does not always repeat itself, but it tends to rhyme.” If that’s the case for Bitcoin (BTC), then a strong upward move might not occur in the month of September.
Bybit data shows that since 2013, Bitcoin has closed September in the red for six years and has only achieved a positive monthly close twice. The best performance was in 2016, when Bitcoin was up 6.04%.
However, the historical low performance of September has not stopped small and large traders from accumulating Bitcoin in August.. Ecoinometrics reported increasing balances for addresses that have between 1,000 and 10,000 bitcoins and for accounts that have less than one Bitcoin.
Will September’s low all-time record scare the bulls away, or will this year be an exception? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The bulls again failed in their attempt to push the price past the overhead resistance at $ 50,000 on Aug. 29, suggesting that the bears are defending the level aggressively. Bitcoin formed a Doji candlestick pattern on August 29, which resolved lower earlier today.
The failure of the Relative Strength Index (RSI) to return to the symmetrical triangle indicates weakness. If the bears drag the price below the 200-day SMA ($ 46,065), the BTC / USDT pair could drop to the next support at $ 42,451.67.
This level is likely to act as strong support. If the price rebounds from this level, the pair can remain in a range between $ 42,451.67 and $ 50,500 for a few days.
A breakout and close below $ 42,451.67 will be the first sign of a deeper correction. The pair could then drop to $ 36,670.
This negative view will be invalidated if the price rises from the current level and exceeds $ 50,500. This move could open the doors for a rally towards $ 60,000.
ETH / USDT
Ether (ETH) fell back out of the overhead resistance zone between $ 3,335 and $ 3,377.89 on August 29. This suggests that the bears are defending the upper zone with everything they have.
However, the bulls have not given up and are defending the 20-day exponential moving average ($ 3,139) as today’s strong bounce reveals. If they push the price above the upper zone, the ETH / USDT pair can resume its upward movement with its first target set at $ 3,670 and the next at $ 4,000.
On the other hand, if the bears drag in price below the 20-day EMA, the ETH / USDT pair could fall to the breakout level at $ 3,000. A bounce from this level could keep the pair in a range between $ 3,000 and $ 3,377.89 for a few more days.
A deeper correction may begin if the bears sink and hold the price below the breakout level at $ 3,000. This could lead to a dip to the 200-day SMA ($ 2,389).
ADA / USDT
Cardano (ADA) turned down from $ 2.95 on August 28, suggesting that the bears are aggressively defending the overhead resistance at $ 2.97. This was followed by a Doji candlestick pattern on August 29, indicating indecision between the bulls and bears.
The uncertainty spread today with the formation of an intraday candlestick pattern. If sellers sink the ADA / USDT pair below the August 29 intraday low of $ 2.71, the pair could fall back to the breakout level at $ 2.47. A strong bounce from this level could keep the pair in a range between $ 2.47 and $ 2.97 for a few days.
Although the rising 20-day EMA ($ 2.44) suggests an advantage for buyers, the negative divergence on the RSI indicates that momentum is weakening. A breakout and close below $ 2.47 will suggest the start of a deeper correction. The pair could then drop to $ 2.20.
The bulls will have to carry and maintain the price above the psychological level of $ 3 to suggest the resumption of the uptrend.
BNB / USDT
The failure of the bulls to push and hold Binance Coin (BNB) above the May 19 intraday high of $ 516.50 may have attracted profit-taking from short-term traders. The altcoin turned down and can now drop to the breakout level at $ 433.
The bulls are likely to aggressively defend the support zone between the 20-day EMA ($ 445) and the breakout level at $ 433. A strong bounce from this zone will suggest that sentiment remains positive and that the bulls are buying the dips.
A breakout and close above $ 520 will signal the resumption of the uptrend. The BNB / USDT pair could then rally to $ 600. Conversely, if the bears sink the price below $ 433, the pair could drop to the 200-day SMA ($ 368).
XRP / USDT
XRP rebounded from the support of $ 1.07 on August 27, but the bulls were unable to push the price to the downtrend line. This suggests that demand depletes at the highest levels. The bears are currently attempting to sink the price to the critical support of $ 1.07.
Price action over the past few days has formed a descending triangle pattern, which will be completed with a breakout and close below the $ 1.05 level. This setup is targeting $ 0.75. The flattening of the 20-day EMA ($ 1.10) and the RSI near the midpoint suggest that the bulls are losing control.
Conversely, if the price bounces from the support at $ 1.05 and breaks above the downtrend line, it will invalidate the bearish setup. The failure of a bearish pattern is a positive sign. The pair can then start its journey towards the $ 1.35 level, followed by a move towards $ 1.66.
DOGE / USDT
Dogecoin (DOGE) climbed above the overhead resistance of $ 0.29 on August 27, but the bulls were unable to sustain the higher levels. The price fell back below $ 0.29 on August 28.
The bears will now try to sink the price below the immediate support at $ 0.26. If they get their way, the DOGE / USDT pair could drop to critical support at $ 0.21.
The 20-day flat EMA ($ 0.28) and the RSI near the midpoint suggest a balance between supply and demand.
This balance will tilt in favor of the bulls if they succeed in pushing and sustaining the price above the downtrend line. The pair can then rise to $ 0.35 and later to $ 0.45.
SOL / USDT
Solana (SOL) is in a strong uptrend. The upward movement stopped on August 29, but the long tail of the daily candle showed that the bulls bought the dips. Buyers have pushed the price back to a new all-time high today.
If the bulls get the price to sustain above $ 100, the SOL / USDT pair could start its way to the next target at $ 122.09.. Although the momentum is strong, the RSI above 83 suggests that the move is overheated in the short term.
The first sign of weakness will be a breakout and close below $ 90. This will suggest that traders are taking profits in a hurry. Then the pair could correct to the 20-day EMA ($ 72), which will likely act as strong support. A breakout and close below this support will signal a possible trend reversal.
DOT / USDT
The Polkadot uptrend line (DOT) is acting as resistance. Attempts by the bulls to push the price back above this line failed on August 27 and 28, suggesting that traders are closing their positions when the price rises.
If the bears drag in price below the 20-day EMA ($ 24.48), the DOT / USDT pair could see more selling. The pair could drop to stiff support at $ 18. This move will suggest that the pair could extend its range action for a few more days.
The 20-day EMA, which is gradually flattening out, and the RSI, just above the midpoint, suggest that the bulls are losing control. To gain the upper hand, buyers will have to push and hold the price above $ 28.60. That will complete a V bottom pattern, targeting $ 46.83.
UNI / USDT
Uniswap (UNI) bounced off the support at $ 25 on August 27 and rose above the moving averages, but the bulls were unable to sustain the higher levels. This suggests that the bears have not lowered their arms and are selling on rallies.
The price has fallen back below the moving averages today and the sellers will now try to sink the price below the support at $ 25. If this happens, the UNI / USDT pair will complete a small descending triangle pattern. This bearish setup is targeting $ 18.74.
On the other hand, if the price bounces from the support at $ 25 and breaks above the downtrend line, it will invalidate the bearish setup. The pair could then rally to $ 30. The bulls will have to push and hold the price above this resistance to signal the start of a new uptrend.
MOON / USDT
Terra Protocol’s LUNA hit a new all-time high on August 29, but traders took advantage of this rise to take part of their gains. The price was down today but rallied strongly from $ 32, indicating that the bulls have turned previous resistance into support.
Buyers will now try to push the price above the all-time high at $ 36.89. If they get their way, the LUNA / USDT pair could start its journey towards the next target at $ 43 and subsequently towards $ 50.
Contrary to this assumption, if the price turns down from $ 36.89 again, the bears will attempt to sink the pair to the 20-day EMA ($ 27.23).
A strong bounce from this support will suggest that sentiment remains positive and that traders are buying on dips. The bulls will again try to resume the up move. The bears will have to sink and hold the price below the 20-day EMA to weaken the bullish momentum.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risks, you must do your own research when making a decision.
Market data is provided by the exchange HitBTC.