Bitcoin and altcoins experienced a slight rally, but it is uncertain if this is just an oversold bounce. Traders should be cautious and wait for a breakout before making large bets. Institutional traders are also taking a cautious approach, with a recent outflow of $55 million from digital asset investment products.
Bitcoin’s price action shows that the bulls and bears are unsure about the next move. The bulls need to clear the resistance levels at $26,833 and the 20-day EMA at $27,777 to indicate a potential upward trend. On the other hand, a drop below $24,800 could lead to a further decline to $20,000.
Ether dipped below the support at $1,626 but saw solid buying at lower levels. The bulls need to drive the price above the resistance at $1,700 to reach the 20-day EMA and confirm a relief rally. However, a break below $1,626 could lead to a downward move towards $1,368.
BNB bounced off the support at $200, indicating an attempt to halt the decline. The recovery could reach the 20-day EMA at $227, but if the price turns down sharply from this level, the bears may push the pair below $200 and towards $183.
XRP turned down from the resistance at $0.56 but has held above $0.50. The pair may consolidate between $0.50 and $0.56, with the 20-day EMA and oversold RSI favoring the bears. A break below $0.50 could lead to a range-bound action between $0.41 and $0.50.
Cardano’s long tail on the candlestick shows strong demand at lower levels. The price is currently stuck between $0.24 and $0.28. A drop below $0.24 could start a downtrend towards $0.20, while a break above $0.28 could invalidate the bearish view and lead to a relief rally.
Solana plunged below $20 but saw buying at lower levels. The bulls need to push the price above the 20-day EMA at $22.64 to salvage the situation. Otherwise, a break below $19.35 could lead to further downside.
Dogecoin rebounded off the support at $0.06, indicating buying pressure. The bulls need to push the price above the moving averages to start a rally, while a break below $0.06 could signal a downward move.
Polkadot held strong at the support of $4.22, but the bears hold the edge with the 20-day EMA turning down. The bulls need to propel the price above $4.56 and the 20-day EMA to signal a comeback. Otherwise, a break below $4 could start the next leg of the downtrend.
Polygon bounced back from $0.53, showing buying at lower levels. The bulls face strong selling at $0.60, and a break below $0.50 could resume the downtrend.
Shiba Inu fell below the 50-day SMA but saw a solid bounce at lower levels. The bulls will attempt a rally above the moving averages, while a turn down from the moving averages could indicate continued bearish control.
In summary, Bitcoin and altcoins are experiencing a slight rally, but it is uncertain if this is just an oversold bounce. Traders should be cautious and wait for a breakout before making large bets. Key levels to watch include $26,833 for Bitcoin, $1,700 for Ether, and $200 for BNB.
