Bitcoin experienced a significant resurgence on Wednesday, climbing above $113,900 as buyers showed resilience in purchasing during dips. However, the prevailing sentiment suggests that the cryptocurrency may face considerable selling pressure near the $117,500 mark. Analysts predict that while several major altcoins could encounter selling on rallies, cryptocurrencies like BNB and AVAX might continue their upward trajectories.
Michael Saylor, Strategy Executive Chairman, shared insights on CNBC, highlighting the increasing institutional buying through large Bitcoin exchange-traded funds and a growing corporate adoption of Bitcoin as factors that could contribute to a potential rally towards the end of the year. A recent weekly report from analytics firm Glassnode suggested Bitcoin could reach new all-time highs, albeit cautioning that historical trends indicate the current cycle is nearing its late phase.
In a contrasting view, Julio Moreno, head of research at CryptoQuant, pointed out that since August 21, whales have collectively sold 147,000 BTC, marking the fastest monthly decline in whale holdings during the current cycle. The ongoing question remains whether Bitcoin can withstand bear selling pressure to climb towards $117,500, and if other altcoins will follow suit.
Bitcoin price predictions indicate that while a relief rally is underway, it may confront strong selling near the moving averages. Should Bitcoin retreat sharply from these levels, a decline to the $107,000 region could be in the cards, with buyers expected to defend this support level vigorously. A drop below this point could trigger a bearish double-top pattern, potentially leading to further declines towards $100,000 and then to a target of $89,526. Conversely, if Bitcoin manages to break through the moving averages, it could surge to $117,500, with the possibility of reaching $120,000 if bullish momentum continues.
The Ethereum market is likewise seeing tension as buyers strive to maintain ETH above the $4,060 support level amidst anticipated heavy selling on any price relief rallies. If the price falters from the 20-day exponential moving average (EMA), it could dip below $4,060, which might see ETH slump further toward levels of $3,745 and ultimately to $3,426. However, a breakout above the 20-day EMA might indicate a formation of a trading range with potential swings between $4,060 and $4,957.
XRP also finds itself at a critical junction, trading within a descending triangle, which is historically known as a topping pattern. A decisive drop below the $2.69 threshold could prompt a downward shift towards $2.20. Conversely, for XRP to challenge this bearish setup, it must breach the downtrend line, paving the way for a potential rally towards the $3.40 mark.
BNB maintained a positive outlook after bouncing off the 20-day EMA, reflecting trader sentiment that favors buying on dips. If buyers can push above the $1,083 resistance level, this may initiate a new uptrend, targeting $1,187. Conversely, if the price retracts or falls below the 20-day EMA, it could lead to a decline towards the 50-day simple moving average (SMA) around $882.
In other notable altcoin activity, Solana recently slipped below its uptrend line, with bulls attempting to halt the pullback at the 50-day SMA ($206). A drop below this level could suggest further declines, while a rebound above the 20-day EMA could signal a solidifying buying trend aimed at reaching $260.
Dogecoin is currently resting on the 50-day SMA ($0.23), showing that bulls are defending this critical support. Should the price reverse from the 20-day EMA ($0.25), it may fall to $0.21, indicating prolonged trading within a $0.14 to $0.29 range. A breakout above $0.29 could pave the way for a rally up to $0.35 or even $0.44.
Meanwhile, Cardano has shown resilience near the $0.78 support level. A downturn from the 20-day EMA ($0.86) could see the price tumble to $0.68. However, should buyers break back into the triangle formation, a rally toward $1.02 may follow.
Hyperliquid has recently plunged below its uptrend line, indicating bearish momentum. If sellers restrict recovery attempts at the 20-day EMA, the price could fall to $40 or lower. A quick push above the 20-day EMA would negate this negative view and might see the price retest its all-time high of $59.
Chainlink has been defending its uptrend line but faces challenges in establishing a strong bounce. A bearish crossover in moving averages coupled with an RSI indicating weakness suggests potential declines if the price falters. A drop below the uptrend line could see Chainlink descend to $18, while a breakthrough could target $27.
Avalanche has shown some bullish momentum after rebounding from its 20-day EMA ($30.71), but it failed to clear resistance at $36.17. A sustained push above this level could lead to targets of $39.49 and $45. However, a slip below the 20-day EMA could indicate profit-taking and propel the price down to $27.38.
Investors are reminded that all trading and investment carries inherent risk, necessitating thorough research before making financial decisions.
