Bitcoin’s attempt to break out of its range last week failed, suggesting that range-bound price action may continue. The uncertainty about the next directional move is reflected in two successive doji candlestick patterns on the weekly chart. The downside may be limited in the near term due to expectations of a potential approval of a Bitcoin exchange-traded fund by the United States Securities and Exchange Commission.
In terms of altcoins, only a few are showing signs of strength. TON, LINK, MKR, and XTZ are among the top five cryptocurrencies that may start a rally if they break above their respective overhead resistance levels.
Bitcoin is currently trading near the $26,000 level and a break and close above $26,833 could lead to a retest of the Aug. 29 intraday high of $28,142. On the other hand, a sustained price below $24,800 could result in a plunge to $20,000.
TON is in an uptrend and if it rallies above $2.07, it could soar to $2.40. A deeper correction could pull the price to the 20-day EMA ($1.58), but a strong bounce off this level would suggest a positive sentiment.
LINK has been trading inside a large range between $5.50 and $9.50. A break above the 20-day EMA ($6.24) could start a journey toward the 50-day SMA ($6.95), while a sharp turn down from the 20-day EMA could pull the price down to $5.50.
MKR has taken support near $1,000 and is attempting to resume its uptrend. A turn up from the current level could push the price to $1,370, while a break below the 20-day EMA could lead to a decline to $980.
XTZ has been battling between bulls and bears near the strong support at $0.70. A close above the 20-day EMA ($0.71) could pave the way for a rally to the downtrend line, while a sustained price below $0.66 could start the next leg of the downtrend.
Overall, Bitcoin’s failed breakout suggests range-bound price action may continue, while a few altcoins show signs of strength and potential for a rally if they break above resistance levels.
