Bitcoin (BTC) fell below the $55,724 to $73,777 range on September 6, paving the way for a further decline to an intraday low of $49,000 on August 5. According to Bitget Wallet CEO Alvin Kan, Bitcoin could remain under pressure until the Federal Reserve makes its interest rate decision on September 18. However, after the rate cut is announced, Kan predicts that risk assets will see a rise in the short to medium term.
Arthur Hayes, the former CEO of cryptocurrency exchange BitMEX, who previously speculated that Bitcoin would fall below $50,000, has changed his mind. He now expects Bitcoin to rally next week due to increased US dollar liquidity from the Fed.
Bitcoin's recent weakness has dragged some altcoins lower, but some have avoided the sell-off. That's a positive sign, as such altcoins are likely to perform better on the upside if Bitcoin starts a recovery.
Can Bitcoin rally back above $55,724, trapping aggressive bears? Let’s look at the top 5 cryptocurrencies that could be part of the potential rally.
BTC Technical Analysis
Bitcoin plunged and closed below the $55,724 support on September 6, signaling that bears are trying to gain control.
BTC/USDT Daily Chart | Source: TradingView
Generally, the price tends to retest the breakout level after a key support level is broken. The BTC/USDT pair could rise to $55,724, where bears will attempt to stall the recovery. If the price declines from $55,724, it would indicate that bears have turned this level into resistance. That could increase selling and drag the price towards the key support level at $49,000.
The first sign for the bulls would be a breakout and close above the 20-day exponential moving average ($57,957). Above this level, the rally could reach the 50-day simple moving average ($60,839).
BTC/USDT 4-hour chart | Source: TradingView
The bears have not allowed the price to rise above the moving averages for some time, suggesting that any relief rally is being viewed as a selling opportunity. Minor support is at $53,969, but if this level is broken, the pair could drop to $49,000.
On the upside, bears would have to push the price above the 50 SMA to signal that sellers have given up. That could pave the way for a rally to $60,000 and then $62,000.
UNI Technical Analysis
Uniswap (UNI) is attempting to start a relief recovery but is expected to face resistance near the breakout level of $6.74.
UNI/USDT Daily Chart | Source: TradingView
The flat 20-day EMA ($6.25) and the RSI near the midpoint suggest that selling pressure is easing. If buyers push the price above the 50-day SMA ($6.55), the UNI/USDT pair could rise to $8.66. There is minor resistance at $7.22, but it is likely to be crossed.
On the other hand, if the price declines from $6.74 and breaks below the 20-day EMA, this will indicate a range formation in the near term. The pair could fluctuate between $6.36 and $7.22 for some time.
UNI/USDT 4-hour chart | Source: TradingView
The pair has been gradually rising towards the overhead resistance zone between $6.74 and $7.22. The 50 SMA is an important support level to watch on the downside. If the price stays above the 50 SMA, it will suggest that the bulls are buying on dips. This will open the door to a retest of $7.22.
If the bulls want to stall the gains, they will have to pull and sustain the price below the 50 SMA. After that, the pair could drop to $5.50.
SUI Technical Analysis
Sui (SUI) has reached the resistance line of the descending channel pattern, where bears will try to stall the upside momentum.
SUI/USDT Daily Chart | Source: TradingView
If the price declines from the resistance line but bounces back from the moving average, this will signal a positive sentiment. That will increase the possibility of a channel breakout. If that happens, the SUI/USDT pair could rise to $1.20.
This bullish view will be invalidated in the near term if the price declines from the resistance line and breaks below the moving average. Such a move would suggest that the pair could remain within the channel for some time.
SUI/USDT 4-hour chart | Source: TradingView
Both moving averages are rising and the RSI is in the positive zone, suggesting that the bulls are in control. If buyers sustain the momentum and push the price above the channel, the pair could rise to $1.12 and then $1.20.
Conversely, if the price continues to decline and breaks below the 20 EMA, it will suggest that bears are trying to keep the pair inside the channel. The pair will weaken further if bears drag the price below the 50 SMA.
OP Technical Analysis
Optimism (OP) broke out and closed above the 20-day EMA ($1.40) on September 7 and touched the 50-day SMA ($1.47) on September 8.
OP/USDT Daily Chart | Source: TradingView
The RSI has risen near the midpoint, suggesting that bears are losing control. Buyers are likely to push the price above the 50-day SMA and the overhead resistance at $1.65. If they do so, the OP/USDT pair could start a fresh upward move towards $2.50.
Contrary to this assumption, if the price fails to sustain above the 50-day SMA, it will signal that bears continue to sell on the rise. The pair could slide to $1.22 and then to the solid support at $1.17.
OP/USDT 4-hour chart | Source: TradingView
The pair has fallen back to the moving averages, suggesting that bears are mounting a strong challenge near $1.50. If the price rebounds from the moving averages, the outlook for a rise above $1.50 will improve. The pair could rise to $1.65 and then $1.77.
Instead, if the price continues to decline and breaks below the moving average, this will indicate that bears are selling on small increases. The pair could then slide towards the uptrend line. A break below the uptrend line could increase selling pressure and drag the price down to $1.20.
HNT Technical Analysis
Helium (HNT) has been rising over the past few days. The bears attempted to pull the price down on September 3, but the bulls successfully defended the 20-day EMA ($7.33).
HNT/USDT Daily Chart | Source: TradingView
A small downside on the chart is the developing bearish divergence on the RSI. This shows that the bullish momentum is weakening. A break and close below the 20-day EMA would tilt the advantage in favor of the bears.
However, if the price rises from the current level or the 20-day EMA and breaks above $8.67, it will suggest that the uptrend is still intact. The HNT/USDT pair could then attempt a rally towards $10.
HNT/USDT 4-hour chart | Source: TradingView
The 4-hour chart shows that the pair is facing resistance at $8.50. The 20 EMA is flattening and the RSI is near the midpoint, suggesting that buying pressure is waning. A break and close below the 50 SMA could open the doors for a drop to $7.
On the other hand, if the price bounces off the moving averages, the bulls will make another attempt to push the pair above $8.67. If successful, the pair could continue to rise towards $9.75.
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Disclaimer: This article is for informational purposes only and is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
