Bitcoin range recovery could boost UNI, SUI, OP and HNT
2024.09.08 15:30
Bitcoin (BTC) broke below the $55,724 to $73,777 range on Sept. 6, paving the way for a further decline to the Aug. 5 intraday low of $49,000. According to Bitget Wallet chief operating officer Alvin Kan, Bitcoin may remain under pressure until the Federal Reserve’s rate decision on Sept. 18. However, after the rate cut is announced, Kan anticipates risk assets to witness a short- to mid-term boost.
Arthur Hayes, the former CEO of the BitMEX cryptocurrency exchange, who earlier speculated Bitcoin to drop below $50,000 has changed his view. He now expects Bitcoin to rally as early as next week due to increased United States dollar liquidity from the Fed.
Crypto market data daily view. Source: Coin360
Bitcoin’s recent weakness has pulled several altcoins lower, but a few have dodged the selling. That is a positive sign, as such altcoins are likely to outperform on the way up if Bitcoin starts a relief rally.
Could Bitcoin rise back above $55,724, trapping the aggressive bears? Let’s study the top 5 cryptocurrencies that may participate in a potential recovery.
Bitcoin price analysis
Bitcoin plunged and closed below the $55,724 support on Sept. 6, signaling that the bears are trying to seize control.
BTC/USDT daily chart. Source: TradingView
Generally, the price tends to retest the breakdown level after a crucial support cracks. The BTC/USDT pair could rise to $55,724, where the bears will try to stall the recovery. If the price turns down from $55,724, it will suggest that the bears have flipped the level into resistance. That could intensify selling and pull the price toward the pivotal support at $49,000.
The first sign of relief for the bulls will be a break and close above the 20-day exponential moving average ($57,957). Above this level, the relief rally may 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 every relief rally is being viewed as a selling opportunity. Minor support is at $53,969, but if the level breaks down, the pair may descend to $49,000.
On the upside, the bulls will have to drive the price above the 50-SMA to signal that the sellers have given up. That may clear the path for a rally to $60,000 and thereafter to $62,000.
Uniswap price analysis
Uniswap (UNI) is trying to start a relief rally but is expected to face resistance near the breakdown level of $6.74.
UNI/USDT daily chart. Source: TradingView
The flattish 20-day EMA ($6.25) and the RSI near the midpoint suggest that the selling pressure is reducing. If buyers shove the price above the 50-day SMA ($6.55), the UNI/USDT pair may climb toward $8.66. Minor resistance at $7.22 exists, but it is likely to be crossed.
Alternatively, if the price turns down from $6.74 and breaks below the 20-day EMA, it will suggest a range formation in the near term. The pair could swing between $6.36 and $7.22 for a while.
UNI/USDT 4-hour chart. Source: TradingView
The pair has gradually risen toward the overhead resistance zone between $6.74 and $7.22. The 50-SMA is the crucial support to watch out for on the downside. If the price maintains above the 50-SMA, it will suggest that the bulls are buying on dips. That will result in a possible retest of $7.22.
If bulls want to prevent the upside, they will have to drag and maintain the price below the 50-SMA. The pair may then slump to $5.50.
Sui price analysis
Sui (SUI) has reached the resistance line of the descending channel pattern, where the bears will try to stall the up move.
SUI/USDT daily chart. Source: TradingView
If the price turns down from the resistance line but rebounds off the moving averages, it will signal a positive sentiment. That will increase the likelihood of a break above the channel. If that happens, the SUI/USDT pair may climb to $1.20.
This positive view will be invalidated in the near term if the price turns down from the resistance line and breaks below the moving averages. Such a move suggests that the pair may remain inside the channel for some more time.
SUI/USDT 4-hour chart. Source: TradingView
Both moving averages have turned up, and the RSI is in the positive zone, indicating that the bulls are in command. If buyers maintain the momentum and thrust the price above the channel, the pair may rise to $1.12 and later to $1.20.
Contrarily, if the price continues lower and breaks below the 20-EMA, it will suggest that the bears are trying to keep the pair inside the channel. The pair will weaken further if the bears tug the price below the 50-SMA.
Related: Bitcoin analyst sees ‘biggest bull cycle’ with $45K now BTC price floor
Optimism price analysis
Optimism (OP) broke and closed above the 20-day EMA ($1.40) on Sept. 7 and touched the 50-day SMA ($1.47) on Sept. 8.
OP/USDT daily chart. Source: TradingView
The RSI has risen near the midpoint, indicating that the bears are losing their grip. Buyers are likely to drive the price above the 50-day SMA and the overhead resistance of $1.65. If they do that, the OP/USDT pair may start a new up move toward $2.50.
Contrary to this assumption, if the price fails to sustain above the 50-day SMA, it will signal that the bears continue to sell on rallies. The pair may slide to $1.22 and then to the solid support at $1.17.
OP/USDT 4-hour chart. Source: TradingView
The pair has pulled back to the moving averages, indicating that the bears are posing a strong challenge near $1.50. If the price rebounds off the moving averages, the prospects of a rally above $1.50 will improve. The pair may rally to $1.65 and then to $1.77.
Instead, if the price continues lower and breaks below the moving averages, it will suggest that the bears are selling on every minor rise. The pair could then slide to the uptrend line. A break below the uptrend line may intensify selling and pull the price to $1.20.
Helium price analysis
Helium (HNT) has started an up move in the past few days. The bears attempted to pull the price down on Sept. 3, but the bulls successfully defended the 20-day EMA ($7.33).
HNT/USDT daily chart. Source: TradingView
A minor negative on the charts is the developing bearish divergence on the RSI. This suggests that the bullish momentum is weakening. A break and close below the 20-day EMA will tilt the advantage in favor of the bears.
However, if the price turns up from the current level or the 20-day EMA and breaks above $8.67, it will suggest that the uptrend remains intact. The HNT/USDT pair could then attempt a rally to $10.
HNT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the pair is facing resistance at $8.50. The flattening 20-EMA and the RSI near the midpoint suggest that the buying pressure is reducing. A break and close below the 50-SMA could open the doors for a fall to $7.
Alternatively, if the price turns up from the moving averages, the bulls will make another attempt to drive the pair above $8.67. If they succeed, the pair could resume its up move to $9.75.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
