Bitcoin Bears Aim For $105K While Altcoins Hold Steady

Key points:

Bitcoin bulls will have to quickly push the price back above the 20-day EMA to prevent a collapse to $105,000.

The shallow pullback in select altcoins suggests that the investors are not hurrying to sell them as they anticipate the up move to continue.

Bitcoin (BTC) is trying to rise above $110,000, but the bears are defending the level. Crypto market sentiment platform Santiment said in a report that “buy the dip” mentions have increased on social media, signaling further downside. Santiment said that a true bottom would form when there is “widespread fear and a lack of interest in buying.”

Another negative for the bulls is that September has largely been negative for BTC. According to CoinGlass data, BTC has closed September in the red on eight occasions since 2013, with an average slide of 3.80%.

Crypto market data daily view. Source: Coin360

Despite the seasonal weakness and the pullback in BTC and major altcoins, institutional investors continued their purchases. Digital asset investment products witnessed $2.48 billion in inflows last week, reversing $1.4 billion in outflows in the prior week, according to CoinShares data.

Could BTC climb back above $110,530, pulling ETH and altcoins higher? Let’s analyze the charts of the top 10 cryptocurrencies to find out.

S&P 500 Index price prediction

The S&P 500 Index (SPX) remains in an uptrend, but the negative divergence on the relative strength index (RSI) suggests the bullish momentum is weakening.

SPX daily chart. Source: Cointelegraph/TradingView

The bears will try to pull the price below the 20-day exponential moving average (EMA (6,418). If they can pull it off, the index could plummet to the 50-day simple moving average (SMA) (6,316) and then to the breakout level of 6,147.

Buyers are expected to fiercely defend the zone between the 50-day SMA and 6,147 because a break below it signals a short-term top. The correction could then deepen to 5,950.