Crypto markets showed cautious strength as the total market cap climbed about 1.2% to reclaim $3.9 trillion while traditional stocks lagged. Bitcoin, Solana and XRP led gains near 2%, setting a tentative bullish tone ahead of what traders call Red September, historically a choppy month for crypto.
Bitcoin (BTC) staged a modest rally, rising roughly 1.36% to trade around $110,735 after an intraday spike to about $111,775. Short-term indicators are mixed: the RSI sits near 44 (neutral-to-slightly-bearish) and the ADX is near 20, implying a weak trend rather than a clear directional move. At the same time the 50-day EMA remains above the 200-day EMA — the so-called golden cross — which supports the broader uptrend even as the gap narrows.
Low ADX often precedes larger moves as markets “coil.” That dynamic, combined with a cooling RSI, leaves room for both breakouts and breakdowns. Prediction-market activity on Myriad shows traders placing higher odds (about 66%) on a dip to $105K than a run to $125K, signalling short-term caution. Key Bitcoin levels: support at $105,000, immediate resistance near $113,000 and stronger resistance around $115,000.
Ethereum (ETH) closed marginally lower near $4,304 but printed wide intraday swings, highlighting elevated volatility. The RSI rests at a neutral 50, while the ADX is just above trend-confirmation territory at 26. Like Bitcoin, ETH keeps its 50-day EMA above the 200-day EMA, giving the rally structural support.
Market participants on Myriad remain more optimistic on ETH — roughly 60% odds it reaches $5,000 before falling to $3,500 — though bullish probabilities have cooled recently.
Why this matters: the mix of neutral-to-weak momentum indicators, prediction-market bets and seasonal headwinds means traders should expect choppy action and plan risk controls. Institutional flows and bank commentary provide upside catalysts, but short-term volatility is likely. Integrate position sizing and stop levels when trading around these technical thresholds.
Source: Decrypt. Read the original coverage for full details.
Not investment advice. Market analysis is informational only; consider risk management before trading.