The rebound in the crypto market was shaken on Sept. 24 after it was revealed that China’s government adopted a new package of measures that includes stronger cross-departmental coordination to “cut off payment channels, ditch relevant websites and mobile apps” to crack down on illegal cryptocurrency transactions efficient.
While the news led to a sell-off, long-term investors are unlikely to be concerned, as nothing else has changed other than the announcement of additional measures to effectively enforce the existing ban.
Daily performance of the cryptocurrency market. Source: Coin360
China first announced a ban on cryptocurrencies in September 2017, and that news had also led to a sharp correction in Bitcoin (BTC) price. That slump proved to be a good buying opportunity, however, as the price recovered in a matter of weeks and hit a new all-time high of nearly $ 20,000 in less than three months.
Is the current correction in Bitcoin and most of the major altcoins a good buying opportunity or could the crypto markets continue to collapse? Let’s analyze the top 10 cryptocurrency charts to find out.
BTC / USDT
Bitcoin bounced off the 100-day simple moving average ($ 40,874) and rose above the neckline of the head-and-shoulders moving average ($ 45,596) on September 22nd.
BTC / USDT daily chart. Source: TradingView
The falling 20-day EMA and the relative strength index (RSI) in negative territory show that the bears have the upper hand. If bears sink and hold the price below the 100-day SMA, the BTC / USDT pair could fall to $ 37,332.70.
This level can act as strong support, but if it breaks the next stop on the pattern target could be at $ 32,423.05.
Contrary to this assumption, if the price rises from current levels or the 100-day SMA, the bulls will try again to push the pair above the moving averages. A closing price above the 50-day SMA ($ 46,816) suggests the correction may be over.
ETH / USDT
Ether (ETH) rebounded from the 100-day SMA ($ 2,734) on September 22nd, climbing above the plunge level of $ 3,000. This shows that the bulls bought the dip and tried to trap the aggressive bears.
ETH / USDT daily chart. Source: TradingView
However, the rebound stalled on September 23 at $ 3,174.50 and the bears are trying to establish their supremacy. The falling 20-day EMA ($ 3,255) and the RSI below 41 show that the bears are in charge.
If the index breaks and closes below the 100-day SMA, the ETH / USDT pair could see aggressive selling. The pair could then fall towards the pattern target at $ 1,972.12. This negative view will be invalidated if the bulls push and hold the price above the moving averages.
ADA / USDT
Cardano’s (ADA) strong rebound from $ 1.94 levels hit a roadblock at the 20-day EMA ($ 2.36). This suggests sentiment remains negative with traders selling on rallies to the 20-day EMA.
ADA / USDT daily chart. Source: TradingView
The bears will now attempt to break the price below the critical support zone at $ 1.94 and the 100-day SMA ($ 1.83). If successful, the ADA / USDT pair could fall to $ 1.60 and then to $ 1.40.
Alternatively, if the price rises from current levels or rebounds from $ 1.94, the bulls will attempt to break the overhead hurdle again. A break and close above the 20-day EMA are the first signs that the correction may be over. The pair could then rise to $ 2.60 and then to $ 2.80.
BNB / USDT
Binance Coin (BNB) rebounded from strong support at $ 340 from $ 385.30 today, indicating strong sales by traders at higher levels.
BNB / USDT daily chart. Source: TradingView
The downward trending 20-day EMA ($ 402) and the RSI below 37 indicate the bears are in control. If the $ 340 support breaks, sales could intensify and the BNB / USDT pair could extend its decline to $ 300 and then to $ 250.
Contrary to this assumption, the bulls will make another attempt to push the price above the moving averages if the price rebounds from current levels. A breakout and a close above $ 433 signal that the correction may be over.
XRP / USDT
XRP bounced off the 100-day SMA ($ 0.87) on September 22, but the bulls failed to extend the rebound. The altcoin formed a doji candlestick pattern on September 23, indicating indecision between bulls and bears.
XRP / USDT daily chart. Source: TradingView
The uncertainty cleared on the downside today as bears pushed the price down to the 100-day SMA. If that support breaks, selling could gain momentum and the XRP / USDT pair could slide to $ 0. 70.
This level can act as strong support, but if bears let the price dip below it, the next stop could be at $ 0.50. That negative view will be offset if the price rebounds from the 100-day SMA and rises above the $ 1.07 to $ 1.13 resistance zone.
SOL / USDT
Solana (SOL) rebounded and rose above the 20-day EMA (USD 145) on September 22nd, but the bulls were unable to push the price above the downtrend line. This suggests that bears are selling in rallies.
SOL / USDT daily chart. Source: TradingView
The bears pulled the price back below the 20-day EMA today and the SOL / USDT pair could now hit the 50-day SMA ($ 108). This level should serve as strong support.
If the price recovers from this, the bulls will try again to push the price above the downtrend line and hold it. If they do, the pair could climb to $ 170 and then to $ 200.
Conversely, if the 50-day SMA cracks, the pair could panic selling and the price could then fall to the 78.6% Fibonacci retracement level at $ 98.26.
DOT / USDT
Polkadots (DOT) rebound of $ 25.50 stayed at $ 33.60. This suggests that bears are selling at higher levels. The bears are trying to push the price below the breakout level of $ 28.60. If this succeeds, a retest of $ 25.50 is likely.
DOT / USDT daily chart. Source: TradingView
A breakout and a close below $ 25.50 complete a bearish head and shoulders pattern. The DOT / USDT pair could then begin its decline to the 100-day SMA ($ 21.87) and then to the pattern target at $ 12.23.
Contrary to this assumption, the bulls will make one more attempt to resume the upward move if price rebounds from current levels or the neckline. A break and a close above $ 33.60 could open the doors for a retest at $ 38.77.
Related: Bitcoin hits $ 45,000, TWTR share price soars 3.8% after BTC tip arrives on Twitter
DOGE / USDT
The bulls pushed Dogecoin (DOGE) above $ 0.21 on September 22, but the rebound failed to attract buyers at higher levels. After forming an inside-day candlestick pattern on September 23, the price fell below $ 0.21 today.
DOGE / USDT daily chart. Source: TradingView
The falling 20-day EMA ($ 0.23) and the RSI near 36 suggest sellers have the upper hand. If bears drag the price below the $ 0.19 support, the DOGE / USDT pair could extend its decline to the critical support at $ 0.15.
This level has held up on three previous occasions so the bulls will try again to defend it. On the flip side, if bears drop the price below $ 0.15, sales could pick up and the pair could drop to $ 0.10.
AVAX / USDT
Avalanche (AVAX) rebounded from the 20-day EMA (USD 60.15) on September 21 and rose to a new all-time high on September 23. However, the bulls were unable to push the price above the resistance line of the ascending channel. which could have resulted in profit bookings from short term traders.
AVAX / USDT daily chart. Source: TradingView
The AVAX / USDT pair has turned down today and the first stop could be the support line of the channel. A strong rebound from this support indicates that the uptrend remains intact and traders are accumulating on dips. The pair could then climb to $ 94.
On the flip side, a break and closure below the channel will be the first sign that the bulls may lose their footing. If bears drag below the 20-day EMA, the pair could fall to $ 48 and then to the 50-day SMA ($ 43.06).
MOON / USDT
The cops successfully defended the retest of the breakout level in the LUNA token of the Terra Protocol on September 21. This indicated that sentiment remained positive and traders viewed the slumps as a buying opportunity.
LUNA / USDT daily chart. Source: TradingView
Buyers pushed the price above the 20-day EMA ($ 33.06) on September 22nd, followed by another upward move on September 23rd. Although the 20-day EMA has started rising, the RSI is showing a minus divergence, suggesting that bullish momentum may be weakening.
If bears pull and hold below the 20-day EMA, the LUNA / USDT pair could fall back to the critical support at $ 22.40. This is an important level to watch out for because if it cracks, sales could intensify and the pair could drop to $ 18.
On the flip side, the pair could retest the all-time high at $ 45.01 if the bulls push the price above $ 40. A breakout and close above this level could signal the resumption of the uptrend.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.
Market data is provided by the HitBTC exchange.
source https://www.bisayanews.com/2021/09/27/btc-eth-ada-bnb-xrp-sol-dot-doge-avax-luna/
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