Bitcoin’s (BTC), failure to make a strong recovery over the last few days has led to profit-booking by major altcoins and threatens to bring the total crypto market capitalization down to $2 trillion.
Profit-booking was evident in the U.S. equity markets. The S&P 500 fell by 1.69% last Week, suggesting a shift towards risk-off sentiment. Charles Edwards, Capriole’s CEO, stated that almost every Bitcoin correction since 2021 has been accompanied by a 2% drop in the S&P 500.
Everyday cryptocurrency market performance. Source: Coin360
MicroStrategy continues to grow its Bitcoin holdings, despite the current weakness in Bitcoin. Michael Saylor, the CEO of MicroStrategy, recently disclosed that he purchased 5,050 Bitcoin at an average price $48,099 per coin. This has resulted in a 114,042 Bitcoin stockpile, purchased at an average price of $27,713 per coins.
Are Bitcoin’s prices in a bear market? Could this lead to a sell-off of major altcoins like Bitcoin? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin fell again today from the 20-day exponentially moving average ($47061), which indicates that short-term sentiment is turning negative and that traders are selling rallies.
Daily chart of BTC/USDT Source: TradingView
The downwardly trending relative strength index (RSI), and 20-day EMA below 43 indicate that the path to the downside is the most likely.
Bulls now have to defend $42,451.67 as a critical support level. If this level is breached, the BTC/USDT pair may plummet to the $37332.70 to $36,670 zone.
This could reduce the chance of a strong recovery and keep the pair in a range for several days.
Contrary to popular belief, bulls will attempt to resume the uptrend if the price recovers from $42,451.67. If the price breaks above $47,000.00, it could be possible to retest the overhead resistance zone between $50,500 and $52,920.
For the past few days, Ether (ETH), has been wedged between the moving averages. This indicates that bulls are buying dips to the 50 day simple moving average ($3,129), and bears selling rallies to 20-day EMA ($3,413).
Daily chart of ETH/USDT Source: TradingView
The 20-day EMA is slowly falling and the RSI has fallen below 46. This indicates that bears hold the upper hand. The ETH/USDT pairing could see further selling if the price falls below the 50-day SMA. This could lead to a drop of $3,000.
This support is crucial for bulls to protect as a break below it can lead panic selling.
The bulls will attempt to push the price higher than the 20-day EMA if the price bounces off the 50-day SMA. The bulls could win if the price breaks above $3,567.06 and closes higher than that level. The buyers will attempt to push the price up to $4,000.
Cardano (ADA), bounced off the 50 day SMA ($2.16) Sep. 7, and rose above 20-day EMA ($2.57) Sep. 11. Higher levels attracted profit-booking, as shown by the long wicks on the Sep. 11-12 candlesticks.
Daily chart ADA/USDT Source: TradingView
Today’s breakout price of $2.47 has been pushed back by the bears. Bears hold a slight advantage due to the RSI in negative territory and the downsloping 20 day EMA.
The correction could get deeper if sellers push the price below the 50 day SMA. If the price moves above the 50-day SMA or rises, bulls will attempt to push it towards the overhead resistance zone of $2.97 to 3.10.
Binance Coin (BNB), closed below the 50 day SMA ($410) Sep. 10, but bears couldn’t sustain lower levels. Bulls bought the dip and drove the price up above the 50-day SMA in Sep. 12.
Daily chart BNB/USDT TradingView
The failure of the bulls at clearing the $433 overhead hurdle may have prompted a new round of selling today. The BNB/USDT pair may drop to $369 if the price drops below $393.20.
The downsloping 20 day EMA ($438), and the RSI of below 40 indicate that the path to the downside is the most likely. To signal that correction may be over, bulls will need to push the price higher than $433 and keep it there.
Currently, XRP is stuck between the moving averages. Profit-booking by short-term traders has been attracted to the failure of bulls to push the price higher than the 20-day EMA ($1.13).
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA is down and the RSI is below 45. This suggests that bears hold the upper hand. The XRP/USDT pair could challenge $0.95 intraday low on Sep. 7, when sellers push the price below the SMA ($1.03).
If the support is broken, it could signal that the uptrend has ended. This could open the door to a further fall to $0.75. If the price rises above the 20 day EMA, this negative view will be invalidated. The bulls will attempt to push the price towards the overhead resistance zone of $1.35-1.41.
Solana (SOL), is currently in an uptrend. The trendline broke below, indicating that bullish momentum has declined. The price could drop to the 20-day EMA ($141).
Daily chart of SOL/USDT Source: TradingView
If the price goes up from its current level, this will indicate that traders are buying dips and the sentiment is positive. The bulls will attempt to reestablish the uptrend, but they are likely to encounter stiff resistance at the trendline.
The SOL/USDT price could fall to the 20-day EMA if the trendline is broken. Breaking below this level could cause the price to fall to $123.43, the Fibonacci retracement at 61.8%.
A breakout and close above trendline will increase the chances of a retest at the all-time high of $216.
The overhead resistance at $35.68 was broken by Polkadot on Sep. 12, indicating that bulls are trying to re-establish the uptrend. Bulls are favorable by the upwardly moving averages, but the negative divergence in the RSI may indicate that bullish momentum is slowing.
Daily chart of DOT/USDT Source: TradingView
The bears are trying to impose a tough challenge near the resistance line, but if the bulls don’t give up too much ground, there is a possibility that the overhead resistance will be broken. This could open the way for a rally to $41.40, then $46.83.
Contrary to the assumption, if the price drops below the 20-day EMA ($30.34), then the DOT/USDT pairing could retest its breakout level at $28.60.
This level is expected to rebound strongly. A break below it could mean that the pair will sink to the 50-day SMA ($24.68). Bears will be back in the game if the price remains below $28.60.
Related: Fake news: Litecoin prices rise 35% after Walmart adoption hoax
Dogecoin’s (DOGE), has been trading below moving averages over the past few days. This suggests that bulls don’t have the urgency to buy at current levels. The bears will attempt to lower the price below $0.21, which is the strong support.
Daily chart of DOGE/USDT Source: TradingView
The 20-day EMA is down, and the RSI has fallen into negative territory. This suggests that bears hold the upper hand. The price could reach $0.15 if it breaks below $0.21.
If the price rebounded below $0.21, bulls will attempt to push DOGE/USDT above the moving averages. The pair could rally to its downtrend line if they succeed. The first sign the correction is over may be a break or close above the resistance.
Terra protocol’s LUNA token dropped from $45.01 to Sep. 11, indicating that traders are profit-booking. On the downside, the breakout level at $36.89 is important and then the 20 day EMA ($32.77) is.
Daily chart of LUNA/USDT Source: TradingView
If the price rebounds strongly from either level, it will indicate that sentiment is positive and traders are buying dips. The bulls will attempt to reestablish the uptrend, pushing the price to $50 psychologically.
Bulls have the advantage of the upwardly moving averages, but bears should be wary of the negative divergence in the RSI. If bears push the price below the 20 day EMA, the LUNA/USDT pairing could slide to the 50 day SMA ($24.14).
Uniswap has traded below the $25 breakdown level for the last few days. This suggests that traders aren’t aggressively accumulating at current levels.
Daily chart of UNI/USDT Source: TradingView
The moving averages completed a bearish crossover, and the RSI has moved into the negative territory. This indicates that bears are in advantage. Negative momentum may pick up if sellers drop the price below $21 as the immediate support.
The UNI/USDT currency pair could drop to $18.69. This level could act as a support, but if bulls fail push the price higher than $25, the decline may extend to $13. If the price rises above the moving averages, this negative view will be invalidated.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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I am a technology and gaming writer by profession. I love NFT’s and play to earn gaming such as Axie Infinity. I love writing about anything on the blockchain, especially gaming and entertainment. I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.