Bitcoin’s (BTC), recovery is experiencing stiff resistance at $48,500. This indicates that bears may be active at higher levels.
William Clemente, an analyst, projects that $39,000 will act as a strong floor to any future declines by combining the stock-to-flow Bitcoin price models and the illiquid supply data.
Analysts remain positive on the upside. Mike McGlone, chief analyst at Bloomberg Intelligence, has maintained his goal of $100,000 for Bitcoin. McGlone stated that there are a variety of charts that show the bullish potential of Bitcoin.
Everyday cryptocurrency market performance. Source: Coin360
Ether (ETH), along with Bitcoin, is showing signs of accumulation. IntoTheBlock, a crypto analytics provider, reported that $1.2 billion worth Ether was withdrawn from centralized exchanges within a 24 hour period on Sept. 16. Ether rallied 60% within 30 days after a similar event in April.
Are the bullish projections of the top two cryptocurrency cryptocurrencies true? Or will the crypto markets disappoint us? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
While the bulls seek to keep Bitcoin above the 20 day exponential moving average ($47.291), the bears try to pull it below that. The 20-day EMA is flattened and the relative strength indicator (RSI), is near the midpoint. This suggests that there will be a range-bound movement in the short-term.
Daily chart of BTC/USDT Source: TradingView
If bears lower the price below moving averages, the BTC/USDT exchange could fall to $42,451.67 as critical support. This level is likely to be retested as bulls accumulate on dips. This could prolong the consolidation between $42,451.67 & $52,920 for a few days.
The bulls will push the pair to $50,000.50 and then $52,920 if it bounces off the current price or the 50-day simple movement average ($46,256). This resistance zone will be defended aggressively by the bears.
If bulls push the price higher than $52,920, or if bears pull it below $42,451.67, the next major trending movement is likely to occur.
Ether’s (ETH), recovery is being hampered by stiff resistance at the $3,637.14 Fibonacci level of 61.8% Fibonacci Retracement. This indicates selling at higher levels. The bears are trying to bring the price below the support level at $3,377.89.
Daily chart of ETH/USDT Source: TradingView
If they succeed, the USDT/ETH could fall to the 50-day SMA ($3,238) and then to critical support at $3,000. This could lead to a head-and-shoulder pattern. The move will be completed on a break and close below 3000.
If the price breaks above $3,676.28 or the 50-day SMA, this negative view will be invalidated. The pair could then test the $4,027.88 local high.
The 20-day EMA is flattish and the RSI just below the midpoint don’t indicate a clear advantage for the bears or bulls.
Cardano (ADA), which was down from the 20 day EMA ($2.52) Sept. 16, suggests that bears may be selling on rallies against this resistance. The bears are trying to push the price down to the SMA (50-day) ($2.25).
Daily chart ADA/USDT Source: TradingView
Bears are on top of things, as evidenced by the RSI in negative territory and the 20-day EMA that is in decline. The ADA/USDT pair may drop to $1.94 if the price remains below the 50-day SMA.
This type of deep correction is a sign that the market has reached a temporary top. Bulls must push the price higher than the 20-day EMA if they want to save the uptrend. The pair could rally again to $2.80, and then to $2.97 if they do so.
Binance Coin (BNB), which was not above the 20-day EMA ($432) over the past two days, failed to move the bulls. This suggests that buying dries out at higher levels. This could have attracted short-term traders to take profit by buying at lower levels in anticipation of a resumption the up-move.
Daily chart BNB/USDT TradingView
The 20-day EMA is falling and the RSI has fallen from its midpoint. This suggests that sellers have an advantage. The BNB/USDT pair may drop to $340 if the price holds below the 50-day SMA.
If the bulls push the price higher than the 20-day EMA, this negative view will be invalidated. This will indicate that bulls have absorbed all the supply. The overhead resistance of $518.90 could be reached and the pair could rise.
XRP fell from the 20-day EMA ($1.12) Sept. 16, indicating that bears are aggressively defending this level. The RSI in negative zone and the 20-day EMA that is downsloping suggest that the downside is the best option.
Daily chart of XRP/USDT Source: TradingView
If bears maintain the price below 50-day SMA, then the XRP/USDT pairing could retest its Sept. 7 intraday high at $0.95. Breaking and closing below this support could open the door to a deeper correction up to $0.75.
The bulls will attempt to push the price higher than the 20-day EMA if the price rebounds from the current level, or $0.95. It will indicate that the correction may be over if they succeed. The pair could then begin their northward march towards $1.35.
Solana (SOL), a bounce from the 20-day EMA ($145 on Sept. 14), slowed to $166.50, as bears continued their attacks on relief rallies. Today’s price is below the 20-day EMA, which indicates weakness.
Daily chart of SOL/USDT Source: TradingView
Bulls are losing their grip on the market, as evidenced by the flattening 20 day EMA and the RSI just below the midpoint. If bears continue to push the price below the 20 day EMA, the SOL/USDT exchange rate could fall to the 61.8% Fibonacci retracement level of $123.42.
This support is important to be aware of because it could crack and lead to psychological support for $100.
The bulls will attempt to resume the uptrend if the price moves up from its current level or bounces off $123.42. The resistance to the up-move may be near $170, and then at $200.
Polkadot, (DOT), fell below the resistance line on September 15 and close to the 20 day EMA ($32.04 today). This is an important level that the bulls must defend as a break below could cause the price to drop to the 50-day SMA ($26.36).
Daily chart of DOT/USDT Source: TradingView
The moving averages are trending upwards, but the negative divergence of the RSI suggests that bullish momentum may be slowing. Breaking below the 50-day SMA may signal a deeper correction.
Contrary to popular belief, if the price bounces off the 20-day EMA the bulls will attempt to push the DOT/USDT pairing above the resistance line. The pair could gain momentum, rally to $41.40, and then test the record at $49.78.
Related: Next Stop $85K Bitcoin, Analysts Predict ‘explosive Q4 for BTC Price Action
Dogecoin (DOGE), although trading below the moving averages over the past few days has not been able the bears to bring the price down to $0.21. This indicates that sellers are not available at lower levels.
Daily chart of DOGE/USDT Source: TradingView
Today’s bulls tried to push the price higher than the moving averages, but the bears won’t be deterred. The sellers are in control of the market because the RSI is below 42 and the 20-day EMA ($0.26) is downsloping.
The DOGE/USDT pair could drop to $0.15 if bears lower the price below $0.21. The pair could also rise to the downtrend line if bulls push the price above the moving Averages.
The first sign that the correction is over will be a break and close above the resistance. The pair could then begin its climb towards the overhead resistance at $0.45.
Uniswap’s (UNI) price surged above the moving Averages on Sept. 15, but the bulls couldn’t push it above the downtrendline. This may have led to profit-booking from the short-term bulls, and shorting from the aggressive bears.
Daily chart of UNI/USDT Source: TradingView
The bears have a slight advantage because of the flat 20-day EMA (25.72 USD) and the RSI that is just below 50. The bears will attempt to bring the UNI/USDT pair down to $23.50 if the price falls below $25. This support will crack if there is a deeper correction.
The bulls will attempt to push the price higher than the downtrend line if the price bounces off the $23.50 level. The overhead resistance of $31.41 could be reached if they succeed.
The Terra protocol’s LUNA token increased to $39.77 on September 16, but was unable to sustain higher levels, as shown by the candlestick’s long wick. This could indicate that traders are closing long positions during rallies.
Daily chart of LUNA/USDT Source: TradingView
The bears will attempt to take advantage of this opportunity and bring the price down below the 20-day exponentially moving average ($33.97). The LUNA/USDT price could fall to the 50-day SMA ($26.26) if they succeed.
If the price bounces off the 20-day EMA again, the pair could climb to $40 and stay range-bound between those levels for a few days. If the price breaks above $40, it could be possible for the pair to retest the record $45.01.
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.