As Evergrande’s debt default worries recede, both the crypto and U.S. equity markets seek to recover today. Ray Dalio, co-chairman of Bridgewater Associates and chief investment officer, stated Wednesday that Evergrande was in a manageable debt.
Ming Tan, a director of Standard & Poor’s credit rating agency, stated that Evergrande may be restructured by the Chinese government.
The Crypto Fear & Greed Index plunged to 21 levels, indicating extreme anxiety among investors. CNBC’s Mike Novogratz, CEO of Galaxy Digital, stated that the crypto markets are in good shape so long as Bitcoin (BTC), and Ether (ETH), remain above $2,800.
Everyday cryptocurrency market performance. Source: Coin360
Traders will now be focusing on the Federal Reserve’s policy announcement with economic and rate forecasts on Wednesday. This will be followed by a Fed Chair Jerome Powell press conference.
Will Bitcoin and altcoins be able to sustain the rebound? Or will they attract the selling of bears at higher levels? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin fell below the neckline on September 21, which completes the bearish head-and-shoulders pattern. The bulls managed to push the price above the neckline today, which was a positive. This indicates that there is strong buying potential at lower levels.
Daily chart of BTC/USDT Source: TradingView
If buyers keep the price above its neckline, it may trap aggressive bears and cause a short squeeze. The BTC/USDT exchange could then rally to $46,038, where bears might pose a challenge.
The moving averages have made a bearish crossover, and the relative strength indicator (RSI), is in the negative zone. This indicates that bears are on top.
The neckline is the first support and the pattern target at $32,423.05. If that fails, bears will try to reverse the downtrend. The $37,332.70 support is the first and the $32,423 pattern target the second.
The first sign that the correction is over will be a break or close above the moving averages.
Ether plunged to below $3,000 and closed below that level on Sept. 20, completing the bearish head-and-shoulders pattern. The neckline breakdown is usually retested, and this is what is happening right now.
Daily chart of ETH/USDT Source: TradingView
The moving averages have crossed the bearish zone and the RSI is at the negative zone. This indicates that bears are in advantage. The bears will try to continue the downward move towards the $1,972.12 pattern target if the price drops from its current level.
If bulls maintain the price above $3,000 it will signify accumulation on dips. The ETH/USDT currency pair could rally to the 20 day EMA ($3,303), which could again be a strong resistance. Bulls could be back in the game if they break above this level and close higher.
Cardano (ADA), is currently in a strong correction phase, but bulls are trying to stop the decline at strong support at $1.94. They are likely to hit a wall at the 20 day EMA ($2.38).
Daily chart ADA/USDT Source: TradingView
The moving averages look close to completing a bearish crossover, and the RSI lies in the negative territory. This suggests that bears have the upper hand. The $1.94 support may be retested if the price drops below the 20-day EMA.
Breaking and closing below this level could lead to a further drop to $1.60. To signal a sustained recovery, the bulls must push the price higher than the 20-day EMA. The ADA/USDT exchange rate could rise to $2.60, and then to $2.80.
Binance Coin (BNB), broke below the Sept. 7 bottom at $369 on September 20th and reached strong support at $340 on September 21st. This level is being defended by the bulls at the moment.
Daily chart BNB/USDT TradingView
The moving averages have made a bearish crossover, and the RSI is at 41. This indicates that bears are in a strong position. Any pullback will likely be met by strong selling close to the 20-day EMA ($410).
The BNB/USDT exchange rate could fall to $300, and then to $250, if bears lower the price below $340. If bulls push and maintain the price above $433 overhead resistance, this negative view will be dispelled.
The Sept. 7 intraday high of $0.95 was broken by XRP, which closed below it on Sept. 20. This suggests that there is more supply than demand. The RSI has moved into the negative zone and the moving averages have made a bearish crossover. This indicates that bears are in control.
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA ($1.06) is where the current relief rally will likely hit a stumbling block. This resistance will be broken if the price falls below it. It will signal that traders are continuing to sell rallies. The bears will attempt to resume their down move.
The XRP/USDT currency pair could fall to $0.75 if the price falls below $0.85. To indicate strength, the bulls must push the price higher than the overhead resistance zone of $1.07- $1.13.
Solana (SOL), which broke below the 20-day EMA ($144 on Sept. 20), is the first sign that bullish momentum might be weakening. The bears tried to push the price higher than the 20-day EMA but failed.
Daily chart of SOL/USDT Source: TradingView
SOL/USDT has retreated from the 61.8% Fibonacci retracement point at $123.42 to reach the 20-day EMA.
The pair could reach $171.47 if bulls push it above the 20-day EMA or the downtrend line. This resistance level could be reactivated, but a break above it can lead to a move up to $200 and then on to $216.
Contrarily, selling at higher levels will be suggested if the price falls below the current level or downtrend line. The bears will attempt to bring the price down to $123.42 and prolong the decline to the simple moving average of $504.
Polkadot, (DOT), broke below the 50 day SMA ($27.71 on Sept. 21. However, bulls bought the dip aggressively today and have reclaimed that level. This seems to have trapped bears and resulted in a quick squeeze.
Daily chart of DOT/USDT Source: TradingView
The DOT/USDT pair reached the 20-day EMA ($31.42), which is an important level to monitor. The pair could reach $35 if buyers push the price higher than this resistance and then test $38.77.
However, if the price falls below the 20-day EMA it will indicate that traders are buying rallies. The bears will attempt to bring the price down to $22.66, the intraday low on Sept. 7.
Related: Bitcoin gains support again after losing briefly $40K — Check these BTC prices
Dogecoin (DOGE), which broke below the $0.21 support level on Sept. 20, but the bears couldn’t crack the $0.19 support level, the next support. This indicates that demand is at lower levels.
Daily chart of DOGE/USDT Source: TradingView
Today’s price is hovering around $0.21. Bulls want to keep it above that level. The DOGE/USDT pair could reach the 20-day EMA ($0.24) if that happens. This level is likely to be defended aggressively by the bears.
The bears will attempt to lower the price below $0.21 to $0.19 if the price falls from the 20-day EMA. The pair could fall to $0.15 if they succeed.
To signal that correction may be over, bulls must push the price higher than the downtrend line.
The Avalanche (AVAX), which was down sharply from the $20 EMA ($56.34) today suggests that sentiment is still positive and traders are buying dips.
Daily chart of AVAX/USDT Source: TradingView
The overhead resistance at $66.24 has been pushed higher by the buyers, increasing the chance of a retest at the all-time high of $76.27. The resumption will be signaled by a breakout and close above the resistance.
Contrary to popular belief, a lower price will mean that higher levels attract profit-booking. The bears will attempt to lower the price below the 20 day EMA.
If they succeed, then the AVAX/USDT pairing could begin a deeper correction to $48 before moving to the 50-day SMA (40.49).
Uniswap (UNI), which broke below its Sept. 7 intraday high of $21, closed lower than the $21 low, suggesting that traders are rushing for the exit. The price is currently correcting within a descending channel pattern.
Daily chart of UNI/USDT Source: TradingView
The 20-day EMA ($24.10) has been falling and the RSI is at 41. This indicates that bears hold the upper hand. Any rebound above the current level will likely face stiff resistance at 20-day EMA.
The UNI/USDT pair may drop to the support line if the price falls below this resistance. Breaking below $18 could lead to a possible fall to $13.
If the price closes below the descending channel, this negative view will be invalidated. This could lead to a gradual rise in the pair to $27.62.
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.