Bitcoin (BTC), and Ether (ETH), recovered large parts of losses due to China’s regulatory crackdown Sept. 24. This indicates that crypto markets have taken in news-based selling and long-term investors will likely use the dip to accumulate.
A rally might have to wait while market participants monitor the outcome of this week’s infrastructure bill. This bill could see the debate begin on Sept. 27 with the final vote taking place on Sept. 30. Although volatility may be caused by the broad definition of “broker”, HODLers will not be affected.
Everyday cryptocurrency market performance. Source: Coin360
Analyst Willy Woo stated that Bitcoin has entered the Never Going to Give Up phase of Astley Cycle. This could be followed up by a rally.
The “Rick Astley” investors are on one side, and Jamie Dimon, JPMorgan CEO, is on the opposite end. Dimon remains firm in his criticisms of Bitcoin. Interview with Times of India: Dimon stated that he would not buy Bitcoin no matter how much it goes up in the next five-years.
Is Bitcoin likely to see a further recovery or is it possible for Bitcoin to remain stable? Let’s look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin oscillated between the 100-day simple movement average ($41,078), and the 20-day exponential move average ($44,982) over the past few days. This indicates that bulls are buying dips while bears sell rallies.
Daily chart of BTC/USDT Source: TradingView
The 20-day EMA is downsloping and the relative strength indicator (RSI) just above the midpoint indicate that the downside is the path of least resistance. Selling could accelerate if bears continue to sink below the 100-day SMA.
The BTC/USDT exchange rate could drop to $37.332.70, and if that level is not reached, it may fall to $30,000.
If the price rises above the moving averages, this bearish view will be invalidated. This would indicate that bulls are back in play. The pair could rally to $48,843.20, and then to $52,920.
The Ether candlesticks’ long tails over the past three days show that bulls are buying aggressively near the 100-day SMA ($2,756). This is why this level is important to monitor.
Daily chart of ETH/USDT Source: TradingView
The 20-day EMA ($3,193) has been sloping downward and the RSI is just above the midpoint. This indicates that bears have a slight advantage. The ETH/USDT pairing could continue to consolidate between moving averages for a few days if the price falls from its current level.
If the SMA is broken and the close falls below it, the selling could be intensified and the pair could drop to $2,400, followed by a drop of $1,972.12. A break and close above 20-day EMA would be the first sign that the pair is strong. This could lead to the pair rising to $3,600.
Cardano (ADA), which was pushed above the moving averages Sept. 25, but could not overcome the $2.47 hurdle. This indicates that the bears are not giving up and they continue to sell on rallies to overhead resistance levels.
Daily chart ADA/USDT Source: TradingView
The ADA/USDT price pair has fallen and the bears will attempt to bring the price down to $1.94. The bulls must defend this level as it could cause a downtrend.
The bulls will try again to push the pair higher than $2.47 if the price rises from its current level or rebounded off $1.94. It will be a sign that the correction is over if they succeed. The pair could rally to $2.97.
Binance Coin (BNB), which fell below $340 support on Sept. 26, was bought by bulls who held the level for a closing basis. The price is currently below $340 and buyers are selling on minor rallies.
Daily chart BNB/USDT TradingView
The BNB/USDT pair could see a decline of $300 if the price falls below the $340-$320 support zone. It could also drop to $250 if it breaks below that level. The 20-day EMA ($388) has been dropping and the RSI is at 37. This suggests that bears are in control.
A break above the 20-day EMA will signal strength. This will indicate that selling pressure is decreasing. The overhead resistance of $433 could lead to a rally.
XRP has bounced off of the 100-day SMA ($0.88) several times in the last few days. This indicates that bulls are aggressively defending support. Bulls will attempt to push the price higher than the overhead resistance zone of the 20-day EMA ($1.02) or the 50-day SMA (1.10)
Daily chart of XRP/USDT Source: TradingView
It will indicate that the correction may be over if they can do so. The XRP/USDT exchange could rise to $1.41, where bears might again mount stiff resistance.
The bears have control of the market, as evidenced by the RSI in negative territory and the 20-day EMA that is in decline. The pair could fall to the 100-day SMA if the price falls below the 20-day EMA. The pair could remain between the moving averages for several days if this level holds.
If bears continue to sink below the 100-day SMA, the next leg of the down movement could start. This could open the way for a drop to $0.69.
Solana (SOL), broke through the downtrend line today and the 20-day EMA ($143), which suggests that bears might be losing their grip. The 20-day EMA has sunk and the RSI is just below the midpoint. This indicates a balance between supply/demand.
Daily chart of SOL/USDT Source: TradingView
If the price rises above $152.50, the short-term advantage for the bulls could be in their favor. The SOL/USDT currency pair could rally to $171.47, where bears might again mount stiff resistance.
The bears will attempt to bring the price down below the overhead resistance ($114) if the price falls from the current level. If the price breaks below this support, it could signal a change of trend. A close above $171.47 could lead to a break that pushes the pair towards $200.
Polkadot’s (DOT) price broke below the 50-day SMA ($28.76 on Sept. 26), but the candlestick’s long tail suggests that bulls are trying to protect the neckline between the head and shoulder patterns.
Daily chart of DOT/USDT Source: TradingView
Although buyers tried to push the price higher than the overhead resistance at the $20-day EMA ($30.91 today), the candlestick’s long wick indicates that bears are selling in rallies.
A retest of neckline possible if bears pull the USDT/DOT pair below the 50 day SMA. The bearish H&S pattern has a target price of $12.23 if it breaks and closes below this support.
Contrarily, if bulls push the price above the downtrend, the pair can rise to $33.60, and then to $38.77.
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Dogecoin (DOGE), fell to $0.21 on Sept. 24, and closed below that support. The price fell to $0.19 on September 26, but bulls have defended the level aggressively, as shown by the long tail of the day’s candlestick.
Daily chart of DOGE/USDT Source: TradingView
Bulls are trying to push the price higher than the $0.21 overhead resistance. The DOGE/USDT pair may rise to the $20-day EMA ($0.23) if they succeed. This is likely to be a strong resistance.
The bears could pull the pair down to $0.19 if the price falls below the 20-day EMA. The pair could fall to $0.15 if it breaks and closes below this support. A break and close above this support could lead to a move up to the 50-day SMA ($0.26).
Avalanche (AVAX), Sept. 26 candlestick shows a long tail that suggests strong demand at lower levels. Bulls will attempt to push the price up to $79.80, the record high.
Daily chart of AVAX/USDT Source: TradingView
The resumption or continuation of the uptrend will be confirmed by a breakout and close above the all time high. Although bears might try to stop the channel’s up-move at its resistance line, if bulls can overcome this obstacle, the AVAX/USDT pairs could gain momentum and rally up to $100.
The pair could also begin a deeper correction if it falls below the channel support line and the current price. Breaking below $60.04 could lead to a drop to the 50-day SMA (46.23).
Terra protocol’s LUNA token dropped from $41.28 Sept. 24, but this is a positive sign that bulls didn’t allow the price below the 20-day EMA (34.51). This indicates that bulls are buying dips while bears are selling during rallies.
Daily chart of LUNA/USDT Source: TradingView
These indicators give conflicting signals, with the buyers gaining an advantage from the upwardly moving averages. The negative divergence on RSI indicates that the bullish momentum could be weakening.
Bulls could drive the price higher than the downtrend line and the LUNA/USDT pairing could retest its all-time high of $45.01. The resumption or acceleration of the uptrend will be indicated by a break above and close to this resistance.
Alternativly, if the price falls below the current level, or the downtrend line, and goes below the 20-day EMA (or $30.43), the decline could be extended to the 50-day SMA ($30.43).
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.