As bulls attempt to stop bears from causing a correction, Bitcoin (BTC), and Ether (ETH), are trying to bounce off critical support levels.
Elon Musk, CEO of Tesla, stated at the Code Conference in California that governments cannot “destroy” crypto due to its decentralized nature. However, they can “slow it down”
According to data, whales have been moving record numbers of Bitcoin over the last two weeks. Transactions worth $10 million or more have exceeded levels reached when Bitcoin was at $60,000.
Material Indicators is an on-chain analytics resource that tracks the sale of smaller whales and the addition of mega whales to their holdings.
Everyday cryptocurrency market performance. Source: Coin360
Bobby Lee, former CEO of BTCC exchange said that Bitcoins rally would begin in 2021. This will push the price up to an all time high and also surpass the psychological mark of $100,000. It could even reach $200,000.
Is Bitcoin and other altcoins preparing for a rally? Or will bears push the price below their respective support levels. Lets look at the charts for the top 10 cryptocurrencies to see what happens.
Bitcoin trades between the 100-day simple moving mean ($41,221), and the 20 day exponential moving mean ($44,229). Todays price rebounded from the 100-day SMA, which indicates that bulls are continuing to defend this support.
Daily chart of BTC/USDT Source: TradingView
The 20-day EMA is sloping downward and the relative strength indicator (RSI) remains in the negative zone. This indicates that sentiment is still negative and bears could sell on rallies. The tight range action could continue for a few days if the price falls below the 20-day EMA.
Panic selling could occur if the price falls below the 100-day SMA. The BTC/USDT pair may plummet to $30,000 if this level cracks.
A break above the 20-day EMA or close below it will indicate that selling pressure is decreasing. The pair could then move up to the 50-day SMA ($46.580), and then to $48,843.20.
Ether dropped below the 20-day EMA ($3,118), and fell to the 100 day SMA ($2,771) Sept. 28. The bulls once again maintained support and tried to push the price towards the 20-day EMA.
Daily chart of ETH/USDT Source: TradingView
The bears are still in control of the market, as evidenced by the RSI in negative territory and the downsloping 20 day EMA. The bears will attempt to break the 100 day SMA support if the price falls below the current level and the 20-day EMA.
The ETH/USDT exchange rate could fall to $2,400 if that happens. If this support is also broken, the drop could reach $1,972.12. To signal that the correction is over, the bulls must push the price higher than $3,174.50. The price could rise to the 50-day SMA ($3,291), and then to $3.676.28.
Cardano (ADA), has traded between the 20-day EMA ($2.27) & the $1.94 support over the past few days. Todays candlestick has a long wick, which suggests bears are selling in relief rallies.
Daily chart ADA/USDT Source: TradingView
Bears are in control of the market, as indicated by the RSI below 40 and the 20-day EMA that is falling. Sellers may attempt to lower the price and maintain it below $1.94 ($1.87).
If the price falls below this support zone, selling could pick-up momentum. The ADA/USDT exchange rate could fall to $1.60 or later to $1.40. If bulls continue to drive the price higher than $2.47, this negative view will be invalidated.
Binance Coin (BNB), closed below the $340 level on Sept. 27, but the bears couldnt capitalize on this move to bring the price down below $320. This is a sign that selling tends to dry up at lower levels.
Daily chart BNB/USDT TradingView
The RSI formed a positive divergence today, indicating that bearish momentum may be slowing. Todays strong rally suggests that bears may be short-covering and aggressively buying at lower levels.
Bulls driving the price higher than the 20-day EMA ($381) will indicate that the correction is over. The BNB/USDT exchange could rally to $433.
Contrarily, if the price falls below the 20-day EMA again, it will indicate that traders are selling rallies. The bears will attempt to lower the price below $320.
On Sept. 28, XRP fell to the 100-day SMA ($0.88) again. Retests of support levels tend to weaken them, but it is encouraging that bulls have successfully defended this level on multiple occasions over the last few days.
Daily chart of XRP/USDT Source: TradingView
Bulls pushed todays price to the 20 day EMA ($1.00), but the candlesticks long wick suggests that bears are not in a hurry to give up.
If the price falls below its current level, bears will attempt to lower the price and keep it below the 100-day SMA. The XRP/USDT exchange rate could fall to $0.69 if they succeed.
Contrary to popular belief, if bulls push the price higher than the 20-day EMA, then the pair could rally towards the 50-day SMA ($1.11).
Solana (SOL), although it has broken the downtrend line but the bulls are having trouble keeping the price above the 20 day EMA ($141). This indicates that sentiment is still negative and that bears are selling on rallies.
Daily chart of SOL/USDT Source: TradingView
An indication that selling pressure is decreasing could be a break above the 20-day EMA. The SOL/USDT may then rise to $154.20 Fibonacci level of 38.2% retracement and then to $166 level of 50% retracement.
The bears may try to lower the pair below the 50 day SMA ($118) if the price falls from the 20-day EMA (or the overhead resistance). Panic selling could occur if the price breaks below $116.
Polkadot is trying to rebound from the neckline of the developing head-and shoulders pattern. This is an important level that the bulls must defend as a break or close below it would complete the bearish setup.
Daily chart of DOT/USDT Source: TradingView
Selling could gain momentum below the neckline, pushing the price up to the 100-day SMA ($22.28), and then towards the pattern target at $12.23. Bears have a slight advantage due to the downsloping 20 day EMA ($30.12), and the RSI just above the midpoint.
If bulls push the price higher than the 20-day EMA or the downtrend line it could indicate that bears are losing their grip. The price could rally to $33.60, where bears might again be a challenge. If the pair breaks above this resistance, it could open the way for a retest at 33.877.
Related: VORTECS ™ Report: The key trading algorithm spotted bullish altcoin configurations even though the BTC price dropped
Dogecoin (DOGE), is trading between $0.19 to $0.21 over the past three days. This close-range trading indicates indecisiveness among bulls and bears regarding the next directional move.
Daily chart of DOGE/USDT Source: TradingView
The RSI attempts to form a positive divergence. This suggests that selling pressure may be decreasing. If bulls push the price higher than $0.21, DOGE/USDT could reach the 20-day EMA ($0.22) again which could act as a strong resistance.
A break above the 20-day EMA and close above it will be the first sign of strength. This could signal that there is a potential up-move towards the downtrend line.
Alternativly, if the price falls below the overhead resistance or current level, and the pair breaks below $0.19 then the pair could fall to $0.15.
Avalanche (AVAX), Sept. 27 candlestick has a long wick that shows how aggressively bears sold rallies. On Sept. 28, bears continued to sell and pulled the price below its support line in ascending channels.
Daily chart of AVAX/USDT Source: TradingView
Bulls have pulled the price back into channel today but the candlesticks long wick suggests that bears may be selling after any minor recovery. The 20-day EMA ($62.12), has fallen and the RSI is just below the midpoint. This suggests that bulls might be losing their grip.
The AVAX/USDT price pair could fall to $52 if the price does not sustain within the channel. If bulls can sustain the price within the channel, the AVAX/USDT pair could slide to $52.
The bulls pushed Uniswap(UNI) above its downtrend line in the descending channel over the past two days, but they were unable to sustain higher levels. The bulls are trying again to overcome the overhead resistance, which is a positive.
Daily chart of UNI/USDT Source: TradingView
The bears grip is losing its grip on the market due to the flattish 20 day EMA ($23) as well as the RSI at the midpoint. If the price remains above the channel, then the UNI/USDT pairing could reach the 50-day SMA ($25.88), and later to $27.62.
Breaking above $27.62 could result in a retest at $31.41. If the price falls below the current level, this will indicate that bears are actively defending the resistance. The next stop for the pair could be $17.73 if it falls below $21.84.
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.