BTC, ETH, ADA, BNB, XRP, SOL, DOGE, DOT, UNI, BCH Price Movement Analysis for 8th September, 2021

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BTC and the majority of altcoins are attempting to capitalise on today’s market-wide oversold bounce, but the recovery could be stymied by sell pressure at overhead resistance levels.

Analysts attribute Bitcoin’s (BTC) drop on September 7 to the liquidation of overly leveraged positions. According to Bybt data, over $3.68 billion in long bets were liquidated in the Bitcoin options market in the last 24 hours.

According to the on-chain monitoring service Whalemap, the fall was primarily caused by whales who had recently purchased Bitcoin rather than HODLers. Separately, Willy Woo, an expert, stated:

“Leverage markets sold off but investor buying just got stronger.”

Every bull market has its share of corrections where weaker hands are shaken out and the stronger hands solidify their position. Therefore, if investors believe in the long-term story, they should not be perturbed by the pullbacks.

Daily cryptocurrency market performance. Source: Coin360

According to a recent report from Standard Chartered’s cryptocurrency research team, Bitcoin will hit $100,000 “in late 2021 or early 2022” and $175,000 in the long run. Analysts are similarly bullish on Ether (ETH), estimating its value to be “structurally” between $26,000 to $35,000.

Is the Bitcoin and altcoin correction ended, or will there be another leg down? To discover out, let’s look at the charts of the top ten cryptocurrencies.

 

BTC/USDT

Bitcoin witnessed huge volatility on Sep. 7 when it plunged from an intraday high at $52,920 to an intraday low at $42,843.05. Strong buying at lower levels resulted in a sharp recovery by the close, as seen from the long tail on the day’s candlestick.

BTC/USDT daily chart. Source: TradingView

Today, the bulls resisted another bearish attempt to extend the slump by lowering the price below the 50-day simple moving average ($44,391). This shows that traders are defending the zone between the 50-day SMA and the breakout milestone at $42,451.67 with vigour.

If the zone is maintained, the bulls will attempt to push the price over the 20-day exponential moving average ($48,216). If they are successful, the BTC/USDT pair might surge to $52,920 again, but the bears are unlikely to give up that easy.

The relative strength index (RSI) has fallen below 47, and the 20-day moving average (EMA) has begun to fall, indicating that bears have made a strong comeback. If the price turns down from the 20-day EMA, the bears will again try to sink the pair below $42,451.67. If that happens, the pair could enter a deeper corrective phase.

ETH/USDT

Ether’s failure to rise and sustain above $4,000 could have attracted aggressive profit-booking from the short-term traders. The selling intensified after the price slipped below the immediate support at $3,705.05.

ETH/USDT daily chart. Source: TradingView

The bulls could not arrest the decline at the 20-day EMA ($3,486), resulting in a drop to the critical support at $3,000. This level attracted strong buying and the ETH/USDT pair staged a strong recovery, as seen from the long tail on the day’s candlestick.

See also  Bitcoin whale colonies set the main support level for the rally to progress.

Although bulls pushed the pair above the 20-day EMA today, they have not been able to sustain the price above it. This shows that bears are selling on rallies. The flat 20-day EMA and the RSI near the midpoint, suggest a range-bound action in the next few days.

ADA/USDT

Vertical rallies are usually followed by waterfall declines as traders rush to the exit and that is what happened in Cardano (ADA) on Sep. 7. The failure to sustain the price above the psychological level at $3 may have resulted in aggressive profit-booking by the bulls.

ADA/USDT daily chart. Source: TradingView

As the price fell below the 20-day EMA ($2.62), numerous stops may have been triggered. As a result, the ADA/USDT pair could have fallen to the 50-day SMA ($2.03). The day’s candlestick has a lengthy tail, indicating aggressive purchasing at lower levels.

If the bulls are unable to push and keep the price above the 20-day EMA, the bears would most likely seek to plunge the price below the 50-day SMA once more. If they succeed, it will suggest a shift in trend in which rallies are more likely to be sold into.

Alternatively, if buyers successfully defend the 50-day SMA, the pair may enter a period of consolidation in the coming days.

 

BNB/USDT

Binance Coin (BNB) turned down from the overhead resistance at $518.90 on Sep.7 and broke below the moving averages. Although bulls defended the 50-day SMA ($399) on a closing basis, the failure to push and sustain the price above $433 may attract further selling.

BNB/USDT daily chart. Source: TradingView

The 20-day EMA ($458) has started to turn down and the RSI slipped into the negative territory, indicating that bears have the upper hand. They are likely to sell on relief rallies to the 20-day EMA.

If the price turns down and breaks below the 50-day SMA, the BNB/USDT pair could drop to the next support at $340. Such a move could keep the pair range-bound between $340 and $433 for a few days.

XRP/USDT

XRP rallied and closed above the overhead resistance at $1.35 on Sep. 6 but the breakout proved to be a bull trap. The bears sold aggressively and pulled the price to the 50-day SMA ($0.98).

XRP/USDT daily chart. Source: TradingView

The long tail on Sep. 7 and today’s candlesticks show that bulls are attempting to defend the 50-day SMA. If the price sustains above $1.05, the buyers will try to push the XRP/USDT pair above the 20-day EMA ($1.18).

If they manage to do that, the pair could consolidate between $1.05 and $1.35 for a few days. On the contrary, if bears sustain the price below $1.05, the likelihood of a break below the 50-day SMA increases.

SOL/USDT

Solana (SOL) soared to a new all-time high at $198 on Sep. 8 but higher levels attracted profit-booking. The bears pulled the price down but the long tail on the day’s candlestick shows strong buying near the 50% Fibonacci retracement level at $130.84.

See also  Polkadot Price Movement Analysis for June 28th, 2021
SOL/USDT daily chart. Source: TradingView

After the strong recovery on Sep. 7, the SOL/USDT pair is witnessing renewed selling today. If bears sustain the price below the 38.2% Fibonacci retracement level at $146.10, the pair could drop to the 20-day EMA ($117).

If the price bounces off this level, the pair may remain range-bound for a few days before starting the next trending move.

Alternatively, if the price turns up from the current level or rebounds off $146.10, the bulls will again try to push the pair toward $195.48. A breakout and close above this level may start the next leg of the uptrend.

DOGE/USDT

Dogecoin (DOGE) failed to pick up momentum after breaking out of the falling wedge pattern. The price slipped below both moving averages on Sep. 7, indicating strong selling by traders.

DOGE/USDT daily chart. Source: TradingView

The DOGE/USDT pair dropped to the $0.21 support where buyers stepped in. This started a recovery, as seen from the long tail on the day’s candlestick. The RSI has dropped into the negative territory and the 20-day EMA has started to turn down, indicating that bears have the upper hand.

If bulls fail to push the price above the 20-day EMA ($0.28), the pair could witness another round of selling. A break below $0.21 could challenge the critical support at $0.15. The bulls will have to push the price above $0.32 to signal a comeback.

DOT/USDT

Polkadot (DOT) broke below the rising wedge pattern on Sep. 7. Aggressive selling pulled the price below the breakout level at $28.60, resulting in a fall to the 50-day SMA ($22.77).

DOT/USDT daily chart. Source: TradingView

As evidenced by the long tail on the day’s candlestick, the DOT/USDT pair bounced rapidly from the 50-day SMA. The bulls are currently aiming to push the price over the upper resistance level of $28.60. If the price remains above this level, buyers will try to restart the rise.

If the price falls from its current level, it indicates that sentiment has shifted negative and traders are exiting holdings on rallies. The bears will next aim to push the stock below the 50-day SMA once more. If this occurs, it will imply that the break over $28.60 was a bull trap.

 

UNI/USDT

Uniswap’s (UNI) range-bound action between $25 and $31.41 resolved to the downside on Sep. 7. The bulls tried to stage a recovery and push the price back above $25 today but failed.

UNI/USDT daily chart. Source: TradingView

The 20-day EMA ($27) has turned down, and the RSI has fallen below 38, indicating that bears are in control. They are seeking to bring the price down below the intraday low of $21 set on September 7.

See also  Bitcoin Soars Past $27K, Has Risen More Than $2.5K in a Little Over a Day; Market Cap Now Tops $500B

If they are successful, the UNI/USDT pair may fall to the pattern goal of $18.69. If the price bounces off this support, the pair may trade for a few days between $18.69 and $23.45. To signify a return, the bulls must push the price above $25 and keep it there.

 

BCH/USDT

Bitcoin Cash (BCH) turned down from the overhead resistance zone at $806.90 to $864.30 on Sep. 7. This suggests that bears are aggressively defending the overhead zone. The altcoin could now remain stuck inside the large range between $383.50 and $864.30 for a few more days.

BCH/USDT daily chart. Source: TradingView

The flattening 20-day EMA ($673) and the RSI at the midway indicate a supply-demand equilibrium. If the price recovers from $596, the bulls will try to push it above the overhead zone once more.

If the price falls out of the zone, the BCH/USDT pair may stabilise for a few days between $596 and $684.30. A break and close above the overhead zone might signal the start of a new uptrend, but a break below $596 could signal the start of a new downtrend to $500.

 

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