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Bears continue to put pressure on the BTC price, but any signs of consolidation could lead to an AVAX breakout. ALGO, XTZ, and EGLD
China has attempted to stifle the growth of the crypto sector on several occasions over the last 12 years, but with the exception of a minor blip, blanket bans on crypto-commerce have had no effect on the long-term growth of cryptocurrencies. This demonstrates that no single country, even the world’s second-largest economy, can halt the emergence and growth of cryptocurrencies.
In an update on the bank’s website, Deutsche Bank analyst Marion Laboure stated that Bitcoin (BTC) is likely to “remain ultra-volatile in the foreseeable future” because most people buy it for investment or speculation rather than use it as a medium of exchange.
Laboure, on the other hand, believes that Bitcoin could become “the digital gold of the twenty-first century,” and that this trend could last for centuries with no government intervention.
Dennis Lynch, the head of asset management at Counterpoint, compared Bitcoin to the South Park cartoon character Kenny at Morningstar’s annual investment conference. “I like to think of bitcoin as kind of like Kenny from South Park — he dies every episode, and then comes back,” Lynch said.
As the impact of China FUD fades, let us examine the charts of the top five cryptocurrencies that may remain strong in the short term.
Bitcoin has once again bounced off the 100-day simple moving average ($41,002), suggesting that bulls are attempting to defend this level aggressively. The bulls will now try to push the price above the 20-day exponential moving average ($45,178).
The downsloping 20-day EMA and the relative strength index (RSI) in the negative zone suggest that bears have the upper hand. If the price turns down from the 20-day EMA, the possibility of a break below the 100-day SMA will increase.
Such a move will complete the bearish head and shoulders pattern, which has a target objective at $32,423.05.
The bulls will have to push and sustain the price above the overhead resistance at $48,843 to open the doors for a possible rally to $52,920. A break and close above this level could signal the resumption of the uptrend.
The BTC/USDT pair is witnessing a tough tussle between the bulls and the bears near the neckline. The bulls have pushed the price above the 20-EMA and will next try to clear the overhead hurdle at $45,200.
If they can pull it off, the pair could climb to $49,000. Conversely, if the price turns down from the current level, the bears will try to pull the price below the critical support zone at $41,000 to $39,600. A violation of this zone may indicate the start of a downtrend.
Avalanche (AVAX) is trading inside an ascending channel pattern. The long tail on today’s candlestick suggests that bulls are aggressively buying on dips to the 20-day EMA ($61).
The rising moving averages and the RSI in the positive zone indicate advantage to buyers. The AVAX/USDT pair could now try to retest the all-time high at $79.80. This is an important level to watch out for because a break above it could signal the resumption of the uptrend.
The pair could then rally to the resistance line of the channel and the bullish momentum may pick up if this hurdle is crossed.
Conversely, if the price turns down from the current level or the overhead resistance and breaks below $60.04, it will suggest the start of a deeper correction to the 50-day SMA ($45).
The pair has bounced off the 100-day moving average, and the bulls are attempting to keep the price above the 20-day moving average. If they succeed, the pair could begin its northward march to $79.80, where the bears may once again mount a stiff resistance.
On the downside, the channel’s support line is a critical level to monitor. A break and close below this support level will be the first sign that the bulls are losing control. If the price falls below $60.04, the drop could reach $55.
Algorand (ALGO) is trading below the 20-day EMA ($1.77) but the long tail on today’s candlestick suggests that bulls are attempting to defend the support at $1.51.
If bulls drive and sustain the price above the downtrend line, it will suggest that the short-term correction could be over. The ALGO/USDT pair could then rise to $2.15 and then to $2.55.
Alternatively, if the price turns down from $1.84, the pair could again drop to $1.51. If the bulls defend this support, the pair may remain range-bound between $1.84 and $1.51 for a few days.
A break and close below $1.51 will signal a possible change in trend. The pair could then slide to the next support at $1.15.
The pair is attempting to recover from the strong support at $1.51, but the recovery may be stymied by moving averages and then by the downtrend line.
If the price falls below the overhead resistance, it means that sentiment is still negative and traders are selling on relief rallies. This increases the chances of a break below $1.51.
This pessimistic viewpoint will be dispelled if the price rises and stays above the downtrend line. The bulls will then make another attempt to resume their upward trend.
Tezos (XTZ) rebounded sharply from the breakout level at $4.47 on Sept.22, indicating aggressive buying on dips. The bulls pushed the price back above the 20-day EMA ($6.10) on Sept. 23 and have held the level since then.
The moving averages are sloping up, and the RSI is in positive territory, indicating that the bulls are in control. Buyers are likely to test the overhead resistance zone ranging from $8.03 to $8.42.
A break and close above this zone will indicate the beginning of the next leg of the uptrend. The pair may then rally to the psychological level of $10.
In contrast to this assumption, if the price falls from the current level or the overhead resistance and falls below the 20-day EMA, the pair could fall to $4.47.
The pair is attempting to recover from the 20-EMA, indicating that sentiment has improved and traders are looking to buy on dips. The bulls will now attempt to push the price to the overhead resistance level of $7.50.
If this level is breached, the pair could rally to $8.03, where the bears are likely to put up a stiff fight. If bulls do not give up much ground against this resistance, the chances of a break above it increase.
This bullish outlook will be rendered null and void if the price falls and breaks below the moving averages. A drop to $5.50 and then $4.47 could result from such a move.
Elrond (EGLD) bounced off the 50-day SMA ($181) but could not clear the overhead hurdle at $245.80. This suggests that bulls are buying on dips while bears are selling on rallies.
The 20-day EMA ($220) has flattened out, and the RSI is just above the midpoint, indicating a supply-demand balance.
Buyers are attempting to keep the EGLD/USDT pair above the 20-day moving average. If they succeed, the bulls will try to push the pair above $245.80 once more. If they succeed, the pair could rise to $303.03.
On the other hand, if bears push the price below its current level, a retest of the 50-day SMA is possible. A break and close below this support level could pave the way for a further decline to the 100-day simple moving average ($132).
The pair has bounced off the uptrend line, indicating that traders are looking to buy on dips. The bulls will now try to push the price above the downtrend line and keep it there. If they are successful, the pair may resume its upward trend and rally to $277.88, then to $303.03.
In contrast to this assumption, if the price falls below the downtrend line, the bears will attempt to gain an advantage by pulling the price below the uptrend line. Such a move could pave the way for a more severe correction.