The United States stock markets and cryptocurrency markets have started the new week on strong levels. This suggests that investors expect the Federal Reserve’s possible 75 basis point price hike at its September 20 to 21 meeting and could also mean that investors believe inflation to peak. Is.
Bitcoin (BTC)’s rally above $22,000 cleared the closely watched metric of real value, which according to Glassnode stands at $21,700. On the upside, the next major resistance is the 200-week moving average near $23,330. A break and close above this resistance could signal that the bear market may be over.
The current bear market hasn’t turned away institutional investors who continue to believe in the asset class’s long-term prospects. One such example was given by Irfan Ahmed, Asia Pacific digital lead at State Street Digital, State Street’s crypto unit, who said that his institutional clients continue to make strategic bets in the cryptocurrency space in June and July.
Can bitcoin and altcoins continue their up-move in the near term? Let’s study the chart of the top 10 cryptocurrencies to find out.
BTC/USDT
Bitcoin is trying to form a bottom. Buyers pushed the price above the 20-day exponential moving average (EMA) ($20,831) on September 9 and the 50-day simple moving average (SMA) (SMA) ($21,944) on September 12. This shows that bears can lose momentum.
If buyers maintain price above the 50-day SMA, the BTC/USDT pair could attempt a rally to overhead resistance at $25,211. The bears are expected to defend this level with enthusiasm. If the price breaks below this level, the pair may spend some time in the larger range between $18,626 and $25,211.
During such periods of consolidation, weaker hands sell their holdings for fear of further downside, while stronger hands buy hoping that a bottom may be near. This completes the transfer of assets from weaker hands to stronger hands. After accumulation is complete, the asset usually initiates a new bull move.
Another possibility is that the price declines and breaks below the 20-day EMA. If this happens, it would indicate that traders will continue to sell in the rallies. The pair can again go to the strong support at $18,626.
ETH/USDT
Ether (ETH) broke above the overhead resistance of $1,700 on September 9, but the bulls are facing stiff resistance at $1,800. This indicates that the bears have not given up and continue selling at higher levels.
The bears will try to pull the price back below the moving average while the bulls will attempt to defend this support. The 20-day EMA ($1,652) has started turning up and the RSI is in positive territory, indicating slight gains for buyers.
If the price bounces off the moving averages and rises above $1,800, the ETH/USDT pair is likely to rally towards the overhead resistance at $2,000. Such a move suggests that the pair may have moved down from the bottom.
Alternatively, if the price falls below the moving average, gains could be tilted in favor of the bears. The pair could then drop to the neckline.
BNB/USDT
BNB rose above $258 and climbed above the neckline of the head and shoulders pattern on September 7. This suggests that the breakdown may be a bear trap.
The bears tried to halt a recovery at the 20-day EMA ($287) on September 8, but buyers blocked their way and pushed the price above the moving average on September 9. The bears pulled the price below the 50-day low. SMA ($294) on September 11 and 12 but bulls bought intraday dip.
Both the moving averages are gradually sloping down and the RSI is in the positive zone, which indicates gains for the buyers. If the price rises above the current levels, the BNB/USDT pair could rise to $308, which could again act as resistance.
Conversely, if the price breaks below the 20-day break, it would suggest that the bears will continue selling on the rallies. The pair can then drop to the neckline at $275.
XRP/USDT
Ripple’s (XRP) tight range trading between $0.32 and $0.34 resolved to the upside on September 9, with the price reaching the 50-day SMA ($0.35), with the bears trying to prevent a recovery at this level, but They are not able to pull the price below the 20-day EMA ($0.34). This indicates strong buying at lower levels.
The 20-day EMA has started to move and the RSI is in the positive zone, suggesting gains to the buyers. If the price breaks out and sustains above the 50-day SMA, the XRP/USDT pair is likely to rally to $0.37 and later to $0.39. Buyers need to clear this barrier to signal a possible trend change.
Instead, if the price declines from current levels and dips below $0.34, it would signal that the bears will continue selling on the rallies. The pair can then decline to the strong support level of $0.32.
ADA/USDT
Cardano (ADA) climbed above the 20-day EMA ($0.48) on September 7 and bulls extended the recovery by pushing the price above the 50-day SMA ($0.49) on September 9.
The ADA/USDT pair has remained above the 50-day SMA for the past two days, indicating that traders are not booking profits as they expect the recovery to continue. If the bulls push the price above $0.52, the pair could reach the descending trend line. Bears can defend this level aggressively.
If the price breaks below the downtrend line but rebounds from the 20-day EMA, it would suggest that the sentiment has turned positive. This could increase the chances of a break above the downtrend line. Then the pair could attempt a rally to $0.70. If the price turns lower and falls below $0.45, this positive outlook could be invalidated in the near term.
SOL/USDT
Solana (SOL) rose above the $32 level on September 7 and buyers relied on this advantage and pushed the price above the 20-day EMA ($34.25) on September 9. The bears tried to pull the price below the 20-day break. EMA on September 11 but the bulls successfully defended the level. This indicates that traders are viewing the decline as a buying opportunity.
The bulls are attempting to extend the recovery by pushing the price above the 50-day SMA ($37.42) on September 12. If they succeed, the SOL/USDT pair could pick up momentum and rally towards the overhead resistance at $48. This level is likely to act as a strong barrier, but if the bulls cross it, the pair may signal the start of a new up-move.
Contrary to this assumption, if the price breaks below the 50-day SMA, the pair can fall to the 20-day EMA. A further close below this support could lead the pair to drop to $30.
doge/usdt
Dogecoin (DOGE) rebounded from the support area near $0.06 on September 7, indicating buying at lower levels. The price reached the 20-day EMA ($0.06) on September 9, but the bulls could not extend the relief rally to the 50-day SMA ($0.07). This suggests that bears are active at a high level.
Both moving averages have flattened out and the RSI is near the midpoint, indicating a balance between supply and demand. If buyers drive the price above the 50-day SMA, short-term gains could tilt in favor of the buyers. The DOGE/USDT pair is likely to rally again to $0.07 and later to the strong upper resistance level of $0.09.
Conversely, if the price declines and stays below the support area near $0.06, it would signal that the bears are back in command. This could take the pair to the important support level of $0.05.
related: Elon Musk, Kathy Wood Sound ‘Deflation’ Alarm – Is Bitcoin At Risk Of Falling Below $14K?
dot/usdt
Polkadot (DOT) reached the 50-day SMA ($7.88) on September 9, where the bears are mounting a strong resistance. Sellers tried to pull the price below the 20-day EMA ($7.50) on September 11, but the bulls held their ground.
Buyers pushed the price above the 50-day SMA on September 12, but the long wick on the day’s candle shows that the bears are not ready to surrender. The price has been trapped between the moving averages for the past few days, but this tight range trading is unlikely to continue for long.
If buyers maintain price above the 50-day SMA, the DOT/USDT pair could pick up momentum and rally to $9.17 and later to overhead resistance at $10. Conversely, if the price breaks below the 20-day EMA, the pair may retest the support at $6.75.
Matic/USDT
Polygon (MATIC) broke and closed above the September 9 moving average, but the bulls could not build on this advantage and pushed the price above the immediate resistance of $0.92.
A slight positive in favor of the bulls is that they are buying the downside in the moving average. This suggests that buyers expect the recovery to continue and the MATIC/USDT pair to rally to the overhead resistance at $1.05. A further close above this level could clear the way for a potential rally to $1.35.
Contrary to this assumption, if the price moves down and breaks below the moving average, the pair can drop to $0.79, and later to $0.75. The bears will need to push the price below this level to gain the upper hand.
shib/usdt
The Shiba Inu (SHIB) broke and closed above the moving average on September 9th, but the long wick on the day’s candlestick shows a selloff at higher levels. One minor positive is that the bulls did not allow the price to drop below the moving average.
If the price reverses from the moving averages, buyers will attempt to clear the upper barrier at $0.0000014. If they succeed, the chances of a rally to $0.00018 increase. The bears are expected to defend this level aggressively.
This positive outlook may be invalidated in the near term if price breaks below the moving average and immediate support at $0.0000012. If this happens, the SHIB/USDT pair could drop to $0.00010.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.
Market data is provided by hitBTC Exchange.
