The United States stock market and cryptocurrency market were rising until the September 13 release of the August Consumer Price Index data, but the rally fell after inflation rose instead of falling data.
The negative data dashed any hopes of the Federal Reserve’s pivot in the near term and led to a sharp decline in riskier assets. The market capitalization of US stocks fell by nearly $1.6 trillion on September 13 and the market capitalization of cryptocurrency markets fell below $1 trillion.
Statistician and independent market analyst Willy Woo believes that Bitcoin (BTC) may have to fall further before reaching the maximum pain experienced during the previous bottom. Wu expects bitcoin price to drop below $10,000.
Can bitcoin and altcoins resume their downtrend? Let’s study the chart of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin broke above the 50-day simple moving average ($21,902) on September 12, but it proved to be a bull trap. Buyers attempted to extend the recovery on September 13 but the rally reversed direction to $22,799.
Aggressive selling of the bears pulled the price below the 20-day exponential moving average ($20,722). One minor positive is that the bulls are trying to prevent a drop to $20,000.
If buyers push the price above the 20-day EMA, it would suggest that lower levels will continue to attract buyers. The BTC/USDT pair will then attempt a move up to the 50-day SMA and later retest $22,799. A breakout and close above this resistance could open the door for a potential rally towards $25,211.
Contrary to this assumption, if the price breaks below $19,860, the pair can drop to the $18,510 to $17,622 zone. Bulls are expected to guard this area with zeal.
ETH/USDT
Ether (ETH) went down on Sept 13 and fell below the moving averages, tilting short-term gains in favor of the bears. One minor positive is that the bulls are attempting to defend the support line of the rising wedge pattern.
If the price rebounds from the current level and rises above the moving averages, the ETH/USDT pair could rally against the wedge resistance line. The bulls will need to push the price above the wedge and hold in order to clear the way for a potential rally to $2,030.
Alternatively, if the price fails to cross above the moving average, the likelihood of a downside break below a bearish pattern increases. If this happens, then selling pressure can increase and the pair can fall to $1,422, and later to $1,280. Buyers expect a strong hedge at this level.
BNB/USDT
Binance Coin (BNB) fell below $300 on 12 September and fell below the moving average on 13 September. This tilted the short-term gains in favor of the bears but the bulls are yet to give up.
Buyers are attempting to defend the immediate support at $275 and push the price above the 20-days EMA ($285). If they succeed, the BNB/USDT pair could challenge the $300 to $307.50 resistance area. If buyers clear this area, the rally could pick up pace.
Conversely, if the bulls fail to propel the price above the 20-day EMA, it would suggest that the bears are selling on the shorter rallies. This could increase the chances of a break below $275. If this happens, the pair can drop to $258 and then to $240.
XRP/USDT
After trading near the 50-day SMA ($0.35) for three days, XRP declined and broke below the September 13 moving average. This pulled the price below the breakout level of $0.34.
Buyers are trying to push the price above the 20-day EMA ($0.34) on September 14. If they succeed, it would suggest that the XRP/USDT pair has formed a high of $0.33. The pair can then retest the upper resistance at $0.36. A break and close above this level could push the pair towards $0.39.
Contrary to this assumption, if the price breaks below the 20-day EMA, it would suggest that the bears are selling on the shorter rallies. This could push the price towards the strong support level of $0.32.
ADA/USDT
Cardano (ADA) rose above the 50-day SMA ($0.49) on September 9, but the bulls could not continue the recovery and pushed the price to the downtrend line. This indicates hesitation by the bulls to buy at higher levels.
Failure to extend recovery may have prompted short-term traders to book profits. This pulled the price below the moving average on September 13.
On a minor positive note, the ADA/USDT pair bounced off $0.46 and the bulls are attempting to push the price back above the moving averages. This indicates that lower levels are continuing to attract strong buying by the bulls. If the price rises above the 50-day SMA, the pair could reach a downtrend line.
This view will be invalidated in the near term if the price breaks below the moving averages and dips below $0.45. Then the pair can drop to $0.42.
SOL/USDT
Buyers pushed the solana (SOL) above the 50-day SMA ($37.30) on September 13 and September 14, but the bulls could not sustain the higher levels. This shows that the bears are vigorously defending the 50-day SMA.
Strong selling on September 13 pulled the price below the 20-day EMA ($34). The bears will now try to sink the SOL/USDT pair into the immediate support of $30. Repeated retesting of the support level weakens it. If the level of $30 is broken, the pair can start descending to the important support level of $26.
Contrary to this assumption, if the price rises above the current level and breaks above the 20-day EMA, the pair can move up to the 50-day SMA. The bulls must clear this upper barrier to indicate that a rise to $48 has begun.
doge/usdt
Dogecoin (DOGE) bounced off the support area near $0.06 on September 7, but a recovery failed at the 20-day EMA ($0.06). This indicates that the bears are aggressively defending the moving average.
The price broke below the 20-day EMA on September 13 and reached the $0.06 support level. It is expected that the bulls will defend the level aggressively as a breakout and a close below it could push the DOGE/USDT pair to June lows of $0.05. If this support is broken, it could signal a resumption of the downtrend.
This downside view may be invalidated if the price rebounds from the current levels and rises above the moving averages. If this happens, the pair may try to rebound to $0.09.
related: Ethereum’s Merge Will Affect More Than Just Its Blockchain
dot / usdt
Polkadot (DOT) repeatedly tried to rise and hold above the 50-day SMA ($7.90) from September 9-13, but the bears held their ground. This indicates that sentiment remains negative and bears are selling on the rallies at the resistance level.
Failure to rise above the 50-day SMA may have attracted strong selling by bears and profit-booking by short-term bulls. This pulled the price below the 20-day EMA ($7.43) on September 13. The bears will now attempt to sink the DOT/USDT pair below the immediate support of $6.75 and challenge the crucial $6 level.
Alternatively, if the price rises above the current level and rises above the 20-day EMA, it would suggest that the bulls will continue to buy on the downside. The bulls will again attempt to break the 50-day SMA hurdle and start a rally towards $10.
Matic/USDT
Polygon (MATIC) has been stuck in a broad range between $0.75 and $1.05 for the past several weeks. Both the moving averages have flattened out and the relative strength index is near the midpoint, indicating a balance between buyers and sellers.
The MATIC/USDT pair has been trying to move up inside an ascending channel for the past few days. If the price breaks below the channel, it will signal a slight gain to the bears. The pair can then decline to the strong support level of $0.75.
Contrary to this assumption, if the price rises above the current level and rises above the moving average, the pair could reach the resistance line of the channel. A break and close above the channel could open the doors for a potential rally to $1.05.
shib/usdt
The Shiba Inu (SHIB) managed to stay above the September 9-12 moving average, but the bulls could not build on this strength and overcome the overhead barrier at the downtrend line. This shows a lack of demand at a high level.
The price broke below the SMA on September 13 and the bears will now attempt to pull the SHIB/USDT pair below the strong support at $0.000012. If they succeed, the pair will complete a descending triangle pattern. The target target of this bearish setup is $0.000009.
Contrary to this assumption, if the price rebounds from the current levels and breaks above the moving averages, the pair could reach a downtrend line. A break and close above this level would invalidate the bearish setup and clear the way for a rally to $0.000018.
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.
