Bitcoin (BTC) and Ether (ETH) recovered a large part of the losses that happened due to the knee-jerk reaction to China’s regulatory crackdown on Sept. 24. This suggests that crypto markets have absorbed the news-based selling, with long-term investors likely using the dip to accumulate.
However, a rally may have to wait as market participants watch the outcome of the infrastructure bill this week, which could see the debate start on Sept. 27 and the final vote on Sept. 30. The broad definition of a “broker” may cause some volatility in crypto markets but HODLers are unlikely to be shaken.
Analyst Willy Woo said that “Bitcoin has entered the Never Gonna Give You Up phase of the Astley Cycle,” which could be followed by a rally.
On one side are the “Rick Astley” investors and on the other end of the spectrum is JPMorgan CEO Jamie Dimon who remains steadfast in his criticism of Bitcoin. In an interview with Times of India, Dimon said that he won’t buy Bitcoin even if it rises “10 times in price in the next five years.”
Could Bitcoin extend its recovery in the next few days or is a range-bound action likely? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin has been oscillating between the 100-day simple moving average ($41,078) and the 20-day exponential moving average ($44,982) for the past few days, indicating that bulls are buying on dips while bears are selling on rallies.
The downsloping 20-day EMA and the relative strength index (RSI) just below the midpoint suggest that the path of least resistance is to the downside. If bears sink and sustain the price below the 100-day SMA, the selling could intensify.
The BTC/USDT pair could then drop to $37,332.70 and if this level also gives way, the decline may extend to $30,000.
This bearish view will invalidate if the price turns up from the current level and breaks above the moving averages. Such a move will suggest that the bulls are back in the game. The pair could then rally to $48,843.20 and later to $52,920.
ETH/USDT
The long tail on Ether’s candlesticks of the past three days shows that bulls are aggressively buying near the 100-day SMA ($2,756). Hence, this becomes an important level to watch out for.
The 20-day EMA ($3,193) is sloping down and the RSI is just below the midpoint, indicating that bears have a slight edge. If the price turns down from the current level, the ETH/USDT pair could consolidate between the moving averages for a few more days.
A break and close below the 100-day SMA could intensify selling and the pair may drop to $2,400 followed by a drop to $1,972.12. On the other hand, a break and close above the 20-day EMA will be the first sign of strength. The pair could then rise to $3,600.
ADA/USDT
The bulls pushed Cardano (ADA) above the moving averages on Sept. 25 but they could not clear the hurdle at $2.47. This suggests that bears have not given up and are selling on rallies to overhead resistance levels.
The ADA/USDT pair has turned down and the bears will now try to sink the price to the critical support at $1.94. This is an important level for the bulls to defend because if it cracks, the pair could start a downtrend.
On the contrary, if the price turns up from the current level or rebounds off $1.94, the bulls will again try to propel the pair above $2.47. If they manage to do that, it will indicate that the correction could be over. The pair could then rally to $2.97.
BNB/USDT
Binance Coin (BNB) dipped below the support at $340 on Sept. 26 but the bulls bought the dip and held the level on a closing basis. The buyers are currently struggling to sustain the price above $340, indicating selling on minor rallies.
If the price turns down and breaks below the $340 to $320 support zone, the BNB/USDT pair could extend the decline to $300 and later to $250. The 20-day EMA ($388) is sloping down and the RSI is below 37, suggesting that bears are in command.
The first sign of strength will be a break and close above the 20-day EMA. Such a move will suggest that the selling pressure is reducing. The pair could then rally to the overhead resistance at $433.
XRP/USDT
XRP has repeatedly bounced off the 100-day SMA ($0.88) in the past few days, indicating that bulls are aggressively defending the support. The bulls will now try to push the price above the overhead resistance zone between the 20-day EMA ($1.02) and the 50-day SMA ($1.10).
If they manage to do that, it will suggest that the correction could be over. The XRP/USDT pair could then rise to $1.41 where bears may again mount a stiff resistance.
The downsloping 20-day EMA and the RSI in the negative zone indicate that bears are in control. If the price turns down from the 20-day EMA, the…
cointelegraph.com