Bitcoin’s (BTC) recovery is facing stiff resistance near $48,500, indicating that bears are active at higher levels. By combining the popular stock
Bitcoin’s (BTC) recovery is facing stiff resistance near $48,500, indicating that bears are active at higher levels.
By combining the popular stock-to-flow Bitcoin price model and the illiquid supply data, analyst William Clemente projects $39,000 to act as a strong floor on any declines.
On the upside, analysts remain bullish. Bloomberg Intelligence chief analyst Mike McGlone has maintained his target of $100,000 for Bitcoin. McGlone said that a number of different charts underline the bullish potential for Bitcoin.
Along with Bitcoin, Ether (ETH) is also showing signs of accumulation. Crypto analytics provider IntoTheBlock said $1.2 billion worth of Ether was withdrawn within a 24-hour period from centralized exchanges on Sept. 16. After a similar occurrence in April, Ether had rallied about 60% in 30 days.
Could the top two cryptocurrencies live up to their bullish projections or will crypto markets surprise to the downside? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
The bulls are attempting to sustain Bitcoin above the 20-day exponential moving average ($47,291) while bears are trying to pull the price below it. The 20-day EMA has flattened out and the relative strength index (RSI) is close to the midpoint, suggesting a range-bound action in the short term.
If bears sink the price below the moving averages, the BTC/USDT pair could drop to the critical support at $42,451.67. A rebound off this level will indicate that bulls are accumulating on dips. That may extend the consolidation between $42,451.67 and $52,920 for a few more days.
On the contrary, if the price rebounds off the current level or the 50-day simple moving average ($46,256), the bulls will try to push the pair to $50,500 and then to $52,920. The bears are likely to defend this resistance zone aggressively.
The next major trending move is likely to begin after bulls drive the price above $52,920 or if bears pull the price below $42,451.67.
ETH/USDT
Ether’s (ETH) recovery is facing stiff resistance at the 61.8% Fibonacci retracement level at $3,637.14, indicating selling at higher levels. The bears are attempting to sink the price back below the support at $3,377.89.
If they succeed, the ETH/USDT could drop to the 50-day SMA ($3,238) and then to the critical support at $3,000. Such a move may result in the formation of a head and shoulder pattern, which will complete on a break and close below $3,000.
This negative view will invalidate if the price rebounds off the support at $3,377.89 or the 50-day SMA and breaks above $3,676.28. The pair could then retest the local high at $4,027.88.
The flattish 20-day EMA and the RSI just above the midpoint do not indicate a clear advantage either to the bulls or the bears.
ADA/USDT
Cardano (ADA) turned down from the 20-day EMA ($2.52) on Sept. 16 suggesting that bears are selling on rallies to this resistance. The bears are currently attempting to pull the price to the 50-day SMA ($2.25).
The downsloping 20-day EMA and the RSI in the negative zone suggest that bears are in command. If the price sustains below the 50-day SMA, the ADA/USDT pair could drop to the next support at $1.94.
Such a deep correction will suggest that a short-term top has been made. If bulls want to salvage the uptrend, they will have to push and sustain the price above the 20-day EMA. If they do that, the pair could once again rally to $2.80 and then to $2.97.
BNB/USDT
The bulls failed to push Binance Coin (BNB) above the 20-day EMA ($432) in the past two days, indicating that buying dries up at higher levels. This may have attracted profit-booking from short-term traders who bought at lower levels, anticipating a resumption of the up-move.
The 20-day EMA is sloping down and the RSI turned down from the midpoint, suggesting advantage to the sellers. If the price sustains below the 50-day SMA, the BNB/USDT pair could drop to the next major support at $340.
This negative view will be invalidated if the bulls push and sustain the price above the 20-day EMA. Such a move will suggest that the bulls have absorbed the supply. The pair could then rise to the overhead resistance at $518.90.
XRP/USDT
XRP turned down from the 20-day EMA ($1.12) on Sept. 16, indicating that bears are defending this level aggressively. The downsloping 20-day EMA and the RSI in the negative zone suggest that the path of least resistance is to the downside.
If bears sustain the price below the 50-day SMA, the XRP/USDT pair could retest the Sept. 7 intraday low at $0.95. A break and close below this support will open the doors for a deeper correction to $0.75.
If the price rebounds off the current level or from $0.95, the bulls will again try to push the price above the 20-day EMA….
cointelegraph.com