The United States equities markets and the cryptocurrency markets have started the new week on strong footing. This suggests that investors' expect th
The United States equities markets and the cryptocurrency markets have started the new week on strong footing. This suggests that investors’ expect the Federal Reserve’s possible 75 basis point rate hike in the Sept. 20 to Sept. 21 meeting to be priced in and it also could mean that investors believe inflation has peaked.
Bitcoin’s (BTC) rally above $22,000 cleared the closely watched metric of the realized price which according to Glassnode is at $21,700. The next major barrier on the upside is the 200-week moving average near $23,330. A break and close above this resistance could indicate that the bear market may be ending.
The current bear market has not driven away institutional investors who continue to believe in the long-term prospects of the asset class. One such example was given by Irfan Ahmad, the Asia Pacific digital lead for State Street’s crypto unit State Street Digital, who said that their institutional clients continued to place strategic bets in the cryptocurrency space in June and July.
Could Bitcoin and altcoins continue their up-move in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin is attempting to form a bottom. Buyers pushed the price above the 20-day exponential moving average ($20,831) on Sept. 9 and the 50-day simple moving average ($21,944) on Sept. 12. This suggests that the bears may be losing momentum.
If buyers sustain the price above the 50-day SMA, the BTC/USDT pair could attempt a rally to the overhead resistance at $25,211. The bears are expected to defend this level with vigor. If the price turns down from this level, the pair could spend some time inside a large range between $18,626 and $25,211.
During such periods of consolidation, the weaker hands sell their holdings fearing a further fall while the stronger hands buy expecting that a bottom may be close by. This completes the transfer of assets from the weaker hands to the stronger hands. After the accumulation is complete, the asset usually starts a new bull move.
Another possibility is that the price turns down and breaks below the 20-day EMA. If that happens, it will indicate that traders continue to sell on rallies. The pair could then once again revisit the strong support at $18,626.
ETH/USDT
Ether (ETH) broke above the overhead resistance at $1,700 on Sept. 9 but the bulls are facing stiff resistance at $1,800. This indicates that bears have not given up and they continue to sell at higher levels.
The bears will try to pull the price back below the moving averages while the bulls will attempt to defend this support. The 20-day EMA ($1,652) has started to turn up and the RSI is in the positive territory, indicating a minor advantage to buyers.
If the price rebounds off the moving averages and rises above $1,800, the ETH/USDT pair could rally toward the overhead resistance at $2,000. Such a move will suggest that the pair may have bottomed out.
Alternatively, if the price plummets below the moving averages, the advantage could tilt in favor of the bears. The pair could then decline to the neckline.
BNB/USDT
Binance Coin (BNB) turned up from $258 and climbed back above the neckline of the head and shoulders pattern on Sept. 7. This suggests that the breakdown may have been a bear trap.
The bears tried to stall the recovery at the 20-day EMA ($287) on Sept. 8 but the buyers bulldozed their way through and pushed the price above the moving averages on Sept. 9. The bears pulled the price below the 50-day SMA ($294) on Sept. 11 and Sept. 12 but bulls purchased the intraday dip.
Both moving averages are sloping up gradually and the RSI is in the positive zone, indicating advantage to buyers. If the price turns up from the current level, the BNB/USDT pair could rise to $308 which could again act as a resistance.
Conversely, if the price breaks back below the 20-day, it will suggest that bears continue to sell on rallies. The pair could then drop to the neckline at $275.
XRP/USDT
XRP’s tight range trading between $0.32 and $0.34 resolved to the upside on Sept. 9, and the price reached the 50-day SMA ($0.35) The bears are attempting to stall the recovery at this level but they have not been able to pull the price below the 20-day EMA ($0.34). This suggests strong buying at lower levels.
The 20-day EMA has started to turn up and the RSI is in the positive territory, suggesting advantage to buyers. If the price breaks and sustains above the 50-day SMA, the XRP/USDT pair could rally to $0.37 and later to $0.39. Buyers will have to clear this hurdle to signal a potential trend change.
Instead, if the price turns down from the current level and breaks below $0.34, it will suggest that bears continue to sell on rallies. The pair could then decline to the strong…
cointelegraph.com