A week-long pattern of daily lower highs suggests bulls will be unable to flip $43,000 to support and thi
A week-long pattern of daily lower highs suggests bulls will be unable to flip $43,000 to support and this could weigh on the fledgling recovery seen across many altcoins.
Bitcoin (BTC) and Ether (ETH) are attempting to bounce off their critical support levels as bulls try to thwart attempts by the bears to deepen the correction.
Tesla CEO Elon Musk said at the Code Conference in California recently that governments cannot “destroy crypto,” due to its decentralized nature but can “slow down its advancement.”
Data shows that whales have been moving record amounts of Bitcoin in the past two weeks. The total transfer volume of transactions worth $10 million and higher have surpassed levels seen when Bitcoin’s price was near $60,000.
According to on-chain analytics resource Material Indicators, “smaller” whales sold and mega whales added to their holdings.
Bobby Lee, the former CEO of BTCC exchange, said in an interview with Bloomberg on Sept. 29 that Bitcoin’s rally is expected to begin in 2021, which will not only push the price to an all-time high but also clear the psychological mark at $100,000 and possibly reach $200,000.
Are Bitcoin and altcoins getting ready for a relief rally or will bears pull the price below the respective support levels? Let’s analyze the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin continues to trade between the 100-day simple moving average ($41,221) and the 20-day exponential moving average ($44,229). The price has rebounded off the 100-day SMA today, indicating that bulls continue to defend this support aggressively.
The 20-day EMA is sloping down and the relative strength index (RSI) is in the negative zone, indicating that the sentiment remains negative and bears may sell on rallies. If the price turns down from the 20-day EMA, the tight range action may continue for a few more days.
A break and close below the 100-day SMA could result in panic selling and pull the price down to $37,332.70. If this level also cracks, the BTC/USDT pair could plummet to $30,000.
Alternatively, a break and close above the 20-day EMA will be the first sign that the selling pressure could be reducing. The pair may then rise to the 50-day SMA ($46,580), followed by a move to $48,843.20.
ETH/USDT
Ether turned down from the 20-day EMA ($3,118) on Sept. 27 and dropped to the 100-day SMA ($2,771) on Sept. 28. The bulls have once again held the support and are attempting to push the price toward the 20-day EMA.
The downsloping 20-day EMA and the RSI in the negative territory suggest that bears remain in control. If the price turns down from the current level or the 20-day EMA, the bears will make one more attempt to break the 100-day SMA support.
If that happens, the ETH/USDT pair could slide to $2,400 and if this support also gives way, the decline could extend to $1,972.12. The bulls will have to push and sustain the price above $3,174.50 to signal that the correction may be over. The pair could then rise to the 50-day SMA ($3,291) and then to $3,676.28.
ADA/USDT
Cardano (ADA) has been trading between the 20-day EMA ($2.27) and the $1.94 support for the past few days. The long wick on today’s candlestick suggests that bears are selling on relief rallies.
The downsloping 20-day EMA and the RSI below 40 indicate that bears have the upper hand. The sellers may make one more attempt to sink and sustain the price below the zone between $1.94 and the 100-day SMA ($1.87).
If the price slips below this support zone, the selling could pick up momentum and the ADA/USDT pair could decline to $1.60 and later to $1.40. This negative view will invalidate if bulls drive and sustain the price above $2.47.
BNB/USDT
Binance Coin (BNB) closed below the $340 support on Sept. 27 but the bears could not capitalize on this move and sink the price below $320. This shows that selling dries up at lower levels.
The RSI has formed a positive divergence, indicating that the bearish momentum could be weakening. The strong rally today indicates aggressive buying at lower levels and possible short-covering by the bears.
If bulls drive the price above the 20-day EMA ($381), it will suggest that the correction may be over. The BNB/USDT pair could then rally to $433.
On the contrary, if the price again turns down from the 20-day EMA, it will suggest that traders are selling on rallies. The bears will then make one more attempt to pull the price below $320.
XRP/USDT
XRP again dropped to the 100-day SMA ($0.88) on Sept. 28. Repeated retests of a support level tend to weaken it but a minor positive sign is that the bulls have successfully defended the level on several occasions in the past few days.
cointelegraph.com