The cryptocurrency and US equities markets were rising prior to the September 13th release of August consumer price index data. However, the rally collapsed when the data showed that inflation was rising rather than falling.
Negative data scuttled any hopes of a Federal Reserve pivot in near-term and it caused a sharp fall in risky assets. On Sept. 13, the U.S. stock market plunged by $1.6 trillion, while the market capitalization for cryptocurrency markets fell below $1 trillion.
Everyday cryptocurrency market performance. Source: Coin360
Willy Woo is a statistician and independent market analyst who believes Bitcoin (BTC), may need to fall further before it can feel the same pain as in previous bottoms. Woo predicts that Bitcoin’s price will fall below $10,000.
Could Bitcoin and other altcoins revert to their downtrend? Let’s look at the charts for the top 10 cryptocurrencies to see if we can find out.
Bitcoin broke the 50-day simple moving mean ($21,902) on September 12, but this was a bull trap. The rally reversed from $22,799.
Daily chart of BTC/USDT Source: TradingView
The price fell below the 20-day exponentially moving average ($20.722) due to aggressive selling by the bears. The bulls are trying to stop the decline at $20,000. This is a minor positive.
It will indicate that buyers continue to buy lower levels if they push the price above the 20-day EMA. The BTC/USDT currency pair will attempt to climb to the 50-day SMA, and then retest $22,799. If the resistance is broken, a rally could be possible to $25,211.
Contrary to what you might think, a price drop below $19,860 could cause the pair to fall to the $18,510-$17,622 range. This zone is expected to be defended vigorously by the bulls.
Ether (ETH), fell below the moving averages Sept. 13 and tilted the short-term advantage to the bears. The bulls are trying to defend the support line for the rising wedge pattern, which is a minor positive.
Daily chart of ETH/USDT Source: TradingView
The ETH/USDT pair may rally to the resistance line if the price recovers from its current level and moves above the moving averages. To clear the way for a rally to $2,000.030, the bulls must push the price higher than the wedge.
If the price does not cross the moving averages, then the probability of a fall below the bearish wedge pattern is increased. The selling pressure could increase and the pair could fall to $1.422, or later to $1.280. At this level, buyers are expected to mount strong defense.
Binance Coin (BNB), which was $300 on Sept. 12, plunged below the moving-averages on Sept. 13. The short-term advantage for the bears was tilted in favor of them, but the bulls are not giving up.
Daily chart BNB/USDT TradingView
Buyers are trying to defend the $275 support and push the price higher than the 20-day EMA ($285). The BNB/USDT pair may challenge the $300-$307.50 resistance zone if they succeed. The rally could gain momentum if buyers can clear this zone.
If bulls fail push the price higher than the 20-day EMA, that will indicate that bears are selling during minor rallies. This could increase the chances of a break below $275. The pair could fall to $258, and then to $240 if that happens.
After trading close to the 50-day SMA ($0.35) over three days, XRP fell and broke below its moving averages on September 13. This pushed the price below $0.34, the breakout level.
Daily chart of XRP/USDT Source: TradingView
The price is currently trying to rise above the Sept. 14-20 20-day EMA ($0.34). If they succeed, it would suggest that the XRP/USDT pairing has reached a lower low of $0.33. The overhead resistance of $0.36 could be retested by the pair. The pair could move towards $0.39 if it breaks and closes above this level.
Contrary to popular belief, a decline in the price from the 20-day EMA will indicate that bears are selling during minor rallies. This could push the price to $0.32, the strong support.
Cardano (ADA), which rose above the 50 day SMA ($0.49) Sept. 9, but the bulls couldn’t continue the recovery and push it to the downtrend, This is a sign that the bulls are hesitant to buy at higher levels.
Daily chart ADA/USDT Source: TradingView
Short-term traders may have been tempted to take profits by the failure to extend recovery. This pushed the price below the Sept.13 moving averages.
The ADA/USDT price pair has rebounded to $0.46. Bulls are trying to push it back above the moving averages. This shows that bulls continue to buy at lower levels. The pair could cross the downtrend line if the price moves above the 50-day SMA.
If the price falls below the moving averages, this view could be invalidated. This could lead to a drop in the pair to $0.42.
Solana (SOL), which was above the 50-day SMA ($37.30 on Sept. 13 and 14), was pushed by buyers but the bulls were unable to sustain higher levels. This is a sign that bears are vigorously defending the 50 day SMA.
Daily chart of SOL/USDT Source: TradingView
The price fell below the $20-day EMA (34) due to strong selling on Sept. 13. The bears will attempt to bring down the SOL/USDT currency pair to $30 as immediate support. A support level is weakened when it is repeatedly tested. The pair could begin to fall to $26 if the $30 level is broken.
This assumption is incorrect. If the price rises from its current level and breaks above 20-day EMA, then the pair could reach the 50-day SMA. To signal an upward move to $48, the bulls must clear this hurdle.
Dogecoin (DOGE), bounced off the support area near $0.06 on Sept. 7, but the recovery fizzled at the 20-day EMA ($0.06). This shows that bears are aggressively defending moving averages.
Daily chart of DOGE/USDT Source: TradingView
The price fell from the 20-day EMA of Sept. 13, and reached support at $0.06. As a break or close below this level could cause the DOGE/USDT pair’s June low of $0.05, the bulls will likely defend it vigorously. This support could be breached and signal the resumption or the continuation of the downtrend.
If the price rises above its moving averages, this negative view may be invalidated. The pair could rally to $0.09 if that happens.
Related: Ethereum’s Merge will have a wider impact than its blockchain
Polkadot’s (DOT) tried repeatedly to climb and sustain above the 50 day SMA ($7.90), but the bears kept their ground. This shows that sentiment is still negative and bears continue to sell on rallies to resistance.
Daily chart of DOT/USDT Source: TradingView
It is possible that the price failed to rise above 50 days SMA, triggering strong selling by bears and profit-booking from the short-term bulls. This caused the price to fall below the 20-day EMA (7.43 on Sept. 13). The bears now plan to lower the DOT/USDT currency pair below $6.75 support and challenge $6.
If the price rises above the 20 day EMA and bounces off its current level, it will indicate that bulls are continuing to buy dips. The bulls will attempt to break the barrier at 50-day SMA again and launch a rally towards $10.
For the past few weeks, Polygon (MATIC), has been stuck in a wide range between $0.75 to $1.05. Both moving averages are flattened and the relative strength index is close to the midpoint. This indicates a balance between sellers and buyers.
Daily chart MATIC/USDT Source: TradingView
For the past few days, the MATIC/USDT pair attempted to climb within an ascending channel. The bears will gain a slight advantage if the price falls below the channel. The pair could fall to $0.75, which is the strong support.
Contrary to popular belief, a break and close above the channel could open the doors for a possible rally to $1.05. If the channel closes above the break, it could lead to a rally up to $1.05.
Shiba Inu, (SHIB), managed to maintain above the moving averages from Sept. 9-12. However, the bulls were unable to build on this strength and overcome the overhead hurdle at its downtrend line. This suggests a lackluster demand at higher levels.
Daily chart of SHIB/USDT TradingView
The price fell below the moving averages on September 13th. Now, the bears will attempt to lower the SHIB/USDT pairs below the strong support of $0.000012. The pair will form a descending triangle pattern if they succeed. The target goal for this bearish setup is $0.000009.
Contrary to popular belief, if the price recovers from the current level and breaks the moving averages, it could reach the downtrendline. Breaking and closing above this level will invalidate any bearish setup, and the pair could rally to $0.000018.
Risk is inherent in every investment or trading move. Before making any investment or trading move, you should do your research.
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Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.