Bitcoin (BTC), which is leading the recovery of the crypto sector, briefly rallied to $48,429 Sept. 15 before pulling back to check the underlying support levels.
Cathie Wood, Ark Invest CEO, stated that Bitcoin is the default cryptocurrency in the crypto space. She also said that it could grow tenfold over the next five year.
Her projection assumes that Bitcoin will be included in many companies’ balance sheets. Institutional investors will increase their allocation to Bitcoin to approximately 5%.
Many legacy finance companies are recognizing the increasing demand for digital assets, and have increased their crypto offerings in order to meet that demand. Morgan Stanley has recently established a new division for crypto-focused research “in recognition the increasing importance of cryptocurrencies” and other digital assets on global markets.
Everyday cryptocurrency market performance. Source: Coin360
Fidelity Investments executives also shared positive news. They met with several United States Securities and Exchange Commission officials and emphasized the importance of approving a Bitcoin exchange-traded funds. Fidelity Investments executives cited the rising adoption of Bitcoin, the approvals in other countries of similar funds and the growing demand of digital assets.
Can Bitcoin and other altcoins continue to rebound? Let’s look at the charts for the top 10 cryptocurrency coins to see if they can sustain the current rebound.
The Sept. 13 candlestick’s long tail shows that bulls bought aggressively on dips near the critical support of $42,451.67. The bulls’ continued buying and short-term covering by bears have propelled Bitcoin to the top of the 20-day exponential moving Average (EMA) at $42,451.67 on Sept. 15.
Daily chart of BTC/USDT Source: TradingView
If bulls can maintain the price above the 20 day EMA, the BTC/USDT exchange could reach the overhead resistance zone at $50,500 to $52,920.
The relative strength index has climbed back into positive territory, and the 20-day EMA is flattened, which signals a slight advantage for buyers. The resumption or expansion of the uptrend will be confirmed by a breakout and close above this overhead zone.
Bears won’t be able to give up easily. They will try to stop the upward movement at the overhead zone. The pair could continue to consolidate in large ranges if the price falls below the resistance.
To gain the upper hand, the bears must sink and maintain the price below $42,451.67
The Sept. 13 candlestick has a long tail that shows bulls aggressively protecting the 50-day simple moving Average ($3,189). Ether (ETH), which was pushed above the 20-day EMA ($3,430 on Sept. 15), may be facing stiff resistance at $3.567.
Daily chart of ETH/USDT Source: TradingView
The ETH/USDT pair may attempt to climb to $4,000. If bulls can overcome this overhead hurdle, it could be possible for the ETH/USDT to again rise to $4,000. If the price drops from $3,567.06, then the pair could drop to the 50 day SMA.
This move could indicate that the pair may remain range bound for a few more days. Buyers may have a slight advantage due to the flat 20-day EMA, and the RSI just below the midpoint.
To signal a possible down movement, the bears must sink below $3,000 and maintain it.
Cardano (ADA), fell below its breakout level of $2.47 on September 13, but the bears couldn’t pull the price down below the 50-day SMA ($2.21). This indicates that selling tends to dry up at lower levels.
Daily chart ADA/USDT Source: TradingView
On Sept. 14, the ADA/USDT pair created a Doji candlestick pattern, indicating uncertainty among the bulls as well as the bears. The uncertainty was resolved on Sept. 15, and buyers are now trying to overcome the hurdle at the $20-day EMA ($2.55).
If the price breaks the 20-day EMA and closes above it, the pair may rise to the overhead resistance zone of $2.97 to 3.10.
The bears will try again to sink the pair to 50-day SMA if the price drops below the 20-day EMA. If the price breaks or closes below this support, it will indicate a possible trend shift.
The break was not capitalized by the bears and they closed below the 50-day SMA ($414) on September 13. This suggests that buyers should buy at lower levels. The bulls are trying to push Binance Coin, (BNB), above the 20-day EMA (436) at the moment.
Daily chart BNB/USDT TradingView
Bulls will be able to keep the price above the 20 day EMA, which could signal that the correction is over. The BNB/USDT currency pair could then rise to $518.90 overhead resistance. The resumption will be signaled by a break or close above this level.
Contrarily, if the price drops below the 20-day EMA it will be a sign that bears have sold on relief rallies. The bears will attempt to sink the pair further to $340.
On Sept. 13, Ripple (XRP), bounced off of the 50-day SMA ($1.05), suggesting that bulls are protecting this level. The altcoin could rise to the 20 day EMA ($1.13), where bears will likely pose a challenge.
Daily chart of XRP/USDT Source: TradingView
The 20-day EMA is slowly falling and the RSI is just above the midpoint. This suggests a slight advantage for the bears. If the bears break the 50-day SMA, it will signal that they have overcome the bulls. If bears drop the price below the Sept. 7, intraday low of $0.95, the selling could get more intense.
Contrary to what you might think, if bulls continue to drive the price higher than the 20-day EMA it could signal that the correction is over. The XRP/USDT currency pair could then move up to the overhead resistance zone of $1.35-1.41.
The long tail of Solana’s (SOL), Sept. 13-14 candlestick indicates that bulls are trying to defend the 20 day EMA ($145). However, the negative sign is the fact that bears are not allowing the rebound sustain.
Daily chart of SOL/USDT Source: TradingView
Inside-day candlestick patterns on Sept. 15 indicate indecision between the bulls, and the bears. If the uncertainty ends to the downside, and the SOL/USDT price falls below the 20-day EMA level, the correction could reach the 61.8% Fibonacci retracement at $123.42.
The longer it takes for the next leg to start, the deeper the correction. If the price rises above $171.83, then the pair could rally to $197.41, and then retest its all-time high of $216.
The northward march of Polkadot, (DOT), has been continued but the bulls are still not able to overcome the resistance line. The RSI is now below the downtrend line, and the negative divergence remains intact.
Daily chart of DOT/USDT Source: TradingView
The DOT/USDT pairing could gain momentum if buyers push and close above the resistance level. If the resistance line is crossed, then the pair could rally to $41.40. The next stop could be $49.78.
Alternativly, if the price falls from its current level, it could fall to the 20-day EMA (31.45). This support is likely to be strong and bulls will aggressively buy dips. This will increase the likelihood of a break above resistance.
If bears are able to break the 20-day EMA and then close below it, this will be the first sign they have made a strong comeback.
Related: MicroStrategy’s Bitcoin treasury surpasses cash held in 80% of S&P 500 companies non-financial
Dogecoin (DOGE), is stuck between $0.21 support and the moving averages. Bulls are trying to defend $0.21 support but the bounce is weak. This indicates that there is little demand at the current levels.
Daily chart of DOGE/USDT Source: TradingView
The moving averages are close to completing a bearish crossover, and the RSI trades in the negative territory. This suggests that the path to the downside is the most likely.
The DOGE/USDT pair could fall to $0.15 if bears lower the price below $0.21.
A break or close above the moving averages would be the first sign that bulls have returned to the game. The pair may gain momentum above the downtrend.
In the last few days, the bears failed repeatedly to pull Uniswap(UNI) below its Sept. 7 intraday low of $21 at $21. This is a sign that buying has been taking place at lower levels. Although the bulls drove the price to $25 on Sept. 14, they are still facing stiff resistance from the moving averages.
Daily chart of UNI/USDT Source: TradingView
The UNI/USDT pair may drop to $23.45 or $21. Depending on whether the price drops and breaks below $25 This level is important to monitor as a possible sign of a deeper correction.
Contrarily, a price rebound of $25 or $23.45 will indicate that bulls are trying to make a comeback. If the price breaks and closes above the moving averages, it could lead to a possible increase of $31.41.
Terra protocol’s LUNA token bounced from the 20-day EMA ($33.50), on Sept. 13. This can be seen in the candlestick’s long tail. This indicates that traders are still buying on dips and sentiment is positive.
Daily chart of LUNA/USDT Source: TradingView
On Sept. 14, the LUNA/USDT pair formed a inside candlestick pattern, indicating indecision between bulls and bears. Bears will be favored if the pair breaks and closes below the 20-day EMA. The bears could then make a comeback to the 50-day SMA (25.25).
If bulls push the price higher than $38, the pair might resume its upward movement towards the record $45.01. The pair could reach the psychological level of $50 if it breaks and closes above this resistance.
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.