China tried to stop the growth of the crypto sector on multiple occasions over the past 12 years. However, barring a small blip in the short-term, blanket bans on cryptocurrency-commerce have not affected the long-term growth. This proves that even though China is the second largest economy in the world it cannot stop the growth and emergence of cryptocurrency.
Marion Laboure, a Deutsche Bank analyst, stated in an update posted on the bank’s website: Bitcoin (BTC), as most people purchase it for speculation or investment, is likely to “remain extremely volatile in the foreseeable future”.
Laboure is adamant that Bitcoin could be “the 21st Century’s digital gold”, and the trend could continue for many centuries without any major government control.
Daily view of crypto market data. Source:Coin360
Counterpoint’s head of asset management Dennis Lynch compared Bitcoin to Kenny from South Park at Morningstar’s annual investment conference. Lynch stated, “I like the analogy that bitcoin is kind of like Kenny from South Park – he dies every episode and then comes back.”
Let’s examine the charts of top 5 cryptocurrencies that could remain strong as the China FUD decreases.
Bitcoin bounced back from the 100-day simple average ($41,000.02), suggesting that bulls are trying to defend this level aggressively. Bulls will attempt to push Bitcoin above the exponential moving average (20-days) ($45,178).
Daily chart of BTC/USDT Source: TradingView
Bears are the winners, as evidenced by the downsloping 20 day EMA and relative strength index (RSI), in the negative zone. The possibility of a break below 100-day SMA is increased if the price falls from the 20-day EMA.
This move completes the bearish head-and-shoulders pattern. The target goal is $32,423.05.
To open the door to a possible rally of $52,920, the bulls must push the price higher than the overhead resistance at $48,843. Breaking and closing above this level could signify the resumption or continuation of the uptrend.
Chart for BTC/USDT 4 hours TradingView
BTC/USDT is currently witnessing a fierce battle between the bears and bulls at the neckline. The bulls have pushed price higher than the 20-EMA. They will now attempt to overcome the $45,200 overhead hurdle.
The pair could reach $49,000 if they are able to pull it off. If the price falls below its current level, bears will attempt to lower it below the critical support zone of $41,000 to $39,600. This zone could be violated to signal a downtrend.
Avalanche’s (AVAX), is trading within an ascending channel pattern. Today’s candlestick shows that bulls are buying aggressively on dips to the 20 day EMA ($61).
Daily chart of AVAX/USDT Source: TradingView
Buyers will benefit from rising moving averages and a positive RSI. The AVAX/USDT pairing could attempt to retest $79.80, the all-time peak. This level is important to monitor as a break above could signal the return of the uptrend.
If the resistance line is reached, the pair could rally and bullish momentum might pick up.
However, if the price falls below the overhead resistance or current level and falls below $60.04 it will signal a deeper correction to SMA (50-day) ($45).
Chart for AVAX/USDT 4 hours Source: TradingView
The price has bounced back from the 100-SMA. Bulls are trying to keep the price above 20EMA. The pair could begin its northward march towards $79.80 if they can do so. If not, the bears will likely mount another stiff resistance.
The channel’s support line is the key level to monitor. If the price breaks or closes below this support, it will be a sign that the bulls are losing their grip. The price drop below $60.04 could lead to a decline of up to $55.
Algorand (ALGO), which trades below the 20-day EMA ($1.77), but the candlestick’s long tail today suggests that bulls are trying to defend support at $1.51.
Daily chart for ALGO/USDT TradingView
Bulls driving and maintaining the price above the downtrend will indicate that the short-term correction may be over. The ALGO/USDT exchange could rise to $2.15, and then to $2.55.
Alternativly, if the price drops below $1.84, then the pair could drop to $1.51. The pair could remain range bound between $1.84 to $1.51 for a few more days if the bulls protect this support.
Trend change could be signaled by a break or close below $1.51 The pair could slide to $1.15 as the next support.
Chart for ALGO/USDT 4 hours Source: TradingView
Although the pair is trying to rebound from the strong support at $1.51, the recovery could hit a barrier at both the moving averages as well as the downtrend line.
If the price falls below the overhead resistance it will signify that sentiment is still negative and traders are buying on relief rallies. This will increase the chances of a break below $1.51.
If the price moves above the downtrend line, this negative outlook will be dispelled. The bulls will attempt to resume their up-move.
Similar: Data from derivatives suggests that Solana has reached an immediate top
Tezos (XTZ), which rebounded strongly from its breakout level of $4.47 on September 22nd, indicated aggressive buying on dips. The bulls pushed it back above the 20 day EMA ($6.10) Sept. 23, and have maintained the level ever since.
Daily chart of XTZ/USDT Source: TradingView
The moving averages are trending upwards and the RSI is positive, which suggests that bulls hold the upper hand. The overhead resistance zone of $8.03-8.42 is likely to be challenged by buyers.
The start of the next leg will be signaled by a breakout or close above this zone. The psychological mark of $10 could be reached and the pair could rally.
This assumption is incorrect. If the price drops below the overhead resistance or current level and falls below the 20-day EMA then the pair could fall to $4.47.
4-hour chart for XTZ/USDT Source: TradingView
The pair is trying to bounce off the 20EMA. This indicates that sentiment has turned positively and traders are buying dips. Bulls will attempt to push the price above $7.50 overhead resistance.
The pair could rally to $8.03 if this resistance is reached. Bears will likely mount stiff resistance if the level is not raised. The possibility of a break above this resistance will increase if bulls don’t give up too much ground.
If the price falls below the moving averages, this bullish view will be invalidated. This could lead to a drop of $5.50 or $4.47.
Elrond (EGLD), bounced off the 50 day SMA ($181), but couldn’t clear the overhead hurdle of $245.80. This indicates that bulls are buying dips and bears are selling rallies.
Daily chart of EGLD/USDT TradingView
The 20-day EMA ($220), has fallen and the RSI is just below the midpoint. This indicates a balance between supply/demand.
The buyers want to keep the EGLD/USDT price above the 20-day EMA. The bulls will attempt to push the pair higher than $245.80 if they succeed. The pair could rally to $303.03 if they succeed.
A retest of 50-day SMA could be possible if bears pull down the price from its current level. Breaking and closing below this support could lead to a further decline towards the 100-day SMA ($132).
4-hour chart of EGLD/USDT Source: TradingView
The price has moved away from the uptrend line which indicates that traders are buying dips. The bulls will attempt to push the price higher than the downtrend line. If they succeed, the pair could resume its up-move to rally to $277.88 then to $303.03.
Contrary to popular belief, bears will attempt to take advantage of a price drop below the uptrend line if the price falls from the downtrend. This could open the door to a deeper correction.
You should research all aspects of trading and investment before making any decision.
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.