Altcoins, including Bitcoin and SHIB, have warmed up ahead of the long-awaited Ethereum Merge. However, it gave back its gains after the US CPI data. Crypto analyst Rakesh Upadhyay examines the charts of the top 10 cryptocurrencies.
An overview of the crypto market
cryptocoin.comAs you follow, US stock markets and cryptocurrency markets started the new week on a strong foundation. This meant that investors were expecting a possible 75 basis point rate hike to be priced in at the Fed’s September 20-21 meeting, while also implying that investors believed inflation had peaked. However, he could not continue it.
Bitcoin’s (BTC) rally above $22,000 cleared the closely watched metric of the realized price of $21,700 according to Glassnode. The next major hurdle on the upside is the 200-week moving average near $23,330. A break and close above this resistance would indicate the end of the bear market. However, it saw a hard sell after the US CPI data.
The current bear market has not alienated institutional investors, who continue to believe in the long-term prospects of the asset class. Irfan Ahmad, Asia Pacific digital leader of State Street cryptocurrency State Street Digital, said that his institutional clients continue to place strategic bets in the cryptocurrency space in June and July. Now it’s time for analysis…
BTC, ETH, BNB, XRP and ADA analysis
Bitcoin (BTC)
Bitcoin is trying to make a bottom. Buyers pushed the price above the 20-day exponential moving average (EMA) ($20,831) on September 9 and the 50-day simple moving average (SMA) ($21,944) on September 12. This indicates that the bears may be losing momentum.
If buyers sustain the price above the 50-day SMA, it is possible for BTC to attempt a rally towards the overhead resistance at $25,211. Bears will fiercely defend this level. If the price drops from this level, BTC is likely to spend some time in a wide range between $18,626 and $25,211.
During such periods of consolidation, weaker hands sell their holdings for fear of further declines. Stronger hands buy hoping a bottom may be imminent. This completes the transfer of assets from weaker hands to stronger hands. After the accumulation is complete, the asset usually starts a new bullish move. Another possibility is for the price to decline and slide below the 20-day EMA. If this happens, it will indicate that traders continue to sell in the rallies. It is possible for BTC to visit the strong support at $18,626 once again later.
Ethereum (ETH)
ETH climbed above the overhead resistance at $1,700 on September 9. However, the bulls faced stiff resistance at $1,800. This shows that the bears are not giving up and continue to sell at higher levels.
The bulls are trying to defend this support. The bears will try to push the price below the moving averages. The 20-day EMA ($1,652) has started to rise and the RSI is in the positive territory. This indicates a small advantage for buyers. If the price bounces back from the moving averages and rises above $1,800, ETH is likely to rally towards the overhead resistance at $2,000. Such a move would suggest that ETH has bottomed out. Alternatively, if the price breaks below the moving averages, the advantage turns in favor of the bears. It is possible that ETH will drop to the neckline later.
Binance Coin (BNB)
BNB rose from $258 on September 7. With this move, she climbed back above the neckline of the head and shoulders model. This suggests that the drop could be a bear trap.
The bears tried to stop the recovery at the 20-day EMA ($287) on Sept. But buyers bulldozed the road and pushed the price above the moving averages on September 9. The bears pushed the price below the 50-day SMA ($294) on September 11 and 12. However, the bulls bought the intraday dip. Both moving averages are rising gradually. Also, the RSI is in the positive territory. This shows that there is an advantage for buyers. If the price rebounds from the current level, BNB is likely to rise to $308. This will likely act as resistance again. Conversely, if the price drops below 20 days, it will show that the bears continue to sell in the rallies. It is possible for BNB to drop to the neckline at $275 later.
Ripple (XRP)
Ripple’s narrow gap trade between $0.32 and $0.34 was resolved to the upside on September 9. Also, the price reached the 50-day SMA ($0.35). The bears are trying to stop the recovery at this level, but they have not succeeded. However, they failed to push the price below the 20-day EMA ($0.34). This indicates strong buying at the lower levels.
The 20-day EMA has started to rise and the RSI is in the positive territory. This gives buyers an advantage. If the price breaks and sustains above the 50-day SMA, XRP is likely to rise to $0.37 and then $0.39. Buyers will have to break through this hurdle to signal a potential trend change. Instead, if the price drops from the current level and dips below $0.34, it will indicate that the bears are continuing to sell in the rallies. XRP is likely to drop to the strong support at $0.32 later.
Cardano (ADA)
ADA climbed above the 20-day EMA ($0.48) on Sept. 7. The bulls extended the recovery by pushing the price above the 50-day SMA ($0.49) on September 9.
ADA has been hovering above the 50-day SMA for the past two days. This shows that traders are not recording profits as they expect the recovery to continue. If the bulls push the price above $0.52, ADA is likely to reach the downtrend line. The bears are likely to defend this level aggressively. If the price breaks from the downtrend line but bounces back from the 20-day EMA, it indicates that sentiment has turned positive. This likely increases the likelihood of a break above the downtrend line. ADA is likely to attempt a rally to $0.70 later. This positive view will be invalidated in the near term if the price declines and dips below $0.45.
SOL, DOGE, DOT, MATIC and SHIB analysis
Fading (LEFT)
SOL broke above the $32 level on Sept. 7. Buyers built on this advantage. They then pushed the price above the 20-day EMA ($34.25) on September 9. The bears tried to push the price below 20 days. The EMA is on 9/11 but the bulls have successfully defended the level. This shows that traders see the dips as a buying opportunity.
The bulls are attempting to extend the recovery by pushing the price above the 50-day SMA ($37.42) on Sept. 12. If successful, the SOL is likely to gain momentum and rally towards the overhead resistance at $48. This level is likely to act as a strong barrier. However, if the bulls surpass it, the SOL is likely to mark the start of a new upward move. Contrary to this assumption, if the price falls from the 50-day SMA, it is possible for the SOL to drop to the 20-day EMA. A break below this support and a close is highly likely to drop the SOL to $30.
Dogecoin (DOGE)
DOGE bounced off the support zone around $0.06 on Sept. 7. This shows that buying is done at lower levels. The price reached the 20-day EMA ($0.06) on September 9. However, the bulls failed to extend the relief rally to the 50-day SMA ($0.07). This indicates that the bears are active at higher levels.
Both moving averages have flattened out and the RSI is near the midpoint. This shows that there is a balance between supply and demand. If the buyers price moves above the 50-day SMA, the short-term advantage is likely to be in the buyers’ favor. DOGE is likely to rally towards the stiff overhead resistance at $0.07 and then $0.09. Conversely, if the price declines and stays below the $0.06 support area, it indicates that the bears are commanding again. It is possible that this will bring DOGE down to critical support at $0.05.
Polkadot (DOT)
The DOT reached the 50-day SMA ($7.88) on Sept. 9, when the bears formed a strong resistance. Sellers tried to push the price below the 20-day EMA ($7.50) on 9/11. But the bulls held their ground.
Buyers pushed the price above the 50-day SMA on Sept. 12. But the long wick on the candlestick of the day indicates that the bears are not willing to surrender. The price has been stuck between the moving averages for the past few days. However, this narrow gap trade is unlikely to continue for long. If buyers sustain price above the 50-day SMA, the DOT is likely to gain momentum and rally to the overhead resistance at $9.17 and then $10. Conversely, if the price breaks below the 20-day EMA, a retest of $6.75 is possible for the DOT.
Polygon (MATIC)
MATIC broke above the moving averages on September 9 and closed. However, the bulls failed to develop this advantage and pushed the price above the immediate resistance at $0.92.
A small positive in favor of the bulls, buying the bears to the moving averages. This suggests that buyers expect the recovery to continue and MATIC to rise to the overhead resistance at $1.05. A break and close above this level is likely to open the way for a possible rally to $1.35. Contrary to this assumption, if the price declines and dips below the moving averages, a drop to $0.79 and then to $0.75 is possible for MATIC. The bears will have to push the price below this level to gain the upper hand.
Shiba Inu (SHIB)
SHIB broke above the moving averages on September 9 and closed. However, the long wick on the day’s candlestick is selling at higher levels. A minor positive is that the SHIB bulls are not allowing the price to drop below the moving averages.
If SHIB price bounces back from the moving averages, buyers will try to break the overhead barrier at $0.000014. If they are successful, the probability of a rally to $0.000018 for SHIB increases. However, bears will aggressively defend this level. This positive view will be invalidated in the near term if the price dips below the moving averages and dips below the immediate support at $0.000012. In this case, SHIB could decline to $0.000010.
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