Bitcoin and altcoins are heating up ahead of the highly anticipated Ethereum merger, but will the bulls be strong enough to sustain the rally?
US stock and cryptocurrency markets started the new week on a strong footing. This suggests that investors expect a possible 75 bps Fed rate hike to be factored into the September 20-21 meeting, and it could also mean that investors believe inflation has peaked.
Bitcoin’s (BTC) surge above $22,000 has surpassed the closely watched realized price figure of $21,700 according to Glassnode. The next major hurdle on the way up is the 200-week moving average around $23,330. A break and close above this resistance may indicate that the bear market may be ending.
Daily dynamics of the cryptocurrency market. Source: Coin360
The current bear market has not deterred institutional investors who continue to believe in the long-term outlook for this asset class. One such example came from Irfan Ahmad, head of the Asia-Pacific Cryptocurrency division at State Street Digital, who said his institutional clients continued to make strategic bets in the crypto space throughout June and July.
Can bitcoin and altcoins continue to rise in the short term? Let’s examine the charts of the top 10 cryptocurrencies to find out.
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Bitcoin is trying to form a bottom. Buyers pushed the price above the 20-day exponential moving average (EMA) ($20,831) on September 9 and above the 50-day simple moving average (SMA) ($21,944) on September 12. This suggests that the bears may lose momentum.
BTC/USDT daily chart. Source: Trading View
If buyers hold the price above the 50-day SMA, BTC/USDT could try to move towards upper resistance at $25,211. Bears are expected to actively defend this level. If the price deviates from this level, the pair could be in a large range between $18,626 and $25,211 for a while.
During such periods of consolidation, weaker hands sell their holdings for fear of falling further, while stronger hands buy in anticipation that the bottom may be near. This completes the transfer of wealth from weaker hands to stronger hands. After the completion of the accumulation, the asset usually starts a new upward movement.
Another possibility is that the price will reverse and fall below the 20-day EMA. When this happens, it indicates that traders continue to sell on the rally. The pair could then return to strong support at $18,626.
Ether (ETH) broke the upper resistance at $1,700 on September 9, but the bulls faced tough resistance at $1,800. This suggests that the bears have not given up and continue to sell higher levels.
Daily ETH/USDT chart. Source: Trading View
The bears will try to bring the price back below the moving averages while the bulls will try to defend this support. The 20-day EMA ($1,652) has begun to form and the RSI is in positive territory, indicating a slight advantage for buyers.
If the price recovers from the moving averages and rises above $1,800, ETH/USDT could rise to the upper resistance at $2,000. Such a move suggests that the pair may have bottomed.
On the other hand, the advantage could be in favor of the bears if the price falls below the moving averages. The pair may then fall to the neckline.
BNB rose from $258 and bounced above the neckline of the head and shoulders pattern on September 7th. This suggests that the collapse may have been a bear trap.
BNB/USDT daily chart. Source: Trading View
The bears tried to stop the rally at the 20-day EMA ($287) on September 8, but buyers broke through and pushed the price above the moving averages on September 9. The bears pushed the price below the 50-day SMA ($294). ) September 11-12, but the bulls bought an intraday dip.
Both moving averages are gradually sloping up and the RSI is in positive territory, indicating upside potential for