Markets for ancient digital currencies and cryptocurrencies have undergone a strong correction today as traders fear another round of economic stimulus will be delayed as the White House, Senate and Congress could be drawn into a fight to fill the vacancy created by the Supreme Court ruling. Ruth Bader Ginsburg.
In addition, financial stocks are plummeting as reports have emerged that several banks may be involved in facilitating the movement of more than $ 2 trillion over two decades. Internal control officers in banks reported these suspicious transactions as money laundering or potential criminal activity.
While the price of bitcoin is correcting today, this exposure to potential illegal banking behavior will only reinforce the story behind why investors buy bitcoin (BTC).
The growing number of coronavirus cases worldwide also gives the negative feeling we see in the market today. This has resulted in panic sales when traders dump stocks, gold, crude oil and cryptocurrencies and buy US dollars instead.
However, after the first round of sales, most asset classes are likely to set their own course based on long-term fundamentals, and cryptocurrencies may recover in the first place.
Let’s examine the top 10 cryptocurrency charts to identify critical levels of support that may attract buyers.
Bitcoin / US dollars
Bitcoin fell from a 50-day single moving average ($ 11,225) on September 19, breaking the 20-day exponential moving average ($ 10,781) and supporting $ 10,625 today. This fall indicates that the Bears used the recent increase to $ 11,000 to go short.
The Bears will now try to push the price below the support level of $ 9,835, and if they succeed, it could trigger panic sales that could push the price down to $ 9,000 or more.
If this sharp decline is followed by a strong recovery, it may indicate that bulls are accumulating at low levels, and such a move could attract many buyers again.
However, if the BTC / USD pair fails to recover quickly from lower levels, recovery is likely to take longer as the bulls wait for the bottom to complete before buying.
Contrary to these assumptions, the bulls will again try to push the price above the downward line, if the pair bounces off the support level of $ 10,000 – $ 9835. If they succeed, the trend will probably continue.
ETH / USD
Ether (ETH) withdrawal was stopped around 50% of the $ 398,263 Fibonacci retracement level and fell on September 20th. Sales intensified after the Bears broke the $ 353,443 immediate support.
The next support on the back is $ 308,392 and below $ 288. If the ETH / USD pair bounces strongly from this support area, it will indicate that the bulls are building on downturns.
However, it is unlikely that the bears will easily give up the benefits. They will try to stop any downward reversal attempts, then to $ 398,263. If they succeed, it will be a serious negative and increase the likelihood of a breach below $ 288.
This bearish feeling would be reversed if the bulls were able to push the price above the downward line and total resistance at $ 400.
XRP / US Dollar
Bears are trying to push the XRP below the support zone of $ 0.235688 and $ 0.229582, and if successful, it could all fall to $ 0.19, completing a 100% retracement from the bullish move that began in mid-July.
The lack of a strong bounce from the support zone indicates that buyers are not aggressively defending this area at this time. And they will probably wait for the recession to end before taking a risk.
This bearish feeling becomes invalid if XRP / USD bounces off the current level and breaks the downward line.
BCH / USD
The bulls’ inability to push Bitcoin Cash (BCH) above the 20-day moving average ($ 235) led to profits from short-term bulls and short sales of aggressive bears. This led to a sharp drop in the critical support range from $ 215 to $ 200.
If the bears manage to close the price (UTC) below $ 215, the Bitcoin Cash / USD pair may fall to the important support level of $ 200. This is important support because the bulls did not let the price break below this level. level from the end of March.