Bitcoin (BTC) and Ether (ETH) have recovered much of the losses that came from the strong reaction to Chinese regulatory measures on September 24th. This indicates that the cryptocurrency markets have absorbed long-term news-driven sales. Investors are likely to use the deflationary period to save.
However, the rally will have to wait while market participants consider the outcome of this week’s infrastructure bill, as a result of which discussion could begin on September 27 and the final vote on September 30. The broad definition of “broker” may cause some volatility in the cryptocurrency markets, but HODLers are unlikely to be shaken.
Daily market indices for cryptocurrency. Source: Coin360
Analyst Willie Wu said that “Bitcoin has entered the ‘never give up’ phase of the Astley cycle, which could be followed by a rally.
On the one hand, there are investors from Rick Astley, and on the other hand, JPMorgan CEO Jamie Dimon, who remains a consistent critic of Bitcoin. In an interview with The Times of India, Daimon said he would not buy bitcoin, even if it grew “10 times in value over the next five years.”
Can Bitcoin extend its recovery in the next few days, or is it likely to reach a range? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
Bitcoin has been hovering between the 100-day Single Moving Average (SMA) ($41,078) and the 20-day Exponential Moving Average (EMA) ($44,982) in recent days, indicating that bulls are buying in deflationary periods and are trading Selling bears to conventions.
BTC/USDT daily chart. Source: TradingView
The 20-day declining exponential moving average (EMA) and the relative strength index (RSI) just below its midpoint indicate that the path of least resistance is down. If the bears decline and keep the price below the 100-day simple moving average, sales may intensify.
Then BTC/USDT could drop to $37332.70, and if that level also fades, the drop could reach $30,000.
This bearish outlook will lose steam if the price reverses from the current level and breaks the moving averages. Such a move means the bulls are back in the game. The pair could then rise to $48,843.20 and then $52,920.
ETH / USDT
The long tail of the candlesticks over the past three days shows that the bulls are buying aggressively around the 100-day moving average ($2756). Therefore, it becomes an important level to monitor.
ETH/USDT daily chart. Source: TradingView
The 20-day EMA ($3,193) is sloping and the RSI is just below its midpoint, indicating that the bears have little edge. If the price reverses from the current level, ETH/USDT could consolidate between the moving averages for a few more days.
The breakout and the end through the 100-day SMA could boost sales and the pair could drop to $2,400 and then to $1,972.12. On the other hand, a breakout and a close on the 20 day EMA will be the first sign of strength. The pair could then rise to $3,600.
ADA / USDT
On September 25, Cardano (ADA) bulls rushed above the moving averages, but failed to break the $2.47 barrier. This indicates that the bears have not given up and are selling on the rise to higher resistance levels.
ADA/USDT daily chart. Source: TradingView
The ADA/USDT pair said no, and now the bears will try to cut the important support price to $1.94. This is an important level to protect the bulls, because if it is broken, the pair could start a downtrend.
Conversely, if the price rises from the current level or rebounds from $1.94, the bulls will once again attempt to lift the pair above $2.47. If they succeed, it means that the repair can be completed. The pair could then rise to $2.97.
BNB / USDT
Binance Coin (BNB) dropped below the $340 support level on September 26, but the bulls bought in the fall and kept that level at the close. Buyers are currently struggling to keep prices above $340, indicating sales at smaller agreements.
BNB/USDT daily chart. Source: TradingView
If the price reverses and falls below the $340-$320 support area, BNB/USDT could extend the decline to $300 and then to $250. The slopes of the 20-day EMA ($388) and the RSI below 37 indicate that the market is dominated by bears.
The first sign of strength will be a breakout and a close above the 20 day moving average. Such a move will indicate a decrease in pressure from sellers.