The Nasdaq, S&P 500 and Dow were sharply corrected on September 3 and opened with more harassment today, indicating that traders are rushing to exit. Bitcoin (BTC) and many other cryptocurrencies have seen a fierce battle for profit that has reduced the overall value of the cryptocurrency market from $ 394 billion on September 2 to around $ 339 billion today.

Even gold, traditionally considered a valuable asset, has not been spared or lost in the past two days. This shows that traders are taking profits across all asset classes that have risen in recent weeks.

Retailers may view the current decline as a buying opportunity because bitcoin and the major cryptocurrencies have improved significantly in recent months. Even market data shows that larger investors can wait to rally at lower levels.

However, in a bear market, a prudent strategy should be to wait for price to stabilize and confirm a bottom before attempting to buy. Before buying, it is very important to locate critical support levels that can attract bottom hunting from aggressive bulls.

Let’s understand that!

Bitcoin / USD
Bitcoin fell below $ 11,000 and $ 10,400 on September 3, reaching an intraday low of $ 9,958. It completed a bearish head and shoulders pattern this fall with a low target of $ 9,540.

The bulls are currently trying to defend the $ 10,000 support, but the weak retracement indicates that buyers do not think a bottom has been found yet.

The 20-day exponential moving average ($ 11,331) has stabilized and the RSI has dropped into negative territory, indicating that bears have an edge.

If the bears keep the price below $ 10,000, the next breakout support will be in the large symmetrical triangle approaching $ 9,500, but if that support is also broken, the decline could extend to $ 9,000 and then $ 8,000. … …

This downtrend will be invalid if BTC / USD bounces off the current level and rises above $ 11,000.

ETH / USD
Although the bulls defended the $ 415,634 bailout on Sep 2, they were unable to use it to push the price higher. The heavy sell-off on September 3 broke below the 20-day moving average ($ 405) and pulled Ether (ETH) to the next support level at $ 366.

The bulls are currently trying to defend the 50-day simple moving average ($ 368), which is above the critical support at $ 366.

Any pullback from the current level will face stiff resistance at the 20 day moving average. If the ETH / USD pair breaks this resistance and drops below $ 366, a deeper correction to $ 288 is possible.

However, if the bulls can push the price above the 20 day EMA, the pair may remain in hand for several days.

XRP / US Dollar
XRP broke below the 50 day simple moving average ($ 0.265) on September 3, down to $ 0.235688. The price has fallen below the moving averages and slopes of the 20 day moving average ($ 0.275), indicating that the bears prevail.

Daily chart XRP / USD

Daily chart XRP / USD. Source: TradingView

Bulls are currently trying to defend support at $ 0.235688, but any confrontation is likely to face a strong resistance in the 20 day EMA. If the XRP / USD pair dips below this level and drops below $ 0.235688, a deeper correction to $ 0.19 is possible.

This bearish opinion is not valid if the pair rebounds from the current level and rises above both moving averages. This move indicates that the bulls are huddling at lower levels and not be intimidated.

Link / USD
Chainlink (LINK) fell below the $ 12.89 support level on Sep 3, setting a lower low, breaking the trend. Altcoin is currently trading in a bearish channel and the bulls are trying to defend the $ 11 level.

The 20 day moving average ($ 14.49) is starting to weaken and the RSI indicator has dipped into negative territory, indicating that the advantage has shifted in favor of the bears. Relief rally is likely to encounter resistance at $ 12.89 and again at the 20 day moving average.

If the LINK / USD pair reverses down from both resistors, the bears will try to resume the correction, and break below the downtrend channel. If successful, it is possible to downgrade to $ 8,908.

The first sign of strength would be a break of the 20 day EMA, and a advance in the downtrend channel would signal the bulls are back in action.

Source: CoinTelegraph

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