Bitcoin and altcoins are facing selling near key resistance levels, but for now the possibility of a sharp fall remains low.
The U.S. Federal Reserve recently hinted that it could keep interest rates near zero at least through 2023. The Bank of England went a step ahead and said that it could explore options for cutting rates below zero in order to support an economy battered by the coronavirus lockdowns and the upcoming Brexit.
In other news, Kraken exchange has become the first digital asset company to receive a charter to operate as a bank in the U.S. This is a huge change from the days when traditional banks refused to support crypto businesses.
Daily cryptocurrency market performance. Source: Coin360
MicroStrategy’s immense Bitcoin (BTC) purchase is also a major step ahead as that will encourage several companies to at least diversify a portion of their cash reserves into cryptocurrencies.
All these events are long-term bullish for cryptocurrencies, but in the short-term, negative sentiments continue to weigh on prices. Fortunately, as is the nature of markets, crypto markets will eventually react positively to the strong fundamentals that exist and the uptrend will resume.
Let’s study the charts to spot the levels that indicate that the current correction has possibly ended.
BTC/USD
The bulls have not been able to sustain the price above the $11,000 level for the past two days, which suggests that bears are aggressively defending this resistance. Bitcoin formed an inside day doji candlestick pattern on Sep. 17 and this shows indecision among the bulls and the bears.
BTC/USD daily chart. Source: TradingView
Both moving averages have flattened out and the relative strength index is close to the 50 level, which also points to a balance between supply and demand.
If the price turns down from the current levels, the bears will try to sink the BTC/USD pair below the $10,625–$10,500 support. If successful, this will indicate that the bears have aggressively shorted during the current relief rally and a retest of $9,835 is likely.
Conversely, if the pair rebounds off the $10,625–$10,500 support, it will show that the bulls continue to buy at higher levels.
A breakout and close (UTC time) above $11,000 could push the pair to the downtrend line. This level is again likely to act as a stiff resistance but if the bulls can drive the price above it, a rally to $12,460 will be on the cards.
ETH/USD
Ether (ETH) has found support close to the $353.443 support four times since Sep. 11, which shows that the bulls have been accumulating on dips. The buyers tried to extend the relief rally with a sharp up-move on Sep. 17 but could not clear the barrier at the 50-day simple moving average ($391).
ETH/USD daily chart. Source: TradingView
If the ETH/USD pair does not dip below $366, the bulls will make one more attempt to clear the 50-day SMA hurdle. If they succeed, a rally to the 61.8% Fibonacci retracement level of $419.473 is likely.
This positive view will be invalidated if the bears sink the pair below the $353.443 support because if this level breaks down, several aggressive bulls could close their short-term positions. The next support on the downside is much lower at $308.392.
XRP/USD
The repeated failure of the bears to sink XRP below $0.235688 attracted buying from the aggressive bulls on Sep. 18. However, the bears have not thrown in the towel yet as they are trying to stall the pullback at the 20-day exponential moving average ($0.252).
XRP/USD daily chart. Source: TradingView
If the XRP/USD pair turns down from the current levels, the bears will once again attempt to sink the price below the $0.235688–$0.229582 support zone. If they succeed, a drop to $0.19 is likely.
However, if the bulls push the price above the 20-day EMA, a rally to $0.268478 is likely. The bears are likely to defend this level aggressively, which could keep the pair range-bound for a few days.
The flat moving averages and the RSI just below the midpoint show a balance between supply and demand. The advantage will shift in favor of the bulls if they can propel the pair above the downtrend line.
DOT/USD
Polkadot (DOT) rebounded off the support at $4.921 on Sep. 16 but the bulls could not push the price above the overhead resistance at $5.5899, which suggests selling by the bears at higher levels.
DOT/USD daily chart. Source: TradingView
If the DOT/USD pair breaks below the rising wedge pattern and the $4.921 support, a drop to $4.50 and then to $4.00 is possible. However, if the bulls defend the $4.921 support, the pair could remain range-bound for a few days.
The first sign of strength will be a breakout of the overhead resistance at $5.5899 and the pair is likely to pick up momentum after it breaks above the rising wedge pattern. Above this level, a rally to $6.8619 is possible.
BCH/USD
Bitcoin Cash (BCH) has been facing stiff resistance at the 20-day EMA ($239), which shows that the bears are selling on pullbacks to this level.
BCH/USD daily chart. Source: TradingView
However, the positive thing is that the bulls have not allowed the price to slip and sustain below $230.
A tight consolidation close to a stiff resistance increases the possibility of a breakout from it. If the BCH/USD pair breaks out of the 20-day EMA, a move to $260 is possible.
Conversely, if the bears can sink the pair below the $227 support, a drop to $215 is likely. A break below this support can result in a retest of the critical support at $200.
BNB/USD
Binance Coin (BNB) bounced from close to the $25.82 support on Sep. 16 and 17, which shows that the bulls are aggressively defending this level.
BNB/USD daily chart. Source: TradingView
However, the buyers have not been able to push the price above the 38.2% Fibonacci retracement level of $28.7113, which suggests that the bears are aggressively shorting close to this resistance.
If the bears sink the BNB/USD pair below the 20-day EMA ($25.69), a drop to the 50-day SMA ($23.43) is likely.
Conversely, if the pair again rebounds off the $25.82 support, the bulls will make one more attempt to push the price above $28.7113. If they succeed, a rally to $30.4975 is possible.
LINK/USD
The bulls attempted to push Chainlink (LINK) back above the uptrend line on Sep. 17 but failed. This line which had previously acted as a strong support will now behave as a resistance.
LINK/USD daily chart. Source: TradingView
The bears will now try to sink the LINK/USD pair below the critical support at $8.908. This is an important support level to watch out for because if it breaks down, the decline can extend to $7.
The 20-day EMA ($12.27) is sloping down and the RSI is in the negative territory, which suggests that the bears have the upper hand.
This bearish view will be negated if the pair reverses direction and breaks above the $13.28 resistance.
CRO/USD
Crypto.com Coin (CRO) is facing resistance at the downtrend line but the bulls have not allowed the price to drop below the moving averages, which shows buying on dips.
CRO/USD daily chart. Source: TradingView
However, both moving averages have flattened out and the RSI is just above the midpoint, which suggests a balance between supply and demand.
The advantage will shift in favor of the bulls if they can push the price above the downtrend line. Above this resistance, a rally to $0.183416 and then to the recent highs at $0.191101 is likely.
If the bears can sink the price below the moving averages, the CRO/USD pair might drop to the critical support at $0.144743.
LTC/USD
Litecoin (LTC) is currently trading inside the symmetrical triangle and the next directional move will start after the price breaks out or breaks down from this pattern.
LTC/USD daily chart. Source: TradingView
The downsloping moving averages and the RSI in the negative territory suggest that the bears have the upper hand. If they can sink and sustain the price below the triangle, a drop to $39 is possible.
Conversely, if the bulls can push the LTC/USD pair above the triangle, a rally to $58 and above it to $64 is possible.
Although the symmetrical triangle usually acts as a continuation pattern, it can sometimes start a reversal. Hence, it is better to wait for the price to break out before taking positional bets.
BSV/USD
The bulls are not confident that the correction is over and the bears are not convinced that they can sink Bitcoin SV (BSV) below the $146.20–$135 support zone. Hence, the intraday range has shrunk in the past few days.
BSV/USD daily chart. Source: TradingView
Both moving averages are sloping down and the RSI has dipped below the 40 level, which suggests that the advantage is with the bears.
If the bears sink the BSV/USD pair below $259, a retest of the support zone is likely. A break below this zone could start the next leg of the down move.
However, if the pair again rebounds off the $146.20 support, a few days of range-bound action is likely. The first sign of strength will be a breakout and close (UTC time) above the downtrend line.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
Original Article
Author: btcethereumadmin