China has Attempting to stifle the growth of the crypto industry In the past 12 years, apart from a slight flash in the pan, the total ban on crypto commerce has not changed the long-term growth of cryptocurrencies. This shows that even if it is the second largest economy in the world, no country can prevent the emergence and growth of cryptocurrencies.
Deutsche Bank analyst Marion Laboure stated in an update to the bank’s website that Bitcoin (Bitcoin) It may be “extremely volatile for the foreseeable future” because most people buy it for investment or speculation rather than using it as a medium of exchange.
However, Laboure believes that Bitcoin may become the “digital gold of the 21st century” and Trends may continue for centuries Not subject to significant government control.
At Morningstar’s annual investment conference, Dennis Lynch, Head of Asset Management at Counterpoint, compared Bitcoin to South Park Cartoon Character KennyLynch said: “I like to say that Bitcoin is a bit like Kenny in South Park-he died every episode and then came back.”
As the impact of China’s FUD diminishes, let’s examine the chart of the top 5 cryptocurrencies that may remain strong in the short term.
Bitcoin once again rebounded from the 100-day simple moving average ($41,002), indicating that the bulls are trying to actively defend this level. The bulls will now try to push the price above the 20-day exponential moving average ($45,178).
The downward sloping 20-day EMA and the negative zone relative strength index (RSI) indicate that bears have the upper hand. If the price drops from the 20-day moving average, the possibility of breaking below the 100-day moving average will increase.
Such a move will complete a bearish head and shoulders pattern with a target price of $32,423.05.
The bulls will have to push the price higher and maintain it above the upper resistance level of $48,843 to open the door to a possible rebound to $52,920. A breakout and close above this level may herald the resumption of the uptrend.
The BTC/USDT currency pair witnessed a fierce struggle between bulls and bears near the neckline. The bulls have pushed the price above the 20-EMA and will try to clear the upper barrier of $45,200.
If they can succeed, the currency pair may climb to 49,000 USD. Conversely, if the price falls from the current level, the bears will try to pull the price below the key support area of $41,000 to $39,600. A break through this area may indicate the beginning of a downtrend.
AVAX / USDT
Avalanche (AVAX) trades in the ascending channel mode. The long tail on today’s candlestick indicates that the bulls are buying the 20-day moving average ($61) on dips.
The rising moving average and positive zone RSI indicate that it is good for buyers. The AVAX/USDT currency pair can now try to retest the all-time high of 79.80 USD. This is an important level to pay attention to, because a breakthrough of this level may herald the resumption of the uptrend.
Then, the currency pair may rebound to the resistance line of the channel, and if the barrier is broken, the bullish momentum may rebound.
Conversely, if the price falls from the current level or above resistance and breaks below $60.04, it indicates that a deeper correction to the 50-day moving average ($45) has begun.
The currency pair has rebounded from 100-SMA and the bulls are trying to maintain the price above the 20-EMA. If they manage to do this, the currency pair may begin to march northward to $79.80, and the shorts may once again form strong resistance.
On the downside, the key level to watch is the support line of the channel. A break and close below this support will be the first sign that bulls may lose control. If the price falls below US$60.04, the decline may extend to US$55.
Algorand (ALGO) is trading below the 20-day moving average ($1.77), but the long tail on the candlestick today indicates that the bulls are trying to defend the support level of $1.51.
If the bulls push and maintain the price above the downtrend line, it indicates that the short-term correction may be over. Then the ALGO/USDT pair may rise to 2.15 USD and then to 2.55 USD.
Or, if the price drops from $1.84, the currency pair may fall to $1.51 again. If the bulls defend this support, the currency pair may remain within a range of $1.84 to $1.51 within a few days.
A breakout and closing below $1.51 would indicate a possible change in trend. Then the currency pair may fall to the next support level of $1.15.
The currency pair is trying to rebound from the strong support of $1.51, but the rebound may encounter obstacles at the moving average and downtrend line.
If the price retreats from the upper resistance level, it indicates that market sentiment is still negative and traders are selling on rallies. This will increase the possibility of a break below $1.51.
If the price rises and stays above the downtrend line, this negative view will be denied. Then the bulls will try again to resume the rally.
related: Derivatives data shows Solana has reached a short-term top
Tezos (XTZ) A sharp rebound from the breakout level of US$4.47 on September 22 indicates buying on dips. The bulls pushed the price back above the 20-day moving average ($6.10) on September 23 and have maintained that level since then.
The moving average is sloping upwards and the RSI is in the positive zone, indicating that the bulls have the upper hand. Buyers may challenge the upper resistance zone at a price of US$8.03 to US$8.42.
A breakout and close above this area will mark the beginning of the next period of the uptrend. Then the currency pair may rebound to the psychological level of $10.
Contrary to this assumption, if the price falls from the current level or above resistance and breaks below the 20-day moving average, the currency pair may fall to $4.47.
The currency pair is trying to rebound from the 20-EMA, indicating that market sentiment has turned positive and traders are buying on dips. The bulls will now try to push the price to the overhead resistance of $7.50.
If this level expands, the currency pair may rebound to $8.03, where shorts may form strong resistance. If the bulls do not give up the resistance level, the probability of breaking the resistance level will increase.
If the price falls and breaks below the moving average, this bullish view will be invalidated. Such a move may result in a drop to $5.50 and then $4.47.
Elrond (EGLD) rebounded from the 50-day moving average ($181), but failed to break the upper barrier of $245.80. This indicates that bulls are buying on dips and bears are selling on rallies.
The 20-day moving average ($220) is flattening out, and the RSI is slightly higher than the midpoint, indicating that supply and demand are in balance.
Buyers are trying to maintain the EGLD/USDT pair above the 20-day moving average. If they manage to do this, the bulls will try again to push the currency pair above $245.80. If they manage to do this, the currency pair may rebound to $303.03.
Conversely, if the bears pull the price down from the current level, it is possible to retest the 50-day moving average. A break and close below this support level may open the door for a further decline to the 100-day moving average ($132).
The currency pair has rebounded from the uptrend line, which indicates that traders are buying on dips. The bulls will now try to push the price higher and maintain it above the downtrend line. If they succeed, the currency pair may continue to rise and rebound to US$277.88, and then rise to US$303.03.
Contrary to this assumption, if the price falls from the downtrend line, the bears will try to gain an advantage by pulling the price below the uptrend line. Such a move can clear the way for deeper corrections.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading action involves risk, and you should conduct your own research when making a decision.