On September 24, there was news that the Chinese government was cracking down on the recovery of the crypto market Take a new set of measures These include strengthening inter-departmental coordination, “cutting off payment channels, disposing of related websites and mobile applications”, and effectively cracking down on illegal cryptocurrency transactions.
Although the news triggered a sell-off, long-term investors are unlikely to be upset because nothing else has changed except for the announcement of additional measures to effectively implement the existing ban.
China first announced the ban on cryptocurrency in September 2017, and the news also led to a sharp correction in Bitcoin (Bitcoin) Price.However, it turns out that this decline is a good buying opportunity because Prices recover in a few weeks And in less than three months, it reached a record high of close to 20,000 US dollars.
Is the current correction of Bitcoin and most major altcoins a good buying opportunity, or will the crypto market fall further? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin rebounded from the 100-day simple moving average ($40,874) and rose above the neckline of the head and shoulders pattern on September 22. This indicates strong demand at lower levels, but the recovery cannot clear the 20-day index’s obstacle moving average ($45,596).
The downward sloping 20-day EMA and the negative zone relative strength index (RSI) indicate that bears have the upper hand. If the bears fall and the price stays below the 100-day moving average, the BTC/USDT pair may fall to $37,332.70.
This level may be a strong support, but if it breaks, the next stop may be at the pattern target of $32,423.05.
Contrary to this assumption, if the price recovers from the current level or the 100-day moving average, the bulls will try again to push the currency pair above the moving average. A close above the 50-day moving average ($46,816) will indicate that the correction may be over.
Ether (Ethereum) Rebounded from the 100-day moving average (US$2,734) on September 22, and rose above the breakthrough level of US$3,000. This shows that bulls are buying on dips and trying to lure aggressive shorts.
However, the recovery stalled at $3,174.50 on September 23, and the bears are trying to establish their dominance. The downward sloping 20-day EMA (3,255 USD) and the RSI below 41 indicate that bears are in a dominant position.
If the index breaks through and closes below the 100-day moving average, the ETH/USDT currency pair may sell off sharply. Then the currency pair may fall towards the pattern target of 1,972.12 USD. If the bulls push and maintain the price above the moving average, this negative view will be invalid.
Cardano (Have) The strong rebound from the $1.94 level encountered obstacles at the 20-day moving average ($2.36). This shows that market sentiment is still negative and traders sold when they rebounded to the 20-day moving average.
The bears will now try to break the price below the key support zone of $1.94 and the 100-day moving average ($1.83). If they succeed, the ADA/USDT currency pair may fall to 1.60 USD and then to 1.40 USD.
Or, if the price rises from current levels or rebounds from $1.94, the bulls will try again to clear the obstacles above. Breaking and closing above the 20-day moving average will be the first sign that the correction may end. Then the currency pair may rebound to 2.60 USD, then 2.80 USD.
Binance Coin (Bitcoin) The rebound from today’s 385.30 USD to the strong support of 340 USD indicates that traders are selling strongly at a higher level.
A downward sloping 20-day EMA ($402) and an RSI below 37 indicate that the bears are in control. If the $340 support level breaks, the sell-off may intensify, and the decline in the BNB/USDT currency pair may extend to $300 and then to $250.
Contrary to this assumption, if the price rebounds from the current level, the bulls will try again to push the price above the moving average. A break and close above $433 will indicate that the correction may be over.
Ripple It rebounded from the 100-day moving average ($0.87) on September 22, but the bulls failed to continue the rebound. Altcoins formed a doji candlestick pattern on September 23, indicating the indecision between bulls and bears.
As the bears pushed the price down to the 100-day moving average, the uncertainty turned to the downside today. If this support gives way, selling may increase momentum and the XRP/USDT pair may fall to $0. 70.
This level may be a strong support, but if the bears push the price down, the next stop may be $0.50. If the price rebounds from the 100-day moving average and rises above the resistance zone of $1.07 to $1.13, this negative view will be negated.
Solana (Sol) Rebounded on September 22 and rose above the 20-day moving average ($145), but the bulls were unable to push the price above the downtrend line. This shows that the bears are selling on rallies.
Today the bears have pulled the price back below the 20-day moving average, and the SOL/USDT currency pair may now fall to the 50-day moving average (108 USD). This level may play a strong supporting role.
If the price rebounds from it, the bulls will try again to push the price higher and maintain it above the downtrend line. If they can succeed, the currency pair may rise to 170 USD and then to 200 USD.
Conversely, if the 50-day SMA breaks, the currency pair may undergo a panic sell, and then the price may fall to the 78.6% Fibonacci retracement level of $98.26.
DOT / USDT
Polkadot (point) Rebounded from US$25.50 to US$33.60. This shows that the shorts are selling at a higher level. The bears are trying to pull the price below the breakout level of $28.60. If they manage to do this, they may retest for $25.50.
A breakout and close below $25.50 will complete a bearish head and shoulders pattern. The DOT/USDT currency pair may begin to fall to the 100-day moving average (21.87 USD), and then to the pattern target of 12.23 USD.
Contrary to this assumption, if the price rebounds from the current level or neckline, the bulls will try again to resume their rise. A break and close above $33.60 may open the door for a retest of $38.77.
The bulls pushed Dogecoin (dog) It was above US$0.21 on September 22, but the recovery failed to attract higher level buyers. After forming an intraday candlestick pattern on September 23, the price has fallen below $0.21 today.
The downward sloping 20-day moving average ($0.23) and RSI close to 36 indicate that sellers have the upper hand. If the shorts break the price below the support level of $0.19, the DOGE/USDT currency pair may extend the decline to the key support level of $0.15.
This level has been maintained for the first three times, so the bulls will try to defend it again. On the other hand, if the shorts push the price below US$0.15, selling may intensify and the currency pair may plummet to US$0.10.
AVAX / USDT
Avalanche (AVAX) rebounded from the 20-day moving average ($60.15) on September 21 and rose to a record high on September 23. However, the bulls cannot push the price above the resistance line of the ascending channel, which may cause short-term traders to take profits.
The AVAX/USDT currency pair has fallen back today, and the first stop may be the support line of the channel. A strong rebound from this support level will indicate that the uptrend remains unchanged and traders are buying on dips. Then the currency pair may rise to 94 US dollars.
On the other hand, breaking through and closing below the channel will be the first sign that the bulls may lose control. If the bears pull the price below the 20-day moving average, the currency pair may fall to 48 USD and then to the 50-day moving average (43.06 USD).
The bulls successfully defended the retest of the LUNA token breakthrough level of the Terra Agreement on September 21. This shows that market sentiment is still optimistic, and traders see the decline as a buying opportunity.
Buyers pushed the price above the 20-day moving average ($33.06) on September 22, and then rose again on September 23. Although the 20-day moving average has begun to rise, the RSI shows a negative divergence, indicating that the bullish momentum may be weakening.
If the bears pull the price lower and maintain it below the 20-day moving average, the LUNA/USDT currency pair may fall to the key support level of 22.40 USD again. This is an important level to pay attention to, because if it breaks, the sell-off may intensify and the currency pair may fall to $18.
On the bright side, if the bulls push the price above $40, the currency pair may retest its all-time high of $45.01. A breakout and close above this level may herald the resumption of the uptrend.
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 transaction involves risks. When making a decision, you should conduct your own research.
Market data by Bitcoin exchange.