Bitcoin (Bitcoin) Is witnessing a fierce battle between longs and shorts near the 200-day simple moving average, which is regarded by institutional investors as an important level for trying to determine whether assets are bullish or bearish.
At the same time, cryptocurrency investors are also paying attention to the formation of the Bitcoin Golden Cross. If this bullish setup is completed, it indicates that the trend is in favor of the bulls.Currently, investors Stay tuned for selected altcoins have Continue their journey north.
In terms of fundamentals, Bitcoin has reached another milestone The miner produced the 700,000th block September 11. When the 600,000th block was reached on October 18, 2019, the transaction price of Bitcoin was close to $8,000.
Reaching this milestone led some Twitter users to quote one of the earliest pioneers of Bitcoin, Halfini:
“Every day passes, Bitcoin has not collapsed due to legal or technical issues, which brings new information to the market. It increases the chances of Bitcoin’s ultimate success and proves that the higher price is reasonable.”
Let’s study the charts of the top 5 cryptocurrencies that may attract traders’ attention in the short term.
Bitcoin closed below the 200-day moving average ($45,894) on September 10, but the bears failed to take advantage of this move. The bulls are currently trying to push the price back above the 200-day moving average.
The moving average is close to completing the golden cross, indicating that the advantage may be skewed towards the bulls. If the buyer pushes the price above 47,399.97 USD, the BTC/USDT currency pair will try to rise to the upper zone of 50,500 USD to 52,920 USD.
The bears may actively defend the upper zone, but if the bulls don’t give up too much, the possibility of breaking $52,920 will increase. If this happens, the currency pair may rise to 60,000 USD.
On the other hand, if the price retreats from the current level, it indicates that the bears are actively defending the 200-day moving average. The currency pair can then retest the key support level of $42,451.67. A break below this level may tilt the advantage to bears.
The 4-hour chart shows that the price has dropped from $47,550 twice. Therefore, this has become an important level that needs attention in the short term. Breaking and closing above this resistance level may open the door for a possible rise to 50,500 USD.
However, the moving average is on the verge of a bearish crossover, indicating that sellers are trying to make a comeback. A break and close below $44,000 may indicate a small advantage for the bears. The currency pair may then fall to the key level of 42,451.67 USD.
The long tail on September 7 showed that the bulls were actively buying the 50-day moving average ($1.10) downtrend. The strong buying on September 8 pushed Algorand (ALGO) to break the overhead resistance of $1.84.
The bears tried to lure the bulls by pushing the price below the breakout level of $1.84 on September 10, but buyers have other plans. The ALGO/USDT currency pair rebounded strongly today, and the bulls are currently trying to push the price above $2.49.
If they succeed, the currency pair may resume its upward trend. The first upward target is $3, and then $3.32. Conversely, if the price drops again from $2.49, the currency pair may fall to $1.84 and remain within the range between these two levels in the next few days.
A breakout and close below $1.84 will indicate that the current breakout is a bull trap. Then the currency pair may fall to 1.60 US dollars.
The 4-hour chart shows that the bears are defending the upper resistance at $2.49. If the seller pulls the price below 2.30 USD, the currency pair may fall to the breakout level of 1.84 USD again. A rebound from this support may indicate a range of fluctuations for a period of time.
If the bulls do not give up too much of the basis of the current level, it will increase the possibility of a break of $2.49. If buyers maintain a breakthrough, it may herald the recovery of the upward trend.
Universe (atom) The rebound from the breakout level of $17.56 on September 7 indicates that the bulls are actively defending this support level. This is the second time the bulls have successfully held this level, the last time being on August 26th and 27th.
The long tail on September 8 showed that market sentiment turned positive and traders bought on dips. The moving average has completed a golden cross, indicating that the bulls are back in the driver’s seat.
Today’s strong buying has pushed the price to the upper resistance at $32.32. If the bulls maintain a breakthrough, the ATOM/USDT currency pair may rebound to 39.43 US dollars.
The bears may have other plans. They will try to bring the price back below $32.32 and trap aggressive bulls. If they succeed, the currency pair may fall to $26. A break below this level will indicate a weakening of the bullish momentum.
The 4-hour chart shows that the shorts sold when they broke through 32.32 USD, but they were unable to maintain the currency pair below 32 USD. This shows that the bulls continue to buy every time there is a small decline. If the bulls maintain the price above US$32.32, the currency pair may rebound to US$38.49.
Conversely, if the bears again pull the price below $32.32, the currency pair may fall to $30.98. If the price rebounds from this level, the bulls will try to resume the upward trend, but if the support breaks, the decline may extend to the key support of $26.
Tezos (XTZ) Successfully retested the breakout level of $4.47 on September 7th and September 8th. Although the bears pushed the price below the 200-day moving average ($4.19), they were unable to maintain a lower level. This shows the accumulation of dips.
The XTZ/USDT currency pair rebounded on September 9th, and the bulls pushed the price above the upper resistance level of 6.14 USD on September 10th. The long wicks on the candlesticks over the past two days indicate a strong sell-off near $7.
Therefore, this has become an important resistance for bulls to cross. If they manage to do this, the currency pair may retest the all-time high of $8.42. A break and close above this level will indicate the beginning of a new uptrend.
Or, if the price drops again from the above resistance, the currency pair may fall to $5. Such a move would indicate aggressive profit booking at a higher level.
The 4-hour chart shows that the currency pair is currently consolidating between US$5.88 and US$6.80. If the bulls push and maintain the price above the upper resistance zone at $6.80 to $6.95, the currency pair may rebound to $7.72.
If the price drops from $6.80, the currency pair may extend its range of fluctuations. A breakout and closing below $5.88 will be the first sign that the bulls are out of control. Then the currency pair may fall to 50-SMA.
Elrond (EGLD) rebounded from the 200-day moving average ($131) on September 7 and September 8, indicating strong demand at lower levels. The moving average completed a golden cross on September 9, indicating that the bulls have regained control.
Continued buying drove the EGLD/USDT currency pair to a record high on September 11, and the shorts tried to prevent the rise. However, the bulls are not in the mood to give up their advantages and push prices to today’s record highs.
If the bulls maintain the price above $245.80, the currency pair may start the next segment of the uptrend. The shorts may pose a severe challenge at the psychological price of $300, but if the bulls can overcome this resistance, the rebound may extend to $357.80.
The bears will have to pull the price down and maintain it below the breakout level of $245.80 to indicate that the trend may change.
The bulls are currently trying to push the price higher and maintain it above the resistance line of the ascending channel pattern. If they manage to do this, the bullish momentum may pick up further and the currency pair may enter an explosive phase.
On the other hand, if the price falls from the current level, the currency pair may fall to the support line of the channel. The strong rebound indicates that market sentiment is still optimistic and traders are buying on dips.
A breakout and close below the channel will be the first sign that the bullish momentum may be waning.
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