Bitcoin (BTC) is leading the recovery in the crypto sector and today the cryptocurrency briefly rallied to $ 48,429 before retreating to test underlying support levels.
Speaking during a live broadcast at the SALT conference, Ark Invest CEO Cathie Wood said that Bitcoin is the default currency in the crypto space and could increase tenfold at over the next five years.
Its projection is based on the presumption that Bitcoin will find a place in the balance sheets of many companies and institutional investors will increase their allocation to Bitcoin and other cryptocurrencies to around 5%.
Several traditional finance companies have recognized the growing demand for digital assets and are increasing their crypto offerings to meet it. Morgan Stanley recently created a new crypto-focused research division “in recognition of the growing importance of cryptocurrencies and other digital assets in global markets.”
Further positive news came from executives at Fidelity Investments who apparently met with several U.S. Securities and Exchange Commission officials and stressed the importance of why a Bitcoin exchange-traded fund should be approved. Executives pointed to the increasing rate of adoption of Bitcoin, approvals of similar funds in other countries, and the growing demand for digital assets.
Can bitcoin and altcoins support the current rebound? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
BTC / USDT
The long tail of the September 13 candlestick shows that the bulls were aggressively buying on lows near critical support at $ 42,451.67. Bull-backed buying and possibly short-term bear hedging has propelled Bitcoin above the 20-day exponential moving average ($ 47,195) today.
If the bulls hold the price above the 20-day EMA, the BTC / USDT pair could hit the air resistance zone of $ 50,500 at $ 52,920.
The Relative Strength Index (RSI) returned to positive territory and the 20-day EMA flattened, signaling a minor advantage to buyers. A breakout and close above the air zone will signal the resumption of the uptrend.
However, bears are unlikely to throw in the towel easily. They will try to block the upward movement in the air zone. If the price drops resistance, the pair could consolidate in a wide range for a few more days.
The bears will have to sink and keep the price below $ 42,451.67 to gain the upper hand.
ETH / USDT
The long tail of the September 13 candlestick shows that the bulls are aggressively defending the 50 day simple moving average ($ 3,189). Buyers pushed Ether (ETH) above the 20-day EMA ($ 3,430) today, but may face strong resistance at $ 3,567.06.
If the bulls overcome the overhead hurdle, the ETH / USDT pair could try to climb to $ 4,000 again. Alternatively, if the price drops by $ 3,567.06, the pair may drop to the 50-day SMA.
Such a move will suggest that the pair could remain range tied for a few days. The fixed 20-day EMA and the RSI just above the midpoint indicate a slight advantage for buyers.
Bears will need to sink and hold the price below critical support at $ 3,000 to signal the start of a possible decline.
ADA / USDT
Cardano (ADA) dipped below the breakout level at $ 2.47 on September 13, but the bears were unable to pull the price towards the 50-day SMA ($ 2.21). This suggests that the sale is drying up at lower levels.
ADA / USDT formed a Doji candlestick pattern on September 14, indicating indecision among the bulls and bears. That uncertainty has resolved to the upside today and buyers are trying to break through the hurdle at the 20-day EMA ($ 2.55).
If the price breaks and closes above the 20-day EMA, the pair could reach the air resistance zone between $ 2.97 and $ 3.10.
On the contrary, if the price drops from the 20-day EMA, the bears will again try to push the pair down to the 50-day EMA. A breakout and close below this support would suggest a possible trend change.
BNB / USDT
The bears were unable to capitalize on the breakout and close below the 50 day SMA ($ 414) on September 13, suggesting buying at lower levels. The bulls are currently trying to push Binance Coin (BNB) above the 20-day EMA ($ 436).
If the bulls are successful in keeping the price above the 20-day EMA, it will suggest that the correction may be over. BNB / USDT could then climb to overhead resistance at $ 518.90. A breakout and close above this level will signal the resumption of the uptrend.
On the contrary, if the price drops from the 20 day EMA, it will indicate that the bears are selling on relief rallies. The bears will then make another attempt to push the pair down to the next support at $ 340.
XRP / USDT
XRP rebounded off the 50-day SMA ($ 1.05) on September 13, suggesting that the bulls are defending that level. Altcoin could now hit the 20-day EMA ($ 1.13), where bears are likely to be a tall order.
The 20-day EMA is gradually decreasing and the RSI is just below the midpoint, suggesting a minor benefit for bears. A breakout and close below the 50-day SMA would suggest the bears have subdued the bulls. The selloff could deepen if the bears push the price below the September 7 intraday low at $ 0.95.
Contrary to this, if the bulls lead and hold the price above the 20 day EMA, it will indicate that the correction may be over. XRP / USDT could then reach the air resistance zone at $ 1.35 to $ 1.41.
SOL / USDT
The long tail of Solana’s September 13-14 candlestick (SOL) shows that the bulls are trying to defend the 20 day EMA ($ 145) but the negative sign is that the bears are not allowing the rebound to hold.
The candlestick pattern inside the day today indicates indecision among bulls and bears. If the uncertainty subsides and the SOL / USDT falls below the 20-day EMA, the correction could extend to the 61.8% Fibonacci retracement level at $ 123.42.
The deeper the correction, the longer it will take for the next stage of the uptrend to begin. On the flip side, if the price goes up and breaks above $ 171.83, the pair could climb back up to $ 197.41 and then retest the all-time high at $ 216.
DOT / USDT
Polkadot (DOT) continued his journey north but the bulls were unable to break through the resistance line obstacle. The RSI has retreated from the downtrend line and the negative divergence is intact.
If the buyers push and close the price above the resistance line, the DOT / USDT pair could gain momentum. The pair could then climb back to $ 41.40 and if that level is crossed, the next stop could be the all-time high at $ 49.78.
Alternatively, if the price drops from the current level, the pair could drop to the 20-day EMA ($ 31.45). A strong rebound on this support will suggest that the bulls are aggressively buying on the troughs. This will increase the possibility of a breakout above the resistance line.
A breakout and close below the 20-day EMA will be the first sign the bears have made a strong comeback.
Related: MicroStrategy’s Bitcoin Cash Surpasses Cash Held by 80% of S&P 500 Non-Financial Companies
DOGE / USDT
Dogecoin (DOGE) is stuck between the moving averages and the support level at $ 0.21. Although the bulls try to defend the $ 0.21 support, the rebound lacks strength. This suggests weak demand at current levels.
The moving averages are about to complete a bearish cross and the RSI continues to trade in negative territory, suggesting that the path of least resistance is on the downside.
If the bears drop the price below $ 0.21, DOGE / USDT could drop to the next major support at $ 0.15.
On the contrary, a breakout and close above the moving averages will be the first sign that the bulls are back in the game. The pair could gain momentum above the downtrend line.
UNI / USDT
The bears have repeatedly failed to pull Uniswap (UNI) below the September 7 intraday low at $ 21 over the past few days. This shows buying at lower levels. The bulls pushed the price above $ 25 on September 14, but face strong resistance at moving averages.
If the price drops and goes below $ 25, the UNI / USDT pair could fall again to $ 23.45 and then $ 21. This is an important level to watch as a break below could signal a deeper correction.
On the contrary, if the price rebounds from $ 25 or $ 23.45, it will suggest that the bulls are attempting a comeback. A breakout and close above the moving averages could open the door for a possible rise to $ 31.41.
LUNA / USDT
The Terra Protocol LUNA token bounced off the 20-day EMA ($ 33.50) on September 13, as seen from the long tail of the day’s candlestick. This suggests that sentiment remains positive and traders are buying if there is a dip.
LUNA / USDT formed an indoor candlestick pattern on September 14, indicating indecision among the bulls and bears. A breakout and close below the 20 day EMA will signal a bear advantage. The pair could then correct the 50-day SMA ($ 25.25).
Conversely, if the bulls push the price above $ 38, the pair could resume rising to the all-time high of $ 45.01. A breakout and close above this resistance could propel the pair to the psychological level at $ 50.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of TUSEN. Every investment and trade move involves risk. You should do your own research before making a decision.
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