Bitcoin price struggles to hold above the 200-day SMA, while analyst Rakesh Upadyay stays on ALGO, ATOM, XTZ and EGLD. Now, we take a look at the technical analysis of BTC and the 4 altcoin projects, starting with market-wide developments…
What happened in bitcoin and altcoin projects?
While most pundits and institutional investors are trying to decide whether Bitcoin is in a bullish or bearish trend, there is a fierce battle between bulls and bears near the 200-day SMA. However, crypto investors are also watching the “golden cross” pattern in Bitcoin. If this rise is complete, it will indicate a trend in favor of the bulls. For now, investors continue to focus on certain altcoin projects that continue their upward journey.
On the fundamental front, Bitcoin reached another milestone when miners produced the 700,000th block on September 11. By the time the 600,000th block was reached on October 18, 2019, Bitcoin was trading around $8,000. Reaching this milestone has some Twitter users quoting Hal Finney, one of Bitcoin’s earliest pioneers:
With each passing day and Bitcoin has not crashed due to legal or technical issues, this brings new information to the market. It increases Bitcoin’s chances of eventual success and justifies a higher price.
Now, we examine the charts of the top 5 cryptocurrencies that may attract the attention of investors in the short term, accompanied by analyst Rakesh Upadyay…
Bitcoin technical analysis
Bitcoin price closed below the 200-day SMA of 45,894 on Sept. 10, but the bears failed to follow through. Now the bulls are trying to push the price above the 200-day SMA. On the technical side, the MAs are close to completing the golden cross, suggesting that the advantage could turn in favor of the bulls. If buyers push the price above $47,399.97, BTC price will attempt to rise into the overhead zone of $50,500 to $52,920. Bears can aggressively defend this territory. However, if the bulls don’t give up on the ground, a break above $52,920 could increase the chances. If that happens, the BTC price will clear the way for $60,000.
On the other hand, if the price drops from the current level, it will show that the bears are aggressively defending the 200-day SMA. BTC could retest the critical support at $42,451.67 later. A break below this level could turn the advantage in favor of the bears. The 4-hours chart shows that the price has dropped twice from $47,550. So this becomes an important level to watch out for in the short term. A break and close above this resistance could open the doors for a possible move to $50,500. However, the MAs are on the verge of a bearish divergence, indicating that sellers are trying to make a comeback. A break and close below $44,000 could signal a minor advantage for the bears. Later on, BTC price could drop to the critical level of $42.51.67.
Algorand (ALGO) technical analysis
Long wick candles recorded by altcoin ALGO on Sept. 7 show that the bulls are aggressively buying the drop to the 50-day SMA ($1.10). Strong buying on September 8 pushed Algorand (ALGO) above the firm overhead resistance at $1.84. During this period, the bears tried to trap the bulls by pushing the price below the breakout level of $1.84 on Sept. 10, but buyers had other plans. Now, ALGO price has recovered strongly from support and the bulls are currently trying to push the price above $2.49. If successful, the bulls could continue the uptrend with the first target of $3 followed by $3.32. On the contrary, if the price drops from $2.49 again, it could drop to $1.84 and remain borderline between these two levels for the next few days.
Afterward, a break and close below $1.84 would confirm that the current breakout is a bull trap. ALGO could drop to $1.60 later. The 4-hours chart shows the bears holding the overhead resistance at $2.49. If the sellers pull the price below $2.30, it could slide back to the breakout level at $1.84. A bounce from this support could suggest a range-bound action for a while. If the bulls don’t give up too much from the current levels, a break above $2.49 will increase the likelihood. If the buyers sustain the breakout, the uptrend could signal a resumption of the trend.
ATOM price jumped from $17.56 on September 7, suggesting that the bulls are defending this support aggressively. This was the second instance where the bulls successfully maintained this level, the previous one was on August 26 and 27. Long-tailed wicks on September 8 showed that the mood turned positive and traders were buying on the dips. The MAs have completed the golden cross formation, which indicates that the bulls are back in the driver’s seat. Now, the bulls pushed the price above the overhead resistance at $32.32. If the momentum is sustained, ATOM price could rally to $39.43.
However, the bears may have other plans. They will try to push the price below $32.32 and trap the aggressive bulls. If they are successful, the ALGO price could drop to $26. A break below this level will indicate weakening of the bullish momentum. The 4-hours chart shows that the bears sold the breakout above $32.32 but were unable to hold it below $32. This shows that the bulls continue to buy on every small dip. If the bulls hold the price above $32.32, ALGO could rally to $38.49. Conversely, if the bears pull the price back below $32.32, it could drop to $30.98. If the price bounces back from this level, the bulls will attempt to continue the uptrend, but if the support is broken, the decline could extend to the critical support at $26.
Altcoin Tezos (XTZ) technical analysis
Tezos (XTZ) completed a successful retest of the breakout level at $4.47 on September 7 and September 8. Although the bears pulled the price below the 200-day SMA ($4.19), they could not sustain lower levels. This indicates accumulation at the bottoms. Afterwards, XTZ price gained momentum on September 9 and the bulls pushed the price above the overhead resistance at $6.14 on September 10. The long wick on the candlestick of the last two days indicates strong selling around $7. Hence, this becomes a major resistance for the bulls to pass. If they do, it could retest the ATH level of $8.42. A break and close above this level will mark the start of a new uptrend.
Alternatively, if the price breaks down from overhead resistance once again, XTZ could visit $5. Such a move would indicate aggressive profit taking at higher levels. The 4-hours chart shows that XTZ is currently consolidating between $5.88 and $6.80. If the bulls sustain and sustain the price above the overhead resistance zone between $6.80 and $6.95, the price could rally to $7.72. However, if it drops from $6.80, it could sustain its action in the region for a while. A break and close below $5.88 will be the first sign that the bulls are losing control. According to the analyst, XTZ price may then slide back to the 50-SMA.
Altcoin Elrond (EGLD) technical analysis
Elrond (EGLD), which we quoted as , recovered from the 200-day SMA ($131) on September 7 and September 8, showing strong demand at lower levels. The MAs completed a golden cross on Sept. 9, indicating that the bulls are in command again. Continuous buying pushed the EGLD price to the ATH level on September 11, where the bears tried to stop the upside move. However, the bulls were not in a position to give up their advantage and pushed the price to the ATH level today. Now, if the bulls hold the price above $245.80, EGLD could start the next leg of the uptrend. The bears could pose a tough challenge at psychological $300, but if the bulls can overcome this resistance, the rally could be extended to $357.80.
The bears, on the other hand, will have to push and sustain the price below the $245.80 breakout level to signal a possible change in trend. The bulls are currently trying to push and sustain the price above the resistance line of the ascending channel pattern. If they manage to do so, the bullish momentum could increase further and EGLD could enter a bearish phase. On the other hand, if the price breaks down from the current level, it may drop to the support line of the channel. A strong rebound will show that sentiment remains positive and traders are buying on the dips. Finally, a break and close below the channel would be the first sign that the bullish momentum could weaken.