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The bears continue to put pressure on the Bitcoin price, but any sign of consolidation could lead to a breakout in AVAX, ALGO, XTZ and EGLD, according to analyst Rakesh Upadhyay. Before technical analysis, we start with developments from the Bitcoin and altcoin market. Chinese bans were on the agenda this week.

What happened in the bitcoin and altcoin market?

In the last 12 years, China has taken restrictive decisions on its trading and mining to put pressure on the cryptocurrency industry and prevent its growth. However, apart from minor corrections and breakouts, it failed to change the course of long-term growth in the Bitcoin and altcoin market. This shows that no country can stop the emergence and growth of cryptocurrencies, even the second largest in the world, according to the analyst.

On the other hand, Deutsche Bank analyst Marion Laboure said in a report published on the bank’s website that Bitcoin (BTC) is “extremely high in the foreseeable future, as most people buy it for investment or speculation rather than using it as a medium.” It will remain volatile,” he said. However, Laboure said that Bitcoin’s “21st Century”. He believes that it can be the “digital gold of the 21st century” and that this trend can continue for centuries without great control by the government. Meanwhile, at Morningstar’s annual investment conference, Counterpoint’s head of wealth management, Dennis Lynch, likened Bitcoin to the South Park cartoon character Kenny. “I like to say that Bitcoin is like Kenny from South Park – he dies in every episode and comes back again,” Lynch said. Now, we move on to Rakesh Upadhyay’s technical analysis for 5 cryptocurrencies that could remain strong in the short term as the Chinese FUD lags behind…

Bitcoin technical analysis

Bitcoin has once again bounced off the 100-day SMA ($41,002), suggesting that the bulls are aggressively defending the area. The bulls are now aiming to push the BTC price above $45,178. However, the falling 20-day EMA and RSI in the negative zone indicate that the bears have prevailed. If the price drops from the 20-day EMA, the probability of a break below the 100-day SMA may increase. Such a move could result in the pattern target of $32,423.05 and would complete the bearish head and shoulders pattern. The bulls need to push and sustain BTC price above the $48,843 resistance for a rally to start and open the doors to $52.920. If they succeed, the uptrend could signal a resumption of the trend.

At current levels, the BTC/USDT pair is witnessing a fierce battle between bears and bulls. The bulls pushed the price above the 20-day EMA and their next target could be to clear the $45.200 resistance. If they succeed, the BTC price could climb as high as $49,000. Conversely, if the price declines from the current level, the bears will try to pull the price from the $41,000 critical support zone to $39,600. Violation of this zone will indicate the start of the downtrend, according to the analyst.

AVAX becomes the most durable altcoin in the decline

AVAX price is trading inside an ascending channel. The long wick of the day shows that the bulls are buying aggressively on dips to the 20-day EMA ($61). On the technical side, the ascending MAs and the RSI in the positive zone are giving the buyers an edge. According to the analyst, AVAX may now attempt to test the ATH level of $79.80. This is an important level because a break above it will signal a resumption of the uptrend. AVAX can then continue to the resistance line of the channel and if it is crossed it will show that the bullish momentum is accelerating. Conversely, if the price breaks from the current level or overhead resistance and dips below $60.04, it will suggest the start of a deeper correction at the 50-day SMA ($45).

At current levels, AVAX has bounced off the 100-day SMA and the bulls are trying to keep the price above the 20-day EMA. If they manage to do so, $79.80 could be targeted in the direction, where the bears could face stiff resistance again. On the downside, the critical level to watch is the support line of the channel. A break and close below this support will be the first indication that the bulls are losing strength. If the price dips below $60.04, it could extend as far as $55.

Altcoin ALGO bulls are struggling with these levels!

Algorand (ALGO) is currently trading below $1.77 but the day’s long wick shows the bulls trying to defend the $1.51 support. If the bulls can hold the price above the downtrend line, it will suggest that the short-term correction may be over. ALGO could rise to $2.15 and then $2.55 later, according to the analyst. Alternatively, if the price declines from $1.84, ALGO price could slide back to $1.51. If the bulls can defend this support, ALGO could spend between $1.84 and $1.51 for a few days. A close below $1.51 could result in the next support at $1.15.

Now, ALGO price is trying to rebound the strong support at $1.51 but the recovery may hit a hurdle at the MAs and then again at the downtrend line. A drop in price from overhead resistance will indicate that sentiment remains negative and traders are selling in relief rallies. This would increase the likelihood of a break below $1.51. This negative view will be rejected if the price rises and stays above the downtrend line. According to the analyst, the bulls will then make another attempt to continue the upward movement.

These levels could come if XTZ breaches the 20-day EMA

Tezos (XTZ) broke out hard from the $4.47 break on Sept. 22 and showed that it could find buyers on the declines. The bulls pushed the price above $6.10 on Sept. 23 and it has held that level ever since. On the technical side, the MAs are rising and the RSI is in the positive zone, showing that these bulls have an advantage. Now, the buyer side could challenge the $8.03 to $8.42 resistance zones. A close above this zone will mark the start of the next leg of the uptrend. According to the analyst, XTZ may later increase the psychological resistance to $10. Contrary to this assumption, if the price breaks from the current level or overhead resistance and dips below the 20-day EMA, the bears may target $4.47.

Now, altcoin XTZ price is trying to recover from the 20-day EMA, indicating that sentiment has turned positive and traders are buying on the dips. The bulls may now attempt to push the price above the overhead resistance of $7.50. If this level is breached, there is the $8.03 barrier where the bears could form stiff resistance. If the bulls do not give up on this resistance, they can push the price above it. This bullish view will be invalidated if the price drops and dives below the MAs. Such a move could result in a drop to $5.50 and then to $4.47.

Elrond (EGLD) technical analysis

Cryptocoin. com

The price of Elrond (EGLD), which we quoted as , broke out from $181, but could not overcome the $245.80 barrier. This shows that bulls buy on dips while bears sell on rallies. On the technical side, the 20-day EMA ($220) has flattened and the RSI is just above the midpoint, suggesting a balance between supply and demand. Buyers are trying to keep the price above the 20-day EMA. If the defense is successful, EGLD bulls will try to move above $245.80 and then $303.03. On the contrary, if the bears pull the price down from the current level, we could retest the 50-day SMA. A break and close below this support could open the doors for more declines to the 100-day SMA ($132).

At current levels, EGLD price has bounced off the bullish line, showing traders buying on the lows. The bulls will now try to rise above the downtrend line and maintain it. If they are successful, EGLD price could rally to $277.88 and then to $303.03. Contrary to this assumption, if the price falls below the bearish line, the bears will try to take advantage by pulling the price below the upward line. Such a move could clear the way for a deeper correction, according to the analyst.


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Michael Lewis

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