Bitcoin (BTC) and altcoins have gained a sharp downward momentum recently after the Evergrande crisis and the Chinese crypto bans. On September 24, a series of measures adopted by China to curb the illegal trading of cryptocurrencies shook the markets during the day. However, even though the news has sparked sales in the cryptocurrency market, long-term investors don’t care much about the decisions, according to experts, because nothing has changed except the announcement of additional measures to effectively enforce the current ban.
The first ban was announced in 2017
China announced its first ban on cryptocurrencies in September 2017. Then the BTC price faced a major and decisive correction. Its rapid recovery in about a week showed that it could find buyers at lower levels, while reaching $20,000 ATH in less than three months showed that the situation was positive in the long run. So is it a good opportunity to buy now as BTC price is trading below $42,000 and Ethereum trading below $3,000? We take a look at analyst Rakesh Upadhyay’s technical analysis to answer…
Bitcoin (BTC) technical analysis
Bitcoin bounced off the 100-day MA ($40,874) and broke above the neckline of the head and shoulders pattern on September 22. This confirmed the lower buyer and strong demand zone. However, the rally failed to break the hurdle at the 20-day EMA (45,596). On the technical side, the falling 20-day EMA and the RSI in the negative zone show the bears to prevail. If the bears sink the price below the 100-day SMA, BTC price could slide back to $37,332.70. From this level, the bulls are likely to find support, but if it breaks, the bears’ next stop will be the formation target of $32,423.05. In the negative scenario, if the bulls push the price higher from the 100-day SMA, they will try to break above the trading averages again. A close above $46.816 will indicate that the correction may be over.
BTC and ETH bulls try to find support for higher highs
Bitcoin found buyers at $40,874 on September 22, while Ethereum recovered 2,734 and climbed above the $3,000 resistance. This shows that the bulls are buying on the decline and trying to trap the bears. However, the recovery stalled on Sept. 23 at $3,174.50, and the bears are trying to retake the lead. The falling 20-day EMA ($3,255) and the RSI below 41 suggest that the advantage is in the bears. If the index breaks and closes below the 100-day SMA, ETH could witness another aggressive sell-off. Later, the bears will try to put pressure on the formation target of $1,972.12. This bearish scenario will be invalidated if the bulls hold and sustain the price above the MAs.
Cardano (ADA) technical analysis
Cardano’s (ADA) support at $1.94 faced a hurdle at the 20-day EMA ($2.36). This indicates that the sentiment is negative and traders are selling in rallies around the 20-day EMA. The bears will now attempt to push the price below the $1.94 and $1.83 critical support zones. Their success could result in $1.60 and $1.40 per analyst. On the other hand, if the price bounces back from $1.94, the bulls will attempt to surpass the overhead resistance levels again. A break and close above the 20-day EMA will be the first sign that the correction may be over. ADA price could then rally to $2.60 and then $2.80.
Binance Coin (BNB) technical analysis
BNB ended the decline that started at $385.30 at the $340 support, showing traders selling strongly at higher levels. The falling 20-day EMA ($402) and the RSI below 37 suggest the bears are in control. If the $340 support is broken, the selling pressure could intensify and extend the BNB decline to $300 and then to $250. This assumption will be replaced by the bulls’ effort to move above the MAs if the bulls push the price above the current level. A break and close above $433 will signal that the correction may be over.
While BTC is falling, these levels are important in Ripple (XRP)
Ripple (XRP) bounced off $0.87 on Sept. 22 but the bulls failed to keep up. XRP price formed a chart on September 23, showing the indecision between the bulls and bears. If the bears’ attempts to push the price below the 100-day SMA are successful, the selling pressure could gain momentum and the XRP price could drop to $0.70. Strong support is likely to be found at this level, but if the bears sink the price below $0.70, the bears’ next stop will be $0.50. This negative view will be rejected if the price bounces back from the 100-day SMA and rises above the $1.07 and $1.13 resistance zone.
Solana left the exploration mode behind
Solana rallied above $145 on Sept. 22, but the bulls failed to break above the downtrend line. This shows that the bears are selling in the rallies. The bears pulled the price below the 20-day EMA today and they may target $108. This level is likely to act as a strong support. If the price rebounds, the bulls will again try to push and sustain the price above the downtrend line. If they manage to do so, SOL price could rally to $170 and then to $200. Conversely, if the 50-day SMA is broken, a panic selling environment can occur and the price is then 78% at $98.26. It can drop to the 6 Fibonacci retracement level.
The DOT price recovery found its first stop at $33.60 from $25.50. This indicates that the bears are selling higher and they are trying to push the price towards the $28.60 adollars. If they succeed, it could retest the $25.50 support. A break below this support will complete the downtrend and the DOT could later drop to $21.87 followed by the formation target of $12.23. Contrary to this assumption, if the price bounces back from the current level or neckline, the bulls will make another attempt to continue the upward move. A break and close above $33.60 could open the doors for a retest at $38.77.
BTC dream Dogecoin (DOGE) recorded these levels:
Dogecoin bulls pushed the price above $0.21 on Sept. 22, but the recovery did not continue at higher levels. After the long wicked candles of September 23, the price dropped below $0.21 today. On the technical side, the 20-day EMA ($0.23) is falling and the RSI is close to 36. This shows that the sellers are superior. If the bears sink the price below the $0.19 support, the decline could extend to the $0.15 critical support. This level has been defended 3 times before, so the bulls will try to defend it again. On the other hand, selling could intensify if the bears sink the price below $0.15. In this case, the next target would be $0.10.
AVAX price bounced back from the 20-day EMA (60.15) on September 21 and rose to ATH on September 23. However, the bulls failed to push the price above the resistance line of the ascending channel, which may have resulted in profit booking by short-term traders. Now AVAX has dropped today and the first stop could be the support line of the channel. A strong rebound of this support will show that the uptrend has not changed and traders are buying on the lows. According to the analyst, AVAX could rise to $94 later. On the other hand, a break and close below the channel would be the first sign that the bulls may lose control. If the bears pull the price below the 20-day EMA, it could drop to $48 and then to the 50-day SMA ($43.06).
The bulls successfully defended a retest of the LUNA price breakout on Sept. 21. This showed that sentiment remained positive and traders viewed the dips as a buying opportunity. Buyers pushed the price above the 20-day EMA ($33.06) on Sept. 22, followed by another upward move on Sept. 23. While the 20-day EMA is starting to rise, the RSI is showing negative divergence, indicating that the bullish momentum may weaken. If the bears pull the price below the 20-day EMA and sustain it, the LUNA could drop back to the critical support at $22.40. This is an important level to watch out for because if it breaks, selling could intensify and the LUNA price could drop to $18. On the upside, the pair could retest its all-time high of $45.01 if the bulls push the price above $40. A break and close above this level could signal a resumption of the uptrend.