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BTC price slumped below $44,000, dragging altcoin prices with it, and some investors worried that the correction would deepen. Now Bitcoin is trading above $45,500, with most cryptocurrencies trying to make up for their losses. Which levels are critical? Analyst Rakesh Upadhyay agrees…

What happened in BTC price?

Between September 7 and 13, when Bitcoin failed to recover, most major altcoins took profits, with the total market cap heading towards $2 trillion. On the other hand, US equities markets witnessed a profit-reservation and the S&P 500 dropped 1.69% last week, showing that risk aversion sentiment has improved. In this regard, Capriole CEO Charles Edwards pointed out that “almost every Bitcoin correction in 2021” corresponds to a 2% or more drop in the S&P 500.

Now, regardless of short-term weakness in Bitcoin, MicroStrategy continues its investments. The CEO of the company, Michael Saylor, recently announced that he has purchased 5,050 Bitcoins, which are bought at an average price of $ 48,099 per BTC. This brought the company’s stock to 114,042 Bitcoins (BTC), which were bought for an average of $27,713. So, can September, historically a month that Bitcoin dislikes, drag into a bear market? If it drags, could it result in some selling pressure on the altcoin? Analyst Rakesh Upadhyay answers with his technical analysis…

Bitcoin (BTC) technical analysis

Bitcoin retraced once again from the 20-day EMA ($47,061) on Sept. 13, indicating that investors are selling on the rally. Of the technical indicators, the falling 20-day EMA and the RSI below 43 suggest the path of least resistance is to the downside. Bitcoin bulls are obliged to defend $42,451.67, because if breached, BTC bears could target the 37,332.70 to $36,670 support zone. Such a move could reduce the chances of a strong recovery and keep BTC price in a range for a few days. Contrary to this assumption, if the price bounces back from $42,451.67, the bulls will make another attempt to continue the uptrend. A break and close above $47,400 relative to the current level could open the doors for a retest of the overhead resistance zone between $50,500 and $52,920.

Ethereum (ETH) technical analysis

Ethereum has been stuck between MAs for the past few days. This shows that bulls are buying on dips to the 50-day SMA ($3,129) and bears are selling at $3,413. Now, the 20-day EMA is gradually falling and the RSI has dropped below 46, indicating that the bears have prevailed. If the bears pull the price below the 50-day SMA, ETH could witness more selling, resulting in a drop to $3,000. This is an important support for the bulls as a break below this could cause panic selling. On the contrary, if the price bounces back from the 50-day SMA, the bulls will try to push the price back above the 20-day EMA. 3. A break and close above $567.06 could turn the advantage in favor of the bulls. Buyers will then try to push the price to $4,000.

BTC and ADA testing critical resistances

Cardano (ADA) bounced off the 50-day SMA ($2.16) on Sept. 7 and broke above $2.57 on Sept. 11. Then the bears pulled the price below $2.47 and the falling 20-day EMA and the RSI in the negative territory suggest that the bears are strong. Now, if sellers pull the price below the 50-day SMA, the correction could deepen to the next support at $1.94. Alternatively, if the price rises from the current level or bounces back from the 50-day SMA, the bulls will make another attempt to push the price towards the overhead resistance zone between $2.97 and $3.10.

Binance Coin (BNB) rebounds after BTC drop

BNB price closed below $410 on September 10, but the bears failed to keep up. The bulls bought the dip and pushed the price above the 50-day SMA on Sept. 12. However, the failure of the bulls to break the $433 resistance may have drawn a new round of selling today. If the price dips below $393.20, BNB price could drop to $369 and then to $340. The falling 20-day EMA ($438) and the RSI below 40 suggest the path of least resistance is to the downside. The bulls will have to push and sustain the price above $433 to suggest that the correction may end.

Ripple (XRP) technical analysis

Ripple is currently stuck between the MAs. The failure of the bulls to push the price above $1.13 pulled short-term traders’ profit booking. The 20-day EMA is back and the RSI has dropped below 45, indicating that the bears have prevailed. If sellers pull the price below the 50-day SMA ($1.03), XRP price could challenge the September 7 intraday low of $0.95. Breaking below this support will indicate the end of the uptrend. This could open the doors for more slides to $0.75. This negative view will be invalidated if the price bounces off the current level and rises above the 20-day EMA. The bulls will then try to push the price into the overhead resistance zone between $1.35 and $1.41.

Solana (SOL) price is out of discovery mode

solan ( LEFT) is currently correcting in a strong uptrend, after exploration mode. A break below the trendline indicates that the bullish momentum is weakening. SOL price could now target $141. However, if the price rises from the current level, it indicates that the sentiment remains positive and traders are piling up on the dips. The bulls will then try to continue the uptrend but will likely face stiff resistance at the trendline. On the other hand, if the price falls from the trendline, the SOL may retrace to the 20-day EMA. A break below this level is 61% off at $123.43. 8 Fibonacci retracement level. On the positive side, a break and close above the trendline will increase the likelihood of a retest of $216, the ATH level.

Polkadot (DOT) technical analysis

Cryptocoin. com, Polkadot (DOT) showed that the bulls are eager to continue the rise by breaking above the $35.68 resistance on September 12. Rising MAs are supporting the bulls, but the negative divergence in the RSI indicates that the bullish momentum may slow. The bears are currently trying to create a fierce challenge near the resistance line, but if the bulls can defend the area, a break above the overhead resistance could increase the chances. This would clear the way for DOT price for a rally to $41.40 and then $46.83. Contrary to this assumption, if the price declines and dips below the 20-day EMA ($30.34), the DOT could retest the breakout level at $28.60. Buying from this level indicates that the bulls continue to pile up on the dips, but a break below this could cause the bears to aim for $24.68 in the DOT. If the price stays below $28.60, it indicates the bears are back in the game.

Dogecoin (DOGE) technical analysis

DOGE price has been trading below the MAs for the past few days. This shows that the bulls are in no rush to buy at current levels. The bears will now try to push the price below the strong support at $0.21. On the technical side, the 20-day EMA has bounced back and the RSI has dropped into negative territory, suggesting that the bears have the upper hand. A break and close below $0.21 could push the price towards the critical support at $0.15. Alternatively, if the price bounces back from $0.21, the bulls will again try to push DOGE price above the MAs. If they succeed, it can rise to the downtrend line. A break and close above this resistance will be the first sign that the correction may be over.

Terra (LUNA)’s weekly earnings are over 30%

Terra’s native token, LUNA, dropped from $45.01 on September 11 and was subject to profit bookings. According to the analyst, the key support to watch on the downside is the breakout level at $36.89, followed by the 20-day EMA ($32.77). A strong rebound from either level will show that sentiment remains positive and traders are buying on the dips. The bulls will then try to continue the uptrend and push the price to the psychological level at $50. Rising MAs point to the advantage for the bulls, but the negative divergence in the RSI is noticeable. If the bears pull the price below the 20-day EMA, LUNA price 50 could drop to $24.14.

These levels are critical for Uniswap (UNI) bulls:

Uniswap (UNI) has been trading around $25 for the past few days, suggesting that traders are not buying aggressively at current levels. On the technical side, the MAs have completed the downtrend and the RSI is in the negative territory, showing an advantage for the bears. If the sellers sink the price below the immediate support at $21, the negative momentum can be observed to increase. Then, UNI price could drop to $18.69 and if the bulls fail to push the price back above $25, the drop could continue as low as $13. This negative view will be invalidated if the price rises above the current level and rises above the moving averages.


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Michael Lewis

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