Bitcoin (BTC) recovery faces heavy resistance around $48,500, which indicates that the bears are active at higher levels.
Combining the popular bitcoin pricing model with inventory allocation and illiquid delivery data, analyst William Clemente expects $39,000 to be a reliable basis for any downside.
Analysts remain optimistic. Bloomberg Intelligence chief analyst Mike McGlone has maintained his target of $100,000 per bitcoin. McGlone said that a number of different charts highlight Bitcoin’s bullish potential.
Daily market indices for cryptocurrency. Source: Coin360
Besides Bitcoin, Ether (ETH) is also showing signs of accumulating. Cryptanalyst provider IntoTheBlock reported that on September 16, $1.2 billion worth of Ether was removed from central exchanges within 24 hours. After a similar incident in April, transmission time increased by nearly 60% in 30 days.
Will the two leading cryptocurrencies live up to their optimistic expectations, or will the crypto markets surprise the other side? Let’s take a look at the top 10 cryptocurrency charts to find out.
BTC / USDT
The bulls are trying to keep Bitcoin above the 20-day exponential moving average (EMA) ($47,211), while the bears are trying to pull the price below it. The 20-day exponential moving average has stabilized and the Relative Strength Index (RSI) is near its midpoint, indicating a short-term action.
BTC/USDT daily chart. Source: TradingView
If the bears push the price below the moving averages, the BTC/USDT pair may fall to the critical support level at $42451.67. A setback from this level will indicate that the bulls are accumulating in deflationary periods. This could extend the consolidation between $42,451.67 and $52,920 for a few more days.
Conversely, if the price bounces off the current level or the 50-day single moving average (SMA) ($46,256), the bulls will try to push the pair to $50,500 and then to $52,920. It is likely that Björner will vigorously defend this resistance area.
The next big trend move is likely to start after the bulls push the price above $52,920 or if the bears push the price below $42,451.67.
ETH / USDT
Ethereum (ETH) recovery is facing heavy resistance at the 61.8% Fibonacci retracement of $3,637.14, indicating sales at higher levels. The bears are trying to bring the price back below the support level at $3,377.89.
ETH/USDT daily chart. Source: TradingView
If successful, ETH/USDT could drop to the 50-day SMA ($3238) and then to the critical support at $3000. This move could lead to a head and shoulder pattern that ends on the breakout and closes below $3000.
This negative outlook will be invalidated if the price jumps from the support level to $3,377.89 or the 50-day moving average and breaks through the $3676.28 level. The pair then managed to test the local high of $4,027.88.
The 20-day flat exponential moving average and the RSI just above the midpoint do not indicate a clear advantage for the bulls or the bears.
ADA / USDT
Cardano (ADA) diverged from the 20-day EMA ($2.52) on September 16, indicating that the bears are selling higher against this resistance. The bears are currently trying to move the price up to the 50-day moving average ($2.25).
ADA/USDT daily chart. Source: TradingView
The 20 day EMA and the RSI falling into negative territory indicate the presence of bears in the team. If the price stays below the 50-day simple moving average, the ADA/USDT may drop to the next support level at $1.94.
This deep correction indicates that a short-term peak has been reached. If the bulls want to maintain the trend, they must push the price and keep it above the 20 day moving average. If they do, the pair could rise again to $2.80 and then $2.97.
BNB / USDT
The bulls failed to push Binance Coin (BNB) above the 20-day moving average ($432) in the past two days, suggesting buying stalled at higher levels. This could have attracted profits from short-term traders who have bought at lower levels in anticipation of a renewed upward movement.
BNB/USDT daily chart. Source: TradingView
The 20-day exponential moving average and the RSI retraced from its midpoint provide an advantage to the sellers. If the price stays below the 50-day simple moving average, BNB/USDT may drop to the next major support level at $340.
This negative outlook will be invalidated if the bulls push and keep the price above the 20 day moving average. Such a move would indicate that the bulls accepted the offer. The pair could then rise to the overhead resistance at $518.90.