Bitcoin and altcoins may hit a few roadblocks in the short-term as they near stiff overhead resistance levels, but the overall trajectory remains bullish.
Bitcoin (BTC) soared above $10,000 on July 27 and has sustained above this level since then. Data shows that this streak of 63 consecutive days of closes above the $10,000 level is a new record.
This also shows that the level has now become a strong support after previously acting as a stiff resistance. Bulls have consistently purchased dips to and below $10K and this psychologically important level may now act as a floor for launching the next leg of the uptrend.
Daily cryptocurrency market performance. Source: Coin360
At the moment it seems that the monetary and fiscal stimulus measures unleashed across the globe have increased the allure of cryptocurrencies as investors look for alternative investment opportunities to safeguard their portfolio from the debasing of fiat currencies.
With less than 2.5 million Bitcoin left to be mined, the scarcity factor could soon come into play as demand from institutional investors picks up.
After weeks of downside price action and short periods of consolidation, can Bitcoin and altcoins build upon the bullishness of the past few days to resume the uptrend?
Let’s analyze the charts to find out.
BTC/USD
Bitcoin is currently range-bound between the uptrend line and the overhead resistance at $11,178. The flat moving averages and the relative strength index just above the midpoint suggest a few days of consolidation.
BTC/USD daily chart. Source: TradingView
The bears will mount a stiff resistance in the zone between the 50-day simple moving average ($11,097) and the downtrend line. If the price turns down from either resistance, the bears will try to sink the price below the uptrend line.
If they succeed, the BTC/USD pair can drop to the critical support at $9,835. The selling could intensify if this critical support breaks down.
However, during the next dip, if the pair rebounds off the uptrend line, the bulls will make one more attempt to push the price above the overhead resistance and resume the uptrend. The first target on the upside is $12,048 and above it $12,460.
ETH/USD
Ether (ETH) has risen above the downtrend line and the bulls are now trying to push the price above the 20-day exponential moving average ($362). This up-move suggests that the selling pressure has reduced.
ETH/USD daily chart. Source: TradingView
If the ETH/USD pair breaks and closes (UTC time) above the 20-day EMA, a quick rally to the 50-day SMA ($385) is possible.
The bears will try to defend the zone between the 50-day SMA and $395 and if the price turns down from this resistance, the pair could remain range-bound for a few days.
However, a breakout of $395 will signal the possible resumption of the uptrend with a target objective of $488.134.
This bullish view will be invalidated if the pair turns down from the current levels and the bears sink the price below the critical support at $308.392.
XRP/USD
The bulls are attempting to sustain XRP above the 20-day EMA ($0.244). If they can accomplish this task, a move to $0.26 is possible. The bears will try to defend this resistance and the 50-day SMA ($0.263) placed just above it.
XRP/USD daily chart. Source: TradingView
If the price turns down from $0.26, the XRP/USD pair could remain range-bound for a few more days. The longer the time spent in consolidation, the stronger will be the eventual breakout from it.
A break above the 50-day SMA could result in a rally to $0.303746 and if this is crossed, the pair may move up to $0.326113. The trend could turn negative if the bears sink the price below the recent lows at $0.219712.
BCH/USD
The strong bounce in Bitcoin Cash (BCH) has pushed it above the 20-day EMA ($228). This up-move suggests that the immediate threat of a breakdown below the $200 support has decreased.
BCH/USD daily chart. Source: TradingView
The bulls will now try to propel the price above the downtrend line and the overhead resistance at $242. Above this level, the 50-day SMA ($254) could act as a resistance but when it is crossed, the rally may extend to $280.
The 20-day SMA is flattening out and the RSI has risen to the 50 level, which suggests a possible change in the short-term trend. If the price turns down from $242, the BCH/USD pair could consolidate for a few days before starting a trending move.
BNB/USD
Binance Coin (BNB) broke above the 20-day EMA ($25.52) on Sep.26 and has continued to move up. The next target objective is the 50% Fibonacci retracement level of $27.7542.
BNB/USD daily chart. Source: TradingView
The bears will try to stall the up-move at this level but if the next dip rebounds off the 20-day EMA, it will suggest that the correction could be over.
Above $27.7542, the up-move may extend to the 61.80% Fibonacci retracement level of $29.0886 and then to the 78.6% retracement level of $30.9884.
Contrary to this assumption, if the BNB/USD pair reverses direction from the current levels and breaks below the moving averages, a retest of $22.10 will be on the cards.
DOT/USD
Polkadot (DOT) turned around from $4.1152 on Sep. 27 and the bulls are now trying to push the price above the 20-day EMA ($4.60). A break above this resistance will suggest that the correction might be over.
DOT/USD daily chart. Source: TradingView
The first target on the upside is $4.9210 and above this, the DOT/USD pair could move up to $5.5899. If the pair turns down from either level, a few days of range-bound action is possible.
However, if the bulls can push the price above $5.5899, a retest of the recent highs at $6.8619 could be on the cards.
This positive view will be invalidated if the pair turns down and breaks below the $4–$3.5321 support zone.
LINK/USD
The bears are defending the 20-day EMA ($10.76) but the bulls are not allowing Chainlink (LINK) to sustain below $10. This suggests that the bulls are accumulating around the current levels and this tight consolidation increases the possibility of a break above the 20-day EMA.
LINK/USD daily chart. Source: TradingView
If the bulls can push the price above $11.199, the downtrend could possibly be over. The next target on the upside is $13.28 and if the bulls can push the price above this resistance, the up-move can reach $17.77.
However, if the bears defend the $13.28 resistance, the LINK/USD pair may turn down and remain range-bound for a few days. The flat moving averages and the RSI near the 50 level also indicates a possible consolidation.
This bullish view will be invalidated if the pair turns down from the current levels and breaks below the $6.90 support.
ADA/USD
The relief rally in Cardano (ADA) surged above the 20-day EMA ($0.094) on Sep. 25 and the bulls are now attempting to push the price above the 50-day SMA ($0.109). If they succeed, it will suggest that the downtrend has ended.
ADA/USD daily chart. Source: TradingView
The 20-day EMA is gradually turning up and the RSI has also risen into the positive territory, which shows that the bulls are making a comeback. If the ADA/USD pair breaks out and closes (UTC time) above the 50-day SMA, the up-move can reach $0.1280.
However, if the pair turns down from the current levels, the bulls will try to buy the dip to the 20-day EMA. A strong bounce off this support will suggest that the sentiment has turned positive.
This view will be negated if the pair turns down and breaks below the 20-day EMA. Such a move could retest the recent lows at $0.0755701.
BSV/USD
Bitcoin SV (BSV) broke above the 20-day EMA ($165) on Sep. 26 and the bulls are now trying to push the price above the 50-day SMA ($182). However, the bears are likely to pose a stiff challenge at this resistance.
BSV/USD daily chart. Source: TradingView
If the price turns down from the 50-day SMA and breaks below the 20-day EMA, the bears will again try to sink the BSV/USD pair below the $146.20–$135.00 support zone.
However, the RSI has risen into the positive territory and the 20-day EMA is trying to turn up, which suggests that the bulls have the upper hand.
If the bulls can propel the price above the 50-day SMA, the pair can move up to $208.10 and then to $227.
CRO/USD
The bulls are attempting to drive Crypto.com Coin (CRO) above the 20-day EMA ($0.157) and the resistance line of the descending triangle. If they succeed, it will invalidate the bearish setup.
CRO/USD daily chart. Source: TradingView
The failure of a bearish setup traps several aggressive bears who have gone short anticipating the prices to fall. They are then forced to cover their positions at higher levels, fueling a rally.
In this case, if the price closes (UTC time) above the triangle, the CRO/USD pair could move up to $0.183416 and above it to $0.191101.
Contrary to this assumption, if the pair turns down from either the 20-day EMA or the resistance line, the bears will once again try to sink the price below $0.144743. If they succeed, the bearish reversal pattern will complete and may result in a deeper correction.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Market data is provided by HitBTC exchange.
