Bitcoin price is decreasing rapidly, dragging altcoins to critical support levels and testing the resolve of traders who are searching for a bullish reversal.
Bitcoin price is decreasing rapidly, dragging altcoins to critical support levels and testing the resolve of traders who are searching for a bullish reversal. Bitcoin’s (BTC) roof has been going down in the past few days, which is a negative sign as the sign shows that bears are selling on every little detail on rally. Bitcoin’s weakness is becoming an issue for the major altcoins as most are gradually decreasing. According to Joel Krugar, a Forex strategist at LMAX, “It would be foolish to rule out the possibility for a drop back below the June low, and we think there would be a risk in that scenario where the Bitcoin price could revisit the old record high area around $20,000.”
Nevertheless, Bitcoin’s fundamentals seem to be getting better. The network hashrate had taken a big hit due to China’s recent crackdown on miners, but it is coming back eventually on track based on the data from different on-chain sources. This proves how the network has balanced itself without the need for any extra help from any external agency.
Bitcoin has been fighting to get above the 20day substantial moving average ($34,245). This seems like a negative sign as it points out that the bears are aggressively standing by the resistance. The price has gone down from the 20-day EMA today and the bears will now try to decrease the price down to $31,000. The 20-day EMA has started to go down again and the relative strength index (RSI) has decreased again by 45, proving that bears are attempting to get ahead. A break and close down $31,000 will be the first implication towards the resumption of the downtrend. The selling could get intense in the future if the $28,000 support breaks down. This could end up in liquidation, which could pull down the price to $20,000. If the price increases from the present level and breaks above the 20-day EMA it will show the accumulation by the bulls.
The buyers have been fighting to increase ether (ETH) above the 20-day EMA ($2,17) for the last three days, which shows tough resistance from the bears at this level. The sellers are trying to sink the ETH/USDT pair down the psychological support at $2,000. If they try to do that, the pair may go down to $1,728.74. A break under this could point out the resumption of the downtrend.
Nonetheless, if the price increases from the present level and rises above the 20-day EMA, it shows that bulls are trying to get into the top of the game again. The buyers would then try to push the price above the 50-day SMA. This level may seem as a tough resistance but if the pair climbs ahead of it the next stop could be the downtrend line.
Binance coin (BNB) has been trading between the moving averages for the last five days. This tight competition proves that bulls are buying on dips to the 20-day EMA ($313) and bears are supporting the 50-day SMA ($333). Nevertheless, this stiff-range trading is most likely to continue for long. If the bulls move the price above the 50-day SMA, the BNB/USDT pair could pick uo the pace and rally toward $379.58. if bulls clear this hurdle, the high move could reach $433. On the other hand, if bears decrease and maintain the price under the 20-day EMA, the pair could move on to the $276.40 to $264.26 support zone. A break under this zone could pull the price down under to the critical support at $211.70.
Cardano (ADA) has been trading between the 20-day EMA ($1.37) and the horizontal support at $1.28 for the last three days. This tough combination points out that both the bulls and the bears are waiting for a clear direction before putting out larger bets. Both moving averages are almost flat and the RSI is higher than 44, pointing out that an equilibrium between buyers and sellers. This superiority could move on to in favor of the bears if the $1.28 support gives way. This will clear the way for a possible drop to $1.20 and then $1.10.
However, if the price rebounds off $1.28, the bulls will try to push the price above the 20-day EMA. If they succeed, the ADA/USDT pair could increase to the 50-day SMA ($1.47) and then move on to the downtrend line. A break above this resistance will be shown as the first initial sign that the correction might be over for good.
Dogecoin (DOGE) is trying its best to stay on above the $0.21 support, which points out that a lack of buying as traders are not confident of a rally. This increases the chances of a break under the $0.21. if this happens, the DOGE/USDT pair could drop down to the next important level at $0.15. if the price rebounds off the present level, the bulls will try to push the pair above the 20-day EMA. If they succeed, the pair may recover to the 50-day SMA($0.28) and then to the neckline.