BTC, AVAX, ALGO, XTZ, EGLD

China has tried several times over the past 12 years to slow the growth of the cryptocurrency sectorbut except for a short time Blanket bans on crypto trading have not disrupted the long-term growth of cryptocurrencies. This shows that no country, even if it is the second largest economy in the world, can stop the emergence and growth of cryptocurrencies.

Marion Laboure, an analyst at Deutsche Bank, stated in an update on the bank’s website that Bitcoin (BTC) is likely to “remain extremely volatile for the foreseeable future” as most people buy it to invest or speculate instead of using it as a medium of exchange.

However, Labore believes that Bitcoin could become “the digital gold of the 21st century” and the trend could continue for centuries without further government control.

Daily view of market data for cryptocurrencies. Source: Coin360
BTC, AVAX, ALGO, XTZ, EGLD
BTC, AVAX, ALGO, XTZ, EGLD

At Morningstar’s annual investment conference, Dennis Lynch, head of asset management at Counterpoint, compared Bitcoin to the cartoon character Kenny from South Park. Lynch said, “I like to say that Bitcoin is like Kenny from South Park: he dies and reappears in every episode“.

With the impact of China’s FUD wearing off, let’s examine the charts of the top 5 cryptocurrencies that could stay strong in the short term.

BTC / USDT

Bitcoin price has rebounded from the 100-day simple moving average ($ 41,002), suggesting that the bulls are aggressively trying to defend this level.. The bulls will now attempt to push the price above the 20-day exponential moving average ($ 45,178).

Daily chart of the BTC / USDT pair. Source: TradingView

The falling 20-day EMA and the negative RSI suggest that the bears have the upper hand.. If the price moves down from the 20-day EMA, the likelihood of a breakout below the 100-day SMA increases.

This move will complete the bearish head and shoulders pattern which is targeting $ 32,423.05..

The bulls need to push and hold the price above the overhead resistance of $ 48,843 to open the doors to a possible rally to $ 52,920.. A breakout and close above this level could signal the resumption of the uptrend.

4-hour chart of the BTC / USDT pair. Source: TradingView

The BTC / USDT pair is fighting an uphill battle between the bulls and bears near the cutout. The bulls have driven price above the EMA-20 and will then attempt to break the upper hurdle of $ 45,200.

If successful, the pair could climb as high as $ 49,000. Vice versa, If the price moves down from current levels, the bears will attempt to push the price below the critical support zone at $ 41,000 to $ 39,600. A breach of this zone can indicate the beginning of a downtrend.

AVAX / USDT

Avalanche (AVAX) trades within an ascending channel pattern. The long tail of today’s candle suggests that the bulls are aggressively buying during the break to the 20-day EMA ($ 61)..

AVAX / USDT daily chart. Source: TradingView

The upward moving averages and positive RSI indicate an advantage for buyers. The AVAX / USDT pair could now attempt to retest the all-time high of $ 79.80. This is an important level to consider, there a break above it could indicate the resumption of the uptrend.

The pair could climb to the resistance line of the channel and bullish momentum could increase if this hurdle is broken..

Vice versa, If the price turns down from the current level or resistance above it and breaks below $ 60.04, it signals the beginning of a lower correction towards the 50-day SMA ($ 45)..

AVAX / USDT 4-hour chart. Source: TradingView

The pair has rallied from the 100-day SMA and the bulls are trying to keep the price above the 20-day EMA. If successful, the pair could start its uptrend to $ 79.80where bears could build up stiff resistance again.

On the other hand, the channel’s support line is the critical level to watch. The breakout and close below this support will be the first signs that the bulls may lose control. If the price drops below $ 60.04, the decline could extend to $ 55.

SOMETHING / USDT

Algorand (ALGO) is trading below the 20-day EMA ($ 1.77), however The long tail of today’s candle suggests that the bulls are trying to defend the support at $ 1.51.

Daily chart of the ALGO / USDT pair. Source: TradingView

If the bulls are pushing and holding the price above the downtrend line, it suggests that the near-term correction may be over.. The ALGO / USDT pair could then rise to $ 2.15 and then to $ 2.55.

Instead of this, If the price drops from $ 1.84, the pair could fall back to $ 1.51. If the cops defend this support the pair could stay in a range between $ 1.84 and $ 1.51 for a few days.

A break and close below USD 1.51 will cause a possible trend reversal. The pair could then move towards the next support at $ 1.15.

4-hour chart of the ALGO / USDT pair. Source: TradingView

The pair is trying to ricochet off key support at $ 1.51.but the rebound could hit a barrier on the moving averages and then back on the downtrendline.

If the price moves down from the overhead resistance, it suggests that sentiment is still negative and traders are selling on relief rallies.. This increases the likelihood of a breakout below $ 1.51.

This negative opinion is canceled when the price goes up and stays above that Downtrend line. If so, the bulls will make one more attempt to resume the upward move.

XTZ / USDT

Tezos (XTZ) rebounded sharply from the $ 4.47 breakout level on September 22ndwhich indicates aggressive buying in dips. The bulls pushed the price back above the 20-day EMA (USD 6.10) on September 23 and have held the level since then.

XTZ / USDT daily chart. Source: TradingView

The moving averages are sloping up and the RSI is in positive territory, suggesting that the bulls have the upper hand.. Buyers are likely to challenge the $ 8.03 to $ 8.42 overhead resistance zone.

A breakout and close above this zone will initiate the next stage of the uptrend.. The pair could then rise to the $ 10 psychological mark.

Vice versa, If the price turns down from current levels or the upper resistance and breaks below the 20-day EMA, the pair could fall to $ 4.47..

4-hour chart for the XTZ / USDT pair. Source: TradingView

The pair is trying to bounce off the 20-day EMAwhich suggests sentiment has turned positive and traders are buying in downtrends. The bulls will now attempt to drive the price towards the overhead resistance of $ 7.50.

If that level is exceeded, the pair could rise to $ 8.03 where the bears could offer strong resistance.. Unless the bulls give up much of this resistance, the chance of a breakout increases.

This bullish view will be invalidated if the price drops and falls below the moving averages.. Such a move could cause a drop to $ 5.50 and then to $ 4.47.

EGLD / USDT

Elrond (EGLD) bounced off the 50 SMA. from days ($ 181), but could not overcome the upper hurdle of $ 245.80. This suggests that the bulls are buying on the dips while the bears are selling on the rises.

EGLD / USDT daily chart. Source: TradingView

The 20-day EMA ($ 220) has flattened and the RSI is just above the middle, indicating a balance between supply and demand..

Buyers are looking to keep the EGLD / USDT pair above the 20-day EMA. If they do, the bulls will try again to push the pair above $ 245.80. If successful, the pair could rise to $ 303.03.

Vice versa, If the bears push the price down from current levels, the 50-day SMA can be retested. A breakout and an end under this support could open the doors for further decline in the 100-day SMA ($ 132).

EGLD / USDT 4 hour chart. Source: TradingView

The pair has bounced off the uptrendline, suggesting traders are buying in downward moves.. The bulls will now try to push the price above the downtrend line and hold it. If they succeed the pair could continue on its upward trajectory, rising to $ 277.88 and then to $ 303.03.

Vice versa, If price moves away from the downtrend line, the bears will try to take an advantage and bring the price below the uptrend line. This step could pave the way for a deeper correction.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. All investing and trading involves risk, so do your own research when making a decision.

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