The recovery in the cryptocurrency market was shaken on September 24 after it was announced that the Chinese government was adopting a new package of measures that included stronger cross-departmental coordination to “cut payment channels, provide websites and relevant mobile applications to effectively combat illegal cryptocurrency transactions “. .
While the news sparked a sell-off, long-term investors are unlikely to be upset as nothing has changed other than announcing additional measures to effectively enforce the existing ban.
China first announced a ban on cryptocurrencies in September 2017, and that news had also sparked a sharp correction in the price of Bitcoin (BTC). That decline proved to be a good buying opportunity, however, as the price rebounded in a matter of weeks and hit a new all-time high near $ 20,000 in less than three months.
Is the current correction for Bitcoin and most of the major altcoins a good buying opportunity or could cryptocurrency markets continue to decline? Let’s take a look at the top 10 cryptocurrency charts to find out.
BTC / USDT
Bitcoin bounced off the 100-day SMA ($ 40,874) and rose above the neckline of the head-and-shoulders pattern on September 22nd. That showed strong demand at a lower level, but the rebound failed to break the hurdle at the 20-day exponential moving average ($ 45,596).
The falling 20-day EMA and the Relative Strength Index (RSI) in negative territory show that the bears have the upper hand. If the bears sink and hold below the 100-day SMA, the BTC / USDT pair could drop to $ 37,332.70.
This level can act as strong support, but if it breaks the next stop at the target of the pattern could be at $ 32,423.05.
Contrary to this assumption, if the price rises from current levels or the 100-day SMA, the bulls will try again to push the pair above the moving averages. A closing price above the 50-day SMA ($ 46,816) suggests the correction may be over.
ETH / USDT
Ether (ETH) rebounded from the 100-day SMA ($ 2,734) on September 22nd and rose above the breakout mark at $ 3,000. This shows that the bulls bought the dip and tried to catch the more aggressive bears.
However, the rebound stalled at $ 3,174.50 on September 23 and the bears are trying to establish their supremacy. The falling 20-day EMA ($ 3,255) and the RSI below 41 suggest that the bears are in charge.
If the index collapses and closes below the 100-day SMA, the ETH / USDT pair could see aggressive selling. Then the pair could fall towards the pattern target at $ 1,972.12. This negative view will invalidate whether the bulls are pushing and holding the price above the moving averages.
ADA / USDT
Cardano’s (ADA) strong rebound from the $ 1.94 level met an obstacle at the 20-day EMA ($ 2.36). This suggests sentiment remains negative and traders are selling rallies on the 20-day EMA.
The bears will now attempt to break the price below the critical support zone at USD 1.94 and the 100-day SMA (USD 1.83). If successful, the ADA / USDT pair could fall to $ 1.60 and then to $ 1.40.
Alternatively, if price rises from current levels or rebounds from $ 1.94, the bulls will try again to clear the general hurdle. A breakout and close above the 20-day EMA are the first signs that the correction may be over. The pair could rise to $ 2.60 and then to $ 2.80.
BNB / USDT
Binance Coin (BNB) rebound from strong support at $ 340 was rejected today at $ 385.30, suggesting strong selling by traders at the higher levels.
The descending 20-day EMA ($ 402) and the RSI below 37 suggest the bears are in control. If the support breaks at $ 340, selling could intensify and the BNB / USDT pair could extend its decline to $ 300 and then $ 250.
Contrary to this assumption, If the price recovers from current levels, the bulls will make another attempt to push the price above the moving averages. A breakout and close above $ 433 suggest the correction may be over.
XRP / USDT
XRP it bounced off the 100-day SMA ($ 0.87) on September 22nd, but the bulls were unable to continue the rally. The altcoin formed a doji candlestick pattern on September 23, indicating indecision between bulls and bears.
The uncertainty was resolved on the downside today as the bears pushed the price down to the 100 SMA. If that support breaks, selling could gain momentum and the XRP / USDT pair could slide to $ 0.70.
This level can act as strong support, but if the bears pull the price below it, the next stop could be at $ 0.50. This negative view will be reversed if the price bounces off the 100-day SMA and climbs above the $ 1.07 to $ 1.13 resistance zone.
SOL / USDT
Solana (SOL) rebounded and rose above the 20-day EMA (145) on September 22nd, but the bulls were unable to push price above the downtrend line. This suggests that the bears are selling in rallies.
The bears tumbled below the 20-day EMA again today and the SOL / USDT pair could now hit the 50-day SMA (USD 108). This level should serve as solid support.
When the price recovers, the bulls will try again to push and hold the price above the downtrend line. If they do, the pair could climb to $ 170 and then to $ 200.
Vice versa, If the 50-day SMA is not met, the pair could panic selling and the price could fall to the 78.6% Fibonacci retracement level at $ 98.26.
DOT / USDT
Polkadot (DOT) rebound from $ 25.50 stalled at $ 33.60. This suggests that the bears are selling at the higher levels. The bears are trying to push the price below the breakout mark at $ 28.60. If they get away with this, the $ 25.50 level will likely be retested.
A breakout and close below $ 25.50 will complete a bearish head and shoulders pattern. The DOT / USDT pair could begin its decline to the 100-day SMA ($ 21.87) and then the target of the pattern at $ 12.23.
Contrary to this assumption, the bulls will make one more attempt to resume the bullish move if price rebounds from current levels or the neckline. A breakout and close above $ 33.60 could open the doors for a retest of $ 38.77.
DOGE / USDT
The bulls pushed Dogecoin (DOGE) above $ 0.21 on September 22nd, but the rally failed to attract buyers at the higher levels. After an intraday candlestick pattern formed on September 23, the price has fallen below $ 0.21 today.
The falling 20-day EMA ($ 0.23) and the RSI near 36 suggest sellers have the edge. If the bears sink below the $ 0.19 support, the DOGE / USDT pair could extend its decline to the critical support at $ 0.15.
This level has already been held three times so the bulls will try again defend. On the flip side, if the bears push the price below $ 0.15, sales could pick up and the pair could drop to $ 0.10.
AVAX / USDT
Avalanche (AVAX) rebounded from the 20-day EMA (USD 60.15) on September 21 and rose to a new all-time high on September 23. However, the bulls were unable to push price above the resistance line of the ascending channel, which may have resulted in short-term profit-taking by traders.
The AVAX / USDT pair was down today and the first stop could be the channel support line. A strong rebound from this support indicates that the uptrend remains intact and traders accumulate on dips. The pair could then climb to $ 94.
On the other hand, a breakout and close under the channel is the first sign that the bulls might lose control. If the bears carry the price below the 20-day EMA, the pair could plunge to $ 48 and then the 50-day SMA ($ 43.06).
MOON / USDT
The cops successfully defended the retest of the breakout level in the LUNA token of the Terra Protocol on September 21st. This indicated that sentiment remained positive and traders viewed the declines as a buying opportunity.
Buyers pushed the price above the 20-day EMA ($ 33.06) on September 22nd followed with another upward move on September 23rd, suggesting that upside momentum may be wearing off.
Should the bears pull and hold below the 20-day EMA, the LUNA / USDT pair could slide back to the critical support at $ 22.40. This is an important level to watch out for because if it goes broke sales could intensify and the pair could drop to $ 18.
On the flip side, the pair could retest the all-time high at $ 45.01 if the bulls keep the price above $ 40. A breakout and a close above this level could indicate a resumption of the uptrend.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade carries a risk, you must do your own research when making a decision.
Market data are provided by the exchange HitBTC.