On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
Positive news about China’s Evergrande meltdown and the Fed’s intent to continue its current monetary policy catalyzed a strong recovery in the price of Bitcoin and altcoins.
The crypto markets and U.S. equity markets are attempting a recovery today as fears of a widespread contagion due to Chinese developer Evergrande defaulting on its debt recede. Bridgewater Associates co-chairman and co-chief investment office Ray Dalio said on Wednesday that Evergrande’s debt was “manageable.”
Ming Tan, a director at the credit rating agency Standard & Poor’s, said that the Chinese government may step in and restructure Evergrande.
The Crypto Fear & Greed Index had plunged to 21 levels, indicating extreme fear among investors. However, while speaking on CNBC, Galaxy Digital CEO Mike Novogratz said that the crypto markets remain in good shape as long as Bitcoin (BTC) sustains above $40,000 and Ether (ETH) stays above $2,800.
Traders may now shift their focus to the Federal Reserve’s policy statement with economic and interest rate forecasts on Wednesday, which will be followed by a press conference by Fed Chair Jerome Powell.
Could Bitcoin and altcoins sustain the rebound or will higher levels attract selling by the bears? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Bitcoin plunged below the neckline on Sept. 21, which completed the bearish head and shoulders pattern. However, a positive was th bulls have pushed the price back above the neckline today. This suggests strong buying at lower levels.
If buyers sustain the price above the neckline, it could trap several aggressive bears, resulting in a short squeeze. The BTC/USDT pair could then rally to the 20-day exponential moving average ($46,038) where bears may pose a stiff challenge.
The moving averages have completed a bearish crossover and the relative strength index (RSI) is in the negative zone, indicating that bears are in command.
If the price fails to sustain above the neckline, the bears will attempt to resume the downtrend. The first support on the downside is $37,332.70 and then the pattern target at $32,423.05.
A break and close above the moving averages will be the first indication that the correction may be over.
ETH/USDT
Ether plummeted and closed below $3,000 on Sept. 20, which completed the bearish head and shoulders pattern. Usually, the breakdown from the neckline is retested and that is what is happening today.
The moving averages have completed a bearish crossover and the RSI is in the negative zone, indicating advantage to bears. If the price turns down from the current level, the bears will attempt to resume the down move toward the pattern target at $1,972.12.
Conversely, if bulls sustain the price above $3,000, it will indicate accumulation on dips. The ETH/USDT pair could then rally to the 20-day EMA ($3,303), which may again act as a stiff resistance. A breakout and close above this level could signal that bulls are back in the game.
ADA/USDT
Cardano (ADA) is in a strong corrective phase but the bulls are attempting to arrest the decline at the strong support at $1.94 where they are likely to run into a wall at the 20-day EMA ($2.38).
The moving averages are close to completing a bearish crossover and the RSI is in the negative territory, suggesting that bears have the upper hand. If the price turns down from the 20-day EMA, the bears may again challenge the $1.94 support.
A break and close below this level could open the doors for a further fall to $1.60. The bulls will have to push and sustain the price above the 20-day EMA to indicate the start of a sustained recovery. The ADA/USDT pair could then rise to $2.60 and later to $2.80.
BNB/USDT
Binance Coin (BNB) broke below the Sept. 7 low at $369 on Sept. 20 and reached the strong support at $340 on Sept. 21. The bulls are currently attempting to defend this level.
The moving averages have completed a bearish crossover and the RSI is below 41, indicating that bears are at an advantage. Any pullback is likely to be met with strong selling near the 20-day EMA ($410).
If bears sink the price below $340, the BNB/USDT pair could drop to the psychological support at $300 and then to $250. This negative view will be negated if bulls propel and sustain the price above the overhead resistance at $433.
XRP/USDT
XRP plunged and closed below the Sept. 7 intraday low at $0.95 on Sept. 20, suggesting that supply exceeds demand. The moving averages have completed a bearish crossover and the RSI is in the negative zone, indicating that bears have the upper hand.
The current relief rally is likely to hit a hurdle at the 20-day EMA ($1.06). If the price turns down from this resistance, it will indicate that traders continue to sell on rallies. The bears will then attempt to resume the down move.
If the price slips below $0.85, the XRP/USDT pair could drop to the next support at $0.75. The bulls will have to push and sustain the price above the overhead resistance zone at $1.07 to $1.13 to indicate strength.
SOL/USDT
Solana (SOL) broke and closed below the 20-day EMA ($144) on Sept. 20, which is the first sign that the bullish momentum may be weakening. The bulls attempted to push the price back above the 20-day EMA on Sept. 21 but failed, indicating that bears are attempting a comeback.
The SOL/USDT pair rebounded off the 61.8% Fibonacci retracement level at $123.42 and has reached the 20-day EMA.
If bulls push the price above the 20-day EMA and the downtrend line, the pair could rise to $171.47. This level may again act as a resistance but a break above it could result in a move to $200 and then to $216.
On the contrary, if the price turns down from the current level or the downtrend line, it will suggest selling at higher levels. The bears will then try to sink the price below $123.42 and extend the decline to the 50-day simple moving average ($104).
DOT/USDT
Polkadot (DOT) broke below the 50-day SMA ($27.71) on Sept. 21 but bulls bought the dip aggressively and have reclaimed the level today. That seems to have trapped the bears, resulting in a short squeeze.
The DOT/USDT pair has reached the 20-day EMA ($31.42) which is an important level to watch out for. If buyers drive the price above this resistance, the pair could rise to $35 and then retest $38.77.
Conversely, if the price turns down from the 20-day EMA, it will suggest that traders are selling on rallies. The bears will then make one more attempt to pull the price to the Sept. 7 intraday low at $22.66.
Related: Bitcoin bounces again after briefly losing $40K support — Watch these BTC price levels
DOGE/USDT
Dogecoin (DOGE) broke and closed below the $0.21 support on Sept. 20 but the bears could not crack the next support at $0.19. This suggests demand at lower levels.
The bulls are attempting to sustain the price above $0.21 today. If that happens, the DOGE/USDT pair could rise to the 20-day EMA ($0.24). The bears are likely to defend this level aggressively.
If the price turns down from the 20-day EMA, the bears will make one more attempt to sink the price below the $0.21 to $0.19 support zone. If they manage to do that, the pair could drop to the critical support at $0.15.
The bulls will have to push and sustain the price above the downtrend line to indicate that the correction could be over.
AVAX/USDT
Avalanche (AVAX) has bounced back sharply from the 20-day EMA ($56.34) today, suggesting that the sentiment remains positive and traders are buying on dips.
The buyers have pushed the price above the overhead resistance at $66.24, increasing the possibility of a retest of the all-time high at $76.27. A breakout and close above this resistance will signal the resumption of the uptrend.
Contrary to this assumption, if the price turns down from the current level or the overhead resistance, it will indicate that higher levels are attracting profit-booking. The bears will then make one more attempt to sink the price below the 20-day EMA.
If they succeed, the AVAX/USDT pair could start a deeper correction to $48 and then to the 50-day SMA ($40.49).
UNI/USDT
Uniswap (UNI) broke and closed below the Sept. 7 intraday low at $21, suggesting that traders are rushing to the exit. The price is presently correcting inside a descending channel pattern.
The 20-day EMA ($24.10) is sloping down and the RSI is below 41, indicating that bears have the upper hand. Any rebound from the current level is likely to face stiff resistance at the 20-day EMA.
If the price turns down from this resistance, the UNI/USDT pair could drop to the support line of the channel. A break below $18 could open the doors for a possible decline to $13.
This negative view will invalidate if the price breaks and closes above the descending channel. The pair could then gradually move up to $27.62.
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.
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