China has attempted to stifle the growth of the cryptocurrency sector on several occasions in the past 12 years, but with the slightest exception, a blanket ban on crypto-trading has not altered the long-term growth of cryptocurrencies. This shows that not a single country, even the second largest economy in the world, can stop the emergence and growth of cryptocurrencies.
Bitcoin (BTC) is likely to “remain highly volatile for the foreseeable future” as most people buy it either for investment or speculation rather than as a medium of exchange, Deutsche Bank analyst Marion Laboury said in an update on the bank’s website.
However, Laboure believes that Bitcoin could become the “digital gold of the twenty-first century” and this trend could continue for centuries without significant government control.
At Morningstar’s annual investment conference, Dennis Lynch, Head of Asset Management at Counterpoint, likened bitcoin to a South Park Kenny cartoon. “I like to say that bitcoin is like Kenny from South Park — he dies in every episode, and comes back again,” Lynch said.
As the influence of China’s FUD wanes, let’s examine the charts of the top 5 cryptocurrencies that may remain strong in the short term.
BTC / USDT
Bitcoin bounced back from the 100-day simple moving average ($41,002), which indicates that the bulls are trying to defend this level aggressively. The bulls will now attempt to push the price above the 20-day exponential moving average ($45,178).
The 20-day slope EMA and the Relative Strength Index (RSI) are in negative territory, indicating that the bears have the upper hand. If the price falls below the 20 day moving average, the probability of a breakout below the 100 day simple moving average increases.
Such a move will complete the bearish head and shoulders pattern, which is targeting $32,423.05.
The bulls will have to push the price and hold it above the general resistance at $48,843 to open doors for a potential rally to $52,920. A breakout and a close above this level may indicate a resumption of the uptrend.
BTC/USDT is witnessing a strong struggle between the bulls and the bears near the neckline. The bulls pushed the price above the 20-EMA and will then attempt to remove the upper barrier at $45,200.
If they can pull it off, the pair could go up to $49,000. Conversely, if the price drops below the current level, the bears will attempt to pull the price below the critical support area at $41,000 to $39,600. Violation of this area may signal the beginning of a downtrend.
AVAX / USDT
Avalanche (AVAX) is trading inside a bullish channel pattern. The long tail on today’s candle indicates that the bulls are buying aggressively on dips to the 20-day moving average ($61).
Bullish moving averages and the RSI in positive territory indicate the advantage of the buyers. The AVAX/USDT pair could now attempt to retest the all-time high at $79.80. This is an important level to watch because a break above it may signal a resumption of the uptrend.
The pair may then rise to the resistance line of the channel and the bullish momentum may rise if this hurdle is crossed.
Conversely, if the price breaks below the current level or upper resistance and breaks below $60.04, it will signal the start of a deeper correction to the 50-day SMA ($45).
The pair bounced off the 100-SMA and the bulls are trying to keep the price above the 20-EMA. If they manage to do so, the pair could start its northward march to $79.80 where the bears may once again build up to heavy resistance.
On the downside, the critical level to watch is the channel support line. A breakout and a close below this support would be the first indication that the bulls may lose their grip. If the price drops below $60.04, the decline could extend to $55.
ALGO / USDT
Algorand (ALGO) is trading below the 20-day moving average ($1.77) but the long tail on today’s candle indicates that the bulls are trying to defend the support at $1.51.
If the bulls move and keep the price above the downtrend line, this will indicate that the short-term correction may be over. The ALGO/USDT pair could then rise to $2.15 and then $2.55.
Alternatively, if the price drops from $1.84, the pair could drop again to $1.51. If the bulls defend this support, the pair may remain in a range between $1.84 and $1.51 for a few days.
A breakout and a close below $1.51 would indicate a possible change in direction. The pair can then slide to the next support level at $1.15.
The pair is trying to bounce off the strong support at $1.51 but the recovery may hit a barrier at the moving averages and then again at the downtrend line.
If the price falls below the general resistance, this will indicate that sentiment is still negative and that traders are selling on relief rallies. This will increase the probability of a break below $1.51.
This negative outlook will be nullified if the price rises and continues above the downtrend line. The bulls will then make another attempt to resume the upward movement.
Related: Derivatives data indicates that Solana has reached a peak in the short term
XTZ / USDT
Tezos (XTZ) rebounded sharply from the breakout level at $4.47 on September 22, indicating strong buying on the dips. The bulls pushed the price back above the 20-day moving average ($6.10) on September 23 and have continued at the level since then.
The moving averages are sloping up and the RSI is in the positive territory, indicating that the bulls have the upper hand. Buyers are likely to challenge the upper resistance area at $8.03 to $8.42.
A breakout and a close above this area will signal the beginning of the next phase of the uptrend. The pair may then rise to the psychological level of $10.
Contrary to this assumption, if the price breaks below the current level or upper resistance and breaks below the 20-day moving average, the pair could drop to $4.47.
The pair is trying to bounce off the 20-EMA, indicating that sentiment has turned positive and traders are buying on dips. The bulls will now attempt to push the price to the general resistance at $7.50.
If this level is measured, the pair could rise to $8.03 as the bears are likely to form heavy resistance. If the bulls don’t give up a lot of ground from this resistance, the likelihood of a breakout above it increases.
This uptrend will be nullified if the price falls and breaks below the moving averages. Such a move could lead to a drop to $5.50 and then to $4.47.
EGLD / USDT
Elrond (EGLD) bounced off the 50-day simple moving average ($181) but was unable to break the upper barrier at $245.80. This indicates that the bulls are buying on the dips while the bears are selling on the rallies.
The 20-day moving average ($220) has flattened and the RSI is slightly above its midpoint, indicating a balance between supply and demand.
Buyers are trying to keep EGLD/USDT above the 20-day moving average. If they manage to do so, the bulls will once again attempt to push the pair above $245.80. If they manage to do so, the pair could rise to $303.03.
Conversely, if the bears pull the price down from the current level, it is possible to retest the 50 day simple moving average. A breakout and a close below this support could open the door for a further decline to the 100-day simple moving average ($132).
The pair has bounced off the uptrend line, indicating that traders are buying on dips. The bulls will now try to push the price and keep it above the downtrend line. If they succeed, the pair may resume its bullish move and rise to $277.88 and then to $303.03.
Contrary to this assumption, if the price falls from the downtrend line, the bears will try to gain an advantage by dragging the price below the uptrend line. Such a move could pave the way for a deeper correction.
The opinions 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 do your own research when making a decision.
