Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB)
The US stock market has been in the bears’ grip for most of the year. Accordingly, the S&P 500 and the Nasdaq Composite have lost three months in a row for the first time since 2009. The selling pressure just won’t stop and the Dow Jones Industrial Average is therefore on the verge of its worst September since 2002. These figures clearly show how badly battered the capital markets are at the moment.
Contrasting these disappointing developments is crypto market leader Bitcoin (BTC) and a few select altcoins, which held up solidly in September. Possibly already a first sign that the selling pressure on the crypto market is slowly easing in the lower areas and that long-term investors are taking the low prices as a buying opportunity in return.
In the forthcoming fourth quarter, investors will continue to focus primarily on the inflation numbers. Any indication that inflation has peaked could herald a new run for risky investment products like cryptocurrencies, but if inflation continues to rise, the selling pressure is likely to continue.
Where is the Crypto Market Headed? Let’s take a look at the courses!
Bitcoin bounced off the strong support at $18,626 on Sept. 28, suggesting the bulls are vigorously defending in this zone. The long fuse on the candle over the past two days shows that the bulls are buying back into any downturn immediately.
Accordingly, the bulls pushed bitcoin price above the 20-day EMA at $19,602 yesterday, September 30, but are now struggling to sustain the higher areas. This shows that the bears are busy selling at the 50-day SMA at $20,621.
If the bulls can prevent the price from falling back below the 20-day EMA now, the probability of a rally to the downtrend line increases. At this point at the latest, the bears will resist with all their might, but if the bulls can still clear this hurdle, at least a short-term trend reversal would be conceivable. This could potentially take the crypto market leader to $22,799.
However, if the price of Bitcoin fails the 50-Day EMA at $20,625, it is likely to drop to the $18,626 – $17,622 support area.
Ethereum (ETH) has been in a descending channel for several days. Thus, the price is stuck between $1,250 – $1,410 in the near term, suggesting that while there is buying interest on the lower levels, resistance awaits on the upper levels.
The price movements within the price range are random and volatile, which makes it all the more difficult to predict the further direction of the push.
If the price jumps above $1,410, then the bulls have absorbed excess supply which could mean a rally to the upper resistance line of the channel. In any case, the bulls still have to clear this hurdle to herald an actual trend reversal.
On the other hand, if Ethereum price dips below $1,250, the bears will try to capitalize on this advantage and push ETH out of the channel. If successful, a crash to $1,000 would be within the realms of possibility.
XRP settled at $0.43 at the 20-day EMA on Sept. 28, which could signal a change in sentiment. However, the bears are relatively unlikely to give up without a fight and are instead likely to put up a vigorous fight around the $0.52 – $0.56 area.
However, if the bulls do not relent, then the probability of a jump above the upper resistance area increases. A bounce above $0.56 could restart the previous uptrend, which could potentially push the ripple cryptocurrency as high as $0.66.
On the other hand, if the XRP price stays in the lower areas, a crash to $0.41 would be all the more realistic. But at the latest here the cops counter. In such a case, the cryptocurrency could move sideways for a few days.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and every trade involves risk. Research well before making a decision.
The market data comes from the crypto exchange HitBTC.