US stock markets rose sharply last week, ending a three-week losing streak. The S&P 500 rose 3.65% last week while the Nasdaq Composite rose 4.14%. Continuing its close relationship with the US equity market, Bitcoin (BTC) has also made a strong comeback and is trying to end the week gaining more than 7%.
A strong rally in the cryptocurrency market shows signs of bottoming out, but it may be too early to predict the start of a new upward movement. Markets may remain in the limit before the release of US inflation data on September 13 and the Federal Reserve meeting on September 11. 20-21.
In addition to receiving inspiration from the stock market, the cryptocurrency space has its own important events to look forward to. The connection of Ethereum and the Vasil hard fork of Cardano (ADA) is expected in the coming days to increase the exchange rate of many cryptocurrencies.
Although dead markets increase risk, they can provide short-term trading opportunities for agile traders. Let's study the chart of five interesting cryptocurrencies in a short time.
BTC/USD
Bitcoin rose above its 20-minute moving average ($20,662) on September 1. 9, which is the first indication that pressure decay can be mild. The bears are trying to block the rally at the 50-day easy moving average ($21,946), but a good sign is that the bulls have not yet given ground. The 20-day EMA has started to rise gradually and the Relative Strength Index (RSI) is in a positive zone indicating that the path of least resistance is up. If the bulls push the price above the 50-day SMA, the BTC/USD pair may converge on strong resistance at $25,211. Bears are expected to vigorously defend this position.
Another possibility is that the price falls from the 50 day SMA. If this happens, the pair may fall to the 20-day EMA. This is an important level to watch as a breakout and a close below it could open the door to $18,626. On the other hand, if the price moves out of the 20-day EMA, it will make a break above the 50-day SMA.
The pair gained momentum after breaking above the $19,520 break-even level. A strong rally pushed the RSI into an overbought zone, suggesting support or a minor correction. Traders are facing a strong challenge near $22,000, but have not yet given way to the bears. This shows that every short is bought.
If the bulls raise the price above $22,000, the pair can quickly rise to $23,500 while the bears can try again to block the front. Contrary to this view, if the price falls and breaks below the 20-EMA, the pair may fall to $20,576. A break below this level would suggest that the pair could support a range between $22,000 and $18,626 for some time.
ATOM/USDT
Cosmos (ATOM) broke above the stop of $13.45 on September 8, indicating a trend at a higher level. The next resistance is $ 20.30, which allows for a session.
However, before that, the bears will try to pull the price below the stop level of $13.45. This is an important level to watch as a break in the bottom limit will indicate that the recent break could be a serious trap.
On the other hand, if the price rises from the current level or returns to $13.45, it will suggest that the bulls are in control and buy at any entry. If the bulls push the price above $17.20, the upside could extend to $20.30.
The 4-hour chart shows that the pair ATOM/USDT ran high when they stopped above the major resistance at $13.45. This caused the RSI to enter the trained zone and start a correction, but the best sign is that the bulls have not yet given ground.
If the price returns from the current level, the possibility of a break above $17.20 increases. If that happens, the upside could continue and the pair could move back to $20.30.
This positive view can be broken in the short term if the price continues to decline and falls below the 20-EMA. If that happens, the pair may fall to the 50% Fibonacci retracement level of $14.36.
APE/USD
ApeCoin (APE) triggered strong support at $4.17, indicating strong buying at lower levels. This shows that the correction process may be going down, making it interesting for a while.
Buyers drove the price above the 20-day EMA ($5) on September 9 and the APE/USDT pair formed an intraday Doji candlestick pattern on September 9. 10. This uncertainty decided on the upside on September 1st. 11 has a strong move towards the 50-day SMA ($5.85). Bears can try to block the session at this level. If the price goes down from the current level and breaks out of the 20-day EMA, this will indicate that the sentiment has changed positively and buyers are buying low. The bulls will try again to push the price above the 50-day SMA. If they do, the pair could rise above resistance at $7.80.
This positive view can be broken in the short term if the price declines and falls below the 20 day EMA. In this case, the pair could fall to $4.17.
The 20-EMA on the 4-hour chart started to converge and the RSI rose into the trained zone. This shows that the bulls have the upper hand but it is possible to come back in a short period of time.
If the price goes down from the current level but it will come out of $5.30, this will suggest strong strength at the lower level. The bull will make another attempt to push the price above $5.83 and extend the rally to $6.44.
On the other hand, if the price falls and falls below the 20-EMA, the value can support the bears.
CHF/USD
Chiliz (CHZ) broke above the 20-day EMA ($0.20) on September 9, which is the first indication that the correction process may end. Therefore, this icon is added to the list.
The bear attempted to bring the price back below the 20-day EMA on September 1. 10 and the bull held on. Buyers are trying to push the price in front of stability at $0.26, but the upside may face resistance near $0.23. If the price declines but does not break below the 20-day EMA, it will increase the chance of a rally to $0.26. Contrary to this theory, if the price goes down and breaks below $0.20, it will suggest that the bear is working at a higher level. This may drag the price towards the 50-day SMA ($0.18).
The 4-hour chart shows bears defending the bottom line. If the price falls from the current level but it breaks away from the moving average, it will suggest that the bulls are trying to return.
Buyers will try again to push the price above the downtrend line. If successful, the pair may begin its journey north to $0.23 and eventually to $0.26.
On the other hand, if the price falls below $0.20, it would suggest that the pair may be in a falling wedge pattern. This could bring the price down to $0.18.
QNT/USD
Quant (QNT) fell below strong support at $87.60, indicating positive sentiment and bulls are buying lower. This is the reason for his choice.
A strong recovery from the $87.60 break above the 20-day EMA ($100) on September 1. 8, which is the first indication that the maintenance process may end. The bears presented a strong challenge near the 50-day SMA ($105) but could not push the price below the 20-day EMA. This shows that the effect has been good and the bulls are buying in the water. Buyers pushed the QNT/USDT pair above the 50-day SMA on September 1. 11. If the bulls hold a higher level, the pair may rise to $117 and reach $124. A break above this level could open the door for a rally to $130.
The bullish trend can be broken if the price declines and falls below the 20-day EMA. If that happens, the pair may fall to strong support at $87.60.
The 4-hour chart shows that the pair has successfully bounced back to support at $87.60. The bears showed a big challenge near $108, but a good sign is that the bulls bought the fall from the 20-EMA. This shows that consumers view investment as a buying opportunity. Buyers took the session and raised the price above the main resistance at $ 108. The pair could climb to $ 113 and later to $ 117. On the other hand, if the price falls and falls below the 20-EMA, the pair may fall to the 50-SMA.